----

----

| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2009 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

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

| Texas                                                                | 76-0579161                                 |
|----------------------------------------------------------------------|--------------------------------------------|
|  (State or other jurisdiction of incorporation or organization) |  (I.R.S. Employer Identification No.) |

| Large Accelerated Filer £                                                        | Accelerated Filer R              |
|---------------------------------------------------------------------------------------|----------------------------------|
|                                                                                  |                             |
| Non-accelerated Filer £  (Do not check if a smaller reporting company) | Smaller Reporting Company £ |

----

----

----

|                                                                                                                                                                                        |   | June 30, |      |   | December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|--------------|--------|
|                                                                                                                                                                                        |   | 2009     |      |   | 2008         |   |
| ASSETS                                                                                                                                                                                      |   |     |      |   |         |   |
|                                                                                                                                                                                        |   |     |      |   |         |   |
| Cash and due from banks                                                                                                                                                                     |   | $        | 24,111    |   |         | $      | 26,383 |   |
| Federal funds sold and other short-term investments                                                                                                                                         |   |     | 43,185    |   |         |   | 11,718 |   |
| Total cash and cash equivalents                                                                                                                                                             |   |     | 67,296    |   |         |   | 38,101 |   |
| Securities available-for-sale, at fair value                                                                                                                                                |   |     | 121,855   |   |         |   | 102,104 |   |
| Securities held-to-maturity (fair value $3,132 at June 30, 2009)                                                                                                                            |   |     | 3,044     |   |         |   | – |   |
| Other investments                                                                                                                                                                           |   |     | 17,545    |   |         |   | 29,220 |   |
| Loans, net of allowance for loan losses of $24,266 and $24,235, respectively                                                                                                                |   |     | 1,297,212 |   |         |   | 1,321,813 |   |
| Accrued interest receivable                                                                                                                                                                 |   |     | 5,770     |   |         |   | 5,946 |   |
| Premises and equipment, net                                                                                                                                                                 |   |     | 6,596     |   |         |   | 7,368 |   |
| Goodwill                                                                                                                                                                                    |   |     | 21,827    |   |         |   | 21,827 |   |
| Core deposit intangibles                                                                                                                                                                    |   |     | 417       |   |         |   | 506 |   |
| Customers' liability on acceptances                                                                                                                                                         |   |     | 4,492     |   |         |   | 8,012 |   |
| Foreclosed assets, net                                                                                                                                                                      |   |     | 23,649    |   |         |   | 4,825 |   |
| Other assets                                                                                                                                                                                |   |     | 42,867    |   |         |   | 40,516 |   |
| Total assets                                                                                                                                                                                |   | $        | 1,612,570 |   |         | $      | 1,580,238 |   |
|                                                                                                                                                                                        |   |     |      |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                        |   |     |      |   |         |   |   |   |
| Deposits:                                                                                                                                                                                   |   |     |      |   |         |   |   |   |
| Noninterest-bearing                                                                                                                                                                         |   | $        | 209,910   |   |         | $      | 204,107 |   |
| Interest-bearing                                                                                                                                                                            |   |     | 1,163,529 |   |         |   | 1,065,046 |   |
| Total deposits                                                                                                                                                                              |   |     | 1,373,439 |   |         |   | 1,269,153 |   |
| Junior subordinated debentures                                                                                                                                                              |   |     | 36,083    |   |         |   | 36,083 |   |
| Other borrowings                                                                                                                                                                            |   |     | 27,574    |   |         |   | 139,046 |   |
| Accrued interest payable                                                                                                                                                                    |   |     | 1,589     |   |         |   | 1,279 |   |
| Acceptances outstanding                                                                                                                                                                     |   |     | 4,492     |   |         |   | 8,012 |   |
| Other liabilities                                                                                                                                                                           |   |     | 6,633     |   |         |   | 7,506 |   |
| Total liabilities                                                                                                                                                                           |   |     | 1,449,810 |   |         |   | 1,461,079 |   |
| Commitments and contingencies                                                                                                                                                               |   |     | –   |   |         |   | – |   |
|                                                                                                                                                                                        |   |     |      |   |         |   |   |   |
| Shareholders' equity:                                                                                                                                                                       |   |     |      |   |         |   |   |   |
| Preferred stock, $1.00 par value, 2,000,000 shares authorized; 45,000 shares issued and outstanding at June 30, 2009 and none at December 31, 2008                                          |   |     | 44,647    |   |         |   | – |   |
| Common stock, $1.00 par value, 50,000,000 shares authorized; 10,994,965 shares issued and 10,926,315 and 10,885,081 shares outstanding at June 30, 2009 and December 31, 2008, respectively |   |     | 10,995    |   |         |   | 10,995 |   |
| Additional paid-in-capital                                                                                                                                                                  |   |     | 28,749    |   |         |   | 28,222 |   |
| Retained earnings                                                                                                                                                                           |   |     | 79,892    |   |         |   | 82,311 |   |
| Accumulated other comprehensive loss                                                                                                                                                        |   |     | (603      | )      |         |   | (910 | ) |
|                                                                                                                                                                                        |   |     |      |   |         |   |   |   |
| Treasury stock, at cost, 68,650 and 109,884 shares at June 30, 2009 and December 31, 2008, respectively                                                                                     |   |     | (920      | )      |         |   | (1,459 | ) |
| Total shareholders' equity                                                                                                                                                                  |   |     | 162,760   |   |         |   | 119,159 |   |
| Total liabilities and shareholders' equity                                                                                                                                                  |   | $        | 1,612,570 |   |         | $      | 1,580,238 |   |

----

|                                                                             |   | For the Three Months |    |   | For the Six Months |   |
|----------------------------------------------------------------------------------|--------|----------------------|---------|--------|--------------------|--------|
|                                                                             |   | Ended June 30,       |    |   | Ended June 30,     |   |
|                                                                             |   | 2009                 |    |   | 2008               |   |   | 2009 |   |   | 2008 |   |
| Interest income:                                                                 |   |                 |    |   |               |   |   |   |   |   |   |   |
| Loans                                                                            |   | $                    | 20,747  |   |               | $      | 23,020 |   |   | $ | 41,137 |   |   | $ | 46,420 |   |
| Securities:                                                                      |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                          |   |                 | 999     |   |               |   | 1,276 |   |   |   | 2,083 |   |   |   | 2,648 |   |
| Tax-exempt                                                                       |   |                 | 77      |   |               |   | 64 |   |   |   | 125 |   |   |   | 137 |   |
| Other investments                                                                |   |                 | 154     |   |               |   | 95 |   |   |   | 297 |   |   |   | 182 |   |
| Federal funds sold and other short-term investments                              |   |                 | 77      |   |               |   | 146 |   |   |   | 121 |   |   |   | 283 |   |
| Total interest income                                                            |   |                 | 22,054  |   |               |   | 24,601 |   |   |   | 43,763 |   |   |   | 49,670 |   |
|                                                                             |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                                                                |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Time deposits                                                                    |   |                 | 5,439   |   |               |   | 6,830 |   |   |   | 11,304 |   |   |   | 14,431 |   |
| Demand and savings deposits                                                      |   |                 | 2,195   |   |               |   | 1,902 |   |   |   | 4,429 |   |   |   | 3,967 |   |
| Junior subordinated debentures                                                   |   |                 | 520     |   |               |   | 520 |   |   |   | 1,040 |   |   |   | 1,040 |   |
| Subordinated debentures and other borrowings                                     |   |                 | 236     |   |               |   | 880 |   |   |   | 528 |   |   |   | 1,768 |   |
| Total interest expense                                                           |   |                 | 8,390   |   |               |   | 10,132 |   |   |   | 17,301 |   |   |   | 21,206 |   |
|                                                                             |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                              |   |                 | 13,664  |   |               |   | 14,469 |   |   |   | 26,462 |   |   |   | 28,464 |   |
| Provision for loan losses                                                        |   |                 | 1,827   |   |               |   | 1,465 |   |   |   | 9,114 |   |   |   | 3,049 |   |
| Net interest income after provision for loan losses                              |   |                 | 11,837  |   |               |   | 13,004 |   |   |   | 17,348 |   |   |   | 25,415 |   |
|                                                                             |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest income:                                                              |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Service fees                                                                     |   |                 | 1,086   |   |               |   | 1,206 |   |   |   | 2,175 |   |   |   | 2,449 |   |
| Loan-related fees                                                                |   |                 | 161     |   |               |   | 183 |   |   |   | 293 |   |   |   | 364 |   |
| Letters of credit commissions and fees                                           |   |                 | 258     |   |               |   | 295 |   |   |   | 513 |   |   |   | 562 |   |
| Gain on securities transactions, net                                             |   |                 | 9       |   |               |   | 124 |   |   |   | 9 |   |   |   | 148 |   |
| Gain on sale of loans                                                            |   |                 | – |   |               |   | 194 |   |   |   | – |   |   |   | 245 |   |
| Other noninterest income                                                         |   |                 | 424     |   |               |   | 376 |   |   |   | 878 |   |   |   | 739 |   |
| Total noninterest income                                                         |   |                 | 1,938   |   |               |   | 2,378 |   |   |   | 3,868 |   |   |   | 4,507 |   |
|                                                                             |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest expenses:                                                            |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                   |   |                 | 5,243   |   |               |   | 5,931 |   |   |   | 10,631 |   |   |   | 12,417 |   |
| Occupancy and equipment                                                          |   |                 | 2,000   |   |               |   | 1,982 |   |   |   | 3,992 |   |   |   | 3,941 |   |
| Foreclosed assets, net                                                           |   |                 | 997     |   |               |   | (389 | ) |   |   | 1,420 |   |   |   | (332 | ) |
| Impairment on securities                                                         |   |                 | 940     |   |               |   | 1,540 |   |   |   | 1,180 |   |   |   | 1,540 |   |
| Less: Noncredit portion of other-than-temporary impairments (“OTTI”) |   |                 | (881    | )      |               |   | – |   |   |   | (881 | ) |   |   | – |   |
| Net impairments on securities                                                    |   |                 | 59      |   |               |   | 1,540 |   |   |   | 299 |   |   |   | 1,540 |   |
| FDIC assessment                                                                  |   |                 | 1,413   |   |               |   | 98 |   |   |   | 1,685 |   |   |   | 183 |   |
| Other noninterest expense                                                        |   |                 | 2,421   |   |               |   | 2,636 |   |   |   | 4,677 |   |   |   | 5,012 |   |
| Total noninterest expenses                                                       |   |                 | 12,133  |   |               |   | 11,798 |   |   |   | 22,704 |   |   |   | 22,761 |   |
|                                                                             |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before provision for income taxes                                  |   |                 | 1,642   |   |               |   | 3,584 |   |   |   | (1,488 | ) |   |   | 7,161 |   |
| Provision (benefit) for income taxes                                             |   |                 | 490     |   |               |   | 1,316 |   |   |   | (606 | ) |   |   | 2,658 |   |
| Net income (loss)                                                                |   | $                    | 1,152   |   |               | $      | 2,268 |   |   | $ | (882 | ) |   | $ | 4,503 |   |
|                                                                             |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Dividends – preferred stock                                                |   |                 | 562     |   |               |   | – |   |   |   | 1,031 |   |   |   | – |   |
| Net income (loss) available to common shareholders                               |   | $                    | 590     |   |               | $      | 2,268 |   |   | $ | (1,913 | ) |   | $ | 4,503 |   |
|                                                                             |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per common share:                                                |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                            |   | $                    | 0.05    |   |               | $      | 0.21 |   |   | $ | (0.18 | ) |   | $ | 0.42 |   |
| Diluted                                                                          |   | $                    | 0.05    |   |               | $      | 0.21 |   |   | $ | (0.18 | ) |   | $ | 0.41 |   |
| Weighted average shares outstanding:                                             |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                            |   |                 | 10,906  |   |               |   | 10,819 |   |   |   | 10,891 |   |   |   | 10,815 |   |
| Diluted                                                                          |   |                 | 10,912  |   |               |   | 10,899 |   |   |   | 10,894 |   |   |   | 10,900 |   |
|                                                                             |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Dividends per common share                                                       |   | $                    | – |   |               | $      | 0.04 |   |   | $ | 0.04 |   |   | $ | 0.08 |   |

