##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-K






|    |                                                                                         
|--- | ----------------------------------------------------------------------------------------
|[X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2004


OR




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

For the transition period
from           to


Commission file number 333-93437


Centra Financial Holdings, Inc.




|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|West Virginia                                                  |  | 55-0770610                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)
|                                                              
|990 Elmer Prince Drive, Morgantown, WV                         |  | 26505                               
|(Address of principal executive offices)                       |  | Zip Code)                           

(304) 598-2000






ü










Documents Incorporated by Reference:












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TABLE OF CONTENTS







|              |  |                                                                                               |    |      |    | 
|------------- |  | --------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|              |  |                                                                                               |    | Page |   
|              |  |                                                                                               |    |      |   
|PART I        |  |                                                                                               |    |      |    | 
|Item 1.       |  | Business                                                                                      |    |      | 3  | 
|Item 2.       |  | Properties                                                                                    |    |      | 9  | 
|Item 3.       |  | Legal Proceedings                                                                             |    |      | 9  | 
|Item 4.       |  | Submission of Matters to a Vote of Security
    Holders                                       |    |      | 9  | 
|             
|PART II       |  |                                                                                               |    |      |    | 
|Item 5.       |  | Market for Registrants Common Stock
    and Related Stockholder Matters                      |    |      | 9  | 
|Item 6.       |  | Selected Financial Data                                                                       |    |      | 10 | 
|Item 7.       |  | Managements Discussion and Analysis
    of Financial Condition and Results of
    Operations |    |      | 10 | 
|Item 7A.      |  | Quantitative and Qualitative Disclosures
    about Market Risk                                |    |      | 29 | 
|Item 8.       |  | Financial Statements and Supplementary
    Data                                               |    |      | 29 | 
|Item 9.       |  | Changes in and Disagreements with
    Accountants on Accounting and Financial
    Disclosure  |    |      | 29 | 
|Item 9A.      |  | Controls and Procedures                                                                       |    |      | 29 | 
|             
|PART III      |  |                                                                                               |    |      |    | 
|Item 10.      |  | Directors and Executive Officers of the
    Registrant                                        |    |      | 54 | 
|Item 11.      |  | Executive Compensation                                                                        |    |      | 54 | 
|Item 12.      |  | Security Ownership of Certain Beneficial
    Owners and Management                            |    |      | 54 | 
|Item 13.      |  | Certain Relationships and Related
    Transactions                                            |    |      | 54 | 
|Item 14.      |  | Principal Accounting Fees and Services                                                        |    |      | 54 | 
|             
|PART IV       |  |                                                                                               |    |      |    | 
|Item 15.      |  | Exhibits, Financial Statement Schedules and
    Reports on Form 8-K                           |    |      | 55 | 
|Signatures    |  |                                                                                               | 56 |     
|Exhibit Index |  |                                                                                               | 58 |     
|EX-3.2(A)    
|EX-10.12     
|EX-10.13     
|EX-10.14     
|EX-12        
|EX-14        
|EX-21        
|EX-23        
|EX-31.1      
|EX-31.2      
|EX-32.1      
|EX-32.2      



2



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PART I





ITEM 1.     BUSINESS
















Recent Additions






3



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Customers and Markets






Commercial Loans




Lending Practices.




Consumer Loans




Lending Practices.


4



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Real Estate Loans




Lending Practices.


Home Equity Loans.


Construction Loans.


Competition






5



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Supervision and Regulation




Bank Holding Company Regulation.










6



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Banking Subsidiary Regulation.


International Money Laundering Abatement and
Anti-Terrorist Financing Act of 2001 (USA Patriot Act).


Federal Deposit Insurance Corporation




Federal Home Loan Bank




Capital Requirements


Federal Reserve Board.


7



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West Virginia Division of Banking.


Limits on Dividends




Federal and State Laws




Monetary Policy and Economic Conditions






Effect of Environmental Regulation




8



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|        |           
|------- | ----------
|ITEM 2. | PROPERTIES










|        |                  
|------- | -----------------
|ITEM 3. | LEGAL PROCEEDINGS








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






PART II







|        |                                                                          
|------- | -------------------------------------------------------------------------
|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED
    STOCKHOLDER MATTERS





Quarterly Market and Dividend Information:


|               |  |              |       |  |          |   |              |           |  |   |          |  |  |   |      | 
|-------------- |  | ------------ | ----- |  | -------- | - | ------------ | --------- |  | - | -------- |  |  | - | ---- | 
|               |  | 2004         |       |  | 2003     |  
|               |  |              |       |  |          |  
|               |  | Estimated    |       |  |          |   | Estimated    |           |  |  
|               |  | Market Value |       |  |          |   | Market Value |           |  |  
|               |  | Per Share    |       |  | Dividend |   |              | Per Share |  |   | Dividend | 
|               |  |              |       |  |          |   |              |           |  |   |          | 
|Fourth Quarter |  | $            | 14.09 |  |          | $ | 0.00         |           |  | $ | 14.09    |  |  | $ | 0.00 | 
|Third Quarter  |  |              | 14.09 |  |          |   | 0.00         |           |  |   | 13.64    |  |  |   | 0.00 | 
|Second Quarter |  |              | 14.09 |  |          |   | 0.00         |           |  |   | 13.64    |  |  |   | 0.00 | 
|First Quarter  |  |              | 14.09 |  |          |   | 0.00         |           |  |   | 11.36    |  |  |   | 0.00 | 







9



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|        |                        
|------- | -----------------------
|ITEM 6. | SELECTED FINANCIAL DATA



|                                                     |                              |      |           |      |      |   |           |      |   |   |           |      |   |      |           |       |    |   |           |        |   
|---------------------------------------------------- | ---------------------------- | ---- | --------- | ---- | ---- | - | --------- | ---- | - | - | --------- | ---- | - | ---- | --------- | ----- | -- | - | --------- | ------ | --
|(Dollars in Thousands, except Ratios and Per Share   |                              | 2004 |           |      | 2003 |   |           | 2002 |   |   | 2001      |      |   | 2000 |          
|Data)                                                |                              |      |           |      |      |   |           |      |   |   |           |      |   |      |          
|Operating Data                                       |                              |      |           |      |      |   |           |      |   |   |           |      |   |      |           |       |    |   |           |       
|For the year ended:                                  |                              |      |           |      |      |   |           |      |   |   |           |      |   |      |           |       |    |   |           |       
|Total interest income                                |                              | $    | 20,014    |      |      | $ | 14,634    |      |   | $ | 10,566    |      |   | $    | 7,118     |       |    | $ | 3,196     |       
|Total interest expense                               |                              |      | 6,846     |      |      |   | 5,304     |      |   |   | 4,312     |      |   |      | 3,662     |       |    |   | 1,767     |       
|Net interest income                                  |                              |      | 13,168    |      |      |   | 9,330     |      |   |   | 6,254     |      |   |      | 3,456     |       |    |   | 1,429     |       
|Provision for loan losses                            |                              |      | 2,160     |      |      |   | 2,099     |      |   |   | 967       |      |   |      | 793       |       |    |   | 636       |       
|Other income                                         |                              |      | 2,497     |      |      |   | 2,786     |      |   |   | 1,529     |      |   |      | 753       |       |    |   | 105       |       
|Other expense                                        |                              |      | 10,350    |      |      |   | 8,157     |      |   |   | 5,891     |      |   |      | 4,312     |       |    |   | 2,384     |       
|Income tax expense (benefit)                         |                              |      | 1,151     |      |      |   | (104      | )    |   |   |          |      |   |      |          |       |    |   |          |       
|Net income (loss)                                    |                              |      | 2,004     |      |      |   | 1,964     |      |   |   | 925       |      |   |      | (896      | )     |    |   | (1,486    | )     
|                                                    
|Balance Sheet Data                                   |                              |      |           |      |      |   |           |      |   |   |           |      |   |      |           |       |    |   |           |       
|At year-end:                                         |                              |      |           |      |      |   |           |      |   |   |           |      |   |      |           |       |    |   |           |       
|Total assets                                         |                              | $    | 442,284   |      |      | $ | 349,833   |      |   | $ | 266,236   |      |   | $    | 155,560   |       |    | $ | 76,794    |       
|Investment securities                                |                              |      | 23,386    |      |      |   | 22,895    |      |   |   | 37,170    |      |   |      | 13,096    |       |    |   | 23,422    |       
|Net loans                                            |                              |      | 390,520   |      |      |   | 291,468   |      |   |   | 184,362   |      |   |      | 117,239   |       |    |   | 41,783    |       
|Total deposits                                       |                              |      | 385,822   |      |      |   | 302,355   |      |   |   | 214,868   |      |   |      | 128,334   |       |    |   | 62,900    |       
|Short-term borrowings                                |                              |      | 14,507    |      |      |   | 16,953    |      |   |   | 24,578    |      |   |      | 12,551    |       |    |   | 3,488     |       
|Long-term debt                                       |                              |      | 10,000    |      |      |   |          |      |   |   |          |      |   |      |          |       |    |   |          |       
|Stockholders equity                                 |                              |      | 29,745    |      |      |   | 27,838    |      |   |   | 25,871    |      |   |      | 14,161    |       |    |   | 10,060    |       
|                                                    
|Significant Ratios                                   |                              |      |           |      |      |   |           |      |   |   |           |      |   |      |           |       |    |   |           |       
|Net income (loss) to:                                |                              |      |           |      |      |   |           |      |   |   |           |      |   |      |           |       |    |   |           |       
|                                                     | Average total assets         |      |           | .50  | %    |   |           | .64  | % |   |           | .45  | % |      |           | (.81  | )% |   |           | (3.33  | )%
|                                                     | Average stockholders equity |      |           | 6.98 |      |   |           | 7.32 |   |   |           | 4.52 |   |      |           | (6.99 | )  |   |           | (13.91 | ) 
|Average stockholders equity to average total assets |                              |      | 7.14      |      |      |   | 8.78      |      |   |   | 9.98      |      |   |      | 11.53     |       |    |   | 23.96     |       
|Average total loans to average deposits              |                              |      | 99.06     |      |      |   | 90.66     |      |   |   | 88.79     |      |   |      | 89.14     |       |    |   | 69.78     |       
|Risk-based capital ratio                             |                              |      | 12.09     |      |      |   | 10.95     |      |   |   | 15.16     |      |   |      | 12.92     |       |    |   | 21.90     |       
|                                                    
|Per Share Data                                       |                              |      |           |      |      |   |           |      |   |   |           |      |   |      |           |       |    |   |           |       
|Basic net income (loss) per share                    |                              | $    | .79       |      |      | $ | .80       |      |   | $ | .42       |      |   | $    | (.55      | )     |    | $ | (1.14     | )     
|Diluted net income (loss) per share                  |                              |      | .75       |      |      |   | .76       |      |   |   | .40       |      |   |      | (.55      | )     |    |   | (1.14     | )     
|Cash dividends paid                                  |                              |      | 0.00      |      |      |   | 0.00      |      |   |   | 0.00      |      |   |      | 0.00      |       |    |   | 0.00      |       
|Book value at end of period                          |                              |      | 11.65     |      |      |   | 10.91     |      |   |   | 10.14     |      |   |      | 8.04      |       |    |   | 7.62      |       
|Basic weighted-average shares outstanding            |                              |      | 2,552,506 |      |      |   | 2,552,506 |      |   |   | 2,197,397 |      |   |      | 1,619,500 |       |    |   | 1,308,157 |       
|Diluted weighted-average shares outstanding          |                              |      | 2,679,278 |      |      |   | 2,697,661 |      |   |   | 2,321,817 |      |   |      | 1,619,500 |       |    |   | 1,308,157 |       






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

Forward-looking Statements:




10



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| |   |                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------
| |  | General economic conditions, either nationally or within
    Centras markets, could be less favorable than expected;
|
| |  | Changes in market interest rates could affect interest margins
    and profitability;                                
|
| |  | Competitive pressures could be greater than anticipated;                                                             
|
| |  | Legal or accounting changes could affect Centras
    results; and                                                   
|
| |  | Adverse changes could occur in the securities and investments
    markets.                                           



Introduction




Application of Critical Accounting Policies






11



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Recent Accounting Pronouncements and Developments




Summary Financial Results








12



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Interest Income and Expense














13



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Statistical Financial Information Regarding Centra




Average Balances and Analysis of Net Interest Income:


|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |   |       |        |        |  |      |      |      |  
|------------------------------------------------- | ------------------------- | ------------------------------------------ | ------- | ------- | ------- | - | ------ | ------ | ------- |  | ------- | ---- | ---- | ------- | ------- | ------- | ------- | - | ----- | ------ | ------ |  | ---- | ---- | ---- | -
|                                                  |                           | 2004                                       |         |         | 2003    |  
|                                                  |                           |                                            |         |         |         |  
|                                                  |                           |                                            |         | Average |         |   |        |        | Average | 
|                                                  |                           | Average                                    |         |         | Income/ |   |        | Yield/ |         |  | Average |      |      | Income/ |         |         | Yield/  |  
|                                                  |                           | Balance                                    |         |         | Expense |   |        | Rate   |         |  | Balance |      |      | Expense |         |         | Rate    |  
|(Dollars in Thousands)                            |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|Securities(1)(4):                                 |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |   |       |        |        |  |      |     
|                                                  | Taxable                   |                                            | $       | 22,678  |         |   | $      | 457    |         |  |         | 2.02 | %    |         | $       | 30,737  |         |   | $     | 508    |        |  |      | 1.65 | %   
|                                                  | Tax-exempt                |                                            |         | 37      |         |   |        | 2      |         |  |         | 6.38 |      |         |         |         |         |   |       |        |        |  |      |      |     
|Loans (2)(3)(4):                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |   |       |        |        |  |      |     
|                                                  | Commercial                |                                            |         | 243,788 |         |   |        | 13,014 |         |  |         | 5.34 | %    |         |         | 170,102 |         |   |       | 9,269  |        |  |      | 5.45 | %   
|                                                  | Real estate               |                                            |         | 80,169  |         |   |        | 4,432  |         |  |         | 5.53 | %    |         |         | 47,462  |         |   |       | 2,857  |        |  |      | 6.02 | %   
|                                                  | Consumer                  |                                            |         | 25,880  |         |   |        | 1,905  |         |  |         | 7.36 | %    |         |         | 18,659  |         |   |       | 1,493  |        |  |      | 8.00 | %   
|                                                  | Allowance for loan losses |                                            |         | (5,276  | )       |   |        |        |         |  |         |      |      |         |         | (3,298  | )       |   |       |        |        |  |      |      |     
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|                                                  | Net loans                 |                                            |         | 344,561 |         |   |        | 19,351 |         |  |         | 5.62 | %    |         |         | 232,925 |         |   |       | 13,619 |        |  |      | 5.85 | %   
|Loans held for sale                               |                           |                                            | 1,866   |         |         |   | 112    |        |         |  | 5.98    | %    |      |         | 6,490   |         |         |   | 295   |        |        |  | 4.55 | %   
|Short-term investments:                           |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |   |       |        |        |  |      |     
|                                                  | Interest-bearing deposits |                                            |         | 1,219   |         |   |        | 33     |         |  |         | 2.74 | %    |         |         | 961     |         |   |       | 24     |        |  |      | 2.54 | %   
|                                                  | Federal funds sold        |                                            |         | 10,591  |         |   |        | 130    |         |  |         | 1.22 | %    |         |         | 20,456  |         |   |       | 223    |        |  |      | 1.09 | %   
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|                                                  | Total                     |                                            |         | 11,810  |         |   |        | 163    |         |  |         | 1.38 | %    |         |         | 21,417  |         |   |       | 247    |        |  |      | 1.15 | %   
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|                                                  |                           | Total earning assets                       |         |         | 380,952 |   |        |        | 20,085  |  |         |      | 5.27 | %       |         |         | 291,569 |   |       |        | 14,669 |  |      |      | 5.03 | %
|Other assets                                      |                           |                                            | 20,950  |         |         |   |        |        |         |  |         |      |      |         | 14,243  |         |         |   |       |        |        |  |      |     
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|                                                  |                           | Total assets                               |         | $       | 401,902 |   |        |        |         |  |         |      |      |         |         | $       | 305,812 |   |       |        |        |  |      |      |      |  
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|Interest-bearing deposits:                        |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |   |       |        |        |  |      |     
|                                                  | Savings                   |                                            | $       | 12,705  |         |   |        | 84     |         |  |         | 0.66 | %    |         | $       | 8,464   |         |   |       | 64     |        |  |      | 0.75 | %   
|                                                  | Demand                    |                                            |         | 97,219  |         |   |        | 926    |         |  |         | 0.95 | %    |         |         | 75,188  |         |   |       | 712    |        |  |      | 0.95 | %   
|                                                  | Time                      |                                            |         | 196,919 |         |   |        | 5,599  |         |  |         | 2.84 | %    |         |         | 143,996 |         |   |       | 4,450  |        |  |      | 3.09 | %   
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|                                                  |                           | Total                                      |         |         | 306,843 |   |        |        | 6,609   |  |         |      | 2.15 | %       |         |         | 227,648 |   |       |        | 5,226  |  |      |      | 2.30 | %
|Short-term borrowed funds                         |                           |                                            | 15,217  |         |         |   | 116    |        |         |  | .77     | %    |      |         | 17,243  |         |         |   | 78    |        |        |  | .45  | %   
|Long-term debt                                    |                           |                                            | 2,814   |         |         |   | 121    |        |         |  | 4.31    | %    |      |         |         |         |         |   |       |        |        |  |      |     
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|Total interest-bearing liabilities                |                           |                                            | 324,874 |         |         |   | 6,846  |        |         |  | 2.11    | %    |      |         | 244,891 |         |         |   | 5,304 |        |        |  | 2.17 | %   
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|Noninterest-bearing demand deposits               |                           |                                            | 46,327  |         |         |   |        |        |         |  |         |      |      |         | 32,910  |         |         |   |       |        |        |  |      |     
|Other liabilities                                 |                           |                                            | 1,988   |         |         |   |        |        |         |  |         |      |      |         | 1,166   |         |         |   |       |        |        |  |      |     
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|                                                  |                           | Total liabilities                          |         |         | 373,189 |   |        |        |         |  |         |      |      |         |         |         | 278,967 |   |       |        |        |  |      |      |      |  
|                                                  |                           | Stockholders equity                       |         |         | 28,713  |   |        |        |         |  |         |      |      |         |         |         | 26,845  |   |       |        |        |  |      |      |      |  
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|                                                  |                           | Total liabilities and stockholders equity |         | $       | 401,902 |   |        |        |         |  |         |      |      |         |         | $       | 305,812 |   |       |        |        |  |      |      |      |  
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|Interest rate spread                              |                           |                                            |         |         |         | $ | 13,239 |        |         |  | 3.16    | %    |      |         |         |         |         | $ | 9,365 |        |        |  | 2.86 | %   
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|Interest income/earning assets                    |                           |                                            |         |         |         |   |        |        |         |  | 5.27    | %    |      |         |         |         |         |   |       |        |        |  | 5.03 | %   
|Interest expense/earning assets                   |                           |                                            |         |         |         |   |        |        |         |  | 1.79    | %    |      |         |         |         |         |   |       |        |        |  | 1.82 | %   
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  
|Net yield on earning assets (net interest margin) |                           |                                            |         |         |         |   |        |        |         |  | 3.48    | %    |      |         |         |         |         |   |       |        |        |  | 3.21 | %   
|                                                  |                           |                                            |         |         |         |   |        |        |         |  |         |      |      |         |         |         |         |  

