Calvin B. Taylor Bankshares, Inc.

and Subsidiary

Table of Contents

|                                                             | Page |
|-------------------------------------------------------------|------|
|                                                             |      |
| Report of Registered Public Accounting Firm                 | 1    |
| Consolidated		Financial Statements                          |      |
| Consolidated		Balance Sheets                                | 2    |
| Consolidated		Statements of Income                          | 3    |
| Consolidated		Statements of Changes in Stockholders' Equity | 4    |
| Consolidated		Statements of Cash Flows                      | 5-6  |
| Notes to		Consolidated Financial Statements                 | 7-21 |

 

 

 

 

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders Calvin B. Taylor Bankshares, Inc.Berlin, Maryland

We have audited the accompanying consolidated balance sheets of		Calvin B. Taylor Bankshares, Inc. and Subsidiary (the Company) as of		December 31, 2006, 2005, and 2004, and the related consolidated		statements of income, changes in stockholders' equity, and cash flows		for each of the three years then ended. These financial		statements are the responsibility of the Company's management. Our		responsibility is to express an opinion on these financial statements		based on our audits.

We conducted our audits in accordance with the standards of the		Public Company Accounting Oversight Board in the United States of		America. Those standards require that we plan and perform the audit to		obtain reasonable assurance about whether the consolidated financial statements are		free of material misstatement. An audit includes examining, on a test		basis, evidence supporting the amounts and disclosures in the		consolidated financial statements. An audit also includes assessing the		accounting principles used and significant estimates made by management,		as well as evaluating the overall financial statement presentation. We		believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to		above present fairly, in all material respects, the financial position		of Calvin B. Taylor Bankshares, Inc. and Subsidiary as of December 31,		2006, 2005, and 2004, and the results of its operations and its cash		flows for each of the three years then ended in conformity with		accounting principles generally accepted in the United States of		America.

We have also audited, in accordance with standards of the Public		Company Accounting Oversight Board in the United States of America, the		effectiveness of the Company’s internal control over financial reporting		as of December 31, 2006, based on criteria established in *Internal		Control – Integrated Framework* issued by the Committee of Sponsoring		Organizations of the Treadway Commission and our report dated February		2, 2007, expressed an unqualified opinion on		management’s assessment of internal control over financial reporting and		an unqualified opinion on the effectiveness of internal control over		financial reporting.

 

/s/  Rowles & Company, LLP

Baltimore, MarylandFebruary 2, 2007

| Calvin B. Taylor Bankshares, Inc.                                       |
|-------------------------------------------------------------------------|
| and subsidiary                                                          |
| Consolidated Balance Sheets                                             |
|                                                                    | December 31, |
|                                                                    | 2006 | 2005 | 2004 |
| Assets                                                                  |
| Cash and due from banks                                                 |  $  21,138,799 |  $  24,069,790 |  $  21,901,546 |
| Federal funds sold                                                      |      24,616,735 |      26,296,780 |      32,692,233 |
| Interest-bearing deposits                                               |        2,055,689 |        2,192,731 |        2,161,496 |
| Investment securities available for sale                                |      18,854,192 |        6,505,278 |        5,921,287 |
| Investment securities held to maturity (approximate fair                |   |   |   |
|    value of $56,031,190, $111,306,528, and $155,107,698)      |      56,271,631 |    112,579,162 |    156,029,445 |
| Loans, less allowance for loan losses of $2,175,418,               |   |   |   |
|   $2,190,709, and $2,177,926                                       |    231,251,783 |    204,441,957 |    161,510,157 |
| Premises and equipment                                                  |        6,562,837 |        6,664,051 |        6,891,238 |
| Accrued interest receivable                                             |        1,692,622 |        1,504,945 |        1,415,775 |
| Computer software                                                       |          175,383 |          228,014 |          322,209 |
| Bank owned life insurance                                               |        4,530,259 |        4,367,744 |        4,214,806 |
| Other assets                                                            |          382,236 |          224,172 |          272,790 |
|                                                                    |  $ 367,532,166 |  $ 389,074,624 |  $ 393,332,982 |
| Liabilities and Stockholders' Equity                                    |
| Deposits                                                                |   |   |   |
|   Noninterest-bearing                                              |  $  79,625,853 |  $  88,236,133 |  $  78,542,414 |
|   Interest-bearing                                                 |    210,698,907 |    222,621,474 |    241,229,944 |
|                                                                    |    290,324,760 |    310,857,607 |    319,772,358 |
| Securities sold under agreements to repurchase                          |        5,624,048 |        6,149,263 |        5,933,466 |
| Note payable                                                            |          120,737 |          142,069 |          162,161 |
| Dividend payable                                                        |                  -   |        4,462,578 |                  -   |
| Accrued interest payable                                                |          340,155 |          177,357 |          116,502 |
| Deferred income taxes                                                   |          719,714 |          635,336 |          549,070 |
| Other liabilities                                                       |          233,196 |          332,030 |          101,857 |
|                                                                    |    297,362,610 |    322,756,240 |    326,635,414 |
| Stockholders' equity                                                    |   |   |   |
|   Common stock, par value $1 per share;                            |   |   |   |
|     authorized 10,000,000 shares; issued and outstanding |   |   |   |
|     3,149,356 shares at December 31, 2006,               |   |   |   |
|     3,187,556 shares at December 31, 2005, and           |   |   |   |
|     3,208,478 shares at December 31, 2004                |        3,149,356 |        3,187,556 |        3,208,478 |
|   Additional paid-in capital                                       |      14,117,732 |      15,454,735 |      16,187,005 |
|   Retained earnings                                                |      51,053,985 |      46,021,128 |      45,917,427 |
|                                                                    |      68,321,073 |      64,663,419 |      65,312,910 |
|   Accumulated other comprehensive income                           |        1,848,483 |        1,654,965 |        1,384,658 |
|                                                                    |      70,169,556 |      66,318,384 |      66,697,568 |
|                                                                    |  $ 367,532,166 |  $ 389,074,624 |  $ 393,332,982 |