----

|                                                              |   | For the Three Months |   |   | For the Six Months |   |
|-------------------------------------------------------------------|--------|----------------------|--------|--------|--------------------|--------|
|                                                              |   | Ended June 30,       |   |   | Ended June 30,     |   |
|                                                              |   | 2009                 |   |   | 2008               |   |   | 2009 |   |   | 2008 |   |
|                                                              |   |                 |   |   |               |   |   |   |   |   |   |   |
| Net income (loss)                                                 |   | $                    | 1,152  |   |               | $      | 2,268 |   |   | $ | (882 | ) |   | $ | 4,503 |   |
|                                                              |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive (loss) income, net of tax:                    |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized (loss) gain on investment securities, net:             |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Securities with OTTI charges during the period                    |   |                 | (602   | )      |               |   | (986 | ) |   |   | (755 | ) |   |   | (986 | ) |
| Less: OTTI charges recognized in net income                       |   |                 | (38    | )      |               |   | (986 | ) |   |   | (191 | ) |   |   | (986 | ) |
| Net unrealized losses on investment securities with OTTI          |   |                 | (564   | )      |               |   | – |   |   |   | (564 | ) |   |   | – |   |
|                                                              |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding (loss) gain arising during the period          |   |                 | 37     |   |               |   | (629 | ) |   |   | 877 |   |   |   | (68 | ) |
| Less: reclassification adjustment for gain included in net income |   |                 | 6      |   |               |   | 79 |   |   |   | 6 |   |   |   | 95 |   |
| Net unrealized gains (losses) on investment securities            |   |                 | 31     |   |               |   | (708 | ) |   |   | 871 |   |   |   | (163 | ) |
|                                                              |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss)                                 |   |                 | (533   | )      |               |   | (708 | ) |   |   | 307 |   |   |   | (163 | ) |
| Total comprehensive income (loss)                                 |   | $                    | 619    |   |               | $      | 1,560 |   |   | $ | (575 | ) |   | $ | 4,340 |   |

----

|                                                                             |   | Preferred Stock |    |   | Common Stock |   |    | Additional |   |   |    |   |   | Accumulated other |    |   | Treasury          |   |    |                        |   |
|----------------------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|---------|------------|--------|--------|---------|--------|--------|-------------------|---------|--------|-------------------|--------|---------|-----------------------------|--------|
|                                                                             |   | Shares          |    |   | At par       |   |    | Shares     |   |   | At par  |   |   | paid-incapital    |    |   | Retained earnings |   |    | comprehensive income (loss) |   |   | stock, at cost |   |   | Total |   |
| Balance at December 31, 2008                                                     |   |            | – |   |         | $      | – |       |   |   | 10,885  |   |   | $                 | 10,995  |   |              | $      | 28,222  |                        |   | $ | 82,311 |   |   | $ | (910 | ) |   | $ | (1,459 | ) |   | $ | 119,159 |   |
| Issuance of preferred stock and warrant, at fair value                           |   |            | 45      |   |         |   | 44,289  |       |   |   | – |   |   |              | – |   |              |   | 711     |                        |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 45,000 |   |
| Re-issuance of treasury stock                                                    |   |            | – |   |         |   | – |       |   |   | 42      |   |   |              | – |   |              |   | (373    | )                           |   |   | – |   |   |   | – |   |   |   | 542 |   |   |   | 169 |   |
| Stock-based compensation expense related to stock options recognized in earnings |   |            | – |   |         |   | – |       |   |   | – |   |   |              | – |   |              |   | 304     |                        |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 304 |   |
| Net loss                                                                         |   |            | – |   |         |   | – |       |   |   | – |   |   |              | – |   |              |   | – |                        |   |   | (882 | ) |   |   | – |   |   |   | – |   |   |   | (882 | ) |
| Amortization  of preferred stock discount                              |   |            | – |   |         |   | 71      |       |   |   | – |   |   |              | – |   |              |   | – |                        |   |   | (71 | ) |   |   | – |   |   |   | – |   |   |   | – |   |
| Shortfall from restricted shares                                                 |   |            | – |   |         |   | – |       |   |   | – |   |   |              | – |   |              |   | (115    | )                           |   |   | – |   |   |   | – |   |   |   | – |   |   |   | (115 | ) |
| Forfeiture of restricted shares                                                  |   |            | – |   |         |   | – |       |   |   | (1      | )      |   |              | – |   |              |   | – |                        |   |   | – |   |   |   | – |   |   |   | (3 | ) |   |   | (3 | ) |
| Other comprehensive income                                                       |   |            | – |   |         |   | – |       |   |   | – |   |   |              | – |   |              |   | – |                        |   |   | – |   |   |   | 307 |   |   |   | – |   |   |   | 307 |   |
| Dividends – preferred stock                                                |   |            | – |   |         |   | 287     |       |   |   | – |   |   |              | – |   |              |   | – |                        |   |   | (1,031 | ) |   |   | – |   |   |   | – |   |   |   | (744 | ) |
| Dividends – common stock ($0.04 per share)                                 |   |            | – |   |         |   | – |       |   |   | – |   |   |              | – |   |              |   | – |                        |   |   | (435 | ) |   |   | – |   |   |   | – |   |   |   | (435 | ) |
| Balance at June 30, 2009                                                         |   |            | 45      |   |         | $      | 44,647  |       |   |   | 10,926  |   |   | $                 | 10,995  |   |              | $      | 28,749  |                        |   | $ | 79,892 |   |   | $ | (603 | ) |   | $ | (920 | ) |   | $ | 162,760 |   |

----

|                                                                                     |   | For the Six Months EndedJune 30, |     |
|------------------------------------------------------------------------------------------|--------|----------------------------------|----------|
|                                                                                     |   | 2009                             |     |   | 2008 |   |
|                                                                                     |   |                             |     |   |   |   |
| Cash flows from operating activities:                                                    |   |                             |     |   |   |   |
| Net income (loss)                                                                        |   | $                                | (882     | ) |   | $ | 4,503 |   |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |                             |     |   |   |   |   |   |
| Depreciation                                                                             |   |                             | 989      |   |   |   | 1,062 |   |
| Provision for loan losses                                                                |   |                             | 9,114    |   |   |   | 3,049 |   |
| Impairment on securities                                                                 |   |                             | 299      |   |   |   | 1,540 |   |
| Gain on securities transactions, net                                                     |   |                             | (9       | ) |   |   | (148 | ) |
| Loss (gain) on sale of foreclosed assets                                                 |   |                             | 328      |   |   |   | (447 | ) |
| Loss on sale of premises and equipment                                                   |   |                             | (11      | ) |   |   | 9 |   |
| Gain on sale of loans, net                                                               |   |                             | –  |   |   |   | (245 | ) |
| Amortization of premiums and discounts on securities, net                                |   |                             | (43      | ) |   |   | 29 |   |
| Amortization of deferred loan fees and discounts                                         |   |                             | (1,049   | ) |   |   | (1,269 | ) |
| Amortization of core deposit intangibles                                                 |   |                             | 89       |   |   |   | 125 |   |
| Stock-based compensation                                                                 |   |                             | 186      |   |   |   | 553 |   |
| Changes in:                                                                              |   |                             |     |   |   |   |   |   |
| Accrued interest receivable                                                              |   |                             | 176      |   |   |   | 408 |   |
| Other assets                                                                             |   |                             | (2,543   | ) |   |   | (2,364 | ) |
| Accrued interest payable                                                                 |   |                             | 310      |   |   |   | (383 | ) |
| Other liabilities                                                                        |   |                             | (439     | ) |   |   | 514 |   |
| Net cash provided by operating activities                                                |   |                             | 6,515    |   |   |   | 6,936 |   |
|                                                                                     |   |                             |     |   |   |   |   |   |
| Cash flows from investing activities:                                                    |   |                             |     |   |   |   |   |   |
| Purchases of securities available-for-sale                                               |   |                             | (36,401  | ) |   |   | (14,996 | ) |
| Purchases of securities held-to-maturity                                                 |   |                             | (3,044   | ) |   |   | – |   |
| Purchases of other investments                                                           |   |                             | (1,066   | ) |   |   | (2,972 | ) |
| Proceeds from sales of securities available-for-sale                                     |   |                             | –  |   |   |   | 4,196 |   |
| Proceeds from maturities, calls, and principal paydowns of securities available-for-sale |   |                             | 16,902   |   |   |   | 31,276 |   |
| Proceeds from  sales and maturities of other investments                       |   |                             | 12,741   |   |   |   | 653 |   |
| Net change in loans                                                                      |   |                             | (10,025  | ) |   |   | (111,024 | ) |
| Proceeds from sale of foreclosed assets                                                  |   |                             | 7,409    |   |   |   | 1,921 |   |
| Proceeds from sale of premises and equipment                                             |   |                             | 11       |   |   |   | 7 |   |
| Purchases of premises and equipment                                                      |   |                             | (217     | ) |   |   | (506 | ) |
| Net cash used in investing activities                                                    |   |                             | (13,690  | ) |   |   | (91,445 | ) |
|                                                                                     |   |                             |     |   |   |   |   |   |
| Cash flows from financing activities:                                                    |   |                             |     |   |   |   |   |   |
| Net change in:                                                                           |   |                             |     |   |   |   |   |   |
| Deposits                                                                                 |   |                             | 104,286  |   |   |   | 51,658 |   |
| Other borrowings                                                                         |   |                             | (111,472 | ) |   |   | 56,802 |   |
| Proceeds from issuance of preferred stock with common stock warrant                      |   |                             | 45,000   |   |   |   | – |   |
| Re-issuance of treasury stock                                                            |   |                             | 169      |   |   |   | 307 |   |
| Cash dividends paid on preferred stock                                                   |   |                             | (744     | ) |   |   | – |   |
| Cash dividends paid on common stock                                                      |   |                             | (869     | ) |   |   | (865 | ) |
| Net cash provided by financing activities                                                |   |                             | 36,370   |   |   |   | 107,902 |   |
|                                                                                     |   |                             |     |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                |   |                             | 29,195   |   |   |   | 23,393 |   |
| Cash and cash equivalents at beginning of period                                         |   |                             | 38,101   |   |   |   | 46,270 |   |
| Cash and cash equivalents at end of period                                               |   | $                                | 67,296   |   |   | $ | 69,663 |   |