14



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|    |                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------
|(1) | Average balances of investment securities based on carrying
    value.                                             
|   
|(2) | Loan fees included in interest income for 2004 were $260 and
    $331 in 2003.                                     
|   
|(3) | Non-accrual loans are included in the daily average loan amounts
    outstanding.                                  
|   
|(4) | For 2004 and 2003, income is computed on a fully tax-equivalent
    basis assuming a tax rate of approximately 40%.

Average Balances and Analysis of Net Interest Income:


|                                                  |                           |                                            |         |         |         |   |       |        |        |  |      |      |      |  
|------------------------------------------------- | ------------------------- | ------------------------------------------ | ------- | ------- | ------- | - | ----- | ------ | ------ |  | ---- | ---- | ---- | -
|                                                  |                           | 2002                                       |        
|                                                  |                           |                                            |        
|                                                  |                           |                                            |         | Average |        
|                                                  |                           | Average                                    |         |         | Income/ |   |       | Yield/ |       
|                                                  |                           | Balance                                    |         |         | Expense |   |       | Rate   |       
|(Dollars in Thousands)                            |                           |                                            |         |         |         |   |       |        |       
|Securities(1):                                    |                           |                                            |         |         |         |   |       |        |        |  |      |     
|                                                  | Taxable                   |                                            | $       | 23,681  |         |   | $     | 499    |        |  |      | 2.11 | %   
|Loans(2):                                         |                           |                                            |         |         |         |   |       |        |        |  |      |     
|                                                  | Commercial                |                                            |         | 101,703 |         |   |       | 6,142  |        |  |      | 6.04 | %   
|                                                  | Real estate               |                                            |         | 36,060  |         |   |       | 2,395  |        |  |      | 6.64 | %   
|                                                  | Consumer                  |                                            |         | 12,095  |         |   |       | 1,057  |        |  |      | 8.74 | %   
|                                                  | Allowance for loan losses |                                            |         | (1,816  | )       |   |       |        |        |  |      |      |     
|                                                  |                           |                                            |         |         |         |   |       |        |       
|                                                  | Net loans                 |                                            |         | 148,042 |         |   |       | 9,594  |        |  |      | 6.48 | %   
|Loans held for sale                               |                           |                                            | 3,988   |         |         |   | 168   |        |        |  | 4.21 | %   
|Short-term investments:                           |                           |                                            |         |         |         |   |       |        |        |  |      |     
|                                                  | Interest-bearing deposits |                                            |         | 1,180   |         |   |       | 32     |        |  |      | 2.74 | %   
|                                                  | Federal funds sold        |                                            |         | 17,511  |         |   |       | 273    |        |  |      | 1.56 | %   
|                                                  |                           |                                            |         |         |         |   |       |        |       
|                                                  | Total                     |                                            |         | 18,691  |         |   |       | 305    |        |  |      | 1.63 | %   
|                                                  |                           |                                            |         |         |         |   |       |        |       
|                                                  |                           | Total earning assets                       |         |         | 194,402 |   |       |        | 10,566 |  |      |      | 5.44 | %
|Other assets                                      |                           |                                            | 10,447  |         |         |   |       |        |        |  |      |     
|                                                  |                           |                                            |         |         |         |   |       |        |       
|                                                  |                           | Total assets                               |         | $       | 204,849 |   |       |        |        |  |      |      |      |  
|                                                  |                           |                                            |         |         |         |   |       |        |       
|Interest-bearing deposits:                        |                           |                                            |         |         |         |   |       |        |        |  |      |     
|                                                  | Savings                   |                                            | $       | 4,811   |         |   | $     | 60     |        |  |      | 1.25 | %   
|                                                  | Demand                    |                                            |         | 56,649  |         |   |       | 812    |        |  |      | 1.43 | %   
|                                                  | Time                      |                                            |         | 84,871  |         |   |       | 3,322  |        |  |      | 3.91 | %   
|                                                  |                           |                                            |         |         |         |   |       |        |       
|                                                  |                           | Total                                      |         |         | 146,331 |   |       |        | 4,194  |  |      |      | 2.87 | %
|Short-term borrowed funds                         |                           |                                            | 14,893  |         |         |   | 118   |        |        |  | .79  | %   
|                                                  |                           |                                            |         |         |         |   |       |        |       
|Total interest-bearing liabilities                |                           |                                            | 161,224 |         |         |   | 4,312 |        |        |  | 2.67 | %   
|                                                  |                           |                                            |         |         |         |   |       |        |       
|Noninterest-bearing demand deposits               |                           |                                            | 22,444  |         |         |   |       |        |        |  |      |     
|Other liabilities                                 |                           |                                            | 727     |         |         |   |       |        |        |  |      |     
|                                                  |                           |                                            |         |         |         |   |       |        |       
|                                                  |                           | Total liabilities                          |         |         | 184,395 |   |       |        |        |  |      |      |      |  
|                                                  |                           | Stockholders equity                       |         |         | 20,454  |   |       |        |        |  |      |      |      |  
|                                                  |                           |                                            |         |         |         |   |       |        |       
|                                                  |                           | Total liabilities and stockholders equity |         | $       | 204,849 |   |       |        |        |  |      |      |      |  
|                                                  |                           |                                            |         |         |         |   |       |        |       
|Interest rate spread                              |                           |                                            |         |         |         | $ | 6,254 |        |        |  | 2.77 | %   
|                                                  |                           |                                            |         |         |         |   |       |        |       
|Interest income/earning assets                    |                           |                                            |         |         |         |   |       |        |        |  | 5.44 | %   
|Interest expense/earning assets                   |                           |                                            |         |         |         |   |       |        |        |  | 2.22 | %   
|                                                  |                           |                                            |         |         |         |   |       |        |       
|Net yield on earning assets (net interest margin) |                           |                                            |         |         |         |   |       |        |        |  | 3.22 | %   
|                                                  |                           |                                            |         |         |         |   |       |        |       

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|    |                                                                       
|--- | ----------------------------------------------------------------------
|(1) | Average balances of investment securities based on carrying
    value.
|   
|(2) | Loan fees included in interest income for 2002 were $211.             

Rate/Volume Analysis of Changes in Interest Income and
Expense:


|                              |                                  |                     |                                    |       |          |       |   |      |      |      |   |       |       |       |  
|----------------------------- | -------------------------------- | ------------------- | ---------------------------------- | ----- | -------- | ----- | - | ---- | ---- | ---- | - | ----- | ----- | ----- | -
|                              |                                  | 2004 vs. 2003       |                                   
|                              |                                  | Increase (Decrease) |                                   
|                              |                                  | Due to Change In:   |                                   
|                              |                                  |                     |                                   
|                              |                                  | Volume (1)          |                                    |       | Rate (1) |       |   | Net  |     
|(Dollars in Thousands)        |                                  |                     |                                    |       |          |       |   |      |     
|Interest earning assets:      |                                  |                     |                                    |       |          |       |   |      |      |      |   |      
|                              | Loan portfolio:                  |                     |                                    |       |          |       |   |      |      |      |   |       |      
|                              |                                  | Commercial          |                                    | $     | 3,938    |       |   | $    | (193 | )    |   | $     | 3,745 |      
|                              |                                  | Real estate         |                                    |       | 1,824    |       |   |      | (249 | )    |   |       | 1,575 |      
|                              |                                  | Consumer            |                                    |       | 540      |       |   |      | (128 | )    |   |       | 412   |      
|                              |                                  |                     |                                    |       |          |       |   |      |     
|                              |                                  |                     | Net loans                          |       |          | 6,302 |   |      |      | (570 | ) |       |       | 5,732 |  
|                              | Loans held for sale              |                     |                                    | (255  | )        |       |   | 72   |      |      |   | (183  | )    
|                              | Securities:                      |                     |                                    |       |          |       |   |      |      |      |   |       |      
|                              |                                  | Taxable             |                                    |       | (150     | )     |   |      | 99   |      |   |       | (51   | )    
|                              |                                  | Tax-exempt          |                                    |       | 2        |       |   |      |     |      |   |       | 2     |      
|                              |                                  |                     |                                    |       |          |       |   |      |     
|                              |                                  |                     | Total securities                   |       |          | (148  | ) |      |      | 99   |   |       |       | (49   | )
|                              | Federal funds sold and other     |                     |                                    | (126  | )        |       |   | 42   |      |      |   | (84   | )    
|                              |                                  |                     |                                    |       |          |       |   |      |     
|                              |                                  |                     | Total interest-earning assets      |       | $        | 5,773 |   |      | $    | (357 | ) |       | $     | 5,416 |  
|                              |                                  |                     |                                    |       |          |       |   |      |     
|Interest-bearing liabilities: |                                  |                     |                                    |       |          |       |   |      |      |      |   |      
|                              | Savings deposits                 |                     | $                                  | 29    |          |       | $ | (9   | )    |      | $ | 20    |      
|                              | Interest-bearing demand deposits |                     |                                    | 210   |          |       |   | 4    |      |      |   | 214   |      
|                              | Time deposits                    |                     |                                    | 1,529 |          |       |   | (380 | )    |      |   | 1,149 |      
|                              | Short-term borrowings            |                     |                                    | (10   | )        |       |   | 48   |      |      |   | 38    |      
|                              | Long-term debt                   |                     |                                    | 121   |          |       |   |     |      |      |   | 121   |      
|                              |                                  |                     |                                    |       |          |       |   |      |     
|                              |                                  |                     | Total interest-bearing liabilities |       | $        | 1,879 |   |      | $    | (337 | ) |       | $     | 1,542 |  
|                              |                                  |                     |                                    |       |          |       |   |      |     
|                              |                                  |                     | Net interest income                |       | $        | 3,894 |   |      | $    | (20  | ) |       | $     | 3,874 |  
|                              |                                  |                     |                                    |       |          |       |   |      |     

|                         |                              |                     |                               |     |          |       |  |     |      |        |   |     |       |       | 
|------------------------ | ---------------------------- | ------------------- | ----------------------------- | --- | -------- | ----- |  | --- | ---- | ------ | - | --- | ----- | ----- | 
|                         |                              | 2003 vs. 2002       |                              
|                         |                              | Increase (Decrease) |                              
|                         |                              | Due to Change In:   |                              
|                         |                              |                     |                              
|                         |                              | Volume (1)          |                               |     | Rate (1) |       |  | Net |     
|(Dollars in Thousands)   |                              |                     |                               |     |          |       |  |     |     
|Interest-earning assets: |                              |                     |                               |     |          |       |  |     |      |        |   |    
|                         | Loan portfolio:              |                     |                               |     |          |       |  |     |      |        |   |     |      
|                         |                              | Commercial          |                               | $   | 3,778    |       |  | $   | (651 | )      |   | $   | 3,127 |      
|                         |                              | Real estate         |                               |     | 702      |       |  |     | (240 | )      |   |     | 462   |      
|                         |                              | Consumer            |                               |     | 531      |       |  |     | (95  | )      |   |     | 436   |      
|                         |                              |                     |                               |     |          |       |  |     |     
|                         |                              |                     | Net loans                     |     |          | 5,011 |  |     |      | (986   | ) |     |       | 4,025 | 
|                         | Loans held for sale          |                     |                               | 113 |          |       |  | 14  |      |        |   | 127 |      
|                         | Securities:                  |                     |                               |     |          |       |  |     |      |        |   |     |      
|                         |                              | Taxable             |                               |     | 133      |       |  |     | (124 | )      |   |     | 9     |      
|                         | Federal funds sold and other |                     |                               | 40  |          |       |  | (98 | )    |        |   | (58 | )    
|                         |                              |                     |                               |     |          |       |  |     |     
|                         |                              |                     | Total interest-earning assets |     | $        | 5,297 |  |     | $    | (1,194 | ) |     | $     | 4,103 | 
|                         |                              |                     |                               |     |          |       |  |     |     

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|                              |                                  |                                    |   |       |          |  |   |      |        |   |   |       |       | 
|----------------------------- | -------------------------------- | ---------------------------------- | - | ----- | -------- |  | - | ---- | ------ | - | - | ----- | ----- | 
|                              |                                  | 2003 vs. 2002                      |  
|                              |                                  | Increase (Decrease)                |  
|                              |                                  | Due to Change In:                  |  
|                              |                                  |                                    |  
|                              |                                  | Volume (1)                         |   |       | Rate (1) |  |   | Net  |       
|(Dollars in Thousands)        |                                  |                                    |   |       |          |  |   |      |       
|Interest-bearing liabilities: |                                  |                                    |   |       |          |  |   |      |        |   |   |      
|                              | Savings deposits                 |                                    | $ | 35    |          |  | $ | (31  | )      |   | $ | 4     |      
|                              | Interest-bearing demand deposits |                                    |   | 221   |          |  |   | (321 | )      |   |   | (100  | )    
|                              | Time deposits                    |                                    |   | 1,942 |          |  |   | (814 | )      |   |   | 1,128 |      
|                              | Short-term borrowings            |                                    |   | 16    |          |  |   | (56  | )      |   |   | (40   | )    
|                              |                                  |                                    |   |       |          |  |   |      |       
|                              |                                  | Total interest-bearing liabilities |   | $     | 2,214    |  |   | $    | (1,222 | ) |   | $     | 992   | 
|                              |                                  |                                    |   |       |          |  |   |      |       
|                              |                                  | Net interest income                |   | $     | 3,083    |  |   | $    | 28     |   |   | $     | 3,111 | 
|                              |                                  |                                    |   |       |          |  |   |      |       






|    |                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The change in interest due to both rate and volume has been
    allocated to volume and rate changes in proportion to the
    relationship of the absolute dollar amounts of the change in
    each.