Theaccompanying notes are an integral part of these financial statements.2		Calvin B. Taylor Bankshares, Inc.		and subsidiary		Consolidated Statements of Income 		               Years Ended December 31,              		2006		2005		2004		Interest and dividend revenue   		  Loans, including fees		 $  15,868,454 		 $  12,957,693 		 $  11,512,125 		  U. S. Treasury and government agency securities		       2,875,040 		       3,267,544 		       2,822,526 		  State and municipal securities		         155,620 		         267,243 		         273,712 		  Federal funds sold 		       1,136,460 		       1,077,571 		         547,226 		  Interest-bearing deposits		           78,944 		           55,674 		           47,574 		  Equity securities		           70,752 		           55,494 		           48,592 		          Total interest and dividend revenue		     20,185,270 		     17,681,219 		     15,251,755 		Interest expense   		  Deposits		       3,174,670 		       1,738,647 		       1,535,171 		  Borrowings		           48,088 		           30,726 		           18,723 		          Total interest expense		       3,222,758 		       1,769,373 		       1,553,894 		          Net interest income		     16,962,512 		     15,911,846 		     13,697,861 		Provision for loan losses		                 -   		                 -   		                 -   		          Net interest income after provision for loan losses		     16,962,512 		     15,911,846 		     13,697,861 		Noninterest revenue   		  Service charges on deposit accounts		       1,119,158 		       1,053,443 		       1,050,504 		  ATM and debit card revenue		         448,202 		         372,426 		         322,716 		  Miscellaneous revenue		         381,384 		         373,505 		         376,577 		          Total noninterest revenue		       1,948,744 		       1,799,374 		       1,749,797 		Noninterest expenses   		  Salaries		       3,407,224 		       3,173,430 		       3,136,220 		  Employee benefits		         849,961 		         924,103 		         767,058 		  Occupancy 		         709,619 		         640,335 		         593,475 		  Furniture and equipment 		         478,551 		         490,955 		         551,721 		  Other operating		       1,909,332 		       1,930,859 		       1,759,997 		          Total noninterest expenses		       7,354,687 		       7,159,682 		       6,808,471 		          Income before income taxes 		     11,556,569 		     10,551,538 		       8,639,187 		Income taxes		       4,156,200 		       3,753,900 		       3,026,000 		Net income		 $    7,400,369 		 $    6,797,638 		 $    5,613,187 		Earnings per common share - basic and diluted		 $            2.33 		 $            2.13 		 $            1.74 
The accompanying notes are an integral part of these financialstatements.3
		calvin b. taylor bankshares, inc.		and subsidiary		Consolidated Statements of Changes in Stockholders' Equity              		Accumulated       		other   		Common stock		Additional		Retained		comprehensive		 Comprehensive  		Shares 		Par value 		paid-in capital		earnings		income		 income          		Balance, December 31, 2003		 3,227,966 		 $3,227,966 		 $ 16,869,085 		 $ 42,391,363 		 $ 1,147,618             		Net income		            -   		              -   		                -   		     5,613,187 		               -     		 $ 5,613,187 		Unrealized gain on investment        		  securities available for sale net       		  of income taxes of $151,226		            -   		              -   		                -   		                -   		      237,040   		      237,040 		Comprehensive income       		 $ 5,850,227 		Common shares repurchased 		   (19,488)		    (19,488)		       (682,080)		                -   		               -      		Cash dividend, $.65 per share		            -   		              -   		                -   		   (2,087,123)		               -      		Balance, December 31, 2004		 3,208,478 		  3,208,478 		    16,187,005 		    45,917,427 		    1,384,658             		Net income		            -   		              -   		                -   		     6,797,638 		               -     		 $ 6,797,638 		Unrealized gain on investment        		  securities available for sale net       		  of income taxes of $168,016		            -   		              -   		                -   		                -   		      270,307   		      270,307 		Comprehensive income       		 $ 7,067,945 		Common shares repurchased 		   (20,922)		    (20,922)		       (732,270)		                -   		               -      		Cash dividend, $2.10 per share		            -   		              -   		                -   		   (6,693,937)		               -      		Balance, December 31, 2005		 3,187,556 		  3,187,556 		    15,454,735 		    46,021,128 		    1,654,965             		Net income		            -   		              -   		                -   		     7,400,369 		               -     		 $ 7,400,369 		Unrealized gain on investment        		  securities available for sale net       		  of income taxes of $127,088		            -   		              -   		                -   		                -   		      193,518   		      193,518 		Comprehensive income       		 $ 7,593,887 		Common shares repurchased 		   (38,200)		    (38,200)		    (1,337,003)		                -   		               -      		Cash dividend, $.75 per share		            -   		              -   		                -   		   (2,367,512)		               -      		Balance, December 31, 2006		 3,149,356 		 $3,149,356 		 $ 14,117,732 		 $ 51,053,985 		 $ 1,848,483    
The accompanying notes are an integral part of these financialstatements.4
		calvin b. taylor bankshares, inc.		and subsidiary		Consolidated Statements of Cash Flows 		Years Ended December 31,  		2006		2005		2004    		Cash flows from operating activities   		  Interest and dividends received		 $  19,672,392 		 $  17,301,217 		 $  15,076,687 		  Fees and commissions received		       1,786,980 		       1,720,362 		       1,640,852 		  Interest paid		     (3,059,960)		     (1,708,517)		     (1,582,435)		  Cash paid to suppliers and employees		     (6,857,365)		     (6,418,778)		     (6,149,693)		  Income taxes paid		     (4,350,114)		     (3,738,920)		     (3,013,895) 		       7,191,933 		       7,155,364 		       5,971,516     		Cash flows from investing activities   		  Certificates of deposit purchased, net of maturities		           94,295 		           (1,934)		              (567)		  Proceeds from maturities of investments available for sale		       2,000,000 		                 -   		       4,000,000 		  Purchase of investments available for sale		    (13,750,206)		          (45,379)		        (264,504)		  Proceeds from maturities of investments held to maturity		     73,050,000 		     89,345,000 		   102,010,000 		  Purchase of investments held to maturity		    (16,695,344)		    (45,704,174)		  (108,272,336)		  Loans made, net of principal collected		    (26,809,826)		    (42,931,800)		         732,851 		  Proceeds from sale of equipment		             2,500 		                 -   		                 -   		  Purchases of premises, equipment, and computer software		        (452,448)		        (311,387)		        (551,236) 		     17,438,971 		         350,326 		     (2,345,792)    		Cash flows from financing activities   		  Net increase (decrease) in   		     Time deposits		     12,074,786 		     (7,401,051)		     (9,431,045)		     Other deposits		    (32,607,633)		     (1,513,700)		     11,257,350 		     Securities sold under agreements to repurchase		        (525,215)		         215,797 		       1,820,312 		  Payments on note payable		          (21,332)		          (20,093)		          (18,926)		  Common shares repurchased 		     (1,375,203)		        (753,192)		        (701,568)		  Dividends paid		     (6,830,090)		     (2,231,359)		     (2,087,123) 		    (29,284,687)		    (11,703,598)		         839,000     		Net increase (decrease) in cash and cash equivalents		     (4,653,783)		     (4,197,908)		       4,464,724     		Cash and cash equivalents at beginning of year		     50,425,595 		     54,623,503 		     50,158,779 		Cash and cash equivalents at end of year		 $  45,771,812 		 $  50,425,595 		 $  54,623,503 
The accompanying notes are an integral part of these financialstatements.5
		calvin b. taylor bankshares, inc.		and subsidiary		Consolidated Statements of Cash Flows		(Continued) 		Years Ended December 31,  		2006		2005		2004    		Reconciliation of net income to net cash provided by   		   operating activities   		    Net income		 $    7,400,369 		 $    6,797,638 		 $    5,613,187     		   Adjustments to reconcile net income to net cash    		      provided by operating activities   		        Depreciation and amortization		         602,442 		         630,606 		         656,293 		        Deferred income taxes		          (42,710)		          (81,749)		           42,212 		        Premium amortization and discount accretion 		        (325,227)		        (290,831)		        (103,350)		        Loss on disposition of assets		             1,351 		             2,163 		           12,427 		        Decrease (increase) in   		           Accrued interest receivable		        (187,677)		          (80,917)		          (71,162)		           Cash surrender value of bank owned life insurance		        (162,515)		        (152,938)		        (160,771)		           Other assets		        (158,064)		           48,618 		           18,763 		        Increase (decrease) in   		           Accrued interest payable		         162,798 		           60,855 		          (28,542)		           Accrued income taxes		          (96,730)		           88,474 		          (30,107)		           Other liabilities		           (2,104)		         133,445 		           22,566  		 $    7,191,933 		 $    7,155,364 		 $    5,971,516             		Composition of cash and cash equivalents   		        Cash and due from banks		 $  21,138,799 		 $  24,069,790 		 $  21,901,546 		        Federal funds sold		     24,616,735 		     26,296,780 		     32,692,233 		        Interest-bearing deposits, except for time deposits		           16,278 		           59,025 		           29,724  		 $  45,771,812 		 $  50,425,595 		 $  54,623,503 
** **
The accompanying notes are an integral part of these financialstatements.6