----

| 1. | BASIS OF PRESENTATION |
|----|-----------------------|

| 2. | SECURITIES |
|----|------------|

----

----

|                                                               |   | As of June 30, 2009 |    |
|--------------------------------------------------------------------|--------|---------------------|---------|
|                                                               |   | Amortized           |    |   | Unrealized |   |   | Fair |   |
|                                                               |   | Cost                |    |   | Gains |   |   | Losses |   |   | OTTI |   |   | Value |   |
|                                                               |   |                |    |
| Securities available-for-sale                                      |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt Securities                                                    |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and other U.S. government corporations and agencies  |   | $                   | 43,268  |   |   | $ ─ |   |   | $ | (110 | ) |   | $ ─ |   |   | $ | 43,158 |   |
| Obligations of state and political subdivisions                    |   |                | 3,112   |   |   |   | 30 |   |   |   | (4 | ) |   | ─ |   |   |   | 3,138 |   |
| Mortgage-backed securities and collateralized mortgage obligations |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government issued or guaranteed                                    |   |                | 65,122  |   |   |   | 1,155 |   |   |   | (112 | ) |   | ─ |   |   |   | 66,165 |   |
| Privately issued residential                                       |   |                | 4,883   |   |   | ─ |   |   |   | (1,117 | ) |   |   | (603 | ) |   |   | 3,163 |   |
| Asset backed securities                                            |   |                | 505     |   |   | ─ |   |   | ─ |   |   |   | (278 | ) |   |   | 227 |   |
| Equity Securities                                                  |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment in CRA funds                                            |   |                | 5,908   |   |   |   | 96 |   |   | ─ |   |   | ─ |   |   |   | 6,004 |   |
| Total available-for-sale securities                                |   | $                   | 122,798 |   |   | $ | 1,281 |   |   | $ | (1,343 | ) |   | $ | (881 | ) |   | $ | 121,855 |   |
|                                                               |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities held-to-maturity                                        |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of state and political subdivisions                    |   | $                   | 3,044   |   |   | $ | 114 |   |   | $ | (26 | ) |   | $ ─ |   |   | $ | 3,132 |   |
| Total held-to-maturity securities                                  |   | $                   | 3,044   |   |   | $ | 114 |   |   | $ | (26 | ) |   | $ ─ |   |   | $ | 3,132 |   |
|                                                               |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other investments                                                  |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment in CDARS                                                |   | $                   | 10,355  |   |   | $ ─ |   |   | $ ─ |   |   | $ ─ |   |   | $ | 10,355 |   |
| FHLB/Federal Reserve Bank stock                                    |   |                | 6,107   |   |   | ─ |   |   | ─ |   |   | ─ |   |   |   | 6,107 |   |
| Investment in subsidiary trust                                     |   |                | 1,083   |   |   | ─ |   |   | ─ |   |   | ─ |   |   |   | 1,083 |   |
| Total other investments                                            |   | $                   | 17,545  |   |   | $ ─ |   |   | $ ─ |   |   | $ ─ |   |   | $ | 17,545 |   |

----

|                                                               |   | As of December 31, 2008 |    |
|--------------------------------------------------------------------|--------|-------------------------|---------|
|                                                               |   | Amortized Cost          |    |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Securities available-for-sale                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Debt Securities                                                    |   |                    |    |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and other U.S. government corporations and agencies  |   | $                       | 14,908  |   |   | $ | 179 |   |   | $ ─ |   |   | $ | 15,087 |   |
| Obligations of state and political subdivisions                    |   |                    | 3,853   |   |   |   | 24 |   |   | ─ |   |   |   | 3,877 |   |
| Mortgage-backed securities and collateralized mortgage obligations |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Government issued or  guaranteed                         |   |                    | 72,787  |   |   |   | 555 |   |   |   | (956 | ) |   |   | 72,386 |   |
| Privately issued residential                                       |   |                    | 5,639   |   |   |   | 19 |   |   |   | (1,299 | ) |   |   | 4,359 |   |
| Asset backed securities                                            |   |                    | 550     |   |   | ─ |   |   | ─ |   |   |   | 550 |   |
| Equity Securities                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment in CRA funds                                            |   |                    | 5,809   |   |   |   | 36 |   |   | ─ |   |   |   | 5,845 |   |
| Total available-for-sale securities                                |   | $                       | 103,546 |   |   | $ | 813 |   |   | $ | (2,255 | ) |   | $ | 102,104 |   |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities held-to-maturity                                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of state and political subdivisions                    |   | $ ─          |    |   | $ ─ |   |   | $ ─ |   |   | $ ─ |   |
| Total held-to-maturity securities                                  |   | $ ─          |    |   | $ ─ |   |   | $ ─ |   |   | $ ─ |   |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other investments                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment in CDARS                                                |   | $                       | 20,240  |   |   | $ ─ |   |   | $ ─ |   |   | $ | 20,240 |   |
| FHLB/Federal Reserve Bank stock                                    |   |                    | 7,897   |   |   | ─ |   |   | ─ |   |   |   | 7,897 |   |
| Investment in subsidiary trust                                     |   |                    | 1,083   |   |   | ─ |   |   | ─ |   |   |   | 1,083 |   |
| Total other investments                                            |   | $                       | 29,220  |   |   | $ ─ |   |   | $ ─ |   |   | $ | 29,220 |   |

----

|                                                               |   | Less Than 12 Months    |   |   | Greater Than 12 Months  |   |   | Total      |   |
|--------------------------------------------------------------------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|--------|
|                                                               |   | Fair Value             |   |   | Gross Unrealized Losses |   |   | Fair Value |   |   | Gross Unrealized Losses |   |   | Fair Value |   |   | Gross Unrealized Losses |   |
|                                                               |   | (Dollars in thousands) |   |
| Securities available-for-sale                                      |   |                   |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Debt securities                                                    |   |                   |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and other U.S. government corporations and agencies  |   | $                      | 43,157 |   |                    | $      | (110   | )          |   | $ ─ |   |   | $ ─ |   |   | $ | 43,157 |   |   | $ | (110 | ) |
| Obligations of state and political subdivisions                    |   |                   | 380    |   |                    |   | (4     | )          |   | ─ |   |   | ─ |   |   |   | 380 |   |   |   | (4 | ) |
| Mortgage-backed securities and collateralized mortgage obligations |   |                   |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government issued or guaranteed                                    |   |                   | 5,594  |   |                    |   | (71    | )          |   |   | 1,684 |   |   |   | (41 | ) |   |   | 7,278 |   |   |   | (112 | ) |
| Privately issued residential                                       |   |                   | 2,969  |   |                    |   | (1,720 | )          |   | ─ |   |   | ─ |   |   |   | 2,969 |   |   |   | (1,720 | ) |
| Asset backed securities                                            |   |                   | 227    |   |                    |   | (278   | )          |   | ─ |   |   | ─ |   |   |   | 227 |   |   |   | (278 | ) |
| Total available-for-sale securities                                |   | $                      | 52,327 |   |                    | $      | (2,183 | )          |   | $ | 1,684 |   |   | $ | (41 | ) |   | $ | 54,011 |   |   | $ | (2,224 | ) |
|                                                               |   |                   |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities held-to-maturity                                        |   |                   |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities                                                    |   |                   |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of state and political subdivisions                    |   | $                      | 974    |   |                    | $      | (26    | )          |   | $ ─ |   |   | $ ─ |   |   | $ | 974 |   |   | $ | (26 | ) |
| Total held-to-maturity securities                                  |   | $                      | 974    |   |                    | $      | (26    | )          |   | $ ─ |   |   | $ ─ |   |   | $ | 974 |   |   | $ | (26 | ) |

----

|                                                                                                                               |   | Three months ended June 30, 2009    |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                                                               |   | Impairment related to credit losses |   |   | Impairment related to other factors |   |   | Total impairment |   |
|                                                                                                                               |   | (Dollars in thousands)              |   |
| Beginning balance, April 1, 2009                                                                                                   |   | $                                   | 661    |   |   | $ ─ |   |   | $ | 661 |   |
| Addition of OTTI that was not previously recognized                                                                                |   |                                | 49     |   |   |   | 375 |   |   |   | 424 |   |
| Reduction for securities sold during the period                                                                                    |   | ─                             |   |   | ─ |   |   | ─ |   |
| Reduction for securities with OTTI recognized in earnings because the security might be sold before recovery of its amortized cost |   | ─                             |   |   | ─ |   |   | ─ |   |
| Addition of OTTI that was previously recognized because the security might not be sold before recovery of its amortized cost basis |   |                                | 10     |   |   |   | 506 |   |   |   | 516 |   |
| Reduction for increases in cash flows expected to be collected that are recognized over the remaining life of the security         |   | ─                             |   |   | ─ |   |   | ─ |   |
| Recovery of non-credit effects previously recognized in OTTI                                                                       |   | ─                             |   |   | ─ |   |   | ─ |   |
| Ending balance, June 30, 2009                                                                                                      |   | $                                   | 720    |   |   | $ | 881 |   |   | $ | 1,601 |   |

|                                                                                                                               |   | Six months ended June 30, 2009      |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                                                               |   | Impairment related to credit losses |   |   | Impairment related to other factors |   |   | Total impairment |   |
|                                                                                                                               |   | (Dollars in thousands)              |   |
| Beginning balance, January 1, 2009                                                                                                 |   | $                                   | 421    |   |   | $ ─ |   |   | $ | 421 |   |
| Addition of OTTI that was not previously recognized                                                                                |   |                                | 231    |   |   |   | 428 |   |   |   | 659 |   |
| Reduction for securities sold during the period                                                                                    |   | ─                             |   |   | ─ |   |   | ─ |   |
| Reduction for securities with OTTI recognized in earnings because the security might be sold before recovery of its amortized cost |   | ─                             |   |   | ─ |   |   | ─ |   |
| Addition of OTTI that was previously recognized because the security might not be sold before recovery of its amortized cost basis |   |                                | 68     |   |   |   | 453 |   |   |   | 521 |   |
| Reduction for increases in cash flows expected to be collected that are recognized over the remaining life of the security         |   | ─                             |   |   | ─ |   |   | ─ |   |
| Recovery of non-credit effects previously recognized in OTTI                                                                       |   | ─                             |   |   | ─ |   |   | ─ |   |
| Ending balance, June 30, 2009                                                                                                      |   | $                                   | 720    |   |   | $ | 881 |   |   | $ | 1,601 |   |

|                  |   | Six Months Ended June 30, |    |
|-----------------------|--------|---------------------------|---------|
|                  |   | 2009                      |    |   | 2008 |   |
| Amortized cost        |   | $                         | — |   |   | $ | 4,319 |   |
| Proceeds              |   |                      | — |   |   |   | 4,196 |   |
| Gross realized gains  |   |                      | — |   |   |   | 123 |   |
| Gross realized losses |   |                      | — |   |   |   | — |   |

|                                                               |   | Securities         |    |   | Securities       |   |
|--------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                               |   | Available-for-sale |    |   | Held-to-maturity |   |
|                                                          |   | AmortizedCost      |    |   | FairValue        |   |   | AmortizedCost |   |   | FairValue |   |
| Within one year                                                    |   | $                  | — |   |             | $      | — |   |   | $ | — |   |   | $ | — |   |
| Within two to five years                                           |   |               | 30,999  |   |             |   | 30,729 |   |   |   | — |   |   |   | — |   |
| Within six to ten years                                            |   |               | 2,316   |   |             |   | 2,277 |   |   |   | — |   |   |   | — |   |
| After ten years                                                    |   |               | 13,570  |   |             |   | 13,517 |   |   |   | 3,044 |   |   |   | 3,132 |   |
| Mortgage-backed securities and collateralized mortgage obligations |   |               | 70,005  |   |             |   | 69,328 |   |   |   | — |   |   |   | — |   |
| Total debt securities                                              |   | $                  | 116,890 |   |             | $      | 115,851 |   |   | $ | 3,044 |   |   | $ | 3,132 |   |