Provision for Loan Losses




Non-Interest Income












17



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Non-Interest Expense




















2003 compared to 2002






18



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##### Table of Contents









Income Taxes






Return on Assets




Return on Equity






Overview of the Statement of Condition






19



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Cash and Cash Equivalents






Investment Securities








Loans








20



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Loan Maturities:


|                       |          |                   |         |          |         |  |        |        |        |  |        |        |        |  |         |         |         | 
|---------------------- | -------- | ----------------- | ------- | -------- | ------- |  | ------ | ------ | ------ |  | ------ | ------ | ------ |  | ------- | ------- | ------- | 
|                       |          | December 31, 2004 |        
|(Dollars in Thousands) |          |                   |        
|                       |          |                   |         | Due in   |         |  |       
|                       |          |                   |         | One Year |         |  | Due    |        |        | 
|                       |          | Due in            |         |          | Through |  |        | After  |        |  |       
|                       |          | One Year          |         |          | Five    |  |        | Five   |        |  |       
|Loan Type              |          | or Less           |         |          | Years   |  |        | Years  |        |  | Total  |       
|                       |          |                   |         |          |         |  |        |        |        |  |        |       
|Commercial loans:      |          |                   |         |          |         |  |        |        |        |  |        |        |        |  |         |        
|                       | Fixed    |                   | $       | 5,931    |         |  | $      | 12,861 |        |  | $      | 23,192 |        |  | $       | 41,984  |        
|                       | Variable |                   |         | 193,115  |         |  |        | 34,764 |        |  |        |       |        |  |         | 227,879 |        
|                       |          |                   |         |          |         |  |        |        |        |  |        |       
|                       |          |                   | 199,046 |          |         |  | 47,625 |        |        |  | 23,192 |        |        |  | 269,863 |        
|Real estate loans:     |          |                   |         |          |         |  |        |        |        |  |        |        |        |  |         |        
|                       | Fixed    |                   |         | 4,058    |         |  |        | 4,979  |        |  |        | 38,356 |        |  |         | 47,393  |        
|                       | Variable |                   |         | 47,237   |         |  |        | 3,244  |        |  |        |       |        |  |         | 50,481  |        
|                       |          |                   |         |          |         |  |        |        |        |  |        |       
|                       |          |                   | 51,295  |          |         |  | 8,223  |        |        |  | 38,356 |        |        |  | 97,874  |        
|Consumer loans:        |          |                   |         |          |         |  |        |        |        |  |        |        |        |  |         |        
|                       | Fixed    |                   |         | 2,555    |         |  |        | 7,001  |        |  |        | 19,004 |        |  |         | 28,560  |        
|                       | Variable |                   |         | 606      |         |  |        | 11     |        |  |        |       |        |  |         | 617     |        
|                       |          |                   |         |          |         |  |        |        |        |  |        |       
|                       |          |                   | 3,161   |          |         |  | 7,012  |        |        |  | 19,004 |        |        |  | 29,177  |        
|                       |          |                   |         |          |         |  |        |        |        |  |        |       
|                       |          | Total             |         | $        | 253,502 |  |        | $      | 62,860 |  |        | $      | 80,552 |  |         | $       | 396,914 | 
|                       |          |                   |         |          |         |  |        |        |        |  |        |       



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Loan Portfolio Analysis:


|                       |                                        |       |   |         |         |  |   |         |         |  |      |         |         |      |   |        |         |  |   |        |        | 
|---------------------- | -------------------------------------- | ----- | - | ------- | ------- |  | - | ------- | ------- |  | ---- | ------- | ------- | ---- | - | ------ | ------- |  | - | ------ | ------ | 
|                       |                                        | 2004  |   |         | 2003    |  |   | 2002    |         |  | 2001 |         |         | 2000 |  
|(Dollars in Thousands) |                                        |       |   |         |         |  |   |         |         |  |      |         |         |      |  
|Year-end balances:     |                                        |       |   |         |         |  |   |         |         |  |      |         |         |      |   |        |         |  |   |       
|                       | Commercial, financial and agricultural |       | $ | 269,863 |         |  | $ | 211,688 |         |  | $    | 128,858 |         |      | $ | 81,557 |         |  | $ | 30,728 |       
|                       | Real estate                            |       |   | 90,458  |         |  |   | 56,620  |         |  |      | 38,675  |         |      |   | 22,414 |         |  |   | 7,817  |       
|                       | Real estate construction               |       |   | 7,416   |         |  |   | 4,776   |         |  |      | 4,133   |         |      |   | 5,304  |         |  |   | 1,090  |       
|                       | Consumer                               |       |   | 29,177  |         |  |   | 22,841  |         |  |      | 15,071  |         |      |   | 9,390  |         |  |   | 2,784  |       
|                       |                                        |       |   |         |         |  |   |         |         |  |      |         |         |      |  
|                       |                                        | Total |   | $       | 396,914 |  |   | $       | 295,925 |  |      | $       | 186,737 |      |   | $      | 118,665 |  |   | $      | 42,419 | 
|                       |                                        |       |   |         |         |  |   |         |         |  |      |         |         |      |  
|                       | Average total loans                    |       | $ | 349,837 |         |  | $ | 236,223 |         |  | $    | 149,858 |         |      | $ | 79,863 |         |  | $ | 22,184 |       
|                       | Average allowance for loan losses      |       |   | (5,276  | )       |  |   | (3,298  | )       |  |      | (1,816  | )       |      |   | (1,082 | )       |  |   | (329   | )     
|                       |                                        |       |   |         |         |  |   |         |         |  |      |         |         |      |  
|                       | Average loans, net of allowance        |       | $ | 344,561 |         |  | $ | 232,925 |         |  | $    | 148,042 |         |      | $ | 78,781 |         |  | $ | 21,855 |       
|                       |                                        |       |   |         |         |  |   |         |         |  |      |         |         |      |  

Loan Concentration




Allowance for Loan Losses








22



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|                                          |             |                 |       |     |      |   |       |      |    |   |       |    |    |      |       |   |   |   |     |   |   | 
|----------------------------------------- | ----------- | --------------- | ----- | --- | ---- | - | ----- | ---- | -- | - | ----- | -- | -- | ---- | ----- | - | - | - | --- | - | - | 
|                                          |             | 2004            |       |     | 2003 |   |       | 2002 |    |   | 2001  |    |    | 2000 |      
|                                          |             |                 |       |     |      |   |       |      |    |   |       |    |    |      |      
|Balance, January 1                        |             | $               | 4,457 |     |      | $ | 2,375 |      |    | $ | 1,426 |    |    | $    | 636   |   |   | $ |    |  
|Provision                                 |             |                 | 2,160 |     |      |   | 2,099 |      |    |   | 967   |    |    |      | 793   |   |   |   | 636 |  
|                                          | Charge-offs |                 |       | 227 |      |   |       | 17   |    |   |       | 18 |    |      |       | 3 |   |   |     |  |  
|                                          | Recoveries  |                 |       | 4   |      |   |       |     |    |   |       |   |    |      |       |  |   |   |     |  |  
|                                          |             |                 |       |     |      |   |       |      |    |   |       |    |    |      |      
|                                          |             | Net charge-offs |       |     | 223  |   |       |      | 17 |   |       |    | 18 |      |       |   | 3 |   |     |   |  | 
|                                          |             |                 |       |     |      |   |       |      |    |   |       |    |    |      |      
|Balance, December 31                      |             | $               | 6,394 |     |      | $ | 4,457 |      |    | $ | 2,375 |    |    | $    | 1,426 |   |   | $ | 636 |  
|                                          |             |                 |       |     |      |   |       |      |    |   |       |    |    |      |      
|Ratio of net charge-offs to average loans |             |                 | .06   | %   |      |   | .01   | %    |    |   | .01   | %  |    |      |      |   |   |   |    |  
|                                          |             |                 |       |     |      |   |       |      |    |   |       |    |    |      |      



|                                                        |                          |       |   |       |       |   |   |       |       |   |      |       |       |      |   |       |       |   |   |     |     |  
|------------------------------------------------------- | ------------------------ | ----- | - | ----- | ----- | - | - | ----- | ----- | - | ---- | ----- | ----- | ---- | - | ----- | ----- | - | - | --- | --- | -
|                                                        |                          | 2004  |   |       | 2003  |   |   | 2002  |       |   | 2001 |       |       | 2000 |  
|(Dollars in Thousands)                                  |                          |       |   |       |       |   |   |       |       |   |      |       |       |      |  
|Allocation of allowance for loan losses at December 31: |                          |       |   |       |       |   |   |       |       |   |      |       |       |      |   |       |       |   |   |    
|                                                        | Commercial               |       | $ | 4,847 |       |   | $ | 3,944 |       |   | $    | 2,099 |       |      | $ | 1,271 |       |   | $ | 605 |    
|                                                        | Real estate              |       |   | 983   |       |   |   | 252   |       |   |      | 156   |       |      |   | 50    |       |   |   | 17  |    
|                                                        | Real estate construction |       |   | 80    |       |   |   | 15    |       |   |      | 15    |       |      |   | 30    |       |   |   | 2   |    
|                                                        | Consumer                 |       |   | 484   |       |   |   | 246   |       |   |      | 105   |       |      |   | 75    |       |   |   | 12  |    
|                                                        |                          |       |   |       |       |   |   |       |       |   |      |       |       |      |  
|                                                        |                          | Total |   | $     | 6,394 |   |   | $     | 4,457 |   |      | $     | 2,375 |      |   | $     | 1,426 |   |   | $   | 636 |  
|                                                        |                          |       |   |       |       |   |   |       |       |   |      |       |       |      |  
|Percent of loans to total loans at December 31:         |                          |       |   |       |       |   |   |       |       |   |      |       |       |      |   |       |       |   |   |    
|                                                        | Commercial               |       |   | 68    | %     |   |   | 71    | %     |   |      | 69    | %     |      |   | 69    | %     |   |   | 72  | %  
|                                                        | Real estate              |       |   | 23    |       |   |   | 19    |       |   |      | 21    |       |      |   | 19    |       |   |   | 18  |    
|                                                        | Real estate construction |       |   | 2     |       |   |   | 2     |       |   |      | 2     |       |      |   | 4     |       |   |   | 3   |    
|                                                        | Consumer                 |       |   | 7     |       |   |   | 8     |       |   |      | 8     |       |      |   | 8     |       |   |   | 7   |    
|                                                        |                          |       |   |       |       |   |   |       |       |   |      |       |       |      |  
|                                                        |                          | Total |   |       | 100   | % |   |       | 100   | % |      |       | 100   | %    |   |       | 100   | % |   |     | 100 | %
|                                                        |                          |       |   |       |       |   |   |       |       |   |      |       |       |      |  





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Non-performing assets and past due loans:


|                                                         |             |      |       |     |      |   |     |      |  |   |        |    |      |   |   |   |  |   |   |   | 
|-------------------------------------------------------- | ----------- | ---- | ----- | --- | ---- | - | --- | ---- |  | - | ------ | -- | ---- | - | - | - |  | - | - | - | 
|                                                         |             | 2004 |       |     | 2003 |   |     | 2002 |  |   | 2001   |    | 2000
|(Dollars in Thousands)                                   |             |      |       |     |      |   |     |      |  |   |        |    |     
|Non-accrual loans                                        |             |      |       |     |      |   |     |      |  |   |        |    |      |   |   |   |  |   |   |  
|                                                         | Commercial  |      | $     | 358 |      |   | $   | 455  |  |   | $      |   |      |   | $ |  |  |   | $ |  | 
|                                                         | Real estate |      |       |    |      |   |     |     |  |   |        | 14 |      |   |   |  |  |   |   |  | 
|                                                         | Consumer    |      |       | 1   |      |   |     | 9    |  |   |        |   |      |   |   |  |  |   |   |  | 
|                                                         |             |      |       |     |      |   |     |      |  |   |        |    |      |   |  
|Total non-accrual loans                                  |             |      | 359   |     |      |   | 464 |      |  |   | 14     |    |      |   |  |   |  |   |  |  
|Renegotiated loans                                       |             |      |      |     |      |   |    |      |  |   |       |    |      |   |  |   |  |   |  |  
|                                                         |             |      |       |     |      |   |     |      |  |   |        |    |      |   |  
|Total non-performing loans                               |             |      | 359   |     |      |   | 464 |      |  |   | 14     |    |      |   |  |   |  |   |  |  
|Other real estate, net                                   |             |      |      |     |      |   |    |      |  |   |       |    |      |   |  |   |  |   |  |  
|                                                         |             |      |       |     |      |   |     |      |  |   |        |    |      |   |  
|Total non-performing assets                              |             | $    | 359   |     |      | $ | 464 |      |  | $ | 14     |    |      | $ |  |   |  | $ |  |  
|                                                         |             |      |       |     |      |   |     |      |  |   |        |    |      |   |  
|Accruing loans past due 90 days or more                  |             |      |      |     |      |   |    |      |  |   |       |    |      |   |  |   |  |   |  |  
|                                                         |             |      |       |     |      |   |     |      |  |   |        |    |      |   |  
|Non-performing loans as a % of total loans               |             |      | .09   | %   |      |   | .16 | %    |  |   | .01    | %  |      |   |  |   |  |   |  |  
|Allowance for loan losses as a % of non-performing loans |             |      | 1,681 | %   |      |   | 961 | %    |  |   | 16,964 | %  |      |   |  |   |  |   |  |  



Funding Sources








Maturities of Certificates of Deposit $100,000 or More:


|                       |       |      |         |         |      |   |        |        |  |   |        |        | 
|---------------------- | ----- | ---- | ------- | ------- | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                       |       | 2004 |         |         | 2003 |   |        | 2002   | 
|(Dollars in Thousands) |       |      |         |         |      |   |        |        | 
|Under 3 months         |       | $    | 64,893  |         |      | $ | 36,489 |        |  | $ | 26,313 |       
|3 to 12 months         |       |      | 29,888  |         |      |   | 24,540 |        |  |   | 10,865 |       
|Over 12 months         |       |      | 112,297 |         |      |   | 30,545 |        |  |   | 22,357 |       
|                       |       |      |         |         |      |   |        |        | 
|                       | Total |      | $       | 207,078 |      |   | $      | 91,574 |  |   | $      | 59,535 | 
|                       |       |      |         |         |      |   |        |        | 

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Capital/ Stockholders Equity










Liquidity and Interest Rate Sensitivity




Interest Rate Risk






25



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|                     |      |                        |                    |   |      |                    |  |  |      |   |  |   |        |   |  |  |       |  
|-------------------- | ---- | ---------------------- | ------------------ | - | ---- | ------------------ |  |  | ---- | - |  | - | ------ | - |  |  | ----- | -
|                     |      | 2004                   |                    |   | 2003 |                   
|Immediate            |      |                        | Estimated Increase |   |      | Estimated Increase | 
|Interest Rate Change |      |                        | (Decrease) in Net  |   |      | (Decrease) in Net  | 
|(in Basis Points)    |      |                        | Interest Income    |   |      | Interest Income    | 
|                     |      |                        |                    |   |      |                    | 
|                     |      | (Dollars in Thousands) |                   
|                     | 300  |                        |                    | $ | 818  |                    |  |  | 4.7  | % |  | $ | 1,030  |   |  |  | 8.5   | %
|                     | 200  |                        |                    |   | 549  |                    |  |  | 3.1  |   |  |   | 775    |   |  |  | 6.4   |  
|                     | 100  |                        |                    |   | 282  |                    |  |  | 1.6  |   |  |   | 469    |   |  |  | 3.9   |  
|                     | -100 |                        |                    |   | (754 | )                  |  |  | (4.3 | ) |  |   | (1,739 | ) |  |  | (14.4 | )



