----

|   | R | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 |
|--------|---|----------------------------------------------------------------------------------------|

| Delaware                        | 36-3210283                              |
|---------------------------------|-----------------------------------------|
| (State or other jurisdiction of | (I.R.S. Employer Identification Number) |
| incorporation or organization)  |                                    |

| 606 S. Main St.                          |       |
|------------------------------------------|------------|
| Princeton, Illinois                      | 61356      |
| (Address of principal executive offices) | (Zip code) |

----

| Large accelerated filer £ | Accelerated filer £ | Non-accelerated filer  £ | Smaller reporting company R |
|--------------------------------|--------------------------|-----------------------------------------|-----------------------------|

| Class                   | Outstanding at July 22, 2011 |
|-------------------------|------------------------------|
| Common, par value $5.00 | 3,330,038                    |

----

|  Schedule 1: |   |  Condensed Consolidated Balance Sheets                                                       |
|-------------------|--------|---------------------------------------------------------------------------------------------------|
|  Schedule 2: |   |  Condensed Consolidated Statements of Income                                                 |
|  Schedule 3: |   |  Condensed Consolidated Statements of Changes in Stockholders’ Equity                  |
|  Schedule 4: |   |  Condensed Consolidated Statements of Cash Flows                                             |
|  Schedule 5: |   |  Notes to Condensed Consolidated Financial Statements                                        |
|  Schedule 6: |   |  Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|  Schedule 7: |   |  Controls and Procedures                                                                     |

|   | (a) | None. |
|--------|-----|-------|

| By                                                    |   |   | By                                                  |   |
|-----------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
| /s/  Thomas D. Ogaard                                 |   |   | /s/  Rodney D. Stickle          |   |
| Thomas D. Ogaard                                 |   |   | Rodney D. Stickle, CPA                              |   |
| President & Chief Executive Officer     |   |   | Senior Vice President & Chief Financial Officer |   |
| July 29, 2011                                                   |   |   | July 29, 2011                                       |   |

----

| Princeton National Bancorp, Inc.                                                                                                            |   |        |      |   | Schedule 1   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|--------------|--------|
| Condensed Consolidated Balance Sheets                                                                                                       |   |        |      |   |         |   |
|                                                                                                                                        |   | June 30,    |      |   | December 31, |   |
| (dollars in thousands except share data)                                                                                                    |   | 2011        |      |   | 2010         |   |
|                                                                                                                                        |   | (unaudited) |      |   |         |   |
| ASSETS                                                                                                                                      |   |        |      |   |         |   |
| Cash and due from banks                                                                                                                     |   | $           | 18,349    |   |         | $      | 12,992 |   |
| Interest-bearing deposits with financial institutions                                                                                       |   |        | 55,634    |   |         |   | 30,888 |   |
|         Total cash and cash equivalents                                                             |   |        | 73,983    |   |         |   | 43,880 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
| Loans held-for-sale, at lower of cost or market                                                                                             |   |        | 2,615     |   |         |   | 5,515 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
| Investment securities:                                                                                                                      |   |        |      |   |         |   |   |   |
|     Available-for-sale, at fair value                                                                                   |   |        | 233,883   |   |         |   | 248,752 |   |
|     Held-to-maturity, at amortized cost (fair value of $11,502 and $12,472)                                             |   |        | 11,350    |   |         |   | 12,187 |   |
|         Total investment securities                                                                 |   |        | 245,233   |   |         |   | 260,939 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
| Loans:                                                                                                                                      |   |        |      |   |         |   |   |   |
|     Loans, net of unearned interest                                                                                     |   |        | 657,687   |   |         |   | 704,074 |   |
|     Allowance for loan losses                                                                                           |   |        | (19,129   | )      |         |   | (29,726 | ) |
|         Net loans                                                                                   |   |        | 638,558   |   |         |   | 674,348 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
| Premises and equipment, net of accumulated depreciation                                                                                     |   |        | 26,212    |   |         |   | 26,901 |   |
| Land held for sale, at lower of cost or market                                                                                              |   |        | 2,244     |   |         |   | 2,244 |   |
| Federal Reserve Bank and Federal Home Loan Bank stock                                                                                       |   |        | 4,500     |   |         |   | 4,498 |   |
| Bank-owned life insurance                                                                                                                   |   |        | 23,871    |   |         |   | 23,416 |   |
| Accrued interest receivable                                                                                                                 |   |        | 6,116     |   |         |   | 7,482 |   |
| Other real estate owned                                                                                                                     |   |        | 18,308    |   |         |   | 20,652 |   |
| Deferred income taxes                                                                                                                       |   |        | 13,457    |   |         |   | 10,512 |   |
| Intangible assets, net of accumulated amortization                                                                                          |   |        | 2,163     |   |         |   | 2,531 |   |
| Other assets                                                                                                                                |   |        | 12,501    |   |         |   | 13,553 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
|         TOTAL ASSETS                                                                                |   | $           | 1,069,761 |   |         | $      | 1,096,471 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
| LIABILITIES                                                                                                                                 |   |        |      |   |         |   |   |   |
| Deposits:                                                                                                                                   |   |        |      |   |         |   |   |   |
|     Demand                                                                                                              |   | $           | 142,579   |   |         | $      | 138,683 |   |
|     Interest-bearing demand                                                                                             |   |        | 373,086   |   |         |   | 383,126 |   |
|     Savings                                                                                                             |   |        | 82,127    |   |         |   | 74,817 |   |
|     Time                                                                                                                |   |        | 341,623   |   |         |   | 366,335 |   |
|         Total deposits                                                                              |   |        | 939,415   |   |         |   | 962,961 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
| Borrowings:                                                                                                                                 |   |        |      |   |         |   |   |   |
|     Customer repurchase agreements                                                                                      |   |        | 38,309    |   |         |   | 35,806 |   |
|     Interest-bearing demand notes issued to the U.S. Treasury                                                           |   |        | 978       |   |         |   | 1,753 |   |
|     Advances from the Federal Home Loan Bank                                                                            |   |        | 5,000     |   |         |   | 9,000 |   |
|     Trust preferred securities                                                                                          |   |        | 25,000    |   |         |   | 25,000 |   |
|         Total borrowings                                                                            |   |        | 69,287    |   |         |   | 71,559 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
| Other liabilities                                                                                                                           |   |        | 6,033     |   |         |   | 5,090 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
|         TOTAL LIABILITIES                                                                           |   |        | 1,014,735 |   |         |   | 1,039,610 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                                        |   |        |      |   |         |   |   |   |
| Preferred stock: no par value, 100,000 shares authorized:  25,083 shares issued and outstanding at June 30, 2011 and December 31, 2010 |   |        | 25,001    |   |         |   | 24,986  |   |
| Common stock: $5 par value, 7,000,000 shares authorized:  4,478,295 shares issued at June 30, 2011 and December 31, 2010               |   |        | 22,391    |   |         |   | 22,391  |   |
| Common stock warrants                                                                                                                       |   |        | 150       |   |         |   | 150 |   |
| Surplus                                                                                                                                     |   |        | 18,259    |   |         |   | 18,275 |   |
| Retained earnings                                                                                                                           |   |        | 10,384    |   |         |   | 11,589 |   |
| Accumulated other comprehensive income, net of tax                                                                                          |   |        | 2,365     |   |         |   | 3,064 |   |
| Less: cost of 1,148,257 and 1,152,354 treasury shares at June 30, 2011 and December 31, 2010                                                |   |        | (23,524   | )      |         |   | (23,594 | ) |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
|         TOTAL STOCKHOLDERS' EQUITY                                                                  |   |        | 55,026    |   |         |   | 56,861 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |
|         TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                  |   | $           | 1,069,761 |   |         | $      | 1,096,471 |   |
|                                                                                                                                        |   |        |      |   |         |   |   |   |