----

| 3. | ALLOWANCE FOR LOAN  AND CREDIT LOSSES |
|----|-------------------------------------------------|

|                                                            |   | As of and for the Three Months |   |   | As of and for the Six Months |   |
|-----------------------------------------------------------------|--------|--------------------------------|--------|--------|------------------------------|--------|
|                                                            |   | Ended June 30,                 |   |   | Ended June 30,               |   |
|                                                            |   | 2009                           |   |   | 2008                         |   |   | 2009 |   |   | 2008 |   |
|                                                            |   | (In thousands)                 |   |
|                                                            |   |                           |   |   |                         |   |   |   |   |   |   |   |
| Allowance for loan losses at beginning of period                |   | $                              | 24,158 |   |                         | $      | 14,588 |   |   | $ | 24,235 |   |   | $ | 13,125 |   |
| Provision for loan losses                                       |   |                           | 1,827  |   |                         |   | 1,465 |   |   |   | 9,114 |   |   |   | 3,049 |   |
| Charge-offs                                                     |   |                           | (2,148 | )      |                         |   | (623 | ) |   |   | (9,588 | ) |   |   | (759 | ) |
| Recoveries                                                      |   |                           | 429    |   |                         |   | 90 |   |   |   | 505 |   |   |   | 105 |   |
| Allowance for loan losses at end of period                      |   | $                              | 24,266 |   |                         | $      | 15,520 |   |   | $ | 24,266 |   |   | $ | 15,520 |   |
|                                                            |   |                           |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Reserve for unfunded lending commitments at beginning of period |   |                           | 1,204  |   |                         |   | 907 |   |   |   | 1,092 |   |   |   | 816 |   |
| Provision for unfunded lending commitments                      |   |                           | 274    |   |                         |   | 10 |   |   |   | 386 |   |   |   | 101 |   |
| Reserve for unfunded lending commitments at end of period       |   |                           | 1,478  |   |                         |   | 917 |   |   |   | 1,478 |   |   |   | 917 |   |
|                                                            |   |                           |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for credit losses                                     |   | $                              | 25,744 |   |                         | $      | 16,437 |   |   | $ | 25,744 |   |   | $ | 16,437 |   |

| 4. | GOODWILL |
|----|----------|

----

| 5. | SHAREHOLDERS’ EQUITY |
|----|----------------------------|

| 6. | EARNINGS PER COMMON SHARE |
|----|---------------------------|

----

|                                                                               |   | As of and for the Three Months           |   |   | As of and for the Six Months |   |
|------------------------------------------------------------------------------------|--------|------------------------------------------|--------|--------|------------------------------|--------|
|                                                                               |   | Ended June 30,                           |   |   | Ended June 30,               |   |
|                                                                               |   | 2009                                     |   |   | 2008                         |   |   | 2009 |   |   | 2008 |   |
|                                                                               |   | (In thousands, except per share amounts) |   |
|                                                                               |   |                                     |   |   |                         |   |   |   |   |   |   |   |
| Net income (loss) available to common shareholders                                 |   | $                                        | 590    |   |                         | $      | 2,268 |   |   | $ | (1,913 | ) |   | $ | 4,503 |   |
|                                                                               |   |                                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares in basic EPS                                        |   |                                     | 10,906 |   |                         |   | 10,819 |   |   |   | 10,891 |   |   |   | 10,815 |   |
| Effect of dilutive securities                                                      |   |                                     | 6      |   |                         |   | 80 |   |   |   | 3 |   |   |   | 85 |   |
| Weighted average common and potentially dilutive common shares used in diluted EPS |   |                                     | 10,912 |   |                         |   | 10,899 |   |   |   | 10,894 |   |   |   | 10,900 |   |
|                                                                               |   |                                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share:                                                         |   |                                     |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   | $                                        | 0.05   |   |                         | $      | 0.21 |   |   | $ | (0.18 | ) |   | $ | 0.42 |   |
| Diluted                                                                            |   | $                                        | 0.05   |   |                         | $      | 0.21 |   |   | $ | (0.18 | ) |   | $ | 0.41 |   |

| 7. | LITIGATION |
|----|------------|

| 8. | OFF-BALANCE SHEET ACTIVITIES |
|----|------------------------------|

|                                                         |   | As ofJune 30, 2009     |    |   | As ofDecember 31, 2008 |   |
|--------------------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                                         |   | (Dollars in thousands) |    |
| Unfunded loan commitments including unfunded lines of credit |   | $                      | 190,075 |   |                   | $      | 247,731 |   |
| Standby letters of credit                                    |   |                   | 12,626  |   |                   |   | 9,981 |   |
| Commercial letters of credit                                 |   |                   | 12,526  |   |                   |   | 12,244 |   |
| Operating leases                                             |   |                   | 6,923   |   |                   |   | 8,065 |   |
| Total financial instruments with off-balance sheet risk      |   | $                      | 222,150 |   |                   | $      | 278,021 |   |

| 9. | OPERATING SEGMENT INFORMATION |
|----|-------------------------------|

----

|                                                |   | For the three months ended June 30, 2009 |   |   | For the three months ended June 30, 2008 |   |
|-----------------------------------------------------|--------|------------------------------------------|--------|--------|------------------------------------------|--------|
|                                                |   | MetroBank                                |   |   | Metro United                             |   |   | Other |   |   | Consolidated Company |   |   | MetroBank |   |   | Metro United |   |   | Other |   |   | Consolidated Company |   |
|                                                |   | (Dollars in thousands)                   |   |
| Total interest income                               |   | $                                        | 16,478 |   |                                     | $      | 5,561 |   |   | $ | 15 |   |   | $ | 22,054 |   |   | $ | 18,187 |   |   | $ | 6,398 |   |   | $ | 16 |   |   | $ | 24,601 |   |
| Total interest expense                              |   |                                     | 5,584  |   |                                     |   | 2,286 |   |   |   | 520 |   |   |   | 8,390 |   |   |   | 6,644 |   |   |   | 2,966 |   |   |   | 522 |   |   |   | 10,132 |   |
| Net interest income                                 |   |                                     | 10,894 |   |                                     |   | 3,275 |   |   |   | (505 | ) |   |   | 13,664 |   |   |   | 11,543 |   |   |   | 3,432 |   |   |   | (506 | ) |   |   | 14,469 |   |
| Provision for loan losses                           |   |                                     | 1,339  |   |                                     |   | 488 |   |   | ─ |   |   |   | 1,827 |   |   |   | 914 |   |   |   | 551 |   |   | ─ |   |   |   | 1,465 |   |
| Net interest income after provision for loan losses |   |                                     | 9,555  |   |                                     |   | 2,787 |   |   |   | (505 | ) |   |   | 11,837 |   |   |   | 10,629 |   |   |   | 2,881 |   |   |   | (506 | ) |   |   | 13,004 |   |
| Noninterest income                                  |   |                                     | 2,175  |   |                                     |   | 105 |   |   |   | (342 | ) |   |   | 1,938 |   |   |   | 2,567 |   |   |   | 149 |   |   |   | (338 | ) |   |   | 2,378 |   |
| Noninterest expenses                                |   |                                     | 9,255  |   |                                     |   | 2,925 |   |   |   | (47 | ) |   |   | 12,133 |   |   |   | 9,070 |   |   |   | 2,431 |   |   |   | 297 |   |   |   | 11,798 |   |
| Income (loss) before income tax provision           |   |                                     | 2,475  |   |                                     |   | (33 | ) |   |   | (800 | ) |   |   | 1,642 |   |   |   | 4,126 |   |   |   | 599 |   |   |   | (1,141 | ) |   |   | 3,584 |   |
| Provision (benefit) for income taxes                |   |                                     | 731    |   |                                     |   | (2 | ) |   |   | (239 | ) |   |   | 490 |   |   |   | 1,469 |   |   |   | 199 |   |   |   | (352 | ) |   |   | 1,316 |   |
| Net income (loss)                                   |   | $                                        | 1,744  |   |                                     | $      | (31 | ) |   | $ | (561 | ) |   | $ | 1,152 |   |   | $ | 2,657 |   |   | $ | 400 |   |   | $ | (789 | ) |   | $ | 2,268 |   |

----

|                                                |   | For the six months ended June 30, 2009 |      |   | For the six months ended June 30, 2008 |   |
|-----------------------------------------------------|--------|---------------------------------------------|-----------|--------|----------------------------------------|--------|
|                                                |   | MetroBank                                   |      |   | Metro United                           |   |   | Other |   |   | Consolidated Company |   |   | MetroBank |   |   | Metro United |   |   | Other |   |   | Consolidated Company |   |
|                                                |   | (Dollars in thousands)                      |      |
| Total interest income                               |   | $                                           | 32,622    |   |                                   | $      | 11,110 |   |   | $ | 31 |   |   | $ | 43,763 |   |   | $ | 36,743 |   |   | $ | 12,894 |   |   | $ | 33 |   |   | $ | 49,670 |   |
| Total interest expense                              |   |                                        | 11,575    |   |                                   |   | 4,676 |   |   |   | 1,050 |   |   |   | 17,301 |   |   |   | 13,886 |   |   |   | 6,278 |   |   |   | 1,042 |   |   |   | 21,206 |   |
| Net interest income                                 |   |                                        | 21,047    |   |                                   |   | 6,434 |   |   |   | (1,019 | ) |   |   | 26,462 |   |   |   | 22,857 |   |   |   | 6,616 |   |   |   | (1,009 | ) |   |   | 28,464 |   |
| Provision for loan losses                           |   |                                        | 6,527     |   |                                   |   | 2,587 |   |   | ─ |   |   |   | 9,114 |   |   |   | 1,604 |   |   |   | 1,445 |   |   | ─ |   |   |   | 3,049 |   |
| Net interest income after provision for loan losses |   |                                        | 14,520    |   |                                   |   | 3,847 |   |   |   | (1,019 | ) |   |   | 17,348 |   |   |   | 21,253 |   |   |   | 5,171 |   |   |   | (1,009 | ) |   |   | 25,415 |   |
| Noninterest income                                  |   |                                        | 4,349     |   |                                   |   | 208 |   |   |   | (689 | ) |   |   | 3,868 |   |   |   | 4,929 |   |   |   | 254 |   |   |   | (676 | ) |   |   | 4,507 |   |
| Noninterest expenses                                |   |                                        | 17,384    |   |                                   |   | 5,247 |   |   |   | 73 |   |   |   | 22,704 |   |   |   | 17,068 |   |   |   | 5,158 |   |   |   | 535 |   |   |   | 22,761 |   |
| Income (loss) before income tax provision           |   |                                        | 1,485     |   |                                   |   | (1,192 | ) |   |   | (1,781 | ) |   |   | (1,488 | ) |   |   | 9,114 |   |   |   | 267 |   |   |   | (2,220 | ) |   |   | 7,161 |   |
| Provision (benefit) for income taxes                |   |                                        | 368       |   |                                   |   | (458 | ) |   |   | (516 | ) |   |   | (606 | ) |   |   | 3,169 |   |   |   | 138 |   |   |   | (649 | ) |   |   | 2,658 |   |
| Net income (loss)                                   |   | $                                           | 1,117     |   |                                   | $      | (734 | ) |   | $ | (1,265 | ) |   | $ | (882 | ) |   | $ | 5,945 |   |   | $ | 129 |   |   | $ | (1,571 | ) |   | $ | 4,503 |   |
|                                                |   |                                        |      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | As of June 30, 2009                         |      |   | As of June 30, 2008                    |   |
|                                                |   | MetroBank                                   |      |   | Metro United                           |   |   | Other |   |   | Consolidated Company |   |   | MetroBank |   |   | Metro United |   |   | Other |   |   | Consolidated Company |   |
|                                                |   | (Dollars in thousands)                      |      |
| Net loans                                           |   | $                                           | 938,745   |   |                                   | $      | 358,467 |   |   | $ | - |   |   | $ | 1,297,212 |   |   | $ | 932,030 |   |   | $ | 364,015 |   |   | $ | – |   |   | $ | 1,296,045 |   |
| Total assets                                        |   |                                        | 1,189,135 |   |                                   |   | 426,801 |   |   |   | (3,366 | ) |   |   | 1,612,570 |   |   |   | 1,145,890 |   |   |   | 433,386 |   |   |   | (798 | ) |   |   | 1,578,478 |   |
| Deposits                                            |   |                                        | 1,025,526 |   |                                   |   | 356,281 |   |   |   | (8,368 | ) |   |   | 1,373,439 |   |   |   | 922,798 |   |   |   | 323,519 |   |   |   | (3,616 | ) |   |   | 1,242,701 |   |