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Liquidity














|                                       |                             |          |       |        |       |  |          |       |  |  |           |    |  |       |   |        |  |  |       |        | 
|-------------------------------------- | --------------------------- | -------- | ----- | ------ | ----- |  | -------- | ----- |  |  | --------- | -- |  | ----- | - | ------ |  |  | ----- | ------ | 
|                                       |                             |          |       | One to |       |  | Three to |       |  |  |           |   
|                                       |                             | One Year |       |        | Three |  |          | Five  |  |  | Over Five |    |  |      
|                                       |                             | or Less  |       |        | Years |  |          | Years |  |  | Years     |    |  | Total |  
|(Dollars in Thousands)                 |                             |          |       |        |       |  |          |       |  |  |           |    |  |       |  
|Commitments to extend credit:          |                             |          |       |        |       |  |          |       |  |  |           |    |  |       |   |        |  |  |       |       
|                                       | Commercial                  |          | $     | 30,079 |       |  | $        | 6     |  |  | $         | 13 |  |       | $ | 1,333  |  |  | $     | 31,431 | 
|                                       | Residential real estate     |          |       | 28,379 |       |  |          | 155   |  |  |           |   |  |       |   | 685    |  |  |       | 29,219 | 
|                                       | Revolving home equity lines |          |       |       |       |  |          |      |  |  |           |   |  |       |   | 26,300 |  |  |       | 26,300 | 
|Standby letters of credit              |                             |          | 7,555 |        |       |  |         |       |  |  |          |    |  |       |  |        |  |  | 7,555 |       
|Net commitments to sell mortgage loans |                             |          | 1,285 |        |       |  |         |       |  |  |          |    |  |       |  |        |  |  | 1,285 |       



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|                                                             |  |          |         |                 |       |   |          |       |  |   |           |  |  |       |        |  |  |   |         | 
|------------------------------------------------------------ |  | -------- | ------- | --------------- | ----- | - | -------- | ----- |  | - | --------- |  |  | ----- | ------ |  |  | - | ------- | 
|                                                             |  |          |         | Payments Due In |       |   |         
|                                                             |  |          |         |                 |       |   |         
|                                                             |  |          |         | One to          |       |   | Three to |       |  |   |           | 
|                                                             |  | One Year |         |                 | Three |   |          | Five  |  |   | Over Five |  |  |      
|                                                             |  | or Less  |         |                 | Years |   |          | Years |  |   | Years     |  |  | Total |       
|(Dollars in Thousands)                                       |  |          |         |                 |       |   |          |       |  |   |           |  |  |       |       
|Deposits without a stated maturity(a)                        |  | $        | 178,744 |                 |       | $ |         |       |  | $ |          |  |  | $     |       |  |  | $ | 178,744 | 
|Consumer certificates of deposits(b)(c)                      |  |          | 94,781  |                 |       |   | 56,149   |       |  |   | 56,149    |  |  |       |       |  |  |   | 207,078 | 
|Federal funds borrowed and security repurchase agreements(b) |  |          | 14,507  |                 |       |   |         |       |  |   |          |  |  |       |       |  |  |   | 14,507  | 
|Borrowed funds(b)                                            |  |          | 700     |                 |       |   |         |       |  |   |          |  |  |       |       |  |  |   | 700     | 
|Long-term debt(b)                                            |  |          | 480     |                 |       |   | 960      |       |  |   | 960       |  |  |       | 21,868 |  |  |   | 24,268  | 
|Operating leases                                             |  |          | 524     |                 |       |   | 720      |       |  |   | 696       |  |  |       | 3,144  |  |  |   | 5,084   | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Excludes interest.                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(b) |  | Includes interest on both fixed and variable rate obligations.
    The interest associated with variable rate obligations is based
    upon interest rates in effect at December 31, 2004. The
    contractual amounts to be paid on variable rate obligations are
    affected by changes in market interest rates. Future changes in
    market interest rates could materially affect the contractual
    amounts to be paid.





Fourth Quarter




Future Outlook






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|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK








|        |                                            
|------- | -------------------------------------------
|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA








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








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





ITEM 9B.     OTHER INFORMATION




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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Consolidated Balance Sheets


|                                                                                                                                                      |                      |                                            |         |         |         |   |         |         |         | 
|----------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | ------------------------------------------ | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                                                                                                                                      |                      | December 31                                |        
|                                                                                                                                                      |                      |                                            |        
|                                                                                                                                                      |                      | 2004                                       |         |         | 2003    |  
|(Dollars in Thousands, except Per Share Data)                                                                                                         |                      |                                            |         |         |         |  
|Assets                                                                                                                                                |                      |                                            |         |         |         |   |         |        
|Cash and cash equivalents                                                                                                                             |                      | $                                          | 9,632   |         |         | $ | 8,180   |        
|Interest-bearing deposits in other banks                                                                                                              |                      |                                            | 1,569   |         |         |   | 997     |        
|Federal funds sold                                                                                                                                    |                      |                                            | 2,144   |         |         |   | 14,574  |        
|                                                                                                                                                      |                      |                                            |         |         |         |  
|                                                                                                                                                      |                      | Total cash and cash equivalents            |         |         | 13,345  |   |         |         | 23,751  | 
|Available-for-sale securities, at estimated fair value
    (amortized cost of $23,449 in 2004 and $22,800 in 2003)                                    |                      |                                            | 23,386  |         |         |   | 22,895  |        
|Loans                                                                                                                                                 |                      |                                            | 396,914 |         |         |   | 295,925 |        
|Allowance for loan losses                                                                                                                             |                      |                                            | (6,394  | )       |         |   | (4,457  | )      
|                                                                                                                                                      |                      |                                            |         |         |         |  
|                                                                                                                                                      |                      | Net loans                                  |         |         | 390,520 |   |         |         | 291,468 | 
|Premises and equipment                                                                                                                                |                      |                                            | 7,098   |         |         |   | 5,654   |        
|Loans held for sale                                                                                                                                   |                      |                                            | 1,285   |         |         |   | 756     |        
|Other assets                                                                                                                                          |                      |                                            | 6,650   |         |         |   | 5,309   |        
|                                                                                                                                                      |                      |                                            |         |         |         |  
|                                                                                                                                                      |                      | Total assets                               |         | $       | 442,284 |   |         | $       | 349,833 | 
|                                                                                                                                                      |                      |                                            |         |         |         |  
|                                                                                                                                                     
|Liabilities                                                                                                                                           |                      |                                            |         |         |         |   |         |        
|Deposits                                                                                                                                              |                      |                                            |         |         |         |   |         |        
|                                                                                                                                                      | Non-interest bearing |                                            | $       | 54,559  |         |   | $       | 39,259  |        
|                                                                                                                                                      | Interest bearing     |                                            |         | 331,263 |         |   |         | 263,096 |        
|                                                                                                                                                      |                      |                                            |         |         |         |  
|                                                                                                                                                      |                      | Total deposits                             |         |         | 385,822 |   |         |         | 302,355 | 
|Short-term borrowings                                                                                                                                 |                      |                                            | 14,507  |         |         |   | 16,953  |        
|Long-term debt                                                                                                                                        |                      |                                            | 10,000  |         |         |   |        |        
|Other liabilities                                                                                                                                     |                      |                                            | 2,210   |         |         |   | 2,687   |        
|                                                                                                                                                      |                      |                                            |         |         |         |  
|                                                                                                                                                      |                      | Total liabilities                          |         |         | 412,539 |   |         |         | 321,995 | 
|Stockholders equity                                                                                                                                  |                      |                                            |         |         |         |   |         |        
|Preferred stock, $1 par value, 1,000,000 authorized, none
    issued                                                                                  |                      |                                            |        |         |         |   |        |        
|Common stock, $1 par value, 50,000,000 authorized,
    2,552,506 and 2,320,550 issued and outstanding on
    December 31, 2004 and 2003, respectively |                      |                                            | 2,552   |         |         |   | 2,320   |        
|Additional paid-in capital                                                                                                                            |                      |                                            | 25,185  |         |         |   | 25,419  |        
|Accumulated earnings                                                                                                                                  |                      |                                            | 2,046   |         |         |   | 42      |        
|Accumulated other comprehensive (loss) income                                                                                                         |                      |                                            | (38     | )       |         |   | 57      |        
|                                                                                                                                                      |                      |                                            |         |         |         |  
|                                                                                                                                                      |                      | Total stockholders equity                 |         |         | 29,745  |   |         |         | 27,838  | 
|                                                                                                                                                      |                      |                                            |         |         |         |  
|                                                                                                                                                      |                      | Total liabilities and stockholders equity |         | $       | 442,284 |   |         | $       | 349,833 | 
|                                                                                                                                                      |                      |                                            |         |         |         |  

See Notes to Consolidated Financial Statements.


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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Consolidated Statements of Income


|                                              |                                     |                                                     |           |        |        |   |           |        |        |   |           |       |        | 
|--------------------------------------------- | ----------------------------------- | --------------------------------------------------- | --------- | ------ | ------ | - | --------- | ------ | ------ | - | --------- | ----- | ------ | 
|                                              |                                     | Year Ended December 31                              |          
|                                              |                                     |                                                     |          
|                                              |                                     | 2004                                                |           |        | 2003   |   |           | 2002   |       
|(Dollars in Thousands, except Per Share Data) |                                     |                                                     |           |        |        |   |           |        |       
|Interest income:                              |                                     |                                                     |           |        |        |   |           |        |        |   |           |      
|                                              | Loans, including fees               |                                                     | $         | 19,280 |        |   | $         | 13,584 |        |   | $         | 9,594 |       
|                                              | Loans held for sale                 |                                                     |           | 112    |        |   |           | 295    |        |   |           | 168   |       
|                                              | Securities available-for-sale       |                                                     |           | 459    |        |   |           | 508    |        |   |           | 499   |       
|                                              | Interest-bearing bank balances      |                                                     |           | 33     |        |   |           | 24     |        |   |           | 32    |       
|                                              | Federal funds sold                  |                                                     |           | 130    |        |   |           | 223    |        |   |           | 273   |       
|                                              |                                     |                                                     |           |        |        |   |           |        |       
|                                              |                                     | Total interest income                               |           |        | 20,014 |   |           |        | 14,634 |   |           |       | 10,566 | 
|Interest expense:                             |                                     |                                                     |           |        |        |   |           |        |        |   |           |      
|                                              | Deposits                            |                                                     |           | 6,609  |        |   |           | 5,226  |        |   |           | 4,194 |       
|                                              | Short-term borrowings               |                                                     |           | 116    |        |   |           | 78     |        |   |           | 118   |       
|                                              | Long-term debt                      |                                                     |           | 121    |        |   |           |       |        |   |           |      |       
|                                              |                                     |                                                     |           |        |        |   |           |        |       
|                                              |                                     | Total interest expense                              |           |        | 6,846  |   |           |        | 5,304  |   |           |       | 4,312  | 
|                                              |                                     |                                                     |           |        |        |   |           |        |       
|                                              |                                     | Net interest income                                 |           |        | 13,168 |   |           |        | 9,330  |   |           |       | 6,254  | 
|Provision for loan losses                     |                                     |                                                     | 2,160     |        |        |   | 2,099     |        |        |   | 967       |      
|                                              |                                     |                                                     |           |        |        |   |           |        |       
|                                              |                                     | Net interest income after provision for loan losses |           |        | 11,008 |   |           |        | 7,231  |   |           |       | 5,287  | 
|Other income:                                 |                                     |                                                     |           |        |        |   |           |        |        |   |           |      
|                                              | Service charges on deposit accounts |                                                     |           | 865    |        |   |           | 654    |        |   |           | 420   |       
|                                              | Other service charges and fees      |                                                     |           | 674    |        |   |           | 472    |        |   |           | 304   |       
|                                              | Secondary market income             |                                                     |           | 815    |        |   |           | 1,563  |        |   |           | 757   |       
|                                              | Other                               |                                                     |           | 143    |        |   |           | 97     |        |   |           | 48    |       
|                                              |                                     |                                                     |           |        |        |   |           |        |       
|                                              |                                     | Total other income                                  |           |        | 2,497  |   |           |        | 2,786  |   |           |       | 1,529  | 
|Other expense:                                |                                     |                                                     |           |        |        |   |           |        |        |   |           |      
|                                              | Salaries and employee benefits      |                                                     |           | 4,759  |        |   |           | 3,908  |        |   |           | 2,715 |       
|                                              | Occupancy expense                   |                                                     |           | 969    |        |   |           | 819    |        |   |           | 618   |       
|                                              | Equipment expense                   |                                                     |           | 1,076  |        |   |           | 778    |        |   |           | 600   |       
|                                              | Advertising                         |                                                     |           | 553    |        |   |           | 395    |        |   |           | 249   |       
|                                              | Professional fees                   |                                                     |           | 403    |        |   |           | 212    |        |   |           | 140   |       
|                                              | Data processing                     |                                                     |           | 864    |        |   |           | 621    |        |   |           | 408   |       
|                                              | Other                               |                                                     |           | 1,726  |        |   |           | 1,424  |        |   |           | 1,161 |       
|                                              |                                     |                                                     |           |        |        |   |           |        |       
|                                              |                                     | Total other expense                                 |           |        | 10,350 |   |           |        | 8,157  |   |           |       | 5,891  | 
|                                              |                                     |                                                     |           |        |        |   |           |        |       
|                                              |                                     | Net income before income tax (benefit)              |           |        | 3,155  |   |           |        | 1,860  |   |           |       | 925    | 
|Income tax expense (benefit)                  |                                     |                                                     | 1,151     |        |        |   | (104      | )      |        |   |          |      
|                                              |                                     |                                                     |           |        |        |   |           |        |       
|                                              |                                     | Net income                                          |           | $      | 2,004  |   |           | $      | 1,964  |   |           | $     | 925    | 
|                                              |                                     |                                                     |           |        |        |   |           |        |       
|Basic earnings per share                      |                                     | $                                                   | .79       |        |        | $ | .77       |        |        | $ | .42       |      
|Diluted earnings per share                    |                                     | $                                                   | .75       |        |        | $ | .73       |        |        | $ | .40       |      
|Basic weighted-average shares outstanding     |                                     |                                                     | 2,552,506 |        |        |   | 2,552,506 |        |        |   | 2,197,397 |      
|Diluted weighted-average shares outstanding   |                                     |                                                     | 2,679,278 |        |        |   | 2,697,661 |        |        |   | 2,321,817 |      

See Notes to Consolidated Financial Statements.


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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Consolidated Statements of Stockholders Equity


|                                                |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        |       |     |  
|----------------------------------------------- | --------------------------- | -------------------------------------------------------------------------------- | ----- | ---------- | ------- | - | ----------- | ----------- | - | ----- | ------------- | ----- | - | ----- | --- | - | --- | - | ------ | ----- | --- | -
|                                                |                             |                                                                                  |       |            |         |   |             | Accumulated |   |       |              
|                                                |                             |                                                                                  |       | Additional |         |   | Accumulated |             |   | Other |               |       |  
|                                                |                             | Common                                                                           |       |            | Paid-In |   |             | (Deficit)   |   |       | Comprehensive |       |   |      
|                                                |                             | Stock                                                                            |       |            | Capital |   |             | Earnings    |   |       | Income(Loss)  |       |   | Total |    
|(Dollars in Thousands)                          |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |    
|Balance, January 1, 2002                        |                             | $                                                                                | 1,600 |            |         | $ | 15,405      |             |   | $     | (2,847        | )     |   | $     | 3   |   |     | $ | 14,161 |      
|Issuance of common stock                        |                             |                                                                                  | 720   |            |         |   | 10,014      |             |   |       |              |       |   |       |    |   |     |   | 10,734 |      
|Comprehensive income:                           |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        |      
|                                                | Net income                  |                                                                                  |       |           |         |   |             |            |   |       |               | 925   |   |       |     |  |     |   |        | 925   |    
|                                                | Other comprehensive income: |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        |       |    
|                                                |                             | Unrealized gain on available-for-sale securities                                 |       |            |        |   |             |             |  |       |               |       |  |       |     |   | 51  |   |        |       | 51  |  
|                                                |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |    
|                                                | Total comprehensive income  |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        | 976   |    
|                                                |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |    
|Balance, December 31, 2002                      |                             |                                                                                  | 2,320 |            |         |   | 25,419      |             |   |       | (1,922        | )     |   |       | 54  |   |     |   | 25,871 |      
|Issuance of common stock                        |                             |                                                                                  |      |            |         |   |            |             |   |       |              |       |   |       |    |   |     |   |       |      
|Comprehensive income:                           |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        |      
|                                                | Net income                  |                                                                                  |       |           |         |   |             |            |   |       |               | 1,964 |   |       |     |  |     |   |        | 1,964 |    
|                                                | Other comprehensive income: |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        |       |    
|                                                |                             | Unrealized gain on available-for-sale securities, net of income
    taxes        |       |            |        |   |             |             |  |       |               |       |  |       |     |   | 3   |   |        |       | 3   |  
|                                                |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |    
|                                                | Total comprehensive income  |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        | 1,967 |    
|                                                |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |    
|Balance, December 31, 2003                      |                             |                                                                                  | 2,320 |            |         |   | 25,419      |             |   |       | 42            |       |   |       | 57  |   |     |   | 27,838 |      
|10% stock dividend in the form of a stock split |                             |                                                                                  | 232   |            |         |   | (234        | )           |   |       |               |       |   |       |     |   |     |   | (2     | )    
|Comprehensive income:                           |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        |      
|                                                | Net income                  |                                                                                  |       |           |         |   |             |            |   |       |               | 2,004 |   |       |     |  |     |   |        | 2,004 |    
|                                                | Other comprehensive (loss): |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        |       |    
|                                                |                             | Unrealized loss on available-for-sale securities, net of income
    taxes of $63 |       |            |        |   |             |             |  |       |               |       |  |       |     |   | (95 | ) |        |       | (95 | )
|                                                |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |    
|                                                | Total comprehensive income  |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |     |   |     |   |        | 1,909 |    
|                                                |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |    
|Balance, December 31, 2004                      |                             | $                                                                                | 2,552 |            |         | $ | 25,185      |             |   | $     | 2,046         |       |   | $     | (38 | ) |     | $ | 29,745 |      
|                                                |                             |                                                                                  |       |            |         |   |             |             |   |       |               |       |   |       |    

See Notes to Consolidated Financial Statements.