----

| Princeton National Bancorp, Inc.                                                                    |   |          |      |   |          |   |      |          |   |   | Schedule 2    |   |
|-----------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|-----------|---------------|--------|--------|---------------|--------|
| Condensed Consolidated Statements of Income (unaudited)                                             |   |          |      |   |          |   |      |          |   |   |          |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |
|                                                                                                |   | THREE MONTHS  |      |   | THREE MONTHS  |   |      | SIX MONTHS    |   |   | SIX MONTHS    |   |
| (dollars in thousands except share data)                                                            |   | ENDED         |      |   | ENDED         |   |      | ENDED         |   |   | ENDED         |   |
|                                                                                                |   | June 30, 2011 |      |   | June 30, 2010 |   |      | June 30, 2011 |   |   | June 30, 2010 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |
| Interest Income:                                                                                    |   |          |      |   |          |   |      |          |   |   |          |   |
|     Interest and fees on loans                                                  |   | $             | 8,186     |   |          | $      | 9,841     |          |   | $      | 17,045        |   |   | $ | 20,427 |   |
|     Interest and dividends on investment securities:                            |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
|         Taxable                                             |   |          | 1,591     |   |          |   | 1,156     |          |   |   | 3,107         |   |   |   | 2,647 |   |
|         Tax-exempt                                          |   |          | 763       |   |          |   | 1,336     |          |   |   | 1,661         |   |   |   | 2,688 |   |
|     Interest on interest-bearing deposits in other banks                        |   |          | 34        |   |          |   | 40        |          |   |   | 56            |   |   |   | 72 |   |
|             Total interest income       |   |          | 10,574    |   |          |   | 12,373    |          |   |   | 21,869        |   |   |   | 25,834 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Interest Expense:                                                                                   |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
|     Interest on deposits                                                        |   |          | 1,634     |   |          |   | 2,657     |          |   |   | 3,372         |   |   |   | 6,030 |   |
|     Interest on borrowings                                                      |   |          | 184       |   |          |   | 531       |          |   |   | 384           |   |   |   | 1,136 |   |
|             Total interest expense      |   |          | 1,818     |   |          |   | 3,188     |          |   |   | 3,756         |   |   |   | 7,166 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Net interest income                                                                                 |   |          | 8,756     |   |          |   | 9,185     |          |   |   | 18,113        |   |   |   | 18,668 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Provision for loan losses                                                                           |   |          | 8,050     |   |          |   | 2,650     |          |   |   | 9,925         |   |   |   | 6,575 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Net interest income after provision  for loan losses                                      |   |          | 706       |   |          |   | 6,535     |          |   |   | 8,188         |   |   |   | 12,093 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Non-interest income:                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
|     Fiduciary and farm management fees                                          |   |          | 269       |   |          |   | 317       |          |   |   | 559           |   |   |   | 581 |   |
|     Service charges on deposit accounts                                         |   |          | 1,002     |   |          |   | 958       |          |   |   | 1,945         |   |   |   | 1,849 |   |
|     Other service charges                                                       |   |          | 421       |   |          |   | 507       |          |   |   | 826           |   |   |   | 967 |   |
|     Gains on sales of securities available-for-sale                             |   |          | 1,598     |   |          |   | 80        |          |   |   | 2,682         |   |   |   | 722 |   |
|     Brokerage fee income                                                        |   |          | 207       |   |          |   | 224       |          |   |   | 346           |   |   |   | 413 |   |
|     Mortgage servicing rights impairment                                        |   |          | 0         |   |          |   | (589      | )             |   |   | 0             |   |   |   | (589 | ) |
|     Mortgage banking income, net                                                |   |          | 288       |   |          |   | 268       |          |   |   | 740           |   |   |   | 763 |   |
|     Bank-owned life insurance income                                            |   |          | 225       |   |          |   | 228       |          |   |   | 446           |   |   |   | 457 |   |
|     Other operating income                                                      |   |          | 17        |   |          |   | 36        |          |   |   | 83            |   |   |   | 58 |   |
|             Total non-interest income   |   |          | 4,027     |   |          |   | 2,029     |          |   |   | 7,627         |   |   |   | 5,221 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Non-interest expense:                                                                               |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
|     Salaries and employee benefits                                              |   |          | 4,529     |   |          |   | 4,452     |          |   |   | 9,145         |   |   |   | 8,864 |   |
|     Occupancy                                                                   |   |          | 623       |   |          |   | 633       |          |   |   | 1,312         |   |   |   | 1,333 |   |
|     Equipment expense                                                           |   |          | 781       |   |          |   | 747       |          |   |   | 1,562         |   |   |   | 1,514 |   |
|     Federal insurance assessments                                               |   |          | 447       |   |          |   | 534       |          |   |   | 1,087         |   |   |   | 1,232 |   |
|     Intangible assets amortization                                              |   |          | 175       |   |          |   | 201       |          |   |   | 369           |   |   |   | 402 |   |
|     Data processing                                                             |   |          | 349       |   |          |   | 320       |          |   |   | 715           |   |   |   | 632 |   |
|     Marketing                                                                   |   |          | 139       |   |          |   | 206       |          |   |   | 294           |   |   |   | 382 |   |
|     Other real estate expenses, net                                             |   |          | 1,433     |   |          |   | 387       |          |   |   | 2,015         |   |   |   | 1,122 |   |
|     Loan collection expenses                                                    |   |          | 371       |   |          |   | 184       |          |   |   | 534           |   |   |   | 388 |   |
|     Other operating expense                                                     |   |          | 1,386     |   |          |   | 1,152     |          |   |   | 2,635         |   |   |   | 2,233 |   |
|             Total non-interest expense  |   |          | 10,233    |   |          |   | 8,816     |          |   |   | 19,668        |   |   |   | 18,102 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Income (loss) before income taxes                                                                   |   |          | (5,500    | )      |          |   | (252      | )             |   |   | (3,853        | )      |   |   | (788 | ) |
| Income tax benefit                                                                                  |   |          | (2,575    | )      |          |   | (672      | )             |   |   | (2,663        | )      |   |   | (1,467 | ) |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Net income (loss)                                                                                   |   |          | (2,925    | )      |          |   | 420       |          |   |   | (1,190        | )      |   |   | 679 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Dividends on preferred shares                                                                       |   |          | 0         |   |          |   | 314       |          |   |   | 0             |   |   |   | 627 |   |
| Accretion of preferred stock discount                                                               |   |          | 7         |   |          |   | 7         |          |   |   | 15            |   |   |   | 14 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Net income (loss) available to common stockholders                                                  |   | $             | (2,932    | )      |          | $      | 99        |          |   | $      | (1,205        | )      |   | $ | 38 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Earnings (loss) per share available to common stockholders:                                         |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
|     Basic net income (loss) per common share available to common stockholders   |   | $             | (0.88     | )      |          | $      | 0.03      |          |   | $      | (0.36         | )      |   | $ | 0.01 |   |
|     Diluted net income (loss) per common share available to common stockholders |   | $             | (0.88     | )      |          | $      | 0.03      |          |   | $      | (0.36         | )      |   | $ | 0.01 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |
| Basic weighted average shares outstanding                                                           |   |          | 3,328,035 |   |          |   | 3,309,746 |          |   |   | 3,327,005     |   |   |   | 3,308,262 |   |
| Diluted weighted average shares outstanding                                                         |   |          | 3,328,035 |   |          |   | 3,309,746 |          |   |   | 3,327,005     |   |   |   | 3,308,262 |   |
|                                                                                                |   |          |      |   |          |   |      |          |   |   |          |   |   |   |   |   |