| 10. | FAIR VALUE |
|-----|------------|

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

|   | · | Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.  Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significantmanagement judgment or estimation. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                               |   | Fair Value Measurements, using                                 |    |   |                                          |   |
|--------------------------------------------------------------------|--------|----------------------------------------------------------------|---------|--------|-----------------------------------------------|--------|
|                                                               |   | (Dollars in thousands)                                         |    |   |                                          |   |
|                                                               |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |    |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |   | Fair Value Measurements |   |
| Securities available-for-sale at June 30, 2009                     |   |                                                           |    |   |                                          |   |   |   |   |   |   |   |
| U.S. Treasury and other U.S. government corporations and agencies  |   | $                                                              | – |   |                                          | $      | 43,158 |   |   | $ | – |   |   | $ | 43,158 |   |
| Obligations of state and political subdivisions                    |   |                                                           | – |   |                                          |   | 3,138 |   |   |   | – |   |   |   | 3,138 |   |
| Mortgage-backed securities and collateralized mortgage obligations |   |                                                           |    |   |                                          |   |   |   |   |   | – |   |   |   |   |   |
| Government issued or guaranteed                                    |   |                                                           | – |   |                                          |   | 66,165 |   |   |   | – |   |   |   | 66,165 |   |
| Privately issued residential                                       |   |                                                           | – |   |                                          |   | 3,163 |   |   |   | – |   |   |   | 3,163 |   |
| Asset backed securities                                            |   |                                                           | – |   |                                          |   | 227 |   |   |   | – |   |   |   | 227 |   |
| Investment in CRA funds                                            |   |                                                           | 6,004   |   |                                          |   | – |   |   |   | – |   |   |   | 6,004 |   |
| Total available-for-sale securities June 30, 2009                  |   | $                                                              | 6,004   |   |                                          | $      | 115,851 |   |   | $ | – |   |   | $ | 121,855 |   |
|                                                               |   |                                                           |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Securities available-for-sale at December 31, 2008                 |   |                                                           |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and other U.S. government corporations and agencies  |   | $                                                              | – |   |                                          | $      | 15,087 |   |   | $ | – |   |   | $ | 15,087 |   |
| Obligations of state and political subdivisions                    |   |                                                           | – |   |                                          |   | 3,877 |   |   |   | – |   |   |   | 3,877 |   |
| Mortgage-backed securities and collateralized mortgage obligations |   |                                                           |    |   |                                          |   |   |   |   |   | – |   |   |   |   |   |
| Government issued or guaranteed                                    |   |                                                           | – |   |                                          |   | 72,386 |   |   |   | – |   |   |   | 72,386 |   |
| Privately issued residential                                       |   |                                                           | – |   |                                          |   | 4,359 |   |   |   | – |   |   |   | 4,359 |   |
| Asset backed securities                                            |   |                                                           | – |   |                                          |   | 550 |   |   |   | – |   |   |   | 550 |   |
| Investment in CRA funds                                            |   |                                                           | 5,845   |   |                                          |   | – |   |   |   | – |   |   |   | 5,845 |   |
| Total available-for-sale securities December 31, 2008              |   | $                                                              | 5,845   |   |                                          | $      | 96,259 |   |   | $ | – |   |   | $ | 102,104 |   |

----

|                                                          |   | As of June 30, 2009    |      |   | As of December 31, 2008 |   |
|---------------------------------------------------------------|--------|-----------------------------|-----------|--------|-------------------------|--------|
|                                                          |   | Carrying or Contract Amount |      |   | Estimated Fair Value    |   |   | Carrying or Contract Amount |   |   | Estimated Fair Value |   |
|                                                          |   | (Dollars in thousands)      |      |
| Financial Assets                                              |   |                        |      |   |                    |   |   |   |   |   |   |   |
| Cash and cash equivalents                                     |   | $                           | 67,296    |   |                    | $      | 67,296 |   |   | $ | 38,101 |   |   | $ | 38,101 |   |
| Investment securities available-for-sale                      |   |                        | 121,855   |   |                    |   | 121,855 |   |   |   | 102,104 |   |   |   | 102,104 |   |
| Investment securities held-to-maturity                        |   |                        | 3,044     |   |                    |   | 3,132 |   |   |   | — |   |   |   | — |   |
| Other investments                                             |   |                        | 17,545    |   |                    |   | 17,545 |   |   |   | 29,220 |   |   |   | 29,220 |   |
| Loans held-for-investment, net                                |   |                        | 1,297,212 |   |                    |   | 1,201,218 |   |   |   | 1,321,813 |   |   |   | 1,212,619 |   |
| Cash value of bank owned life insurance                       |   |                        | 27,792    |   |                    |   | 27,792 |   |   |   | 27,090 |   |   |   | 27,090 |   |
| Accrued interest receivable                                   |   |                        | 5,770     |   |                    |   | 5,770 |   |   |   | 5,946 |   |   |   | 5,946 |   |
|                                                          |   |                        |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                        |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities                                         |   |                        |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                      |   |                        |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Transaction accounts                                          |   |                        | 695,797   |   |                    |   | 695,797 |   |   |   | 597,877 |   |   |   | 597,876 |   |
| Time deposits                                                 |   |                        | 677,642   |   |                    |   | 680,295 |   |   |   | 671,276 |   |   |   | 677,416 |   |
| Total deposits                                                |   |                        | 1,373,439 |   |                    |   | 1,376,092 |   |   |   | 1,269,153 |   |   |   | 1,275,292 |   |
| Other borrowings                                              |   |                        | 27,574    |   |                    |   | 27,717 |   |   |   | 139,046 |   |   |   | 138,992 |   |
| Junior subordinated debentures                                |   |                        | 36,083    |   |                    |   | 38,520 |   |   |   | 36,083 |   |   |   | 38,623 |   |
| Accrued interest payable                                      |   |                        | 1,589     |   |                    |   | 1,589 |   |   |   | 1,279 |   |   |   | 1,279 |   |
|                                                          |   |                        |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Off-balance sheet financial instruments                       |   |                        |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Unfunded loan commitments, including unfunded lines of credit |   |                        | 190,075   |   |                    |   | — |   |   |   | 247,731 |   |   |   | — |   |
| Standby letters of credit                                     |   |                        | 12,626    |   |                    |   | — |   |   |   | 9,981 |   |   |   | — |   |
| Commercial letters of credit                                  |   |                        | 12,526    |   |                    |   | — |   |   |   | 12,244 |   |   |   | — |   |

----

----

| 11. | SUBSEQUENT EVENTS |
|-----|-------------------|

|   | • | Loan portfolio management; |
|--------|---------|----------------------------|

|   | • | Construction loan underwriting standards; |
|--------|---------|-------------------------------------------|

|   | • | Commercial real estate concentration risk management; |
|--------|---------|-------------------------------------------------------|

|   | • | Timely and accurate identification of nonaccrual loans and other low graded loans by lending officers; |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | • | Eliminate the basis of criticism of criticized assets; |
|--------|---------|--------------------------------------------------------|

|   | • | Ensure the maintenance of an adequate allowance for loan losses; and |
|--------|---------|----------------------------------------------------------------------|

|   | • | Develop a profit plan to improve future earnings. |
|--------|---------|---------------------------------------------------|

| 12. | NEW ACCOUNTING PRONOUNCEMENTS |
|-----|-------------------------------|

----

|   | • | changes in the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations resulting in, among other things, a deterioration in credit quality or a reduced demand for credit, including the resultant effect on the Company's loan portfolio and allowance for loan losses; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in interest rates and market prices, which could reduce the Company’s net interest margins, asset valuations and expense expectations; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in the levels of loan prepayments and the resulting effects on the value of the Company’s loan portfolio; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in local economic and business conditions which adversely affect the ability of the Company’s customers to transact profitable business with the Company, including the ability of borrowers to repay their loans according to their terms or a change in the value of the related collateral; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | increased competition for deposits and loans adversely affecting rates and terms; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | • | the Company’s ability to identify suitable acquisition candidates; |
|--------|---------|--------------------------------------------------------------------------|

|   | • | the timing, impact and other uncertainties of the Company’s ability to enter new markets successfully and capitalize on growth opportunities; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the effect of compliance, or failure to comply within stated deadlines, of the provisions of the formal agreement with regulators; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | • | increased credit risk in the Company’s assets and increased operating risk caused by a material change in commercial, consumer and/or real estate loans as a percentage of the total loan portfolio; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the failure of assumptions underlying the establishment of and provisions made to the allowance for loan losses; |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | • | the incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on the results of operations; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in the availability of funds resulting in increased costs or reduced liquidity; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | a deterioration or downgrade in the credit quality and credit agency ratings of the securities in the Company’s securities portfolio; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | increased asset levels and changes in the composition of assets and the resulting impact on our capital levels and regulatory capital ratios; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the Company’s ability to acquire, operate and maintain cost effective and efficient systems without incurring unexpectedly difficult or expensive but necessary technological changes; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the loss of senior management or operating personnel and the potential inability to hire qualified personnel at reasonable compensation levels; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | government intervention in the U.S. financial system; and |
|--------|---------|-----------------------------------------------------------|

|   | • | changes in statutes and government regulations or their interpretations applicable to bank holding companies and our present and future banking and other subsidiaries, including changes in tax requirements and tax rates. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | • | Loan portfolio management; |
|--------|---------|----------------------------|

|   | • | Construction loan underwriting standards; |
|--------|---------|-------------------------------------------|

|   | • | Commercial real estate concentration risk management; |
|--------|---------|-------------------------------------------------------|

|   | • | Timely and accurate identification of nonaccrual loans and other low graded loans by lending officers; |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | • | Eliminate the basis of criticism of criticized assets; |
|--------|---------|--------------------------------------------------------|

|   | • | Ensure the maintenance of an adequate allowance for loan losses; and |
|--------|---------|----------------------------------------------------------------------|

|   | • | Develop a profit plan to improve future earnings. |
|--------|---------|---------------------------------------------------|