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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Consolidated Statements of Cash Flows


|                                                                             |                                                                                       |                                            |                                                  |          |         |          |        |          |         |         |        |         |         |         |  
|---------------------------------------------------------------------------- | ------------------------------------------------------------------------------------- | ------------------------------------------ | ------------------------------------------------ | -------- | ------- | -------- | ------ | -------- | ------- | ------- | ------ | ------- | ------- | ------- | -
|                                                                             |                                                                                       | Year Ended December 31                     |                                                 
|                                                                             |                                                                                       |                                            |                                                 
|                                                                             |                                                                                       | 2004                                       |                                                  |          | 2003    |          |        | 2002     |        
|(Dollars in Thousands)                                                       |                                                                                       |                                            |                                                  |          |         |          |        |          |        
|Operating activities:                                                        |                                                                                       |                                            |                                                  |          |         |          |        |          |         |         |        |        
|                                                                             | Net income                                                                            |                                            | $                                                | 2,004    |         |          | $      | 1,964    |         |         | $      | 925     |        
|                                                                             | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                            |                                                  |          |         |          |        |          |         |         |        |         |        
|                                                                             |                                                                                       | Accretion of discounts on securities       |                                                  |          | (11     | )        |        |          | (169    | )       |        |         | (312    | )      
|                                                                             |                                                                                       | Amortization of premiums on securities     |                                                  |          | 178     |          |        |          | 300     |         |        |         | 9       |        
|                                                                             |                                                                                       | Provision for loan losses                  |                                                  |          | 2,160   |          |        |          | 2,099   |         |        |         | 967     |        
|                                                                             |                                                                                       | Deferred income tax (benefit)              |                                                  |          | (770    | )        |        |          | (104    | )       |        |         |        |        
|                                                                             |                                                                                       | Depreciation                               |                                                  |          | 761     |          |        |          | 599     |         |        |         | 477     |        
|                                                                             |                                                                                       | Loss on disposal of premises and equipment |                                                  |          | 101     |          |        |          |        |         |        |         |        |        
|                                                                             |                                                                                       | Loans originated for sale                  |                                                  |          | (57,354 | )        |        |          | (85,828 | )       |        |         | (27,723 | )      
|                                                                             |                                                                                       | Proceeds from loans sold                   |                                                  |          | 57,589  |          |        |          | 93,866  |         |        |         | 26,505  |        
|                                                                             |                                                                                       | Gain on sale of loans                      |                                                  |          | (764    | )        |        |          | (1,477  | )       |        |         | (757    | )      
|                                                                             |                                                                                       | (Decrease) increase in other liabilities   |                                                  |          | (477    | )        |        |          | 1,643   |         |        |         | 406     |        
|                                                                             |                                                                                       | Increase in other assets                   |                                                  |          | (390    | )        |        |          | (1,638  | )       |        |         | (317    | )      
|                                                                             |                                                                                       |                                            |                                                  |          |         |          |        |          |        
|                                                                             |                                                                                       |                                            | Net cash provided by operating activities        |          |         | 3,027    |        |          |         | 11,255  |        |         |         | 180     |  
|Investing activities:                                                        |                                                                                       |                                            |                                                  |          |         |          |        |          |         |         |        |        
|                                                                             | Purchases of premises and equipment                                                   |                                            |                                                  | (2,630   | )       |          |        | (2,234   | )       |         |        | (677    | )      
|                                                                             | Retirement of premises and equipment                                                  |                                            |                                                  | 324      |         |          |        |         |         |         |        |        |        
|                                                                             | Purchases of life insurance                                                           |                                            |                                                  | (118     | )       |          |        | (129     | )       |         |        | (836    | )      
|                                                                             | Purchases of available-for-sale securities                                            |                                            |                                                  | (28,087  | )       |          |        | (24,854  | )       |         |        | (86,769 | )      
|                                                                             | Sales and maturities of available-for-sale securities                                 |                                            |                                                  | 27,271   |         |          |        | 39,038   |         |         |        | 63,049  |        
|                                                                             | Net increase in loans made to customers                                               |                                            |                                                  | (101,212 | )       |          |        | (109,205 | )       |         |        | (68,090 | )      
|                                                                             |                                                                                       |                                            |                                                  |          |         |          |        |          |        
|                                                                             |                                                                                       |                                            | Net cash used in investing activities            |          |         | (104,452 | )      |          |         | (97,384 | )      |         |         | (93,323 | )
|Financing activities:                                                        |                                                                                       |                                            |                                                  |          |         |          |        |          |         |         |        |        
|Net increase in deposits                                                     |                                                                                       |                                            | 83,467                                           |          |         |          | 87,487 |          |         |         | 86,533 |        
|Net (decrease) increase in securities sold under agreement to
    repurchase |                                                                                       |                                            | (2,446                                           | )        |         |          | (7,625 | )        |         |         | 12,027 |        
|Proceeds of long-term debt issuance                                          |                                                                                       |                                            | 10,000                                           |          |         |          |       |          |         |         |       |        
|Proceeds of stock offering                                                   |                                                                                       |                                            |                                                 |          |         |          |       |          |         |         | 10,734 |        
|Payments representing fractional shares                                      |                                                                                       |                                            | (2                                               | )        |         |          |       |          |         |         |       |        
|                                                                             |                                                                                       |                                            |                                                  |          |         |          |        |          |        
|                                                                             |                                                                                       |                                            | Net cash provided by financing activities        |          |         | 91,019   |        |          |         | 79,862  |        |         |         | 109,294 |  
|                                                                             |                                                                                       |                                            |                                                  |          |         |          |        |          |        
|                                                                             |                                                                                       |                                            | (Decrease) increase in cash and cash equivalents |          |         | (10,406  | )      |          |         | (6,267  | )      |         |         | 16,151  |  
|Cash and cash equivalents  beginning of period                              |                                                                                       |                                            | 23,751                                           |          |         |          | 30,018 |          |         |         | 13,867 |        
|                                                                             |                                                                                       |                                            |                                                  |          |         |          |        |          |        
|                                                                             |                                                                                       |                                            | Cash and cash equivalents  end of period        |          | $       | 13,345   |        |          | $       | 23,751  |        |         | $       | 30,018  |  
|                                                                             |                                                                                       |                                            |                                                  |          |         |          |        |          |        
|Supplemental cash flow information:                                          |                                                                                       |                                            |                                                  |          |         |          |        |          |         |         |        |        
|                                                                             | Interest paid                                                                         |                                            | $                                                | 6,693    |         |          | $      | 5,189    |         |         | $      | 4,257   |        
|                                                                             | Income taxes paid                                                                     |                                            | $                                                | 2,963    |         |          | $      | 39       |         |         | $      |        |        

See Notes to Consolidated Financial Statements.


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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial Statements




|   |                                           
|-- | ------------------------------------------
|1. | Summary of Significant Accounting Policies









| |                            
| | ---------------------------
| | Principles of Consolidation





| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                      
| | ---------------------
| | Investment Securities





| |      
| | -----
| | Loans







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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)








| |                          
| | -------------------------
| | Allowance for Loan Losses









| |                    
| | -------------------
| | Loans Held for Sale





| |                            
| | ---------------------------
| | Bank Premises and Equipment



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




| |                    
| | -------------------
| | Advertising Expense





| |             
| | ------------
| | Income Taxes





| |                         
| | ------------------------
| | Stock Based Compensation



|                                                 |  |                         |       |   |      |   |       |      |  |   |      |  
|------------------------------------------------ |  | ----------------------- | ----- | - | ---- | - | ----- | ---- |  | - | ---- | -
|                                                 |  | Year Ended December 31, |      
|                                                 |  |                         |      
|                                                 |  | 2004                    |       |   | 2003 |   |       | 2002 | 
|(Dollars in Thousands, except Per Share Data)    |  |                         |       |   |      |   |       |      | 
|Net income as reported                           |  | $                       | 2,004 |   |      | $ | 1,964 |      |  | $ | 925  |  
|Stock based compensation using fair value method |  |                         | (239  | ) |      |   | (400  | )    |  |   | (241 | )
|                                                 |  |                         |       |   |      |   |       |      | 
|Pro forma net income                             |  | $                       | 1,765 |   |      | $ | 1,564 |      |  | $ | 684  |  
|                                                 |  |                         |       |   |      |   |       |      | 
|Basic earnings per share as reported             |  | $                       | .79   |   |      | $ | .77   |      |  | $ | .42  |  
|Diluted earnings per share as reported           |  | $                       | .75   |   |      | $ | .73   |      |  | $ | .40  |  
|Proforma basic earnings per share                |  | $                       | .69   |   |      | $ | .61   |      |  | $ | .31  |  
|Proforma diluted earnings per share              |  | $                       | .66   |   |      | $ | .58   |      |  | $ | .29  |  





| |                   
| | ------------------
| | Earnings Per Share





| |                                            
| | -------------------------------------------
| | Stock Dividend in the Form of a Stock Split



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




| |                                 
| | --------------------------------
| | Recent Accounting Pronouncements



| |                                            
| | -------------------------------------------
| | Consolidation of Variable Interest Entities





| |                                           
| | ------------------------------------------
| | Meaning of Other Than Temporary Impairment







| |                 
| | ----------------
| | Loan Commitments





| |                                
| | -------------------------------
| | Exchanges of Nonmonetary Assets



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




| |                    
| | -------------------
| | Share-Based Payment



2.     Fair Values of Financial
Instruments






| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                      
| | ---------------------
| | Investment Securities





| |      
| | -----
| | Loans





| |         
| | --------
| | Deposits





| |                      
| | ---------------------
| | Short-term Borrowings





| |               
| | --------------
| | Long-term debt



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




| |                      
| | ---------------------
| | Financial Instruments





|                       |                           |          |   |         |            |  |   |          |  |  |            |         |  |  |   |         | 
|---------------------- | ------------------------- | -------- | - | ------- | ---------- |  | - | -------- |  |  | ---------- | ------- |  |  | - | ------- | 
|                       |                           | 2004     |   |         | 2003       | 
|                       |                           |          |   |         |            | 
|                       |                           | Carrying |   |         | Estimated  |  |   | Carrying |  |  | Estimated  |        
|                       |                           | Amount   |   |         | Fair Value |  |   | Amount   |  |  | Fair Value |        
|                       |                           |          |   |         |            |  |   |          |  |  |            |        
|(Dollars in Thousands) |                           |          |   |         |            |  |   |          |  |  |            |         |  |  |   |        
|                      
|Financial assets:      |                           |          |   |         |            |  |   |          |  |  |            |         |  |  |   |        
|                       | Cash and cash equivalents |          | $ | 13,345  |            |  | $ | 13,345   |  |  | $          | 23,751  |  |  | $ | 23,751  | 
|                       | Investment securities     |          |   | 23,386  |            |  |   | 23,386   |  |  |            | 22,895  |  |  |   | 22,895  | 
|                       | Loans                     |          |   | 396,914 |            |  |   | 397,147  |  |  |            | 295,925 |  |  |   | 297,759 | 
|Financial liabilities: |                           |          |   |         |            |  |   |          |  |  |            |         |  |  |   |        
|                       | Deposits                  |          |   | 385,822 |            |  |   | 386,535  |  |  |            | 302,355 |  |  |   | 304,798 | 
|                       | Short-term borrowings     |          |   | 14,507  |            |  |   | 14,507   |  |  |            | 16,953  |  |  |   | 16,953  | 
|                       | Long-term debt            |          |   | 10,000  |            |  |   | 10,000   |  |  |            |        |  |  |   |        | 



3.     Investment Securities




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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




|                                                                                          |                                     |                                             |        |        |            |   |       |            |     |           |       |     |      |   |        |        |        | 
|----------------------------------------------------------------------------------------- | ----------------------------------- | ------------------------------------------- | ------ | ------ | ---------- | - | ----- | ---------- | --- | --------- | ----- | --- | ---- | - | ------ | ------ | ------ | 
|                                                                                          |                                     | Securities Classified as Available-for-Sale |       
|                                                                                          |                                     |                                             |       
|                                                                                          |                                     |                                             |        | Gross  |            |   | Gross |            |     | Estimated |      
|                                                                                          |                                     | Amortized                                   |        |        | Unrealized |   |       | Unrealized |     |           | Fair  |    
|                                                                                          |                                     | Cost                                        |        |        | Gains      |   |       | Losses     |     |           | Value |    
|                                                                                          |                                     |                                             |        |        |            |   |       |            |     |           |       |    
|(Dollars in Thousands)                                                                    |                                     |                                             |        |        |            |   |       |            |     |           |       |     |      |   |        |       
|                                                                                         
|At December 31, 2004:                                                                     |                                     |                                             |        |        |            |   |       |            |     |           |       |     |      |   |        |       
|U.S. Treasury securities and obligations of
    U.S. government agencies and corporations |                                     | $                                           | 22,522 |        |            | $ |      |            |     | $         | (169  | )   |      | $ | 22,353 |       
|Tax-exempt securities                                                                     |                                     |                                             | 100    |        |            |   | 3     |            |     |           |       |     |      |   | 103    |       
|Other securities                                                                          |                                     |                                             | 827    |        |            |   | 103   |            |     |           |      |     |      |   | 930    |       
|                                                                                          |                                     |                                             |        |        |            |   |       |            |     |           |       |    
|                                                                                          |                                     | Total available-for-sale securities         |        | $      | 23,449     |   |       | $          | 106 |           |       | $   | (169 | ) |        | $      | 23,386 | 
|                                                                                          |                                     |                                             |        |        |            |   |       |            |     |           |       |    
|At December 31, 2003:                                                                     |                                     |                                             |        |        |            |   |       |            |     |           |       |     |      |   |        |       
|U.S. Treasury securities and obligations of
    U.S. government agencies and corporations |                                     | $                                           | 22,159 |        |            | $ | 40    |            |     | $         | (8    | )   |      | $ | 22,191 |       
|Other securities                                                                          |                                     |                                             | 641    |        |            |   | 63    |            |     |           |      |     |      |   | 704    |       
|                                                                                          |                                     |                                             |        |        |            |   |       |            |     |           |       |    
|                                                                                          |                                     | Total available-for-sale securities         |        | $      | 22,800     |   |       | $          | 103 |           |       | $   | (8   | ) |        | $      | 22,895 | 
|                                                                                          |                                     |                                             |        |        |            |   |       |            |     |           |       |    
|At December 31, 2002:                                                                     |                                     |                                             |        |        |            |   |       |            |     |           |       |     |      |   |        |       
|U.S. Treasury securities and obligations of
    U.S. government agencies and corporations |                                     | $                                           | 36,716 |        |            | $ | 69    |            |     | $         | (24   | )   |      | $ | 36,761 |       
|Other securities                                                                          |                                     |                                             | 400    |        |            |   | 9     |            |     |           |      |     |      |   | 409    |       
|                                                                                          |                                     |                                             |        |        |            |   |       |            |     |           |       |    
|                                                                                          | Total available-for-sale securities |                                             | $      | 37,116 |            |   | $     | 78         |     |           | $     | (24 | )    |   | $      | 37,170 |       
|                                                                                          |                                     |                                             |        |        |            |   |       |            |     |           |       |    