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
1. Summary of Significant Accounting Policies   The consolidated financial statements of Calvin B.		Taylor Bankshares, Inc. include the accounts of its wholly owned		subsidiary, Calvin B. Taylor Banking Company. All significant		intercompany balances and transactions have been eliminated in		consolidation. The accounting and reporting policies reflected in these		financial statements conform to accounting principles generally accepted		in the United States of America and to general practices within the		banking industry. 

Nature of operations   Calvin B. Taylor Bankshares, Inc. is a bank holding		company. Its subsidiary, Calvin B. Taylor Banking Company, is a		financial institution operating primarily in Worcester County, Maryland		and Sussex County, Delaware. The Bank is a full-service commercial bank,		offering deposit services and loans to individuals, small- to		medium-sized businesses, associations and government entities. 

Use of estimates   The preparation of financial statements in conformity		with accounting principles generally accepted in the United States of		America requires management to make estimates and assumptions that		affect the reported amounts of assets and liabilities and disclosure of		contingent assets and liabilities at the date of the financial		statements. These estimates and assumptions may affect the reported		amounts of revenues and expenses during the reporting period. Actual		results could differ from these estimates.

Cash equivalents		   For purposes of reporting cash flows, cash and cash		equivalents include cash on hand, amounts due from banks, federal funds		sold and interest-bearing deposits except for time deposits. Federal		funds are purchased and sold for one-day periods.

Investment securities		   As securities are purchased, management determines if		the securities should be classified as held to maturity or available for		sale. Securities which management has the intent and ability to hold to		maturity are recorded at amortized cost which is cost adjusted for		amortization of premiums and accretion of discounts to maturity.		Securities classified as available-for-sale are recorded at fair value.		   Purchase premiums and discounts are recognized in		income revenue using the straight line method over the terms of the		securities. Gains and losses on disposal are determined using the		specific-identification method.
Loans and allowance for loan losses		   Loans are stated at face value less the allowance for		loan losses. Interest on loans is credited to income based on the		principal amounts outstanding. The accrual of interest is discontinued		when any portion of the principal or interest is ninety days past due		and collateral is insufficient to discharge the debt in full.  TheCompany does not defer loan origination costs which management has determined tobe immaterial.		   The allowance for loan losses is maintained at a		level deemed appropriate by management to provide adequately for known		and inherent risks in the loan portfolio. If the current economy or real		estate market were to suffer a severe downturn, the estimate of loss		potential could be increased. At December 31, 2006, management concluded		that substantially all of the balance of the allowance was "general" in		nature, that is, it could not be specifically allocated to individual		loans or to major categories of loans. 

7

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
1. Summary of Significant Accounting Policies (Continued)

Loans and allowance for loan losses (continued)		   Loans that are deemed to be uncollectible are charged		off and deducted from the allowance. The provision for loan losses and		recoveries on loans previously charged off are added to the allowance.		   Loans are considered impaired when, based on current		information, management considers it unlikely that collection of		principal and interest payments will be made according to contractual		terms. Generally, loans are not reviewed for impairment until the		accrual of interest has been discontinued.

Premises and equipment		   Premises and equipment are recorded at cost less		accumulated depreciation. Depreciation is computed under both		straight-line and accelerated methods over the estimated useful lives of		the assets.

Computer software		   The Company amortizes software costs over their		useful lives using the straight-line method.