----

| Princeton National Bancorp, Inc.                                                 |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   | Schedule 3 |   |
|----------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|----------|--------|--------|---------|--------|--------|----------|-----------|--------|-------------------|--------|--------|----------|--------|--------|------------|--------|
| Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) |   |      |   |   |   |   |   |     |   |   |    |   |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   | Accumulated       |   |   |     |   |   |       |   |
| (dollars in thousands except share data)                                         |   |      |   |   |   |   |   |     |   |   |    |   |   |     | Other     |   |              |   |   |     |   |   |
|                                                                             |   |      |   |   |   |   |   | Common   |   |   |    |   |   |     |      |   | Comprehensive     |   |   |     |   |   |       |   |
| For the Six Months Ended                                                         |   | Preferred |   |   | Common |   |   | Stock    |   |   |    |   |   | Retained |      |   | Income,           |   |   | Treasury |   |   |       |   |
| June 30, 2011                                                                    |   | Stock     |   |   | Stock  |   |   | Warrants |   |   | Surplus |   |   | Earnings |      |   | net of tax effect |   |   | Stock    |   |   | Total      |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |
| Balance, January 1, 2011                                                         |   | $         | 24,986 |   |   | $      | 22,391 |     |   | $      | 150     |   |   | $        | 18,275    |   |              | $      | 11,589 |     |   | $      | 3,064      |   |   | $ | (23,594 | ) |   | $ | 56,861 |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   |   |   |   |   |   |
|     Net income (loss)                                        |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   | (1,190 | )        |   |   |       |   |   |   |   |   |   |   | (1,190 | ) |
|     Accretion on preferred stock discount                    |   |      | 15     |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   | (15    | )        |   |   |       |   |   |   |   |   |   |   | 0 |   |
| Sale of 4,097 shares of treasury common stock                                    |   |      |   |   |   |   |   |     |   |   |    |   |   |     | (49       | )      |              |   |   |     |   |   |       |   |   |   | 70 |   |   |   | 21 |   |
| Amortization of unearned compensation expense                                    |   |      |   |   |   |   |   |     |   |   |    | 33     |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   | 33 |   |
| Other comprehensive income, net of ($442) tax effect                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   | (699       | )      |   |   |   |   |   |   | (699 | ) |
| Balance, June 30, 2011                                                           |   | $         | 25,001 |   |   | $      | 22,391 |     |   | $      | 150     |   |   | $        | 18,259    |   |              | $      | 10,384 |     |   | $      | 2,365      |   |   | $ | (23,524 | ) |   | $ | 55,026 |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   |   |   |   |   |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   |   |   |   |   |   |
| For the Six Months Ended                                                         |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   |   |   |   |   |   |
| June 30, 2010                                                                    |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   |   |   |   |   |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2010                                                         |   | $         | 24,958 |   |   | $      | 22,391 |     |   | $      | 150     |   |   | $        | 18,423    |   |              | $      | 29,851 |     |   | $      | 2,816      |   |   | $ | (23,929 | ) |   | $ | 74,660 |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   |   |   |   |   |   |
|     Net income                                               |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   | 679    |     |   |   |       |   |   |   |   |   |   |   | 679 |   |
|     Dividends on preferred stock                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   | (628   | )        |   |   |       |   |   |   |   |   |   |   | (628 | ) |
|     Accretion on preferred stock discount                    |   |      | 14     |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   | (14    | )        |   |   |       |   |   |   |   |   |   |   | 0 |   |
| Sale of 4,634 shares of treasury common stock                                    |   |      |   |   |   |   |   |     |   |   |    |   |   |     | (49       | )      |              |   |   |     |   |   |       |   |   |   | 80 |   |   |   | 31 |   |
| Award of 2,000 shares of nonvested common stock out of treasury common stock     |   |      |   |   |   |   |   |     |   |   |    |   |   |     | (14  | )      |              |   |   |     |   |   |       |   |   |   | 34  |   |   |   | 20 |   |
| Amortization of unearned compensation expense                                    |   |      |   |   |   |   |   |     |   |   |    | 45     |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   | 45 |   |
| Other comprehensive income, net of $1,769 tax effect                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   | 2,798      |   |   |   |   |   |   |   | 2,798 |   |
| Balance, June 30, 2010                                                           |   | $         | 24,972 |   |   | $      | 22,391 |     |   | $      | 150     |   |   | $        | 18,405    |   |              | $      | 29,888 |     |   | $      | 5,614      |   |   | $ | (23,815 | ) |   | $ | 77,605 |   |
|                                                                             |   |      |   |   |   |   |   |     |   |   |    |   |   |     |      |   |              |   |   |     |   |   |       |   |   |   |   |   |   |   |   |   |