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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)


Maturity distribution of available-for-sale securities:


|                       |                      |                        |   |        |            |   |            |            |       |   |   |        |        |  
|---------------------- | -------------------- | ---------------------- | - | ------ | ---------- | - | ---------- | ---------- | ----- | - | - | ------ | ------ | -
|                       |                      | Contractual Maturities |  
|                       |                      |                        |  
|                       |                      | U.S. Treasury          |   |        |           
|                       |                      | Securities and         |   |        |            |   | Total      |           
|                       |                      | Obligations of         |   |        |            |   | Available- |           
|                       |                      | U.S. Government        |   |        | Other      |   |            | for-Sale   |      
|                       |                      | Agencies               |   |        | Securities |   |            | Securities |      
|(Dollars in Thousands) |                      |                        |   |        |            |   |            |            |      
|December 31, 2004      |                      |                        |   |        |            |   |            |            |       |   |   |       
|                       | Within one year:     |                        |   |        |            |   |            |            |       |   |   |        |       
|                       |                      | Amortized cost         |   | $      | 1,500      |   |            | $          |      |   |   | $      | 1,500  |  
|                       |                      | Fair value             |   | $      | 1,495      |   |            | $          |      |   |   | $      | 1,495  |  
|                       |                      | Yield                  |   |        | 1.51       | % |            |            |      | % |   |        | 1.51   | %
|                       | 1 to 5 years:        |                        |   |        |            |   |            |            |       |   |   |        |       
|                       |                      | Amortized cost         |   | $      | 21,022     |   |            | $          |      |   |   | $      | 21,022 |  
|                       |                      | Fair value             |   | $      | 20,860     |   |            | $          |      |   |   | $      | 20,860 |  
|                       |                      | Yield                  |   |        | 2.57       | % |            |            |      | % |   |        | 2.57   | %
|                       | 5 to 10 years:       |                        |   |        |            |   |            |            |       |   |   |        |       
|                       |                      | Amortized cost         |   | $      |           |   |            | $          |      |   |   | $      |       |  
|                       |                      | Fair value             |   | $      |           |   |            | $          |      |   |   | $      |       |  
|                       |                      | Yield                  |   |        |           | % |            |            |      | % |   |        |       | %
|                       | Over 10 years:       |                        |   |        |            |   |            |            |       |   |   |        |       
|                       |                      | Amortized cost         |   | $      |           |   |            | $          | 926   |   |   | $      | 926    |  
|                       |                      | Fair value             |   | $      |           |   |            | $          | 1,032 |   |   | $      | 1,032  |  
|                       |                      | Yield                  |   |        |           | % |            |            | 2.53  | % |   |        | 2.53   | %
|                       | Total amortized cost |                        | $ | 22,522 |            |   | $          | 926        |       |   | $ | 23,449 |       
|                       | Total fair value     |                        | $ | 22,355 |            |   | $          | 1,032      |       |   | $ | 23,386 |       
|                       | Total yield          |                        |   | 2.50   | %          |   |            | 2.53       | %     |   |   | 2.50   | %     





41



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




|                       |                                       |                     |   |       |                   |  |   |       |   |  |            |        |  |       |   |      |            |  |   |        |  |  |   |      |  
|---------------------- | ------------------------------------- | ------------------- | - | ----- | ----------------- |  | - | ----- | - |  | ---------- | ------ |  | ----- | - | ---- | ---------- |  | - | ------ |  |  | - | ---- | -
|                       |                                       | Less Than 12 Months |   |       | 12 Months or More |  |   | Total |  
|                       |                                       |                     |   |       |                   |  |   |       |  
|                       |                                       | Fair                |   |       | Unrealized        |  |   | Fair  |   |  | Unrealized |        |  | Fair  |   |      | Unrealized | 
|                       |                                       | Value               |   |       | Losses            |  |   | Value |   |  | Losses     |        |  | Value |   |      | Losses     | 
|                       |                                       |                     |   |       |                   |  |   |       |   |  |            |        |  |       |   |      |            | 
|(Dollars in Thousands) |                                       |                     |   |       |                   |  |   |       |   |  |            |        |  |       |   |      |            |  |   |        |  |  |   |     
|                      
|At December 31, 2004:  |                                       |                     |   |       |                   |  |   |       |   |  |            |        |  |       |   |      |            |  |   |        |  |  |   |     
|                       | U.S. government and agency securities |                     | $ | 1,495 |                   |  | $ | (5    | ) |  | $          | 20,858 |  |       | $ | (164 | )          |  | $ | 22,353 |  |  | $ | (169 | )
|                       | Tax-exempt securities                 |                     |   |      |                   |  |   |      |   |  |            |       |  |       |   |     |            |  |   |       |  |  |   |     |  
|                       | Other securities                      |                     |   |      |                   |  |   |      |   |  |            |       |  |       |   |     |            |  |   |       |  |  |   |     |  
|                       |                                       |                     |   |       |                   |  |   |       |   |  |            |        |  |       |   |      |            | 
|                       | Total loans                           |                     | $ | 1,495 |                   |  | $ | (5    | ) |  | $          | 20,858 |  |       | $ | (164 | )          |  | $ | 22,353 |  |  | $ | (169 | )
|                       |                                       |                     |   |       |                   |  |   |       |   |  |            |        |  |       |   |      |            | 
|At December 31, 2003:  |                                       |                     |   |       |                   |  |   |       |   |  |            |        |  |       |   |      |            |  |   |        |  |  |   |     
|                       | U.S. government and agency securities |                     | $ | 8,981 |                   |  | $ | (8    | ) |  | $          |       |  |       | $ |     |            |  | $ | 8,981  |  |  | $ | (8   | )
|                       | Tax-exempt securities                 |                     |   |      |                   |  |   |      |   |  |            |       |  |       |   |     |            |  |   |       |  |  |   |     |  
|                       | Other securities                      |                     |   |      |                   |  |   |      |   |  |            |       |  |       |   |     |            |  |   |       |  |  |   |     |  
|                       |                                       |                     |   |       |                   |  |   |       |   |  |            |        |  |       |   |      |            | 
|                       | Total loans                           |                     | $ | 8,981 |                   |  | $ | (8    | ) |  | $          |       |  |       | $ |     |            |  | $ | 8,981  |  |  | $ | (8   | )
|                       |                                       |                     |   |       |                   |  |   |       |   |  |            |        |  |       |   |      |            | 



|   |                                    
|-- | -----------------------------------
|4. | Loans and Allowance for Loan Losses



|                        |             |      |         |         |      |   |         |         | 
|----------------------- | ----------- | ---- | ------- | ------- | ---- | - | ------- | ------- | 
|                        |             | 2004 |         |         | 2003 |  
|                        |             |      |         |         |      |  
|(Dollars in Thousands)  |             |      |         |         |      |   |         |        
|                       
|Commercial              |             | $    | 58,391  |         |      | $ | 45,546  |        
|Real estate, commercial |             |      | 211,472 |         |      |   | 166,142 |        
|Real estate, mortgage   |             |      | 97,874  |         |      |   | 61,396  |        
|Consumer                |             |      | 29,177  |         |      |   | 22,841  |        
|                        |             |      |         |         |      |  
|                        | Total loans |      | $       | 396,914 |      |   | $       | 295,925 | 
|                        |             |      |         |         |      |  



|                     |             |                 |       |     |      |   |       |      |    |   |       |    |    | 
|-------------------- | ----------- | --------------- | ----- | --- | ---- | - | ----- | ---- | -- | - | ----- | -- | -- | 
|                     |             | 2004            |       |     | 2003 |   |       | 2002 |   
|                     |             |                 |       |     |      |   |       |      |   
|Balance, January 1   |             | $               | 4,457 |     |      | $ | 2,375 |      |    | $ | 1,426 |   
|Provision            |             |                 | 2,160 |     |      |   | 2,099 |      |    |   | 967   |   
|                     | Charge-offs |                 |       | 227 |      |   |       | 17   |    |   |       | 18 |   
|                     | Recoveries  |                 |       | 4   |      |   |       |     |    |   |       |   |   
|                     |             |                 |       |     |      |   |       |      |   
|                     |             | Net charge-offs |       |     | 223  |   |       |      | 17 |   |       |    | 18 | 
|                     |             |                 |       |     |      |   |       |      |   
|Balance, December 31 |             | $               | 6,394 |     |      | $ | 4,457 |      |    | $ | 2,375 |   
|                     |             |                 |       |     |      |   |       |      |   



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)










|                       |                      |      |         |        |      |   |        |        | 
|---------------------- | -------------------- | ---- | ------- | ------ | ---- | - | ------ | ------ | 
|                       |                      | 2004 |         |        | 2003 |  
|                       |                      |      |         |        |      |  
|(Dollars in Thousands) |                      |      |         |        |      |   |        |       
|                      
|Balance, January 1     |                      | $    | 17,270  |        |      | $ | 12,858 |       
|New loans              |                      |      | 12,814  |        |      |   | 13,221 |       
|Repayments             |                      |      | (11,727 | )      |      |   | (8,809 | )     
|                       |                      |      |         |        |      |  
|                       | Balance, December 31 |      | $       | 18,357 |      |   | $      | 17,270 | 
|                       |                      |      |         |        |      |  



|   |                            
|-- | ---------------------------
|5. | Bank Premises and Equipment



|                                  |                |      |        |       |      |   |        |       | 
|--------------------------------- | -------------- | ---- | ------ | ----- | ---- | - | ------ | ----- | 
|                                  |                | 2004 |        |       | 2003 |  
|(Dollars in Thousands)            |                |      |        |       |      |  
|Land                              |                | $    | 1,799  |       |      | $ | 1,171  |      
|Building and premises             |                |      | 1,453  |       |      |   | 737    |      
|Leasehold improvements            |                |      | 1,702  |       |      |   | 1,624  |      
|Furniture, fixtures and equipment |                |      | 4,306  |       |      |   | 3,701  |      
|                                  |                |      |        |       |      |  
|                                  |                |      | 9,260  |       |      |   | 7,233  |      
|Accumulated depreciation          |                |      | (2,162 | )     |      |   | (1,579 | )    
|                                  |                |      |        |       |      |  
|                                  | Net book value |      | $      | 7,098 |      |   | $      | 5,654 | 
|                                  |                |      |        |       |      |  



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




|                         |            |                              |   |       |       | 
|------------------------ | ---------- | ---------------------------- | - | ----- | ----- | 
|                         |            | Operating                    |  
|                         |            | Leases                       |  
|(Dollars in Thousands)   |            |                              |  
|Year Ending December 31: |            |                              |   |      
|                         | 2005       |                              | $ | 524   |      
|                         | 2006       |                              |   | 367   |      
|                         | 2007       |                              |   | 353   |      
|                         | 2008       |                              |   | 348   |      
|                         | 2009       |                              |   | 348   |      
|                         | Thereafter |                              |   | 3,144 |      
|                         |            |                              |  
|                         |            | Total minimum lease payments |   | $     | 5,084 | 
|                         |            |                              |  







|   |         
|-- | --------
|6. | Deposits







|   |                      
|-- | ---------------------
|7. | Short-Term Borrowings



|                                |                 |      |        |      |      |   |        |      |   |   |        |      |  
|------------------------------- | --------------- | ---- | ------ | ---- | ---- | - | ------ | ---- | - | - | ------ | ---- | -
|                                |                 | 2004 |        |      | 2003 |   |        | 2002 |  
|(Dollars in thousands)          |                 |      |        |      |      |   |        |      |  
|Ending balance                  |                 | $    | 14,507 |      |      | $ | 16,953 |      |   | $ | 24,578 |     
|Average balance                 |                 |      | 15,217 |      |      |   | 17,243 |      |   |   | 14,893 |     
|Highest month-end balance       |                 |      | 16,493 |      |      |   | 21,933 |      |   |   | 24,578 |     
|Interest expense                |                 |      | 116    |      |      |   | 78     |      |   |   | 118    |     
|Weighted-average interest rate: |                 |      |        |      |      |   |        |      |   |   |        |     
|                                | End of year     |      |        | 1.60 | %    |   |        | 0.38 | % |   |        | 0.63 | %
|                                | During the year |      |        | 0.77 | %    |   |        | 0.45 | % |   |        | 0.79 | %



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




|   |               
|-- | --------------
|8. | Long-Term Debt









|                                   |  |        |        |          |      |  |      |  
|---------------------------------- |  | ------ | ------ | -------- | ---- |  | ---- | -
|                                   |  | 2004   |       
|                                   |  |        |       
|                                   |  |        |        | Weighted |     
|                                   |  |        |        | Average  |     
|                                   |  | Amount |        |          | Rate | 
|(Dollars in Thousands)             |  |        |        |          |      | 
|Centra Financial Statutory Trust 1 |  | $      | 10,000 |          |      |  | 4.31 | %





|   |             
|-- | ------------
|9. | Income Taxes





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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




|                                    |                               |                           |      |      |      |   |      |       |      |    |      |       |   |  
|----------------------------------- | ----------------------------- | ------------------------- | ---- | ---- | ---- | - | ---- | ----- | ---- | -- | ---- | ----- | - | -
|                                    |                               | 2004                      |      |      | 2003 |   |      | 2002  |     
|                                    |                               |                           |      |      |      |   |      |       |     
|Statutory corporate tax rate        |                               |                           | 34.0 | %    |      |   | 34.0 | %     |      |    | 34.0 | %    
|Differences in rate resulting from: |                               |                           |      |      |      |   |      |       |      |    |      |      
|                                    | State income taxes            |                           |      | 4.3  |      |   |      | 3.5   |      |    |      | 3.6   |  
|                                    | Other                         |                           |      | (1.8 | )    |   |      | (2.4  | )    |    |      | (3.2  | )
|                                    | Change in valuation allowance |                           |      |     |      |   |      | (40.6 | )    |    |      | (34.4 | )
|                                    |                               |                           |      |      |      |   |      |       |     
|                                    |                               | Effective income tax rate |      |      | 36.5 | % |      |       | (5.5 | )% |      |       |  | %
|                                    |                               |                           |      |      |      |   |      |       |     



|         |                              |      |     |       |      |  |     |        |   |  |   |   | 
|-------- | ---------------------------- | ---- | --- | ----- | ---- |  | --- | ------ | - |  | - | - | 
|         |                              | 2004 |     |       | 2003 |  |     | 2002  
|         |                              |      |     |       |      |  |     |       
|Federal: |                              |      |     |       |      |  |     |        |   |  |   |  
|         | Current                      |      | $   | 1,656 |      |  | $   | 1,274  |   |  | $ |  | 
|         | Deferred                     |      |     | (708  | )    |  |     | (1,507 | ) |  |   |  | 
|State    |                              |      | 203 |       |      |  | 129 |        |   |  |  |  
|         |                              |      |     |       |      |  |     |        |  
|         | Income tax expense (benefit) |      | $   | 1,151 |      |  | $   | (104   | ) |  | $ |  | 
|         |                              |      |     |       |      |  |     |        |  



|                          |                               |                          |       |       |       |   |       |       |       | 
|------------------------- | ----------------------------- | ------------------------ | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|                          |                               | 2004                     |       |       | 2003  |  
|(Dollars in thousands)    |                               |                          |       |       |       |  
|Deferred tax assets:      |                               |                          |       |       |       |   |       |      
|                          | Allowance for loan losses     |                          | $     | 2,495 |       |   | $     | 1,719 |      
|                          | Available-for-sale securities |                          |       | 25    |       |   |       |      |      
|                          | Organization costs            |                          |       |      |       |   |       | 15    |      
|                          | Supplemental retirement plan  |                          |       | 163   |       |   |       | 106   |      
|                          | Other                         |                          |       | 41    |       |   |       | 32    |      
|                          |                               |                          |       |       |       |  
|                          |                               | Deferred tax assets      |       |       | 2,724 |   |       |       | 1,872 | 
|Deferred tax liabilities: |                               |                          |       |       |       |   |       |      
|                          | Premises and equipment        |                          |       | 422   |       |   |       | 365   |      
|                          | Available-for-sale securities |                          |       |      |       |   |       | 38    |      
|                          | Other                         |                          |       |       |       |   |       |      |      
|                          |                               |                          |       |       |       |  
|                          |                               | Deferred tax liabilities |       |       | 422   |   |       |       | 403   | 
|                          |                               |                          |       |       |       |  
|Net deferred tax assets   |                               | $                        | 2,302 |       |       | $ | 1,469 |      
|                          |                               |                          |       |       |       |  



|    |                                                  
|--- | -------------------------------------------------
|10. | Financial Instruments with Off-Balance Sheet Risk