Bank owned life insurance		   The Company records increases in cash surrender value		of bank owned life insurance as current period income based on		projections provided by the underwriting company.

Advertising   Advertising costs are expensed during the period of therelated marketing effort.

Income taxes		   The provision for income taxes includes taxes payable		for the current year and deferred income taxes. Deferred income taxes		are provided for the temporary differences between financial and taxable		income. Tax expense and tax benefits are allocated to the Bank and		Company based on their proportional share of taxable income.

Per share data		   Earnings per common share are determined by dividing		net income by the weighted average number of common shares outstanding		for the period, which was 3,176,092, 3,194,669, and 3,219,116 for the		years ended December 31, 2006, 2005, and 2004, respectively. 

2. Cash and Due From Banks

   The Company normally carries balances with other		banks that exceed the federally insured limit. The average balances		carried in excess of the limit, including unsecured federal funds sold		to the same banks, were $22,867,864 for 2006, $34,580,755 for 2005, and		$42,076,235 for 2004.		   Banks are required to carry noninterest-bearing cash		reserves at specified percentages of deposit balances. The Company's		normal amount of cash on hand and on deposit with other banks is		sufficient to satisfy the reserve requirements.

 

8

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
3. Investment Securities

Investment securities are summarized as follows: 		Amortized 		Unrealized		Unrealized		Fair 		cost		gains		losses		value		December 31, 2006    		Available for sale		  U.S. Treasury		 $    13,923,505 		 $     528,889 		 $       8,049 		 $    14,444,345 		  State and municipal		           300,000 		                -   		          3,441 		           296,559 		  Equity		         1,658,091 		      2,455,197 		               -   		         4,113,288  		 $    15,881,596 		 $   2,984,086 		 $      11,490 		 $    18,854,192 		Held to maturity		  U.S. Treasury		 $    43,968,110 		 $       54,368 		 $    226,931 		 $    43,795,547 		  U.S. Government agency		         8,749,280 		                -   		        47,330 		         8,701,950 		  State and municipal		         3,554,241 		              107 		        20,655 		         3,533,693  		 $    56,271,631 		 $       54,475 		 $    294,916 		 $    56,031,190 		December 31, 2005    		Available for sale    		  U.S. Treasury		 $      1,995,197 		 $     591,990 		 $            -   		 $      2,587,187 		  State and municipal		           200,000 		                -   		          3,859 		           196,141 		  Equity		         1,658,091 		      2,063,859 		               -   		         3,721,950  		 $      3,853,288 		 $   2,655,849 		 $       3,859 		 $      6,505,278 		Held to maturity		  U.S. Treasury		 $    84,654,996 		 $             -   		 $    890,971 		 $    83,764,025 		  U.S. Government agency		       17,745,997 		                -   		       282,502 		       17,463,495 		  State and municipal		       10,178,169 		                -   		        99,161 		       10,079,008  		 $  112,579,162 		 $             -   		 $ 1,272,634 		 $  111,306,528 		December 31, 2004    		Available for sale    		  U.S. Treasury		 $      1,994,909 		 $     559,778 		 $            -   		 $      2,554,687 		  State and municipal		           100,000 		            1,034 		               -   		           101,034 		  Equity		         1,612,712 		      1,653,106 		             252 		         3,265,566  		 $      3,707,621 		 $   2,213,918 		 $          252 		 $      5,921,287 		Held to maturity		  U.S. Treasury		 $  116,617,254 		 $         3,267 		 $    602,820 		 $  116,017,701 		  U.S. Government agency		       19,991,938 		            1,615 		       216,549 		       19,777,004 		  State and municipal		       19,420,253 		              982 		       108,242 		       19,312,993  		 $  156,029,445 		 $         5,864 		 $    927,611 		 $  155,107,698 
9

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
3. Investment Securities (Continued)

The table below shows the gross unrealized losses and		fair value of securities that are in an unrealized loss position as of		December 31, 2006, aggregated by length of time that individual		securities have been in a continuous unrealized loss position. 				Less than 12 months				12 months or more				Total 				Fair				Unrealized				Fair				Unrealized				Fair				Unrealized				value				loss				value				loss				value				loss      				U. S. Treasury				 $    14,413,407 				 $          9,766 				 $    27,259,453 				 $      225,214 				 $     41,672,860 				 $      234,980 				U. S. Government Agency				                      -   				                   -   				         8,701,950 				           47,330 				          8,701,950 				           47,330 				State and municipal				            267,525 				                722 				         3,261,548 				           23,374 				          3,529,073 				           24,096  				 $    14,680,932 				 $        10,488 				 $    39,222,951 				 $      295,918 				 $     53,903,883 				 $      306,406 
The debt securities for which an unrealized loss is		recorded are issues of the United States Treasury, Federal Home Loan		Bank (a U. S. government agency), and general obligations of states and		municipalities. The Company has the ability and the intent to hold these		securities until they are called or mature at face value. Fluctuations		in fair value reflect market conditions, and are not indicative of an		other-than-temporary impairment of the investment.

The amortized cost and estimated fair value of debt		securities, by contractual maturity and the amount of pledged		securities, follow. Actual maturities may differ from contractual		maturities because issuers may have the right to call or prepay		obligations with or without call or prepayment penalties.
				December 31, 2006				December 31, 2005				December 31, 2004 				Amortized				Fair				Amortized				Fair				Amortized				Fair				cost				value				cost				value				cost				value				Available for sale      				  Within one year				 $    11,928,019 				 $    11,919,970 				 $                   -   				 $                   -   				 $                   -   				 $                   -   				  After one year      				   through five years				            300,000 				            296,559 				            200,000 				            196,141 				            100,000 				            101,034 				  After ten years				         1,995,486 				         2,524,375 				         1,995,197 				         2,587,187 				         1,994,909 				         2,554,687  				 $    14,223,505 				 $    14,740,904 				 $      2,195,197 				 $      2,783,328 				 $      2,094,909 				 $      2,655,721 				Held to maturity      				  Within one year				 $    37,025,991 				 $    36,795,410 				 $    74,014,166 				 $    73,304,862 				 $    72,905,414 				 $    72,619,263 				  After one year      				   through five years				       19,245,640 				       19,235,780 				       38,564,996 				       38,001,666 				       83,124,031 				       82,488,435  				 $    56,271,631 				 $    56,031,190 				 $  112,579,162 				 $  111,306,528 				 $  156,029,445 				 $  155,107,698       				Pledged securities				 $    29,579,859 				 $    29,487,094 				 $    26,980,663 				 $    26,656,250 				 $    27,289,502 				 $    27,610,734 		Investments are pledged to secure deposits of federal		and local governments. Pledged securities also serve as collateral for		securities sold under agreements to repurchase.
10

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
4. Lines of Credit

The Company has available lines of credit, including		overnight federal funds, reverse repurchase agreements and letters of		credit, totaling $21,000,000 as of December 31, 2006, and $19,000,000 as		of December 31, 2005 and 2004.