----

| Princeton National Bancorp, Inc.                                                                                                          |   |          |    |   | Schedule 4    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|
| Condensed Consolidated Statements of Cash Flows (unaudited)                                                                               |   |          |    |   |          |   |
|                                                                                                                                      |   |          |    |   |          |   |
| (dollars in thousands)                                                                                                                    |   | SIX MONTHS    |    |   | SIX MONTHS    |   |
|                                                                                                                                      |   | ENDED         |    |   | ENDED         |   |
|                                                                                                                                      |   | June 30, 2011 |    |   | June 30, 2010 |   |
| Operating activities:                                                                                                                     |   |          |    |   |          |   |
|      Net income (loss)                                                                                           |   | $             | (1,190  | )      |          | $      | 679 |   |
|      Adjustments to reconcile net income (loss) to net cash provided by operating activities:                    |   |          |    |   |          |   |   |   |
| Depreciation                                                                                                                              |   |          | 966     |   |          |   | 1,057 |   |
| Provision for loan losses                                                                                                                 |   |          | 9,925   |   |          |   | 6,575 |   |
| Deferred income tax benefit                                                                                                               |   |          | (2,503  | )      |          |   | 0 |   |
| Amortization of intangible assets and other purchase accounting adjustments, net                                                          |   |          | 368     |   |          |   | 402 |   |
| Amortization of premiums and discounts on investment securities, net                                                                      |   |          | 767     |   |          |   | 799 |   |
| Gains on sales of securities available-for-sale, net                                                                                      |   |          | (2,682  | )      |          |   | (722 | ) |
| Impairment of mortgage servicing rights                                                                                                   |   |          | 0       |   |          |   | 589 |   |
| Compensation expense for vested stock options                                                                                             |   |          | 33      |   |          |   | 45 |   |
| Loss on sales of other real estate owned, net                                                                                             |   |          | 1,069   |   |          |   | 388 |   |
| Loans originated for sale                                                                                                                 |   |          | (27,245 | )      |          |   | (38,962 | ) |
| Proceeds from sales of loans originated for sale                                                                                          |   |          | 30,145  |   |          |   | 40,850 |   |
| Increase (decrease) in accrued interest payable                                                                                           |   |          | 140     |   |          |   | (959 | ) |
| Decrease in accrued interest receivable                                                                                                   |   |          | 1,366   |   |          |   | 2,314 |   |
| Increase  in other assets                                                                                                       |   |          | 595     |   |          |   | 259 |   |
| Increase (decrease) in other liabilities                                                                                                  |   |          | 803     |   |          |   | (2,058 | ) |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
|                 Net cash provided by operating activities |   |          | 12,557  |   |          |   | 11,256 |   |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
| Investing activities:                                                                                                                     |   |          |    |   |          |   |   |   |
|      Proceeds from sales of investment securities available-for-sale                                             |   |          | 83,036  |   |          |   | 42,929 |   |
|      Proceeds from maturities of investment securities available-for-sale                                        |   |          | 10,622  |   |          |   | 23,373 |   |
|      Purchase of investment securities available-for-sale                                                        |   |          | (78,445 | )      |          |   | (5,436 | ) |
|      Proceeds from maturities of investment securities held-to-maturity                                          |   |          | 1,267   |   |          |   | 0 |   |
|      Purchase of investment securities held-to-maturity                                                          |   |          | 0       |   |          |   | (1,340 | ) |
|      Proceeds from sales of other real estate owned                                                              |   |          | 3,245   |   |          |   | 2,309 |   |
|      Net decrease in loans                                                                                       |   |          | 23,895  |   |          |   | 48,742 |   |
|      Purchases of premises and equipment                                                                         |   |          | (277    | )      |          |   | (284 | ) |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
|                 Net cash provided by investing activities |   |          | 43,343  |   |          |   | 110,293 |   |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
| Financing activities:                                                                                                                     |   |          |    |   |          |   |   |   |
|      Net decrease in deposits                                                                                    |   |          | (23,546 | )      |          |   | (107,685 | ) |
|      Net decrease in short-term borrowings                                                                       |   |          | (2,272  | )      |          |   | (23,915 | ) |
|      Dividends paid on preferred stock                                                                           |   |          | 0       |   |          |   | (628 | ) |
|      Sales of treasury stock                                                                                     |   |          | 21      |   |          |   | 31 |   |
|      Award of nonvested stock from treasury stock                                                                |   |          | 0       |   |          |   | 20 |   |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
|                 Net cash used in financing activities     |   |          | (25,797 | )      |          |   | (132,177 | ) |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                                                          |   |          | 30,103  |   |          |   | (10,628 | ) |
| Cash and cash equivalents at beginning of period                                                                                          |   |          | 43,880  |   |          |   | 71,073 |   |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
| Cash and cash equivalents at end of period                                                                                                |   | $             | 73,983  |   |          | $      | 60,445 |   |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
| Supplemental disclosure of cash flow information:                                                                                         |   |          |    |   |          |   |   |   |
|               Cash paid during the period for:                      |   |          |    |   |          |   |   |   |
|                     Interest          |   | $             | 3,616   |   |          | $      | 8,125 |   |
|                     Income taxes      |   | $             | 896     |   |          | $      | 1,019 |   |
|                                                                                                                                      |   |          |    |   |          |   |   |   |
| Supplemental disclosures of non-cash flow activities:                                                                                     |   |          |    |   |          |   |   |   |
|                Loans transferred to other real estate owned    |   | $             | 1,970   |   |          | $      | 4,740 |   |
|                                                                                                                                      |   |          |    |   |          |   |   |   |