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)


Loan Commitments and Standby Letters of Credit








|    |               
|--- | --------------
|11. | Other Expenses



|                        |  |      |     |  |      |   |     |      |  |   |     | 
|----------------------- |  | ---- | --- |  | ---- | - | --- | ---- |  | - | --- | 
|                        |  | 2004 |     |  | 2003 |   |     | 2002 | 
|                        |  |      |     |  |      |   |     |      | 
|Stationery and supplies |  | $    | 203 |  |      | $ | 178 |      |  | $ | 136 | 
|Outside services        |  |      | 303 |  |      |   | 233 |      |  |   | 196 | 
|Taxes not on income     |  |      | 308 |  |      |   | 293 |      |  |   | 205 | 



|    |                   
|--- | ------------------
|12. | Regulatory Matters









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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)






|                        |                  |        |   |             |          |  |            |                  |   |                  |       |        |  |        |  |   |       |  |   |        |  |  |  |    |  
|----------------------- | ---------------- | ------ | - | ----------- | -------- |  | ---------- | ---------------- | - | ---------------- | ----- | ------ |  | ------ |  | - | ----- |  | - | ------ |  |  |  | -- | -
|                        |                  |        |   |             |          |  |            |                  |   | Well Capitalized |      
|                        |                  |        |   |             |          |  |            | Under Prompt     |  
|                        |                  |        |   | For Capital |          |  | Corrective |                 
|                        |                  | Actual |   |             | Adequacy |  |            | Action Provision |  
|                        |                  |        |   |             |          |  |            |                  |  
|                        |                  | Amount |   |             | Ratio    |  |            | Amount           |   |                  | Ratio |        |  | Amount |  |   | Ratio | 
|(Dollars in Thousands)  |                  |        |   |             |          |  |            |                  |   |                  |       |        |  |        |  |   |       | 
|As of December 31, 2004 |                  |        |   |             |          |  |            |                  |   |                  |       |        |  |        |  |   |       |  |   |        |  |  |  |   
|                        | Total capital(1) |        | $ | 43,718      |          |  |            | 12.1             | % |                  | $     | 28,928 |  |        |  | 8 | %     |  | $ | 36,160 |  |  |  | 10 | %
|                        | Tier 1(2)        |        |   | 39,176      |          |  |            | 10.8             |   |                  |       | 14,456 |  |        |  | 4 |       |  |   | 21,684 |  |  |  | 6  |  
|                        | Tier 1(3)        |        |   | 39,176      |          |  |            | 8.8              |   |                  |       | 17,848 |  |        |  | 4 |       |  |   | 22,310 |  |  |  | 5  |  
|As of December 31, 2003 |                  |        |   |             |          |  |            |                  |   |                  |       |        |  |        |  |   |       |  |   |        |  |  |  |   
|                        | Total capital(1) |        | $ | 31,104      |          |  |            | 11.0             | % |                  | $     | 22,724 |  |        |  | 8 | %     |  | $ | 28,405 |  |  |  | 10 | %
|                        | Tier 1(2)        |        |   | 27,542      |          |  |            | 9.7              |   |                  |       | 11,369 |  |        |  | 4 |       |  |   | 17,054 |  |  |  | 6  |  
|                        | Tier 1(3)        |        |   | 27,542      |          |  |            | 8.2              |   |                  |       | 13,518 |  |        |  | 4 |       |  |   | 16,897 |  |  |  | 5  |  






|    |                                                                           
|--- | --------------------------------------------------------------------------
|(1) | Ratio represents total risk-based capital to net risk-weighted
    assets.
|   
|(2) | Ratio represents Tier 1 capital to net risk-weighted assets.              
|   
|(3) | Ratio represents Tier 1 capital to average assets.                        



|    |                             
|--- | ----------------------------
|13. | Federal Reserve Requirements





|    |                       
|--- | ----------------------
|14. | Employee Benefit Plans





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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




|    |              
|--- | -------------
|15. | Stock Options



|                                                               |  |        |         |           |          |   |       |        |           |  |          |  |  |           |       |  |          |  |         |  |  |   |       | 
|-------------------------------------------------------------- |  | ------ | ------- | --------- | -------- | - | ----- | ------ | --------- |  | -------- |  |  | --------- | ----- |  | -------- |  | ------- |  |  | - | ----- | 
|                                                               |  | 2004   |         |           | 2003     |   |       | 2002   |          
|                                                               |  |        |         |           |          |   |       |        |          
|                                                               |  |        |         | Weighted- |          |   |       |        | Weighted- |  |          |  |  | Weighted- |      
|                                                               |  | Number |         |           | Average  |   |       | Number |           |  | Average  |  |  | Number    |       |  | Average  | 
|                                                               |  | of     |         |           | Exercise |   |       | of     |           |  | Exercise |  |  | of        |       |  | Exercise | 
|                                                               |  | Shares |         |           | Price    |   |       | Shares |           |  | Price    |  |  | Shares    |       |  | Price    | 
|                                                               |  |        |         |           |          |   |       |        |           |  |          |  |  |           |       |  |          | 
|Outstanding at beginning of year                               |  |        | 662,090 |           |          | $ | 10.89 |        |           |  | 527,505  |  |  | $         | 10.08 |  |          |  | 513,920 |  |  | $ | 9.98  | 
|Granted                                                        |  |        |        |           |          |   |      |        |           |  | 134,750  |  |  |           | 14.09 |  |          |  | 13,750  |  |  |   | 13.64 | 
|Exercised                                                      |  |        |        |           |          |   |      |        |           |  |         |  |  |           |      |  |          |  | 55      |  |  |   | 9.09  | 
|Canceled                                                       |  |        | 110     |           |          |   | 9.09  |        |           |  | 165      |  |  |           | 9.09  |  |          |  | 110     |  |  |   | 10.00 | 
|                                                               |  |        |         |           |          |   |       |        |           |  |          |  |  |           |       |  |          | 
|Outstanding at end of year                                     |  |        | 661,980 |           |          | $ | 10.89 |        |           |  | 662,090  |  |  | $         | 10.89 |  |          |  | 527,505 |  |  | $ | 10.08 | 
|                                                               |  |        |         |           |          |   |       |        |           |  |          |  |  |           |       |  |          | 
|Exercisable at end of year                                     |  |        | 550,001 |           |          | $ | 10.48 |        |           |  | 445,087  |  |  | $         | 10.34 |  |          |  | 302,995 |  |  | $ | 9.65  | 
|                                                               |  |        |         |           |          |   |       |        |           |  |          |  |  |           |       |  |          | 
|Weighted-average fair value of options granted during the year |  |        |         |           |          | $ |      |        |           |  |          |  |  | $         | 3.26  |  |          |  |         |  |  | $ | 2.63  | 
|                                                               |  |        |         |           |          |   |       |        |           |  |          |  |  |           |       |  |          | 





|               |  |                     |         |           |                     |  |            |          |  |   |             |           |  |          |         |  |  |   |       | 
|-------------- |  | ------------------- | ------- | --------- | ------------------- |  | ---------- | -------- |  | - | ----------- | --------- |  | -------- | ------- |  |  | - | ----- | 
|               |  | Options Outstanding |         |           | Options Exercisable | 
|               |  |                     |         |           |                     | 
|               |  |                     |         | Weighted- |                     |  |            |          | 
|               |  |                     |         | Average   |                     |  | Weighted-  |          |  |   |             | Weighted- | 
|               |  |                     |         | Remaining |                     |  | Average    |          |  |   |             | Average   | 
|               |  | Options             |         |           | Contractual         |  |            | Exercise |  |   | Number      |           |  | Exercise |        
|Exercise Price |  | Outstanding         |         |           | Life                |  |            | Price    |  |   | Exercisable |           |  | Price    |        
|               |  |                     |         |           |                     |  |            |          |  |   |             |           |  |          |        
|$ 9.09         |  |                     | 293,260 |           |                     |  | 5.33 years |          |  | $ | 9.09        |           |  |          | 293,260 |  |  | $ | 9.09  | 
|$10.00         |  |                     | 32,120  |           |                     |  | 6.00 years |          |  | $ | 10.00       |           |  |          | 24,918  |  |  | $ | 10.00 | 
|$11.36         |  |                     | 188,100 |           |                     |  | 6.88 years |          |  | $ | 11.36       |           |  |          | 153,451 |  |  | $ | 11.36 | 
|$13.64         |  |                     | 13,750  |           |                     |  | 7.70 years |          |  | $ | 13.64       |           |  |          | 2,200   |  |  | $ | 13.64 | 
|$14.09         |  |                     | 134,750 |           |                     |  | 8.71 years |          |  | $ | 14.09       |           |  |          | 76,172  |  |  | $ | 14.09 | 

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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)




|    |                                          
|--- | -----------------------------------------
|16. | Parent Company Only Financial Information

Condensed Balance Sheet


|                                           |                                                                                                                                                       |                            |        |        |        |   |        |        |        | 
|------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------ | ------ | ------ | - | ------ | ------ | ------ | 
|                                           |                                                                                                                                                       | December 31                |       
|                                           |                                                                                                                                                       |                            |       
|                                           |                                                                                                                                                       | 2004                       |        |        | 2003   |  
|(Dollars in thousands)                     |                                                                                                                                                       |                            |        |        |        |  
|Assets:                                    |                                                                                                                                                       |                            |        |        |        |   |        |       
|                                           | Due from banks                                                                                                                                        |                            | $      | 425    |        |   | $      | 25     |       
|                                           | Available-for-sale securities, at estimated fair value
    (amortized cost of $150 in 2004 and $103 in 2003)                                          |                            |        | 253    |        |   |        | 166    |       
|                                           | Investment in Second Tier Bank Holding Companies                                                                                                      |                            |        | 39,075 |        |   |        | 27,665 |       
|                                           |                                                                                                                                                       |                            |        |        |        |  
|                                           |                                                                                                                                                       | Total assets               |        | $      | 39,753 |   |        | $      | 27,856 | 
|                                           |                                                                                                                                                       |                            |        |        |        |  
|Liabilities:                               |                                                                                                                                                       |                            |        |        |        |   |        |       
|                                           | Long-term debt                                                                                                                                        |                            | $      | 10,000 |        |   | $      |       |       
|                                           | Other liabilities                                                                                                                                     |                            |        | 8      |        |   |        | 18     |       
|                                           |                                                                                                                                                       |                            |        |        |        |  
|                                           |                                                                                                                                                       | Total liabilities          |        |        | 10,008 |   |        |        | 18     | 
|Stockholders equity:                      |                                                                                                                                                       |                            |        |        |        |   |        |       
|                                           | Preferred stock, $1 par value, 1,000,000 authorized, none
    issued                                                                                  |                            |        |       |        |   |        |       |       
|                                           | Common stock, $1 par value, 50,000,000 authorized,
    2,552,506 and 2,320,550 issued and outstanding on
    December 31, 2004 and 2003, respectively |                            |        | 2,552  |        |   |        | 2,320  |       
|                                           | Additional paid-in capital                                                                                                                            |                            |        | 25,185 |        |   |        | 25,419 |       
|                                           | Accumulated earnings                                                                                                                                  |                            |        | 2,046  |        |   |        | 42     |       
|                                           | Accumulated other comprehensive (loss) income                                                                                                         |                            |        | (38    | )      |   |        | 57     |       
|                                           |                                                                                                                                                       |                            |        |        |        |  
|                                           |                                                                                                                                                       | Total stockholders equity |        |        | 29,745 |   |        |        | 27,838 | 
|                                           |                                                                                                                                                       |                            |        |        |        |  
|Total liabilities and stockholders equity |                                                                                                                                                       | $                          | 39,753 |        |        | $ | 27,856 |       
|                                           |                                                                                                                                                       |                            |        |        |        |  

Consolidated Statement of Income


|                                                                                          |            |                        |       |       |      |   |       |       |  |   |     |     | 
|----------------------------------------------------------------------------------------- | ---------- | ---------------------- | ----- | ----- | ---- | - | ----- | ----- |  | - | --- | --- | 
|                                                                                          |            | Year Ended December 31 |      
|                                                                                          |            |                        |      
|                                                                                          |            | 2004                   |       |       | 2003 |   |       | 2002  | 
|(Dollars in thousands)                                                                    |            |                        |       |       |      |   |       |       | 
|Income  dividends from bank subsidiary                                                   |            | $                      | 550   |       |      | $ |      |       |  | $ | 130 |    
| interest
    and dividends                                                              |            |                        | 5     |       |      |   | 5     |       |  |   |     |    
|Total expense                                                                             |            |                        | 124   |       |      |   |      |       |  |   |    |    
|                                                                                          |            |                        |       |       |      |   |       |       | 
|Income before federal income tax and equity in undistributed
    earnings of subsidiaries |            |                        | 431   |       |      |   | 5     |       |  |   | 130 |    
|Applicable income tax benefit                                                             |            |                        | (42   | )     |      |   |      |       |  |   |    |    
|Equity in undistributed income of subsidiaries                                            |            |                        | 1,531 |       |      |   | 1,959 |       |  |   | 795 |    
|                                                                                          |            |                        |       |       |      |   |       |       | 
|                                                                                          | Net income |                        | $     | 2,004 |      |   | $     | 1,964 |  |   | $   | 925 | 
|                                                                                          |            |                        |       |       |      |   |       |       | 

50



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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)