5. Loans and Allowance for Loan Losses

Major classifications of loans are as follows: 		2006		2005		2004		Real estate mortgages   		Construction, land development, and land		 $    37,331,256 		 $    23,430,345 		 $    14,304,860 		Residential 1 to 4 family		       88,599,071 		       81,327,154 		       74,211,898 		Second mortgages		         2,395,178 		         2,094,749 		         1,900,559 		Commercial properties		       79,484,039 		       76,103,526 		       57,252,929 		Commerical 		       23,264,997 		       21,461,593 		       14,007,430 		Consumer		         2,352,660 		         2,215,299 		         2,010,407  		     233,427,201 		     206,632,666 		     163,688,083 		Allowance for loan losses		         2,175,418 		         2,190,709 		         2,177,926 		Loans, net		 $  231,251,783 		 $  204,441,957 		 $  161,510,157 
The rate repricing distribution of the loan portfoliofollows:		Immediately		 $  227,174,910 		 $  201,175,220 		 $  159,522,150 		Within one year		         1,432,234 		         1,351,581 		         1,240,935 		Over one to five years		         3,496,707 		         2,849,940 		         2,107,774 		Over five years		         1,323,350 		         1,255,925 		           817,224  		 $  233,427,201 		 $  206,632,666 		 $  163,688,083 
The Company makes loans to customers located		primarily in the Delmarva region. Although the loan portfolio is		diversified, its performance will be influenced by the economy of the		region.

Transactions in the allowance for loan losses were asfollows: 		2006		      2005     		      2004         		Beginning balance		 $      2,190,709 		 $      2,177,926 		 $      2,187,277 		Provision charged to operations		                   -   		                   -   		                   -   		Recoveries		                   95 		             20,914 		               4,523  		         2,190,804 		         2,198,840 		         2,191,800 		Loans charged off		             15,386 		               8,131 		             13,874 		Ending balance		 $      2,175,418 		 $      2,190,709 		 $      2,177,926 
11

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
5. Loans and Allowance for Loan Losses (Continued)Amounts past due 90 days or more, and still accruing interestat December 31, are as follows: 		2006		2005		2004		Real estate		 $        190,289 		 $        119,741 		 $        200,278 		Commercial		             49,331 		             11,443 		           151,063 		Consumer		                   -   		                 533 		             40,335  		 $        239,620 		 $        131,717 		 $        391,676 
Management has identified no impaired loans at		December 31, 2006, 2005, or 2004. There were no nonaccrual loans at		December 31, 2006, 2005, or 2004.

6. Loan Commitments

Loan commitments are agreements to lend to customers		as long as there is no violation of any conditions of the contracts.		Loan commitments generally have interest at current market rates, fixed		expiration dates, and may require payment of a fee. Letters of credit		are commitments issued to guarantee the performance of a customer to a		third party.

Loan commitments and letters of credit are made on		the same terms, including collateral, as outstanding loans. The		Company's exposure to loss in the event of nonperformance by the		borrower is represented by the contract amount of the commitment.

Outstanding loan commitments, lines of credit, and		letters of credit at December 31, are as follows: 		2006		2005		2004		Loan commitments and lines of credit   		  Construction and land development		 $    18,866,083 		 $    21,845,161 		 $      7,294,592 		  Other		       21,557,185 		       24,252,637 		       21,276,025  		 $    40,423,268 		 $    46,097,798 		 $    28,570,617  		Standby letters of credit		 $      1,682,942 		 $      1,272,000 		 $      1,535,210 
7. Lease Commitments		The Company leases the land on which the Route 50		branch in East Berlin is located. The lease obligation, which expires		August 31, 2009, requires payments as follows:   		Minimum  		   Period 		 		  rentals    		2007 		 $       15,000   		2008 		          15,000   		2009 		          10,000     		 $       40,000  
12

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
8. Premises and Equipment

A summary of premises and equipment and the relateddepreciation is as follows:
 		Estimated useful life		2006		2005		2004		Land 		 $   2,092,717 		 $   2,092,717 		 $   2,076,097 		Premises		5 - 50 years		      6,539,781 		      6,449,630 		      6,400,025 		Furniture and equipment		3 - 20 years		      3,632,597 		      3,517,505 		      3,473,775   		    12,265,095 		    12,059,852 		    11,949,897 		Accumulated depreciation 		      5,702,258 		      5,395,801 		      5,058,659 		Net premises and equipment 		 $   6,562,837 		 $   6,664,051 		 $   6,891,238  		Depreciation expense 		 $      490,676 		 $      508,624 		 $      539,102 
9. Interest-bearing Deposits
		Major classifications of interest-bearing deposits are as follows:       		2006		2005		2004		NOW		 $    54,458,814 		 $    62,601,973 		 $    68,892,269 		Money market		       36,413,676 		       46,464,340 		       49,362,532 		Savings		       45,844,558 		       51,648,088 		       53,667,019 		Other time, including certificates of deposit		       73,981,859 		       61,907,073 		       69,308,124  		 $  210,698,907 		 $  222,621,474 		 $  241,229,944     		The rate repricing distribution of other time deposits follows:      		Three months or less		 $    27,264,435 		 $    20,059,735 		 $    22,567,632 		Over three through twelve months		       40,508,905 		       28,184,281 		       34,055,564 		Over one through two years		         6,208,519 		       13,663,057 		       12,684,928  		 $    73,981,859 		 $    61,907,073 		 $    69,308,124     		Included in other time deposits are certificates of deposit of $100,000		or more as follows:    		Amount outstanding		 $    27,961,782 		 $    17,878,226 		 $    18,624,257 		Interest expense		 $        897,047 		 $        337,314 		 $        276,074 
13