----

----

| (in thousands, except share data)                                    |   | Three Months Ended |      |   | Six Months Ended |   |
|----------------------------------------------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                                                                 |   | June 30,           |      |   | June 30,         |   |
|                                                                 |   | 2011               |      |   | 2010             |   |   | 2011 |   |   | 2010 |   |
|                                                                 |   |               |      |   |             |   |   |   |   |   |   |   |
| Numerator:                                                           |   |               |      |   |             |   |   |   |   |   |   |   |
| Net income (loss) available to common stockholders                   |   | $                  | (2,932    | )      |             | $      | 99 |   |   | $ | (1,205 | ) |   | $ | 38 |   |
|                                                                 |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                         |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share - weighted average common shares            |   |               | 3,328,035 |   |             |   | 3,309,746 |   |   |   | 3,327,005 |   |   |   | 3,308,262 |   |
| Effect of dilutive securities - stock options                        |   |               | -         |   |             |   | - |   |   |   | - |   |   |   | - |   |
| Diluted earnings per share - adjusted weighted average common shares |   |               | 3,328,035 |   |             |   | 3,309,746 |   |   |   | 3,327,005 |   |   |   | 3,308,262 |   |
|                                                                 |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share available to common stockholders:        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                |   | $                  | (0.88     | )      |             | $      | 0.03 |   |   | $ | (0.36 | ) |   | $ | 0.01 |   |
| Diluted                                                              |   | $                  | (0.88     | )      |             | $      | 0.03 |   |   | $ | (0.36 | ) |   | $ | 0.01 |   |

|                                                                           |   | Three Months Ended |    |   | Six Months Ended |   |
|--------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                                           |   | June 30,           |    |   | June 30,         |   |
|                                                                           |   | 2011               |    |   | 2010             |   |   | 2011 |   |   | 2010 |   |
|                                                                           |   |               |    |   |             |   |   |   |   |   |   |   |
| Stock options to purchase shares of common stock                               |   |               | 555,277 |   |             |   | 522,511 |   |   |   | 555,277 |   |   |   | 522,511 |   |
| Average dilutive potential common shares associated with common stock warrants |   |               | 155,025 |   |             |   | 155,025 |   |   |   | 155,025 |   |   |   | 155,025 |   |

----

|                    |   |           |   |   |              |   |   |           |   |   |         |   |
|-------------------------|--------|----------------|--------|--------|-------------------|--------|--------|----------------|--------|--------|--------------|--------|
| (in thousands)          |   | June 30, 2011  |   |   | December 31, 2010 |   |
|                    |   |  Gross    |   |   |              |   |   |  Gross    |   |   |         |   |
|                    |   |  Carrying |   |   | Accumulated       |   |   |  Carrying |   |   | Accumulated  |   |
|                    |   | Amount         |   |   | Amortization      |   |   | Amount         |   |   | Amortization |   |
|                    |   |           |   |   |              |   |   |           |   |   |         |   |
| Core deposit intangible |   | $              | 9,004  |   |              | $      | (6,885 | )              |   | $      | 9,004        |   |   | $ | (6,522 | ) |
| Other acquisition costs |   |           | 234    |   |              |   | (190   | )              |   |   | 234          |   |   |   | (185 | ) |
| Total                   |   | $              | 9,238  |   |              | $      | (7,075 | )              |   | $      | 9,238        |   |   | $ | (6,707 | ) |

| (in thousands)                   |   |   |   |
|----------------------------------|--------|--------|--------|
|                             |   |   |   |
| Balance, January 1, 2011         |   | $      | 3,385  |   |
| Servicing rights capitalized     |   |   | 246    |   |
| Amortization of servicing rights |   |   | (211   | ) |
| Valuation adjustment             |   |   | -      |   |
| Balance, June 30, 2011           |   | $      | 3,420  |   |

| (in thousands)           |   |   |   |
|--------------------------|--------|--------|--------|
|                     |   |   |   |
| Balance, January 1, 2011 |   | $      | 295    |   |
| Additions                |   |   | -      |   |
| Reductions               |   |   | -      |   |
| Balance, June 30, 2011   |   | $      | 295    |   |

----

|                                       |   | Amount (in thousands) |   |
|--------------------------------------------|--------|-----------------------|--------|
|                                       |   |                  |   |
| For the six months ended December 31, 2011 |   | $                     | 174    |   |
| For the year ending December 31, 2012      |   |                  | 361    |   |
| For the year ending December 31, 2013      |   |                  | 339    |   |
| For the year ending December 31, 2014      |   |                  | 318    |   |
| For the year ending December 31, 2015      |   |                  | 298    |   |
| For the year ending December 31, 2016      |   |                  | 279    |   |
| Thereafter                                 |   |                  | 1,651  |   |

| (in thousands)                                                    |   | 2011   |   |   | 2010   |   |
|-------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                              |   |   |   |   |   |   |
| Net unrealized gains on securities available-for-sale             |   | $      | 1,541  |   |   | $      | 5,289 |   |
| Reclassification adjustment for realized gains included in income |   |   | (2,682 | )      |   |   | (722 | ) |
| Other comprehensive income (loss), before tax effect              |   |   | (1,141 | )      |   |   | 4,567 |   |
| Tax expense (benefit)                                             |   |   | (442   | )      |   |   | 1,769 |   |
| Other comprehensive income (loss)                                 |   | $      | (699   | )      |   | $      | 2,798 |   |

| (in thousands)                                        |   | 2011   |   |   | 2010   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                  |   |   |   |   |   |   |
| Net unrealized gains on securities available-for-sale |   | $      | 4,391  |   |   | $      | 9,694 |   |
| Net unrealized benefit obligations                    |   |   | (530   | )      |   |   | (530 | ) |
|                                                  |   |   | 3,861  |   |   |   | 9,164 |   |
| Tax effect                                            |   |   | (1,496 | )      |   |   | (3,550 | ) |
| Net-of-tax amount                                     |   | $      | 2,365  |   |   | $      | 5,614 |   |