----

----

----

|                                                            |   | For The Three Months Ended June 30, |      |
|-----------------------------------------------------------------|--------|-------------------------------------|-----------|
|                                                            |   | 2009                                |      |   | 2008 |   |
|                                                            |   | Average                             |      |   | Interest |   |   | Average |   |   | Average |   |   | Interest |   |   | Average |   |
|                                                            |   | Outstanding                         |      |   | Earned/ |   |   | Yield/ |   |   | Outstanding |   |   | Earned/ |   |   | Yield/ |   |
|                                                            |   | Balance                             |      |   | Paid |   |   | Rate(1) |   |   | Balance |   |   | Paid |   |   | Rate(1) |   |
|                                                            |   | (Dollars in thousands)              |      |
| Assets                                                          |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                        |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                           |   | $                                   | 1,319,125 |   |   | $ | 20,747 |   |   |   | 6.31 | % |   | $ | 1,291,494 |   |   | $ | 23,020 |   |   |   | 7.17 | % |
| Taxable securities                                              |   |                                | 103,479   |   |   |   | 999 |   |   |   | 3.87 |   |   |   | 119,572 |   |   |   | 1,276 |   |   |   | 4.29 |   |
| Tax-exempt securities                                           |   |                                | 6,212     |   |   |   | 77 |   |   |   | 4.97 |   |   |   | 5,202 |   |   |   | 64 |   |   |   | 4.95 |   |
| Other investments (2)                                           |   |                                | 18,637    |   |   |   | 154 |   |   |   | 3.31 |   |   |   | 8,801 |   |   |   | 95 |   |   |   | 4.34 |   |
| Federal funds sold and other short-term investments             |   |                                | 83,899    |   |   |   | 77 |   |   |   | 0.37 |   |   |   | 30,155 |   |   |   | 146 |   |   |   | 1.95 |   |
| Total interest-earning assets                                   |   |                                | 1,531,352 |   |   |   | 22,054 |   |   |   | 5.78 |   |   |   | 1,455,224 |   |   |   | 24,601 |   |   |   | 6.80 |   |
| Allowance for loan losses                                       |   |                                | (24,952   | ) |   |   |   |   |   |   |   |   |   |   | (15,065 | ) |   |   |   |   |   |   |   |   |
| Total interest-earning assets, net of allowance for loan losses |   |                                | 1,506,400 |   |   |   |   |   |   |   |   |   |   |   | 1,440,159 |   |   |   |   |   |   |   |   |   |
| Noninterest-earning assets                                      |   |                                | 121,803   |   |   |   |   |   |   |   |   |   |   |   | 109,378 |   |   |   |   |   |   |   |   |   |
| Total assets                                                    |   | $                                   | 1,628,203 |   |   |   |   |   |   |   |   |   |   | $ | 1,549,537 |   |   |   |   |   |   |   |   |   |
|                                                            |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and shareholders' equity                            |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                   |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                                |   | $                                   | 54,316    |   |   | $ | 69 |   |   |   | 0.51 | % |   | $ | 58,892 |   |   | $ | 114 |   |   |   | 0.78 | % |
| Savings and money market accounts                               |   |                                | 417,875   |   |   |   | 2,126 |   |   |   | 2.04 |   |   |   | 281,310 |   |   |   | 1,788 |   |   |   | 2.56 |   |
| Time deposits                                                   |   |                                | 707,147   |   |   |   | 5,439 |   |   |   | 3.09 |   |   |   | 661,655 |   |   |   | 6,830 |   |   |   | 4.15 |   |
| Junior subordinated debentures                                  |   |                                | 36,083    |   |   |   | 520 |   |   |   | 5.76 |   |   |   | 36,083 |   |   |   | 520 |   |   |   | 5.76 |   |
| Other borrowings                                                |   |                                | 28,343    |   |   |   | 236 |   |   |   | 3.34 |   |   |   | 150,136 |   |   |   | 880 |   |   |   | 2.36 |   |
| Total interest-bearing liabilities                              |   |                                | 1,243,764 |   |   |   | 8,390 |   |   |   | 2.71 |   |   |   | 1,188,076 |   |   |   | 10,132 |   |   |   | 3.43 |   |
| Noninterest-bearing liabilities:                                |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand deposits                             |   |                                | 209,085   |   |   |   |   |   |   |   |   |   |   |   | 219,318 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                               |   |                                | 12,138    |   |   |   |   |   |   |   |   |   |   |   | 19,935 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                               |   |                                | 1,464,987 |   |   |   |   |   |   |   |   |   |   |   | 1,427,329 |   |   |   |   |   |   |   |   |   |
| Shareholders' equity                                            |   |                                | 163,216   |   |   |   |   |   |   |   |   |   |   |   | 122,208 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders' equity                      |   | $                                   | 1,628,203 |   |   |   |   |   |   |   |   |   |   | $ | 1,549,537 |   |   |   |   |   |   |   |   |   |
|                                                            |   |                                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                             |   |                                |      |   |   | $ | 13,664 |   |   |   |   |   |   |   |   |   |   | $ | 14,469 |   |   |   |   |   |
| Net interest spread                                             |   |                                |      |   |   |   |   |   |   |   | 3.07 | % |   |   |   |   |   |   |   |   |   |   | 3.37 | % |
| Net interest margin                                             |   |                                |      |   |   |   |   |   |   |   | 3.58 | % |   |   |   |   |   |   |   |   |   |   | 4.00 | % |

----

| (1) | Annualized. |
|-----|-------------|

| (2) | Other investments include CDARS, Federal Reserve Bank stock, Federal Home Loan Bank stock and investment in subsidiary trust. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

----

|                                                            |   | For The Six Months Ended June 30, |      |
|-----------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                            |   | 2009                              |      |   | 2008 |   |
|                                                            |   | Average                           |      |   | Interest |   |   | Average |   |   | Average |   |   | Interest |   |   | Average |   |
|                                                            |   | Outstanding                       |      |   | Earned/ |   |   | Yield/ |   |   | Outstanding |   |   | Earned/ |   |   | Yield/ |   |
|                                                            |   | Balance                           |      |   | Paid |   |   | Rate(1) |   |   | Balance |   |   | Paid |   |   | Rate(1) |   |
|                                                            |   | (Dollars in thousands)            |      |
| Assets                                                          |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                        |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                           |   | $                                 | 1,330,551 |   |   | $ | 41,137 |   |   |   | 6.23 | % |   | $ | 1,253,615 |   |   | $ | 46,420 |   |   |   | 7.45 | % |
| Taxable securities                                              |   |                              | 100,490   |   |   |   | 2,083 |   |   |   | 4.18 |   |   |   | 124,048 |   |   |   | 2,648 |   |   |   | 4.29 |   |
| Tax-exempt securities                                           |   |                              | 5,101     |   |   |   | 125 |   |   |   | 4.94 |   |   |   | 5,569 |   |   |   | 137 |   |   |   | 4.95 |   |
| Other investments (2)                                           |   |                              | 21,524    |   |   |   | 297 |   |   |   | 2.78 |   |   |   | 8,181 |   |   |   | 182 |   |   |   | 4.47 |   |
| Federal funds sold and other short-term investments             |   |                              | 63,486    |   |   |   | 121 |   |   |   | 0.38 |   |   |   | 24,090 |   |   |   | 283 |   |   |   | 2.36 |   |
| Total interest-earning assets                                   |   |                              | 1,521,152 |   |   |   | 43,763 |   |   |   | 5.80 |   |   |   | 1,415,503 |   |   |   | 49,670 |   |   |   | 7.06 |   |
| Allowance for loan losses                                       |   |                              | (24,325   | ) |   |   |   |   |   |   |   |   |   |   | (14,499 | ) |   |   |   |   |   |   |   |   |
| Total interest-earning assets, net of allowance for loan losses |   |                              | 1,496,827 |   |   |   |   |   |   |   |   |   |   |   | 1,401,004 |   |   |   |   |   |   |   |   |   |
| Noninterest-earning assets                                      |   |                              | 119,833   |   |   |   |   |   |   |   |   |   |   |   | 108,996 |   |   |   |   |   |   |   |   |   |
| Total assets                                                    |   | $                                 | 1,616,660 |   |   |   |   |   |   |   |   |   |   | $ | 1,510,000 |   |   |   |   |   |   |   |   |   |
|                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and shareholders' equity                            |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                   |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                                |   | $                                 | 54,801    |   |   | $ | 140 |   |   |   | 0.52 | % |   | $ | 58,943 |   |   | $ | 257 |   |   |   | 0.88 | % |
| Savings and money market accounts                               |   |                              | 391,042   |   |   |   | 4,289 |   |   |   | 2.21 |   |   |   | 276,898 |   |   |   | 3,710 |   |   |   | 2.69 |   |
| Time deposits                                                   |   |                              | 704,787   |   |   |   | 11,304 |   |   |   | 3.23 |   |   |   | 655,553 |   |   |   | 14,431 |   |   |   | 4.43 |   |
| Junior subordinated debentures                                  |   |                              | 36,083    |   |   |   | 1040 |   |   |   | 5.76 |   |   |   | 36,083 |   |   |   | 1,040 |   |   |   | 5.76 |   |
| Other borrowings                                                |   |                              | 45,985    |   |   |   | 528 |   |   |   | 2.32 |   |   |   | 131,867 |   |   |   | 1,768 |   |   |   | 2.70 |   |
| Total interest-bearing liabilities                              |   |                              | 1,232,698 |   |   |   | 17,301 |   |   |   | 2.83 |   |   | $ | 1,159,344 |   |   |   | 21,206 |   |   |   | 3.68 |   |
| Noninterest-bearing liabilities:                                |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand deposits                             |   |                              | 207,860   |   |   |   |   |   |   |   |   |   |   |   | 209,567 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                               |   |                              | 14,826    |   |   |   |   |   |   |   |   |   |   |   | 20,155 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                               |   |                              | 1,455,384 |   |   |   |   |   |   |   |   |   |   |   | 1,389,066 |   |   |   |   |   |   |   |   |   |
| Shareholders' equity                                            |   |                              | 161,276   |   |   |   |   |   |   |   |   |   |   |   | 120,934 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders' equity                      |   | $                                 | 1,616,660 |   |   |   |   |   |   |   |   |   |   | $ | 1,510,000 |   |   |   |   |   |   |   |   |   |
|                                                            |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                             |   |                              |      |   |   | $ | 26,462 |   |   |   |   |   |   |   |   |   |   | $ | 28,464 |   |   |   |   |   |
| Net interest spread                                             |   |                              |      |   |   |   |   |   |   |   | 2.97 | % |   |   |   |   |   |   |   |   |   |   | 3.38 | % |
| Net interest margin                                             |   |                              |      |   |   |   |   |   |   |   | 3.51 | % |   |   |   |   |   |   |   |   |   |   | 4.04 | % |

----

| (1) | Annualized. |
|-----|-------------|

| (2) | Other investments include CDARS, Federal Reserve Bank stock, Federal Home Loan Bank stock and investment in subsidiary trust. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

----

|                                                |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|-----------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                                                |   | 2009 vs 2008                |   |   | 2009 vs 2008              |   |
|                                                |   | Increase (Decrease)         |   |   |                      |   |   | Increase (Decrease) |   |   |   |   |
|                                                |   | Due to                      |   |   |                      |   |   | Due to |   |   |   |   |
|                                                |   | Volume                      |   |   | Rate                      |   |   | Total |   |   | Volume |   |   | Rate |   |   | Total |   |
|                                                |   | (Dollars in thousands)      |   |
|                                                |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                               |   | $                           | 557    |   |                      | $      | (2,830 | ) |   | $ | (2,273 | ) |   | $ | 2,712 |   |   | $ | (7,995 | ) |   | $ | (5,283 | ) |
| Taxable securities                                  |   |                        | (169   | )      |                      |   | (108 | ) |   |   | (277 | ) |   |   | (509 | ) |   |   | (56 | ) |   |   | (565 | ) |
| Tax-exempt securities                               |   |                        | 13     |   |                      |   | - |   |   |   | 13 |   |   |   | (12 | ) |   |   | - |   |   |   | (12 | ) |
| Other investments                                   |   |                        | 107    |   |                      |   | (48 | ) |   |   | 59 |   |   |   | 296 |   |   |   | (181 | ) |   |   | 115 |   |
| Federal funds sold and other short-term investments |   |                        | 261    |   |                      |   | (330 | ) |   |   | (69 | ) |   |   | 461 |   |   |   | (623 | ) |   |   | (162 | ) |
| Total increase (decrease) in interest income        |   |                        | 769    |   |                      |   | (3,316 | ) |   |   | (2,547 | ) |   |   | 2,948 |   |   |   | (8,855 | ) |   |   | (5,907 | ) |
|                                                |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                       |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                    |   |                        | (9     | )      |                      |   | (36 | ) |   |   | (45 | ) |   |   | (19 | ) |   |   | (98 | ) |   |   | (117 | ) |
| Savings and money market accounts                   |   |                        | 875    |   |                      |   | (537 | ) |   |   | 338 |   |   |   | 1,515 |   |   |   | (936 | ) |   |   | 579 |   |
| Time deposits                                       |   |                        | 490    |   |                      |   | (1,881 | ) |   |   | (1,391 | ) |   |   | 1,041 |   |   |   | (4,168 | ) |   |   | (3,127 | ) |
| Junior subordinated debentures                      |   |                        | -      |   |                      |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other borrowings                                    |   |                        | (713   | )      |                      |   | 69 |   |   |   | (644 | ) |   |   | (1,153 | ) |   |   | (87 | ) |   |   | (1,240 | ) |
| Total increase (decrease) in interest expense       |   |                        | 643    |   |                      |   | (2,385 | ) |   |   | (1,742 | ) |   |   | 1,384 |   |   |   | (5,289 | ) |   |   | (3,905 | ) |
|                                                |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in net interest income          |   | $                           | 126    |   |                      | $      | (931 | ) |   | $ | (805 | ) |   | $ | 1,564 |   |   | $ | (3,566 | ) |   | $ | (2,002 | ) |