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
10. Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase		represent overnight borrowings from customers. The government agency		securities that collateralize these agreements are owned by the Company		but maintained in the custody of an unaffiliated bank designated by the		Company. Additional information follows: 		2006		2005		2004		Maximum month-end amount outstanding		 $      7,605,046 		 $      8,720,287 		 $      7,617,275 		Average amount outstanding		 $      5,878,171 		 $      6,324,760 		 $      5,020,784 		Average rate paid during the year		 .68% 		 .34% 		 .17% 		Investment securities underlying the agreements at year end:  		    Carrying value		 $    18,988,534 		 $    18,986,750 		 $    21,991,519 		    Estimated fair value		 $    18,968,000 		 $    18,805,000 		 $    21,839,000 
11. Related Party Transactions

The executive officers and directors of the Company		enter into loan transactions with the Bank in the ordinary course of		business. The terms of these transactions are similar to the terms		provided to other borrowers entering into similar loan transactions.		Executive officers and directors make deposits in the Bank, and invest		in uninsured non-deposit investment products. They receive the same		rates and terms on insured deposit accounts and securities sold under		agreements to repurchase as other customers with similar accounts. 		2006		2005		2004		Related party loan activity   		Beginning balance		 $    20,530,646 		 $      6,207,252 		 $      9,156,940 		Advances		       12,883,577 		       22,065,239 		         9,146,486 		Other increases		         1,376,525 		                   -   		                   -    		       34,790,748		       28,272,491 		       18,303,426 		Repayments		       10,070,964 		         7,741,845 		       12,096,074 		Other decreases		                   -   		                   -   		                 100 		Ending balance		 $    24,719,784 		 $    20,530,646 		 $      6,207,252  		Unfunded loan commitments		 $      3,596,956 		 $      1,691,250 		 $      2,882,166     		Deposit and non-deposit investment balances		 $      4,601,253 		 $      6,670,094 		 $    13,833,657 
The Company obtains legal services from a law firm in		which one of the principal attorneys is also a member of the Board of		Directors. Fees charged for these services are at similar rates charged		by unrelated law firms for similar legal work. Amounts paid to this		related party totaled $5,800 and $13,438 during the years ended December		31, 2006 and 2005, respectively. There were no payments to this related		party during 2004. 

14

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
12. Note PayableIn 1999, the Company purchased real estate in Berlin,		financing 100% of the purchase price. In 2003, an operations center was		constructed on this site. This 6% unsecured note has a final maturity of		September, 2011. The note requires principal payments as follows: 		2007  		 $     22,647     		2008  		        24,044     		2009  		        25,527     		2010  		        27,102     		2011  		        21,417        		 $   120,737    
13. Profit Sharing Plan

In 1999, the Company adopted a defined contribution		profit sharing plan under Section 401(k) of the Internal Revenue Code.		The plan covers substantially all of the employees and allows		discretionary Company contributions. Annually, the Board of Directors		approves a discretionary contribution in addition to matching 50% of		employee contributions to a maximum of 6% of the employee wages.  The total cost of the profit sharing plan for 2006,		2005, and 2004, was $214,864, $186,657, and $149,171, respectively.

14. Noninterest Expenses

The components of noninterest other operating expensesfollow: 		2006		2005		2004		Advertising		 $        166,441 		 $        147,541 		 $        145,583 		Armored car service		             52,513 		             76,068 		             60,829 		ATM and debit card		           234,409 		           234,732 		           232,353 		Business and product development		             79,623 		             78,399 		             70,720 		Computer software amortization		           111,765 		           121,982 		           117,191 		Computer software maintenance contracts		           111,777 		           101,875 		             82,514 		Courier service		           108,961 		           105,148 		           103,922 		Deposit insurance		             36,275 		             42,098 		             45,403 		Director fees		           140,200 		             99,900 		             89,375 		Dues, donations, and subscriptions		             88,255 		             94,385 		             81,328 		Liability insurance		             39,402 		             40,380 		             41,556 		Postage		           149,262 		           179,462 		           169,569 		Professional fees		             41,337 		             65,090 		             22,745 		Stationery and supplies		           123,652 		           111,593 		           135,269 		Telephone		           170,960 		           152,464 		           123,012 		Miscellaneous		           254,500 		           279,742 		           238,628  		 $      1,909,332 		 $      1,930,859 		 $      1,759,997 
15

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
15. Income Taxes		The components of income tax expense are as follows:    		2006		2005		2004		Current   		  Federal		 $ 3,606,800 		 $ 3,339,742 		 $ 2,597,535 		  State		      592,110 		      495,907 		      386,253  		   4,198,910 		   3,835,649 		   2,983,788 		Deferred		      (42,710)		      (81,749)		        42,212  		 $ 4,156,200 		 $ 3,753,900 		 $ 3,026,000     		The components of the deferred taxes are as follows:   		Provision for loan losses		 $       5,906 		 $     (4,774)		 $       5,820 		Depreciation		      (55,162)		      (42,854)		        30,862 		Discount accretion		        (2,420)		         3,113 		         5,367 		Employee benefit 		         8,966 		      (37,234)		              -   		Net operating loss carryforward for state income tax		              -   		              -   		            163  		 $   (42,710)		 $   (81,749)		 $     42,212     		The components of the net deferred tax liability are as follows:  		Deferred tax assets   		  Allowance for loan losses		 $   596,543 		 $   602,449 		 $   597,675 		  Employee benefit		        28,268 		        37,234 		              -    		      624,811 		      639,683 		      597,675 		Deferred tax liabilities   		  Depreciation		      200,957 		      256,119 		      298,974 		  Discount accretion		        19,455 		        21,875 		        18,762 		  Unrealized gain on securities available for sale		   1,124,113 		      997,025 		      829,009  		   1,344,525 		   1,275,019 		   1,146,745 		     Net deferred tax liability		 $  (719,714)		 $  (635,336)		 $  (549,070)				 				A reconciliation of the provision for taxes on income from the				statutory federal income tax				rates				to the effective income tax rates follows:				Statutory federal income tax rate				       34.0 				%				       34.0 				%				       34.0 				%				Increase (decrease) in tax rate resulting from				    				    				    				  Tax-exempt income				       (1.3) 				       (1.5) 				       (2.0) 				  State income taxes net of federal income tax benefit				        3.3  				 				        3.1  				        3.0  				  				       36.0 				%				       35.6 				%				       35.0 				%
16