----

|                                                                                         |   | June 30, 2011 |    |   |       |   |
|----------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------|--------|
| (in thousands)                                                                               |   |          |    |   | Gross      |   |   | Gross |   |   |   |   |
|                                                                                         |   | Amortized     |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                                                                         |   | Cost          |    |   | Gains      |   |   | Losses |   |   | Value |   |
| Available-for-sale:                                                                          |   |          |    |   |       |   |   |   |   |   |   |   |
| United States Government and federal agency and U.S. Government sponsored enterprises (GSEs) |   | $             | 75,079  |   |       | $      | 620 |   |   | $ | (389 | ) |   | $ | 75,310 |   |
| State and  Municipal                                                               |   |          | 88,118  |   |       |   | 2,920 |   |   |   | (303 | ) |   |   | 90,735 |   |
| Collateralized mortgage obligations: GSE residential                                         |   |          | 66,295  |   |       |   | 1,766 |   |   |   | (223 | ) |   |   | 67,838 |   |
| Total                                                                                        |   |          | 229,492 |   |       |   | 5,306 |   |   |   | ( 915 | ) |   |   | 233,883 |   |
| Held-to-maturity:                                                                            |   |          |    |   |       |   |   |   |   |   |   |   |   |   |   |   |
| State and Municipal                                                                          |   |          | 11,350  |   |       |   | 162 |   |   |   | (10 | ) |   |   | 11,502 |   |
| Total                                                                                        |   | $             | 240,842 |   |       | $      | 5,468 |   |   | $ | (925 | ) |   | $ | 245,385 |   |

|                                                                                         |   | December 31, 2010 |    |   |       |   |
|----------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|------------|--------|
| (in thousands)                                                                               |   |              |    |   | Gross      |   |   | Gross |   |   |   |   |
|                                                                                         |   | Amortized         |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                                                                         |   | Cost              |    |   | Gains      |   |   | Losses |   |   | Value |   |
| Available-for-sale:                                                                          |   |              |    |   |       |   |   |   |   |   |   |   |
| United States Government and federal agency and U.S. Government sponsored enterprises (GSEs) |   | $                 | 77,166  |   |       | $      | 1,671 |   |   | $ | (633 | ) |   | $ | 78,204 |   |
| State and  Municipal                                                               |   |              | 113,308 |   |       |   | 2,730 |   |   |   | (384 | ) |   |   | 115,654 |   |
| Collateralized mortgage obligations: GSE residential                                         |   |              | 52,746  |   |       |   | 2,148 |   |   |   | (0 | ) |   |   | 54,894 |   |
| Total                                                                                        |   |              | 243,220 |   |       |   | 6,549 |   |   |   | (1,017 | ) |   |   | 248,752 |   |
| Held-to-maturity:                                                                            |   |              |    |   |       |   |   |   |   |   |   |   |   |   |   |   |
| State and Municipal                                                                          |   |              | 12,187  |   |       |   | 309 |   |   |   | (24 | ) |   |   | 12,472 |   |
| Total                                                                                        |   | $                 | 255,407 |   |       | $      | 6,858 |   |   | $ | (1,041 | ) |   | $ | 261,224 |   |

----

|                                                                                      |   |                |   |   | June 30, 2011     |   |   |      |   |
|-------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|-----------|--------|
| (in thousands)                                                                            |   | Less Than 12 Months |   |   | 12 Months or More |   |   | Total     |   |
|                                                                                 |   | FairValue           |   |   | UnrealizedLosses  |   |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
|                                                                                      |   |                |   |
| United States government and federal agency and U.S. government-sponsored entities (GSEs) |   | $                   | 32,290 |   |              | $      | (389   | )         |   | $ | 0 |   |   | $ | 0 |   |   | $ | 32,290 |   |   | $ | (389 | ) |
| State and municipal                                                                       |   |                | 11,619 |   |              |   | (228   | )         |   |   | 857 |   |   |   | (85 | ) |   |   | 12,476 |   |   |   | (313 | ) |
| Collateralized mortgage obligations: GSE residential                                      |   |                | 20,455 |   |              |   | (223   | )         |   |   | 0 |   |   |   | 0 |   |   |   | 20,455 |   |   |   | (223 | ) |
|     Temporarily impaired securities                                   |   | $                   | 64,364 |   |              | $      | (840   | )         |   | $ | 857 |   |   | $ | (85 | ) |   | $ | 65,221 |   |   | $ | (925 | ) |

|                                                                                      |   |                |   |   | December 31, 2010 |   |   |      |   |
|-------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|-----------|--------|
|  (in thousands)                                                                      |   | Less Than 12 Months |   |   | 12 Months or More |   |   | Total     |   |
|                                                                                 |   | FairValue           |   |   | UnrealizedLosses  |   |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
|                                                                                      |   |                |   |
| United States government and federal agency and U.S. government-sponsored entities (GSEs) |   | $                   | 26,238 |   |              | $      | (633   | )         |   | $ | 0 |   |   | $ | 0 |   |   | $ | 26,238 |   |   | $ | (633 | ) |
| State and municipal                                                                       |   |                | 20,493 |   |              |   | (367   | )         |   |   | 1,343 |   |   |   | (41 | ) |   |   | 21,836 |   |   |   | (408 | ) |
|     Temporarily impaired securities                                   |   | $                   | 46,731 |   |              | $      | (1,000 | )         |   | $ | 1,343 |   |   | $ | (41 | ) |   | $ | 48,074 |   |   | $ | (1,041 | ) |

| (in thousands)                         |   | Adjusted       |    |   | Fair   |   |
|----------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                   |   | Carrying Value |    |   | Value  |   |
| Available-for-sale:                    |   |           |    |   |   |   |
| Due in one year or less                |   | $              | 869     |   |   | $      | 871 |   |
| Due after one year through five years  |   |           | 19,276  |   |   |   | 19,765 |   |
| Due after five years through ten years |   |           | 51,353  |   |   |   | 52,889 |   |
| Due after ten years                    |   |           | 35,249  |   |   |   | 35,886 |   |
|                                   |   |           | 106,747 |   |   |   | 109,412  |   |
| Mortgage-backed securities             |   |           | 56,450  |   |   |   | 56,633 |   |
| Collateralized mortgage obligations    |   |           | 66,295  |   |   |   | 67,838 |   |
|                                   |   | $              | 229,492 |   |   | $      | 233,883 |   |
|                                   |   |           |    |   |   |   |   |   |
| Held-to-maturity:                      |   |           |    |   |   |   |   |   |
| Due in one year or less                |   | $              | 2,710   |   |   | $      | 2,727 |   |
| Due after one year through five years  |   |           | 6,267   |   |   |   | 6,403 |   |
| Due after five years through ten years |   |           | 2,269   |   |   |   | 2,272 |   |
| Due after ten years                    |   |           | 103     |   |   |   | 100 |   |
|                                   |   | $              | 11,350  |   |   | $      | 11,502 |   |