----

----

|                                           |   | As of June 30, 2009    |      |   | As of December 31, 2008 |   |
|------------------------------------------------|--------|------------------------|-----------|--------|-------------------------|--------|
|                                           |   | Amount                 |      |   | Percent                 |   |   | Amount |   |   | Percent |   |
|                                           |   | (Dollars in thousands) |      |
|                                           |   |                   |      |   |                    |   |   |   |   |   |   |   |
| Commercial and industrial                      |   | $                      | 418,170   |   |                    |   | 31.58 | % |   | $ | 467,546 |   |   |   | 34.65 | % |
| Real estate mortgage                           |   |                   |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Residential                                    |   |                   | 19,348    |   |                    |   | 1.46 |   |   |   | 12,399 |   |   |   | 0.92 |   |
| Commercial                                     |   |                   | 753,017   |   |                    |   | 56.86 |   |   |   | 720,052 |   |   |   | 53.37 |   |
|                                           |   |                   | 772,365   |   |                    |   | 58.32 |   |   |   | 732,451 |   |   |   | 54.29 |   |
| Real estate construction                       |   |                   |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Residential                                    |   |                   | 40,215    |   |                    |   | 3.04 |   |   |   | 43,242 |   |   |   | 3.20 |   |
| Commercial                                     |   |                   | 89,297    |   |                    |   | 6.74 |   |   |   | 101,125 |   |   |   | 7.50 |   |
|                                           |   |                   | 129,512   |   |                    |   | 9.78 |   |   |   | 144,367 |   |   |   | 10.70 |   |
| Consumer and other                             |   |                   | 4,268     |   |                    |   | 0.32 |   |   |   | 4,864 |   |   |   | 0.36 |   |
| Gross loans                                    |   |                   | 1,324,315 |   |                    |   | 100.00 | % |   |   | 1,349,228 |   |   |   | 100.00 | % |
| Unearned discounts, interest and deferred fees |   |                   | (2,837    | )      |                    |   |   |   |   |   | (3,180 | ) |   |   |   |   |
| Total loans                                    |   |                   | 1,321,478 |   |                    |   |   |   |   |   | 1,346,048 |   |   |   |   |   |
| Allowance for loan losses                      |   |                   | (24,266   | )      |                    |   |   |   |   |   | (24,235 | ) |   |   |   |   |
| Loans, net                                     |   | $                      | 1,297,212 |   |                    |   |   |   |   | $ | 1,321,813 |   |   |   |   |   |

|                                 |   | As ofJune 30, 2009     |   |   | As of December 31, 2008 |   |
|--------------------------------------|--------|------------------------|--------|--------|-------------------------|--------|
|                                 |   | (Dollars in thousands) |   |
| Commercial and industrial loans      |   | $                      | 2,632  |   |                    | $      | 7,742 |   |
| Commercial real estate mortgage      |   |                   | 11,724 |   |                    |   | 11,287 |   |
| Residential real estate mortgage     |   |                   | 189    |   |                    |   | — |   |
| Commercial real estate construction  |   |                   | 957    |   |                    |   | 12,105 |   |
| Residential real estate construction |   |                   | 7,236  |   |                    |   | 7,069 |   |
| Commercial land                      |   |                   | 8,498  |   |                    |   | 6,108 |   |
| Residential land                     |   |                   | 1,288  |   |                    |   | 3,897 |   |
| Other                                |   |                   | 32     |   |                    |   | 31 |   |
| Total nonaccrual loans(1)            |   | $                      | 32,556 |   |                    | $      | 48,239 |   |

----

----

|                                                            |   | As of                  |   |   | As of             |   |
|-----------------------------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|
|                                                            |   | June 30, 2009          |   |   | December 31, 2008 |   |
|                                                            |   | (Dollars in thousands) |   |
| Nonaccrual loans                                                |   | $                      | 32,556 |   |              | $      | 48,239 |   |
| Accruing loans 90 days or more past due                         |   |                   | 422    |   |              |   | 103 |   |
| Troubled debt restructurings                                    |   |                   | 1,059  |   |              |   | 4,474 |   |
| Other real estate (“ORE”)                           |   |                   | 23,649 |   |              |   | 4,825 |   |
| Total nonperforming assets                                      |   |                   | 57,686 |   |              |   | 57,641 |   |
| Nonperforming loans guaranteed by the SBA, Ex-Im Bank and OCCGF |   |                   | (2,120 | )      |              |   | (1,843 | ) |
| Total net nonperforming assets                                  |   | $                      | 55,566 |   |              | $      | 55,798 |   |
|                                                            |   |                   |   |   |              |   |   |   |
| Total nonperforming assets to total assets                      |   |                   | 3.58   | %      |              |   | 3.65 | % |
| Total nonperforming assets to total loans and ORE               |   |                   | 4.29   | %      |              |   | 4.27 | % |
| Net nonperforming assets to total assets (1)                    |   |                   | 3.45   | %      |              |   | 3.53 | % |
| Net nonperforming assets to total loans and ORE (1)             |   |                   | 4.13   | %      |              |   | 4.13 | % |

----

| (1) | Net nonperforming assets are net of the loan portions guaranteed by the SBA, Ex-Im Bank and OCCGF. |
|-----|----------------------------------------------------------------------------------------------------|

|                                                  |   | As ofJune 30, 2009     |   |   | As ofDecember 31, 2008 |   |
|-------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                                                  |   | (Dollars in thousands) |   |
| Impaired loans with no SFAS No. 114 valuation reserve |   | $                      | 31,201 |   |                   | $      | 35,640 |   |
| Impaired loans with a SFAS No. 114 valuation reserve  |   |                   | 2,414  |   |                   |   | 17,073 |   |
| Total recorded investment in impaired loans           |   | $                      | 33,615 |   |                   | $      | 52,713 |   |
|                                                  |   |                   |   |   |                   |   |   |   |
| Valuation allowance related to impaired loans         |   | $                      | 1,072  |   |                   | $      | 3,280 |   |

----

----

|                                                          |   | As of and for theThree Months Ended June 30, |      |
|--------------------------------------------------------------------|--------|----------------------------------------------|-----------|
|                                                               |   | 2009                                         |      |   | 2008 |   |
|                                                               |   | (Dollars in thousands)                       |      |
| Average total loans outstanding for the period                     |   | $                                            | 1,319,125 |   |   | $ | 1,291,494 |   |
| Total loans outstanding at end of period                           |   | $                                            | 1,321,478 |   |   | $ | 1,311,565 |   |
|                                                               |   |                                         |      |   |   |   |   |   |
| Allowance for loan losses at beginning of period                   |   | $                                            | 24,158    |   |   | $ | 14,588 |   |
| Provision for loan losses                                          |   |                                         | 1,827     |   |   |   | 1,465 |   |
| Charge-offs:                                                       |   |                                         |      |   |   |   |   |   |
| Commercial and industrial                                          |   |                                         | (1,592    | ) |   |   | (370 | ) |
| Real estate mortgage                                               |   |                                         | (175      | ) |   |   | (1 | ) |
| Real estate construction                                           |   |                                         | (347      | ) |   |   | (210 | ) |
| Consumer and other                                                 |   |                                         | (34       | ) |   |   | (42 | ) |
| Total charge-offs                                                  |   |                                         | (2,148    | ) |   |   | (623 | ) |
|                                                               |   |                                         |      |   |   |   |   |   |
| Recoveries:                                                        |   |                                         |      |   |   |   |   |   |
| Commercial and industrial                                          |   |                                         | 340       |   |   |   | 88 |   |
| Real estate mortgage                                               |   |                                         | –   |   |   |   | – |   |
| Real estate construction                                           |   |                                         | 88        |   |   |   | – |   |
| Consumer and other                                                 |   |                                         | 1         |   |   |   | 2 |   |
| Total recoveries                                                   |   |                                         | 429       |   |   |   | 90 |   |
| Net (charge-offs) recoveries                                       |   |                                         | (1,719    | ) |   |   | (533 | ) |
|                                                               |   |                                         |      |   |   |   |   |   |
| Allowance for loan losses at end of period                         |   |                                         | 24,266    |   |   |   | 15,520 |   |
|                                                               |   |                                         |      |   |   |   |   |   |
| Reserve for unfunded lending commitments at beginning of period    |   |                                         | 1,204     |   |   |   | 907 |   |
| Provision for unfunded lending commitments                         |   |                                         | 274       |   |   |   | 10 |   |
| Reserve for unfunded lending commitments at end of period          |   |                                         | 1,478     |   |   |   | 917 |   |
|                                                               |   |                                         |      |   |   |   |   |   |
| Allowance for credit losses at end of period                       |   | $                                            | 25,744    |   |   | $ | 16,437 |   |
|                                                               |   |                                         |      |   |   |   |   |   |
| Ratio of net (charge-offs) recoveries to end of period total loans |   |                                         | (0.13     | ) % |   |   | (0.04 | ) % |

----

|                                                                              |   | As of and for theSix Months Ended June 30, |      |
|-----------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
|                                                                              |   | 2009                                       |      |   | 2008 |   |
|                                                                              |   | (Dollars in thousands)                     |      |
| Average total loans outstanding for the period                                    |   | $                                          | 1,330,551 |   |   | $ | 1,253,615 |   |
| Total loans outstanding at end of period                                          |   | $                                          | 1,321,478 |   |   | $ | 1,311,565 |   |
|                                                                              |   |                                       |      |   |   |   |   |   |
| Allowance for loan losses at beginning of period                                  |   | $                                          | 24,235    |   |   | $ | 13,125 |   |
| Provision for loan losses                                                         |   |                                       | 9,114     |   |   |   | 3,049 |   |
| Charge-offs:                                                                      |   |                                       |      |   |   |   |   |   |
| Commercial and industrial                                                         |   |                                       | (8,222    | ) |   |   | (417 | ) |
| Real estate mortgage                                                              |   |                                       | (608      | ) |   |   | (90 | ) |
| Real estate construction                                                          |   |                                       | (686      | ) |   |   | (210 | ) |
| Consumer and other                                                                |   |                                       | (72       | ) |   |   | (42 | ) |
| Total charge-offs                                                                 |   |                                       | (9,588    | ) |   |   | (759 | ) |
|                                                                              |   |                                       |      |   |   |   |   |   |
| Recoveries:                                                                       |   |                                       |      |   |   |   |   |   |
| Commercial and industrial                                                         |   |                                       | 414       |   |   |   | 101 |   |
| Real estate mortgage                                                              |   |                                       | 1         |   |   |   | – |   |
| Real estate construction                                                          |   |                                       | 88        |   |   |   | – |   |
| Consumer and other                                                                |   |                                       | 2         |   |   |   | 4 |   |
| Total recoveries                                                                  |   |                                       | 505       |   |   |   | 105 |   |
| Net (charge-offs) recoveries                                                      |   |                                       | (9,083    | ) |   |   | (654 | ) |
|                                                                              |   |                                       |      |   |   |   |   |   |
| Allowance for loan losses at end of period                                        |   |                                       | 24,266    |   |   |   | 15,520 |   |
|                                                                              |   |                                       |      |   |   |   |   |   |
| Reserve for unfunded lending commitments at beginning of period                   |   |                                       | 1,092     |   |   |   | 816 |   |
| Provision for unfunded lending commitments                                        |   |                                       | 386       |   |   |   | 101 |   |
| Reserve for unfunded lending commitments at end of period                         |   |                                       | 1,478     |   |   |   | 917 |   |
|                                                                              |   |                                       |      |   |   |   |   |   |
| Allowance for credit losses at end of period                                      |   | $                                          | 25,744    |   |   | $ | 16,437 |   |
|                                                                              |   |                                       |      |   |   |   |   |   |
| Ratio of allowance for loan losses to end of period total loans                   |   |                                       | 1.84      | % |   |   | 1.18 | % |
| Ratio of net (charge-offs) recoveries to end of period total loans                |   |                                       | (0.69     | ) % |   |   | (0.05 | ) % |
| Ratio of allowance for loan losses to end of period total nonperforming loans (1) |   |                                       | 71.29     | % |   |   | 182.65 | % |
| Ratio of allowance for loan losses to end of period net nonperforming loans (2)   |   |                                       | 76.03     | % |   |   | 248.64 | % |