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
16. Fair Value of Financial Instruments

The estimated fair values of the Company's financial		instruments are summarized below. The fair values of a significant		portion of these financial instruments are estimates derived using		present value techniques prescribed by the Financial Accounting		Standards Board and may not be indicative of the net realizable or		liquidation values. The calculation of estimated fair values is based on		market conditions at a specific point in time and may not reflect		current or future fair values.        December 31, 2006            December 31, 2005            December 31, 2004       CarryingFairCarryingFairCarryingFair amountvalueamountvalueamountvalueFinancial assets        Cash and due         from banks     21,138,799      21,665,764       24,069,790      24,305,510       21,901,546      22,074,622   Interest-bearing         deposits       2,055,689        2,068,114        2,192,731        2,149,957        2,161,496        2,163,186   Investment         securities     75,125,823      74,885,382     119,084,440    117,811,806     161,950,732    161,028,985   Loans, net    231,251,783    231,183,051     204,441,957    204,438,718     161,510,157    161,534,247        Financial liabilities        Interest-bearing         deposits    210,698,907    210,968,428     222,621,474    222,335,613     241,229,944    241,284,245   Note payable          120,737		         115,815		          142,069		         137,990		          162,161		         158,414		
   The fair value of federal funds sold,		noninterest-bearing deposits, and securities sold under agreements to		repurchase equals their carrying value.		   The fair value of silver coin included with cash isdetermined based on quoted market prices.   The fair value of interest-bearing deposits with		other financial institutions is estimated based on quoted interest rates		for certificates of deposit with similar remaining terms.		   The fair values of equity securities are determined		using market quotations. The fair values of debt securities, which are		provided by an independent third party, are estimated using a matrix		that considers yield to maturity, credit quality, and marketability.		   The fair value of fixed-rate loans is estimated to be		the present value of scheduled payments discounted using interest rates		currently in effect for loans of the same class and term. The fair value		of variable-rate loans, including loans with a demand feature, is		estimated to equal the carrying amount. The valuation of loans is		adjusted for possible loan losses.		   The fair value of interest-bearing checking, savings,		and money market deposit accounts is equal to the carrying amount. The		fair value of fixed-rate time deposits is estimated based on interest		rates currently offered for deposits of similar remaining maturities.		   It is not practicable to estimate the fair value of		outstanding loan commitments, unused lines, and letters of credit.
17

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
17. Capital Standards

The Federal Reserve Board and the Federal Deposit		Insurance Corporation have adopted risk-based capital standards for		banking organizations. These standards require ratios of capital to		assets for minimum capital adequacy and to be classified as well		capitalized under prompt corrective action provisions. The capital		ratios and minimum capital adequacy requirements of the Company and the		Bank are as follows: Company Bank To be well Minimum  Actual Actual capitalized adequacy(in thousands)AmountRatio AmountRatio Ratio RatioDecember 31, 2006         Total risk-based capital $71,601 33.7%  $66,694 32.1% 10.0% 8.0%  (to risk weighted assets)         Tier 1 capital $68,321 32.2%  $64,519 31.0% 6.0% 4.0%  (to risk-weighted assets)         Tier 1 capital $68,321 18.4%  $64,519 17.5% 5.0% 4.0%  (to average fourth quarter assets)         December 31, 2005         Total risk-based capital $67,783 35.2%  $62,749 32.9% 10.0% 8.0%  (to risk weighted assets)         Tier 1 capital $64,663 33.5%  $60,558 31.7% 6.0% 4.0%  (to risk-weighted assets)         Tier 1 capital $64,663 16.2%  $60,558 15.4% 5.0% 4.0%  (to average fourth quarter assets)         December 31, 2004         Total risk-based capital $67,862 43.3%  $63,174 41.3% 10.0% 8.0%  (to risk weighted assets)         Tier 1 capital $65,313 41.7%  $61,260 40.1% 6.0% 4.0%  (to risk-weighted assets)         Tier 1 capital $65,313 16.0%  $61,260 15.3% 5.0% 4.0%  (to average fourth quarter assets)         
   Tier 1 capital consists of common stock, additional		paid-in capital, and retained earnings. Total risk-based capital		includes a limited amount of the allowance for loan losses. In		calculating risk-weighted assets, specific risk percentages are applied		to each category of asset and off-balance sheet items.		   Failure to meet the capital requirements could affect		the Company's ability to pay dividends and accept deposits, and may		significantly affect the operations of the Company.		   In the most recent regulatory report, the Company was		determined to be well capitalized. Management has no plans that should		change the classification of the capital adequacy.