----

|                               |   | June 30, |    |   | December 31, |   |
|------------------------------------|--------|----------|---------|--------|--------------|--------|
|                               |   | 2011     |    |   | 2010         |   |
|                               |   |     |    |   |         |   |
| Commercial                         |   | $        | 129,771 |   |         | $      | 138,325 |   |
| Agricultural                       |   |     | 64,354  |   |         |   | 78,086 |   |
| Agricultural Real Estate           |   |     | 49,391  |   |         |   | 46,361 |   |
| Commercial Real Estate             |   |     | 201,571 |   |         |   | 205,301 |   |
| Commercial Real Estate Development |   |     | 75,126  |   |         |   | 88,402 |   |
| Residential Real Estate            |   |     | 86,673  |   |         |   | 90,869 |   |
| Total real estate                  |   |     | 412,761 |   |         |   | 430,933 |   |
| Consumer                           |   |     | 50,801  |   |         |   | 56,730 |   |
| Total                              |   | $        | 657,687 |   |         | $      | 704,074 |   |

----

----

----

|                                                  |   |       |    |   |         |    |   |         |   |    |        |    |   | Commercial  |    |   |        |    |   |     |   |    |        |   |   |    |   |
|-------------------------------------------------------|--------|------------|---------|--------|--------------|---------|--------|--------------|--------|---------|-------------|---------|--------|-------------|---------|--------|-------------|---------|--------|----------|--------|---------|-------------|--------|--------|---------|--------|
|                                                  |   |       |    |   |         |    |   | Agricultural |   |    | Commercial  |    |   | Real Estate |    |   | Residential |    |   |     |   |    |        |   |   |    |   |
|                                                  |   | Commercial |    |   | Agricultural |    |   | Real Estate  |   |    | Real Estate |    |   | Development |    |   | Real Estate |    |   | Consumer |   |    | Unallocated |   |   | Total   |   |
| Allowance for Loan Losses                             |   |       |    |   |         |    |   |         |   |    |        |    |   |        |    |   |        |    |   |     |   |    |        |   |   |    |   |
| Balance, beginning of period                          |   |  $    | 4,435   |   |         |  $ | 99     |         |   |  $ | 107         |    |   |  $     | 6,029   |   |        |  $ | 15,526 |     |   |  $ | 1,897       |   |   |  $ | 1,595  |   |   |  $ | 38 |   |   |  $ | 29,726 |   |
| Provision charged to expense                          |   |       | (592    | )      |         |    | (26    |  )      |   |    | (24         |  ) |   |        | 7,812   |   |        |    | 1,182  |     |   |    | 1,461       |   |   |    | 124    |   |   |   | (12 |  ) |   |   | 9,925 |   |
| Less: loans charged off                               |   |       | 1,556   |   |         |    | 16     |         |   |    | 22          |    |   |        | 8,481   |   |        |    | 8,462  |     |   |    | 1,438       |   |   |    | 682    |   |   |   | -0- |   |   |   | 20,657 |   |
| Recoveries                                            |   |       | 44      |   |         |    | -0-    |         |   |    | -0-         |    |   |        | -0-     |   |        |    | -0-    |     |   |    | 8           |   |   |    | 83     |   |   |   | -0- |   |   |   | 135 |   |
| Balance, end of period                                |   | $          | 2,331   |   |         | $       | 57     |         |   | $       | 61          |    |   | $           | 5,360   |   |        | $       | 8,246  |     |   | $       | 1,928       |   |   | $       | 1,120  |   |   | $ | 26 |   |   | $ | 19,129 |   |
| Ending Balance: individually evaluated for impairment |   | $          | 1,879   |   |         | $       | -0-    |         |   | $       | -0-         |    |   | $           | 1,169   |   |        | $       | 4,722  |     |   | $       | 757         |   |   | $       | 298    |   |   | $ | -0- |   |   | $ | 8,825 |   |
| Ending Balance: collectively evaluated for impairment |   | $          | 452     |   |         | $       | 57     |         |   | $       | 61          |    |   | $           | 4,191   |   |        | $       | 3,524  |     |   | $       | 1,171       |   |   | $       | 822    |   |   | $ | 26 |   |   | $ | 10,304 |   |
|                                                  |   |       |    |   |         |    |   |         |   |    |        |    |   |        |    |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Loans                                                 |   |       |    |   |         |    |   |         |   |    |        |    |   |        |    |   |        |    |   |     |   |    |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Ending Balance                                        |   | $          | 129,771 |   |         | $       | 64,354 |         |   | $       | 49,391      |    |   | $           | 201,571 |   |        | $       | 75,126 |     |   | $       | 86,673      |   |   | $       | 50,801 |   |   | $ | -0- |   |   |  $ | 657,687  |   |
| Ending Balance: individually evaluated for impairment |   | $          | 11,477  |   |         | $       | 1,822  |         |   | $       | 1,078       |    |   | $           | 31,919  |   |        | $       | 40,345 |     |   | $       | 9,899       |   |   | $       | 1,066  |   |   | $ | -0- |   |   | $ | 97,606 |   |
| Ending Balance: collectively evaluated for impairment |   | $          | 118,294 |   |         | $       | 62,532 |         |   | $       | 48,313      |    |   | $           | 169,652 |   |        | $       | 34,781 |     |   | $       | 76,774      |   |   | $       | 49,735 |   |   | $ | -0- |   |   | $ | 560,081 |   |

|                           |   |       |   |   |         |   |   |         |   |   |        |   |   | Commercial  |   |   |        |   |   |     |   |   |        |   |   |   |   |
|--------------------------------|--------|------------|--------|--------|--------------|--------|--------|--------------|--------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------|--------|
|       |   |       |   |   |         |   |   | Agricultural |   |   | Commercial  |   |   | Real Estate |   |   | Residential |   |   |     |   |   |        |   |   |   |   |
|                           |   | Commercial |   |   | Agricultural |   |   | Real Estate  |   |   | Real Estate |   |   | Development |   |   | Real Estate |   |   | Consumer |   |   | Unallocated |   |   | Total  |   |
| Allowance for Loan Losses      |   |       |   |   |         |   |   |         |   |   |        |   |   |        |   |   |        |   |   |     |   |   |        |   |   |   |   |
| Balance, beginning of period   |   | $          | 2,888  |   |         | $      | 60     |         |   | $      | 81          |   |   | $           | 10,532 |   |        | $      | 12,768 |     |   | $      | 2,398       |   |   | $      | 1,152  |   |   | $ | 28 |   |   | $ | 29,907 |   |
| Provision charged to expense   |   |       | 469    |   |         |   | (3     | )            |   |   | (6          | )      |   |        | 2,770  |   |        |   | 3,790  |     |   |   | 606         |   |   |   | 426    |   |   |   | (2 | ) |   |   | 8,050 |   |
| Less: loans charged off        |   |       | 1,042  |   |         |   | -0-    |         |   |   | 14          |   |   |        | 7,942  |   |        |   | 8,312  |     |   |   | 1,084       |   |   |   | 496    |   |   |   | -0- |   |   |   | 18,890 |   |
| Recoveries                     |   |       | 16     |   |         |   | -0-    |         |   |   | -0-         |   |   |        | -0-    |   |        |   | -0-    |     |   |   | 8           |   |   |   | 38     |   |   |   | -0- |   |   |   | 62 |   |
| Balance, end of period         |   | $          | 2,331  |   |         | $      | 57     |         |   | $      | 61          |   |   | $           | 5,360  |   |        | $      | 8,246  |     |   | $      | 1,928       |   |   | $      | 1,120  |   |   | $ | 26 |   |   | $ | 19,129 |   |