Statement of Cash Flows


|                                               |                                                       |                                           |       |         |      |   |       |        |    |   |     |         |      |  
|---------------------------------------------- | ----------------------------------------------------- | ----------------------------------------- | ----- | ------- | ---- | - | ----- | ------ | -- | - | --- | ------- | ---- | -
|                                               |                                                       | Year Ended December 31                    |      
|                                               |                                                       |                                           |      
|                                               |                                                       | 2004                                      |       |         | 2003 |   |       | 2002   |   
|(Dollars in thousands)                         |                                                       |                                           |       |         |      |   |       |        |   
|Operating activities:                          |                                                       |                                           |       |         |      |   |       |        |    |   |     |        
|Net income                                     |                                                       | $                                         | 2,004 |         |      | $ | 1,964 |        |    | $ | 925 |        
|                                               | Decrease in accrued expenses                          |                                           |       | (24     | )    |   |       | (7     | )  |   |     |        |     
|                                               | Equity in undistributed (income) loss of subsidiaries |                                           |       | (1,531  | )    |   |       | (1,959 | )  |   |     | (795    | )   
|                                               |                                                       |                                           |       |         |      |   |       |        |   
|                                               |                                                       | Net cash provided by (used in) operations |       |         | 449  |   |       |        | (2 | ) |     |         | 130  |  
|Investing activities:                          |                                                       |                                           |       |         |      |   |       |        |    |   |     |        
|                                               | Purchases of available-for-sale securities            |                                           |       | (47     | )    |   |       |       |    |   |     | (103    | )   
|                                               |                                                       |                                           |       |         |      |   |       |        |   
|                                               |                                                       | Net cash used in investing activities     |       |         | (47  | ) |       |        |   |   |     |         | (103 | )
|Financing activities:                          |                                                       |                                           |       |         |      |   |       |        |    |   |     |        
|                                               | Proceeds of long-term debt issuance                   |                                           |       | 10,000  |      |   |       |       |    |   |     |        |     
|                                               | Proceeds of stock offering                            |                                           |       |        |      |   |       |       |    |   |     | 10,734  |     
|                                               | Distribution of fractional shares                     |                                           |       | (2      | )    |   |       |       |    |   |     |        |     
|                                               | Investment in subsidiaries                            |                                           |       | (10,000 | )    |   |       |       |    |   |     | (10,734 | )   
|                                               |                                                       |                                           |       |         |      |   |       |        |   
|                                               |                                                       | Net cash used in financing activities     |       |         | (2   | ) |       |        |   |   |     |         |     |  
|                                               |                                                       |                                           |       |         |      |   |       |        |   
|                                               |                                                       | Net change in cash                        |       |         | 400  |   |       |        | (2 | ) |     |         | 27   |  
|Cash and cash equivalents at beginning of year |                                                       |                                           | 25    |         |      |   | 27    |        |    |   |    |        
|                                               |                                                       |                                           |       |         |      |   |       |        |   
|                                               |                                                       | Cash and cash equivalents at end of year  |       | $       | 425  |   |       | $      | 25 |   |     | $       | 27   |  
|                                               |                                                       |                                           |       |         |      |   |       |        |   



|    |                                             
|--- | --------------------------------------------
|17. | Summarized Quarterly Information (Unaudited)



|                                              |                                             |         |   |           |         |  |   |           |  |  |         |           |  |  |   |           | 
|--------------------------------------------- | ------------------------------------------- | ------- | - | --------- | ------- |  | - | --------- |  |  | ------- | --------- |  |  | - | --------- | 
|                                              |                                             | First   |   |           | Second  |  |   | Third     |  |  | Fourth  |          
|                                              |                                             | Quarter |   |           | Quarter |  |   | Quarter   |  |  | Quarter |          
|(Dollars in Thousands, except Per Share Data) |                                             |         |   |           |         |  |   |           |  |  |         |          
|2004:                                         |                                             |         |   |           |         |  |   |           |  |  |         |           |  |  |   |          
|                                              | Interest income                             |         | $ | 4,310     |         |  | $ | 4,629     |  |  | $       | 5,190     |  |  | $ | 5,885     | 
|                                              | Interest expense                            |         |   | 1,522     |         |  |   | 1,582     |  |  |         | 1,745     |  |  |   | 1,997     | 
|                                              | Net interest income                         |         |   | 2,788     |         |  |   | 3,047     |  |  |         | 3,445     |  |  |   | 3,888     | 
|                                              | Provision for loan losses                   |         |   | 365       |         |  |   | 563       |  |  |         | 635       |  |  |   | 597       | 
|                                              | Other income                                |         |   | 507       |         |  |   | 665       |  |  |         | 627       |  |  |   | 698       | 
|                                              | Other expenses                              |         |   | 2,370     |         |  |   | 2,523     |  |  |         | 2,579     |  |  |   | 2,878     | 
|                                              | Income tax expense                          |         |   | 199       |         |  |   | 223       |  |  |         | 308       |  |  |   | 421       | 
|                                              | Net income                                  |         |   | 361       |         |  |   | 403       |  |  |         | 550       |  |  |   | 690       | 
|                                              | Basic earnings per share                    |         | $ | 0.14      |         |  | $ | 0.16      |  |  | $       | 0.22      |  |  | $ | 0.27      | 
|                                              | Diluted earnings per share                  |         | $ | 0.13      |         |  | $ | 0.15      |  |  | $       | 0.21      |  |  | $ | 0.26      | 
|                                              | Basic weighted average shares outstanding   |         |   | 2,552,506 |         |  |   | 2,552,506 |  |  |         | 2,552,506 |  |  |   | 2,552,506 | 
|                                              | Diluted weighted average shares outstanding |         |   | 2,679,403 |         |  |   | 2,679,364 |  |  |         | 2,679,364 |  |  |   | 2,679,267 | 

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CENTRA FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES


Notes to the Consolidated Financial
Statements  (continued)


|                                              |                                             |         |   |           |         |  |   |           |  |  |         |           |  |  |   |           |  
|--------------------------------------------- | ------------------------------------------- | ------- | - | --------- | ------- |  | - | --------- |  |  | ------- | --------- |  |  | - | --------- | -
|                                              |                                             | First   |   |           | Second  |  |   | Third     |  |  | Fourth  |          
|                                              |                                             | Quarter |   |           | Quarter |  |   | Quarter   |  |  | Quarter |          
|(Dollars in Thousands, except Per Share Data) |                                             |         |   |           |         |  |   |           |  |  |         |          
|2003:                                         |                                             |         |   |           |         |  |   |           |  |  |         |           |  |  |   |          
|                                              | Interest income                             |         | $ | 3,233     |         |  | $ | 3,492     |  |  | $       | 3,776     |  |  | $ | 4,133     |  
|                                              | Interest expense                            |         |   | 1,220     |         |  |   | 1,345     |  |  |         | 1,329     |  |  |   | 1,410     |  
|                                              | Net interest income                         |         |   | 2,013     |         |  |   | 2,147     |  |  |         | 2,447     |  |  |   | 2,723     |  
|                                              | Provision for loan losses                   |         |   | 345       |         |  |   | 502       |  |  |         | 629       |  |  |   | 623       |  
|                                              | Other income                                |         |   | 540       |         |  |   | 819       |  |  |         | 795       |  |  |   | 632       |  
|                                              | Other expenses                              |         |   | 1,796     |         |  |   | 2,015     |  |  |         | 2,128     |  |  |   | 2,218     |  
|                                              | Income tax (benefit)                        |         |   |          |         |  |   |          |  |  |         |          |  |  |   | (104      | )
|                                              | Net income                                  |         |   | 412       |         |  |   | 449       |  |  |         | 485       |  |  |   | 618       |  
|                                              | Basic earnings per share                    |         | $ | 0.16      |         |  | $ | 0.18      |  |  | $       | 0.19      |  |  | $ | 0.24      |  
|                                              | Diluted earnings per share                  |         | $ | 0.15      |         |  | $ | 0.17      |  |  | $       | 0.18      |  |  | $ | 0.23      |  
|                                              | Basic weighted average shares outstanding   |         |   | 2,552,506 |         |  |   | 2,552,506 |  |  |         | 2,552,506 |  |  |   | 2,552,506 |  
|                                              | Diluted weighted average shares outstanding |         |   | 2,702,918 |         |  |   | 2,695,605 |  |  |         | 2,702,918 |  |  |   | 2,689,288 |  

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












| |                      
| | ---------------------
| | -s- ERNST & YOUNG LLP





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PART III







|         |                                                   
|-------- | --------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT












|         |                       
|-------- | ----------------------
|ITEM 11. | EXECUTIVE COMPENSATION










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








|         |                                               
|-------- | ----------------------------------------------
|ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS








|         |                                       
|-------- | --------------------------------------
|ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES



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PART IV







|         |                                                                     
|-------- | --------------------------------------------------------------------
|ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM
    8-K

(a)(1) Financial Statements:




|                                                                                                                                                                 |  |      |    | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                                                                                 |  | Page |   
|                                                                                                                                                                 |  |      |   
|Report of Independent Auditors (Ernst & Young LLP)                                                                                                               |  |      | 53 | 
|Consolidated Balance Sheets as of December 31, 2004 and 2003                                                                                                     |  |      | 30 | 
|Consolidated Statements of Income for the years ended
    December 31, 2004, 2003 and 2002                                                                       |  |      | 31 | 
|Consolidated Statements of Stockholders Equity for the
    years ended December 31, 2004, 2003 and 2002                                                         |  |      | 32 | 
|Consolidated Statements of Cash Flows for the years ended
    December 31, 2004, 2003 and 2002                                                                   |  |      | 33 | 
|Notes to the Consolidated Financial Statements                                                                                                                   |  |      | 34 | 
|Centra Financial Holdings Inc.: (Parent Company Only Financial
    Statements are included in Note 16 of the Notes to the
    Consolidated Financial Statements) |  |      | 50 | 

(a)(2)Financial Statement Schedules




| |                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | All schedules for which provision is made in the applicable
    accounting regulations of the Securities and Exchange Commission
    are not required under the related instructions or are
    inapplicable and, therefore, have been omitted.

(a)(3) Exhibits




| |                                                                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Exhibits filed with this Annual Report on Form 10-K are
    attached hereto. For a list of such exhibits, see
    Exhibit Index beginning at page 47. The
    Exhibit Index specifically identifies each management
    contract or compensatory plan required to be filed as an exhibit
    to this Form 10-K.

(b) Reports on Form 8-K




| |                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------
| | Centra filed a Form 8-K on February 11, 2005
    announcing fourth quarter financial position and results of
    operations.

(c) Exhibits




| |                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------
| | Exhibits filed with Annual Report on Form 10-K are attached
    hereto. For a list of such exhibits, see
    Exhibit Index beginning at page 47.

(d) Financial Statement Schedules




| |      
| | -----
| | None.

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SIGNATURES






| |                                   
| | ----------------------------------
| | Centra Financial Holdings
    Inc.



| |     |                     
| | --- | --------------------
| | By: | /s/ Douglas J. Leech

| |                                      
| | -------------------------------------
| |                                      
| | Douglas J. Leech                     
| | President and Chief Executive Officer





| |     |                    
| | --- | -------------------
| | By: | /s/ Kevin D. Lemley

| |                                                   
| | --------------------------------------------------
| |                                                   
| | Kevin D. Lemley                                   
| | SVP-CFO Principal Financial and Accounting Officer





|                                              |  |                                                    |  |                |  | 
|--------------------------------------------- |  | -------------------------------------------------- |  | -------------- |  | 
|Signatures                                    |  | Title                                              |  | Date          
|                                              |  |                                                    |  |               
|                                             
|/s/ Douglas J. LeechDouglas
    J. Leech      |  | President and Chief Executive Officer and Director |  | March 19, 2005
|                                             
|/s/ James W.
    Dailey IIJames
    W. Dailey |  | Director                                           |  | March 19, 2005
|                                             
|/s/ Arthur GabrielArthur
    Gabriel          |  | Director                                           |  | March 19, 2005
|                                             
|/s/ Robert A. McMillanRobert
    A. McMillan  |  | Director                                           |  | March 19, 2005
|                                             
|/s/ Mark R. NesselroadMark
    R. Nesselroad  |  | Director                                           |  | March 19, 2005
|                                             
|/s/ Parry G. PetroplusParry
    G. Petroplus  |  | Director                                           |  | March 19, 2005

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|                                               |  |          |  |                |  | 
|---------------------------------------------- |  | -------- |  | -------------- |  | 
|Signatures                                     |  | Title    |  | Date          
|                                               |  |          |  |               
|                                              
|/s/ Milan PuskarMilan
    Puskar               |  | Director |  | March 19, 2005
|                                              
|/s/ Paul T. SwansonPaul
    T. Swanson         |  | Director |  | March 19, 2005
|                                              
|/s/ Bernard G. WestfallBernard
    G. Westfall |  | Director |  | March 19, 2005

57



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CENTRA FINANCIAL HOLDINGS INC. AND SUBSIDIARIES ANNUAL
REPORT


ON FORM 10-K


for Fiscal Year Ended December 31, 2003





EXHIBIT INDEX


|        |  |                                                                                                                                 |  |                                                                                                                                    
|------- |  | ------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------
|Exhibit |  |                                                                                                                                 |  |                                                                                                                                    
|Number  |  | Description                                                                                                                     |  | Exhibit Location                                                                                                                   
|        |  |                                                                                                                                 |  |                                                                                                                                    
|3.1     |  | Articles of Incorporation                                                                                                       |  | Form S-4 Registration Statement, Registration No.
    333-36186, filed December 23, 1999, and incorporated by
    reference herein.
|3.2     |  | Bylaws                                                                                                                          |  | Form S-4 Registration Statement, Registration No.
    333-36186, filed December 23, 1999, and incorporated by
    reference herein.
|3.2a    |  | Bylaws, as amended                                                                                                              |  | Filed herewith.                                                                                                                    
|4.1     |  | Shareholder Protection Rights Agreement                                                                                         |  | Form S-4 Registration Statement, Registration No.
    333-36186, filed December 23, 1999, and incorporated by
    reference herein.
|10.1    |  | Centra Financial Holdings, Inc. 1999 Stock Incentive Plan dated
    as of April 27. 2000                                        |  | Form 10-KSB for the year ended December 31, 2000, and
    incorporated by reference herein.                                        
|10.2    |  | Employment Agreement of Douglas J. Leech dated March 16,
    2000                                                               |  | Form 10-KSB for the year ended December 31, 2000, and
    incorporated by reference herein.                                        
|10.3    |  | Lease agreement with Platinum Plaza, Inc.                                                                                       |  | Form S-4 Registration Statement, Registration No.
    333-36186, filed December 23, 1999, and incorporated by
    reference herein.
|10.4    |  | Lease agreement with Frank and Teresa Fargo for premises
    occupied by the Williamsport Pike office                           |  | Form 10-KSB for the year ended December 31, 2001, and
    incorporated by reference herein.                                        
|10.5    |  | Lease agreement with Columbus, LLC for premises occupied by the
    450 Foxcroft Avenue office                                  |  | Form 10-KSB for the year ended December 31, 2001, and
    incorporated by reference herein.                                        
|10.6    |  | Lease agreement with Van Wyk Enterprises, Inc. for premises
    occupied by the 300 Foxcroft Avenue office                      |  | Form 10-KSB for the year ended December 31, 2001, and
    incorporated by reference herein.                                        
|10.7    |  | Lease agreement with Union Properties for unimproved real estate
    at the corner of West Virginia Route 857 and Venture Drive |  | Form 10-KSB for the year ended December 31, 2002, and
    incorporated by reference herein.                                        
|10.8    |  | Employment and Change-of-Control Agreement with Kevin D. Lemley                                                                 |  | Form 10-KSB for the year ended December 31, 2003, and
    incorporated by reference herein.                                        
|10.9    |  | Employment and Change-of-Control Agreement with Timothy P. Saab                                                                 |  | Form 10-KSB for the year ended December 31, 2003, and
    incorporated by reference herein.                                        
|10.10   |  | Employment and Change-of-Control Agreement with E. Richard
    Hilleary                                                         |  | Form 10-KSB for the year ended December 31, 2003, and
    incorporated by reference herein.                                        
|10.11   |  | Employment and Change-of-Control Agreement with Henry M. Kayes                                                                  |  | Form 10-KSB for the year ended December 31, 2003, and
    incorporated by reference herein.                                        
|10.12   |  | Indenture with Centra Financial Holdings, Inc. as Issuer and
    Wilmington Trust Company as Trustee                            |  | Filed herewith.                                                                                                                    
|10.13   |  | Floating Rate Junior Subordinated Deferrable Interest Debenture                                                                 |  | Filed herewith.                                                                                                                    



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##### Table of Contents



|        |  |                                                                                                      |  |                         
|------- |  | ---------------------------------------------------------------------------------------------------- |  | ------------------------
|Exhibit |  |                                                                                                      |  |                         
|Number  |  | Description                                                                                          |  | Exhibit Location        
|        |  |                                                                                                      |  |                         
|10.14   |  | Guarantee Agreement by and between Centra Financial Holdings,
    Inc. and Wilmington Trust Company  |  | Filed herewith.         
|12      |  | Statement Re: Computation of Ratios                                                                  |  | Filed herewith.         
|14      |  | Code of Ethics                                                                                       |  | Filed herewith.         
|21      |  | Subsidiaries of Registrant                                                                           |  | Filed herewith.         
|23      |  | Consent of Independent Auditors                                                                      |  | Filed herewith.         
|31.1    |  | Certificate of Principal Executive Officer Pursuant to
    Section 302 of Sarbanes Oxley Act of 2002 |  | Filed herewith.         
|31.2    |  | Certificate of Principal Financial Officer Pursuant to
    Section 302 of Sarbanes Oxley Act of 2002 |  | Filed herewith.         
|32.1    |  | Certificate of Principal Executive Officer Pursuant to
    Section 906 of Sarbanes Oxley Act of 2002 |  | Filed herewith.         
|32.2    |  | Certificate of Principal Financial Officer Pursuant to
    Section 906 of Sarbanes Oxley Act of 2002 |  | Filed herewith.         
|99.1    |  | Proxy Statement for the 2005 Annual Meeting                                                          |  | To be filed.            
|99.2    |  | Report of Ernst & Young LLP, Independent Auditors                                                    |  | Found on Page 44 herein.