----

| (1) | Total nonperforming loans are nonaccrual loans, loans over 90 days past due and troubled debt restructurings. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (2) | Net nonperforming loans are comprised of nonaccrual loans, loans over 90 days past due and troubled debt restructurings, net of the loan portions guaranteed by the SBA, Ex-Im Bank and OCCGF. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                        |   | As of and for the      |    |   | As of and for the |   |
|---------------------------------------------|--------|------------------------|---------|--------|-------------------|--------|
|                                        |   | Six Months Ended       |    |   | Year Ended        |   |
|                                        |   | June 30, 2009          |    |   | December 31, 2008 |   |
|                                        |   | (Dollars in thousands) |    |
| Federal Funds Purchased:                    |   |                   |    |   |              |   |
| at end of period                            |   | $                      | – |   |              | $      | – |   |
| average during the period                   |   |                   | – |   |              |   | 84 |   |
| maximum month-end balance during the period |   |                   | – |   |              |   | 4,500 |   |
|                                        |   |                   |    |   |              |   |   |   |
| FHLB Notes and Advances:                    |   |                   |    |   |              |   |   |   |
| at end of period                            |   | $                      | 2,000   |   |              | $      | 109,000 |   |
| average during the period                   |   |                   | 19,948  |   |              |   | 112,118 |   |
| maximum month-end balance during the period |   |                   | 55,000  |   |              |   | 133,000 |   |
| Interest rate at end of period              |   |                   | 0.11    | %      |              |   | 0.48 | % |
| Interest rate during the period             |   |                   | 0.54    |   |              |   | 2.21 |   |
|                                        |   |                   |    |   |              |   |   |   |
| Security Repurchase Agreements:             |   |                   |    |   |              |   |   |   |
| at end of period                            |   | $                      | 25,000  |   |              | $      | 25,000 |   |
| average during the period                   |   |                   | 25,000  |   |              |   | 25,000 |   |
| maximum month-end balance during the period |   |                   | 25,000  |   |              |   | 25,000 |   |
| Interest rate at end of period              |   |                   | 3.71    | %      |              |   | 3.71 | % |
| Interest rate during the period             |   |                   | 3.71    |   |              |   | 2.91 |   |
|                                        |   |                   |    |   |              |   |   |   |
| Subordinated debentures:                    |   |                   |    |   |              |   |   |   |
| at end of period                            |   | $                      | – |   |              | $      | 4,000 |   |
| average during the period                   |   |                   | 309     |   |              |   | 2,060 |   |
| maximum month-end balance during the period |   |                   | – |   |              |   | 4,000 |   |
| Interest rate at end of period              |   |                   | – | %      |              |   | 6.50 | % |
| Interest rate during the period             |   |                   | 7.18    |   |              |   | 5.05 |   |
|                                        |   |                   |    |   |              |   |   |   |
| Federal Reserve TT&L:                   |   |                   |    |   |              |   |   |   |
| at end of period                            |   | $                      | 574     |   |              | $      | 1,046 |   |
| average during the period                   |   |                   | 728     |   |              |   | 731 |   |
| maximum month-end balance during the period |   |                   | 1,020   |   |              |   | 1,283 |   |

----

|                            |   | Minimum Required For Capital Adequacy Purposes |     | To Be Categorized asWell Capitalized Under Prompt Corrective Action Provisions |   | Actual Ratio At June 30, 2009 |
|---------------------------------|--------|------------------------------------------------|----------|--------------------------------------------------------------------------------|--------|-------------------------------|
| The Company                     |   |                                           |     |                                                                           |   |                          |   |   |   |   |   |   |
| Leverage ratio                  |   |                                           | 4.00%(1) |                                                                           |   |                          | N/A | % |   |   | 10.96 | % |
| Tier 1 risk-based capital ratio |   |                                           | 4.00     |                                                                           |   |                          | N/A |   |   |   | 12.30 |   |
| Risk-based capital ratio        |   |                                           | 8.00     |                                                                           |   |                          | N/A |   |   |   | 13.56 |   |
| MetroBank                       |   |                                           |     |                                                                           |   |                          |   |   |   |   |   |   |
| Leverage ratio                  |   |                                           | 4.00%(2) |                                                                           |   |                          | 5.00 | % |   |   | 10.55 | % |
| Tier 1 risk-based capital ratio |   |                                           | 4.00     |                                                                           |   |                          | 6.00 |   |   |   | 12.13 |   |
| Risk-based capital ratio        |   |                                           | 8.00     |                                                                           |   |                          | 10.00 |   |   |   | 13.39 |   |
| Metro United                    |   |                                           |     |                                                                           |   |                          |   |   |   |   |   |   |
| Leverage ratio                  |   |                                           | 4.00%(3) |                                                                           |   |                          | 5.00 | % |   |   | 11.10 | % |
| Tier 1 risk-based capital ratio |   |                                           | 4.00     |                                                                           |   |                          | 6.00 |   |   |   | 11.69 |   |
| Risk-based capital ratio        |   |                                           | 8.00     |                                                                           |   |                          | 10.00 |   |   |   | 12.95 |   |

----

| (1) | The Federal Reserve Board may require the Company to maintain a leverage ratio above the required minimum. |
|-----|------------------------------------------------------------------------------------------------------------|

| (2) | The OCC may require MetroBank to maintain a leverage ratio above the required minimum. |
|-----|----------------------------------------------------------------------------------------|

| (3) | The FDIC may require Metro United to maintain a leverage ratio above the required minimum. |
|-----|--------------------------------------------------------------------------------------------|

----

|   | • | Metro United’s assets as a percentage of total assets |
|--------|---------|-------------------------------------------------------------|

|   | • | Metro United’s loans as a percentage of total loans |
|--------|---------|-----------------------------------------------------------|

|   | • | Metro United’s deposits as a percentage of total deposits |
|--------|---------|-----------------------------------------------------------------|

|   | • | Metro United’s stockholder's equity as a percentage of total stockholders' equity |
|--------|---------|-----------------------------------------------------------------------------------------|

----

----

----

| Item 1. | Legal Proceedings. |
|---------|--------------------|

| Item 1A. | Risk Factors. |
|----------|---------------|

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
|---------|--------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities. |
|---------|----------------------------------|

| Item 4. | Submission of Matters to a Vote of Security Holders. |
|---------|------------------------------------------------------|

| Director        |   | For       |   | Withheld  |
|-----------------|--------|-----------|--------|-----------|
| Class II        |   |      |   |      |
| May Chu         |   | 8,940,342 |   | 586,165   |
| John Lee        |   | 8,347,916 |   | 1,178,591 |
| Don Wang        |   | 8,936,792 |   | 589,715   |
|            |   |      |   |      |
| Class III       |   |      |   |      |
| Robert W. Hsueh |   | 8,940,692 |   | 585,815   |

----

| Item 5. | Other Information. |
|---------|--------------------|

| Item 6. | Exhibits. |
|---------|-----------|

| Exhibit      |   |                                                                                                                                                                                                                                                |
|--------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number       |   | Identification of Exhibit                                                                                                                                                                                                                           |
|         |   |                                                                                                                                                                                                                                                |
| 3.1          |   | Amended and Restated Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-1 (Registration No. 333-62667) (the "Registration Statement")).                    |
|         |
| 3.2          |   | Articles of Amendment to Amended and Restated Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007).                 |
|         |
| 3.3          |   | Statement of Designations establishing the terms of the Series A Preferred Stock of the Company (incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on January 21, 2009).                            |
|         |   |                                                                                                                                                                                                                                                |
| 3.4          |   | Amended and Restated Bylaws of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on November 19, 2007).                                                                          |
|         |
| 4.1          |   | Specimen form of certificate evidencing the Common Stock (incorporated herein by reference to Exhibit 4 to the Registration Statement).                                                                                                             |
|         |   |                                                                                                                                                                                                                                                |
| 4.2          |   | Warrant, dated January 16, 2009, to purchase 771,429 shares of the Company's Common Stock (incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on January 21, 2009).                                  |
|         |   |                                                                                                                                                                                                                                                |
| 4.3          |   | Form of Certificate for the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series A, par value $1.00 per share (incorporated herein by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on January 21, 2009). |
|         |   |                                                                                                                                                                                                                                                |
| 10.1*   |   | Agreement dated August 10, 2009 by and between MetroBank, National Association, Houston, Texas and The Comptroller of the Currency.                                                                                                                 |
|         |   |                                                                                                                                                                                                                                                |
| 11      |   | Computation of Earnings Per Common Share, included as Note (6) to the unaudited Condensed Consolidated Financial Statements of this Form 10-Q.                                                                                                 |
|         |   |                                                                                                                                                                                                                                                |
| 31.1*   |   | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.                                                                                                                    |
|         |   |                                                                                                                                                                                                                                                |
| 31.2*   |   | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.                                                                                                                    |
|         |   |                                                                                                                                                                                                                                                |
| 32.1**  |   | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                            |
|         |   |                                                                                                                                                                                                                                                |
| 32.2**  |   | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                            |

----

----

|                  | METROCORP BANCSHARES, INC.  |                                                                                |
|-----------------------|----------------------------------|-------------------------------------------------------------------------------------|
|                  | By:                              | /s/ George M. Lee                                                                   |   |
| Date: August 10, 2009 |                             | George M. LeeExecutive Vice Chairman, President and                                 |   |
|                  |                             | Chief Executive Officer (principal executive officer)                               |   |
|                  |
|                  |                             |                                                                                |
| Date: August 10, 2009 | By:                              | /s/ David C. Choi                                                                   |   |
|                  |                             | David C. Choi                                                                       |   |
|                  |                             | Chief Financial Officer (principal financial officer/ principal accounting officer) |   |

----

| Exhibit      |   |                                                                                                                                                                                                                                                |
|--------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number       |   | Identification of Exhibit                                                                                                                                                                                                                           |
|         |   |                                                                                                                                                                                                                                                |
| 3.1          |   | Amended and Restated Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-1 (Registration No. 333-62667) (the "Registration Statement")).                    |
|         |
| 3.2          |   | Articles of Amendment to Amended and Restated Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007).                 |
|         |
| 3.3          |   | Statement of Designations establishing the terms of the Series A Preferred Stock of the Company (incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on January 21, 2009).                            |
|         |   |                                                                                                                                                                                                                                                |
| 3.4          |   | Amended and Restated Bylaws of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on November 19, 2007).                                                                          |
|         |
| 4.1          |   | Specimen form of certificate evidencing the Common Stock (incorporated herein by reference to Exhibit 4 to the Registration Statement).                                                                                                             |
|         |   |                                                                                                                                                                                                                                                |
| 4.2          |   | Warrant, dated January 16, 2009, to purchase 771,429 shares of the Company's Common Stock (incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on January 21, 2009).                                  |
|         |   |                                                                                                                                                                                                                                                |
| 4.3          |   | Form of Certificate for the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series A, par value $1.00 per share (incorporated herein by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed on January 21, 2009). |
|         |   |                                                                                                                                                                                                                                                |
| 10.1*   |   | Agreement dated August 10, 2009 by and between MetroBank, National Association, Houston, Texas and The Comptroller of the Currency.                                                                                                                 |
|         |   |                                                                                                                                                                                                                                                |
| 11      |   | Computation of Earnings Per Common Share, included as Note (6) to the unaudited Condensed Consolidated Financial Statements of this Form 10-Q.                                                                                                 |
|         |   |                                                                                                                                                                                                                                                |
| 31.1*   |   | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.                                                                                                                    |
|         |   |                                                                                                                                                                                                                                                |
| 31.2*   |   | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.                                                                                                                    |
|         |   |                                                                                                                                                                                                                                                |
| 32.1**  |   | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                            |
|         |   |                                                                                                                                                                                                                                                |
| 32.2**  |   | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                            |

----

----