18

Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
18. Parent Company Financial Information		Balance Sheets		December 31, 		2006		2005		2004Assets		Cash and due from banks		 $          21,342 		 $          18,212 		 $          10,651 		Interest-bearing deposits		           523,484 		           561,527 		           530,291 		Investment securities available for sale		         4,113,288 		         3,721,949 		         3,265,566 		Investment securities held to maturity		           250,875 		           502,064 		           503,156 		Investment in subsidiary bank		       64,860,935 		       60,945,846 		       61,630,473 		Premises and equipment		         1,260,895 		         1,281,065 		         1,311,740 		Other assets		               5,995 		         4,467,685 		             77,742 		      Total assets		 $    71,036,814 		 $    71,498,348 		 $    67,329,619 Liabilities and Stockholders' Equity		Dividend payable		 $                -   		 $      4,462,578 		 $                -   		Deferred income taxes		           857,174 		           709,207 		           552,841 		Other liabilities		             10,084 		               8,179 		             79,210  		           867,258 		         5,179,964 		           632,051 		Stockholders' equity   		  Common stock		         3,149,356 		         3,187,556 		         3,208,478 		  Additional paid-in capital		       14,117,732 		       15,454,735 		       16,187,005 		  Retained earnings		       51,053,985 		       46,021,128 		       45,917,427 		  Accumulated other comprehensive income		         1,848,483 		         1,654,965 		         1,384,658 		      Total stockholders' equity		       70,169,556 		       66,318,384 		       66,697,568 		      Total liabilities and stockholders' equity		 $    71,036,814 		 $    71,498,348 		 $    67,329,619     		Statements of Income		Years Ended December 31, 		2006		2005		2004		Interest revenue		 $          30,657 		 $          24,671 		 $          19,480 		Dividend revenue		             70,752 		             55,518 		             48,676 		Dividends from subsidiary		         3,374,143 		         2,984,551 		         2,721,640 		Equity in undistributed income of subsidiary		         3,961,775 		         3,759,919 		         2,850,387  		         7,437,327 		         6,824,659 		         5,640,183 		Expenses   		  Occupancy		               2,421 		               2,087 		               3,251 		  Other		             28,337 		             21,034 		             22,745  		             30,758 		             23,121 		             25,996 		Income before income taxes		         7,406,569 		         6,801,538 		         5,614,187 		Income taxes		               6,200 		               3,900 		               1,000 		Net income		 $      7,400,369 		 $      6,797,638 		 $      5,613,187 
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Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
18. Parent Company Financial Information (Continued) 		Years Ended December 31,		Statements of Cash Flows		2006		2005		2004		Cash flows from operating activities   		  Interest and dividends received		 $      7,938,431 		 $      3,065,338 		 $      2,789,328 		  Rental payments and fees received		             33,600 		             33,619 		             33,600 		  Cash paid for operating expenses		           (32,435)		           (26,047)		           (28,639)		  Income taxes refunded (paid)		             (9,266)		             (4,194)		               1,310  		         7,930,330 		         3,068,716 		         2,795,599 		Cash flows from investing activities   		  Certificates of deposit purchased, net of maturities		             (4,704)		             (1,923)		                (564)		  Purchase of investments available for sale		                   -   		           (45,379)		          (164,504)		  Proceeds from maturities of investments   		    held to maturity		           250,000 		                   -   		           500,000 		  Purchase of investments held to maturity		                   -   		                   -   		          (503,842)		  Purchase of equipment		             (9,950)		                   -   		                   -    		           235,346 		           (47,302)		          (168,910)		Cash flows from financing activities   		  Common shares repurchased		       (1,375,203)		          (753,192)		          (701,568)		  Dividends paid		       (6,830,090)		       (2,231,359)		       (2,087,123) 		       (8,205,293)		       (2,984,551)		       (2,788,691)		Net increase (decrease) in cash		           (39,617)		             36,863 		          (162,002)		Cash at beginning of year		             77,237 		             40,374 		           202,376 		Cash at end of year		 $          37,620 		 $          77,237 		 $          40,374 		Reconciliation of net income to net cash provided   		   by operating activities   		   Net income		 $      7,400,369 		 $      6,797,638 		 $      5,613,187 		   Adjustments to reconcile net income to net cash   		     used in operating activities   		      Undistributed net income of subsidiary		       (3,961,775)		       (3,759,919)		       (2,850,387)		      Premium amortization and discount accretion 		               1,189 		               1,092 		                   21 		      Depreciation		             30,121 		             30,675 		             30,957 		      Decrease (increase) in other assets		         4,461,690 		       (4,389,943)		             85,259 		      Increase (decrease) in   		       Deferred income taxes and other liabilities		             (1,264)		         4,389,173 		           (83,438) 		 $      7,930,330 		 $      3,068,716 		 $      2,795,599 		Composition of cash and cash equivalents   		Cash and due from banks		 $          21,342 		 $          18,212 		 $          10,651 		Interest-bearing deposits, except for time deposits		             16,278 		             59,025 		             29,723  		 $          37,620 		 $          77,237 		 $          40,374 
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Calvin B. Taylor Bankshares, Inc.and Subsidiary**Notes to Consolidated Financial Statements**
 

19. Quarterly Results of Operations (Unaudited)
  		Three months ended 		December 31, 		September 30, 		 		June 30,		 		 		March 31,            		2006           		Interest and dividend revenue		 $5,309,067   		 $5,344,078   		 $4,858,168   		 $4,673,957 		Interest expense 		     975,665   		     846,111   		     750,292   		     650,690 		Net interest income  		   4,333,402   		   4,497,967   		   4,107,876   		   4,023,267 		Provision for loan losses 		             -     		             -     		             -     		             -   		Net income 		   1,831,259   		   1,987,548   		   1,818,161   		   1,763,401 		Comprehensive income 		   1,773,916   		   2,098,488   		   1,893,146   		   1,828,337 		Earnings per share 		 $        0.58   		 $        0.63   		 $        0.57   		 $        0.55             		2005           		Interest and dividend revenue		 $4,793,757   		 $4,656,566   		 $4,289,745   		 $3,941,151 		Interest expense 		     560,574   		     458,851   		     388,934   		     361,014 		Net interest income  		   4,233,183   		   4,197,715   		   3,900,811   		   3,580,137 		Provision for loan losses 		             -     		             -     		             -     		             -   		Net income 		   1,703,943   		   1,905,371   		   1,687,865   		   1,500,459 		Comprehensive income 		   1,686,643   		   1,883,824   		   1,900,312   		   1,597,166 		Earnings per share 		 $        0.53   		 $        0.60   		 $        0.53   		 $        0.47             		2004           		Interest and dividend revenue		 $3,954,857   		 $3,820,243   		 $3,733,533   		 $3,743,122 		Interest expense 		     384,375   		     382,761   		     384,221   		     402,537 		Net interest income  		   3,570,482   		   3,437,482   		   3,349,312   		   3,340,585 		Provision for loan losses 		             -     		             -     		             -     		             -   		Net income 		   1,451,346   		   1,447,964   		   1,371,093   		   1,342,784 		Comprehensive income 		   1,564,420   		   1,663,271   		   1,235,704   		   1,386,832 		Earnings per share 		 $        0.45   		 $        0.45   		 $        0.43   		 $        0.42 
 

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