|                                                  |   |       |    |   |         |   |         |         |   |   |        |   |   | Commercial  |    |   |        |   |   |     |   |   |        |   |   |   |   |
|-------------------------------------------------------|--------|------------|---------|--------|--------------|--------|--------------|--------------|--------|--------|-------------|--------|--------|-------------|---------|--------|-------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------|--------|
|                                                  |   |       |    |   |         |   |         | Agricultural |   |   | Commercial  |   |   | Real Estate |    |   | Residential |   |   |     |   |   |        |   |   |   |   |
|                                                  |   | Commercial |    |   | Agricultural |   |         | Real Estate  |   |   | Real Estate |   |   | Development |    |   | Real Estate |   |   | Consumer |   |   | Unallocated |   |   | Total  |   |
| Allowance for Loan Losses                             |   |       |    |   |         |   |         |         |   |   |        |   |   |        |    |   |        |   |   |     |   |   |        |   |   |   |   |
| Balance, beginning of year                            |   | $          | 181     |   |         | $      | 129          |         |   | $      | 1,181       |   |   | $           | 2,661   |   |        | $      | 3,022  |     |   | $      | 3,419       |   |   | $      | 1,059  |   |   | $ | 423 |   |   | $ | 12,075 |   |
| Provision charged to expense                          |   |       | 9,134   |   |         |   | (173         | )            |   |   | (1,054      | )      |   |        | 4,828   |   |        |   | 25,681 |     |   |   | 745         |   |   |   | 1,774  |   |   |   | (385 | ) |   |   | 40,550 |   |
| Less: loans charged off                               |   |       | 4,888   |   |         |   | -0-          |         |   |   | 68          |   |   |        | 1,460   |   |        |   | 13,177 |     |   |   | 2,267       |   |   |   | 1,306  |   |   |   | -0- |   |   |   | 23,166 |   |
| Recoveries                                            |   |       | 8       |   |         |   | 143          |         |   |   | 48          |   |   |        | -0-     |   |        |   | -0-    |     |   |   | -0-         |   |   |   | 68     |   |   |   | -0- |   |   |   | 267 |   |
| Balance, end of year                                  |   | $          | 4,435   |   |         | $      | 99           |         |   | $      | 107         |   |   | $           | 6,029   |   |        | $      | 15,526 |     |   | $      | 1,897       |   |   | $      | 1,595  |   |   | $ | 38 |   |   | $ | 29,726 |   |
| Ending Balance: individually evaluated for impairment |   | $          | 1,004   |   |         | $      | -0-          |         |   | $      | -0-         |   |   | $           | 3,425   |   |        | $      | 6,906  |     |   | $      | 484         |   |   | $      | 426    |   |   | $ | -0- |   |   | $ | 12,245 |   |
| Ending Balance: collectively evaluated for impairment |   | $          | 3,431   |   |         | $      | 99           |         |   | $      | 107         |   |   | $           | 2,604   |   |        | $      | 8,620  |     |   | $      | 1,413       |   |   | $      | 1,169  |   |   | $ | 38 |   |   | $ | 17,481 |   |
|                                                  |   |       |    |   |         |   |         |         |   |   |        |   |   |        |    |   |        |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                 |   |       |    |   |         |   |         |         |   |   |        |   |   |        |    |   |        |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance                                        |   | $          | 138,325 |   |         | $      |  78,086 |         |   | $      | 46,361      |   |   | $           | 205,301 |   |        | $      | 88,402 |     |   | $      | 90,869      |   |   | $      | 56,730 |   |   | $ | -0- |   |   | $ | 704,074 |   |
| Ending Balance: individually evaluated for impairment |   | $          | 2,085   |   |         | $      | -0-          |         |   | $      | -0-         |   |   | $           | 18,130  |   |        | $      | 18,334 |     |   | $      | 3,873       |   |   | $      | 734    |   |   | $ | -0- |   |   | $ | 43,156 |   |
| Ending Balance: collectively evaluated for impairment |   | $          | 136,240 |   |         | $      | 78,086       |         |   | $      | 46,361      |   |   | $           | 187,171 |   |        | $      | 70,068 |     |   | $      | 86,996      |   |   | $      | 55,996 |   |   | $ | -0- |   |   | $ | 660,918 |   |

| Balance, January 1                         |   | $      | 12,075 |   |
|--------------------------------------------|--------|--------|--------|--------|
| Provision for loan losses                  |   |   | 6,575  |   |
| Loans charged off                          |   |   | 2,789  |   |
| Recoveries of loans previously charged off |   |   | 114    |   |
| Balance, June 30                           |   | $      | 15,975 |   |

----

| Balance, April 1                           |   | $      | 14,682 |   |
|--------------------------------------------|--------|--------|--------|--------|
| Provision for loan losses                  |   |   | 2,650  |   |
| Loans charged off                          |   |   | 1,372  |   |
| Recoveries of loans previously charged off |   |   | 15     |   |
| Balance, June 30                           |   | $      | 15,975 |   |

----

|         |   |       |    |   |         |   |   |         |   |   |        |   |   | Commercial  |    |   |   |   |
|--------------|--------|------------|---------|--------|--------------|--------|--------|--------------|--------|--------|-------------|--------|--------|-------------|---------|--------|--------|--------|
|         |   |       |    |   |         |   |   | Agricultural |   |   | Commercial  |   |   | Real Estate |    |   |   |   |
| Risk Rating: |   | Commercial |    |   | Agricultural |   |   | Real Estate  |   |   | Real Estate |   |   | Development |    |   | Total  |   |
| 1-2          |   | $          | 14,869  |   |         | $      | 20,023 |         |   | $      | 14,327      |   |   | $           | 11,712  |   |   | $      | 407 |   |   | $ | 61,338 |   |
| 3            |   |       | 53,622  |   |         |   | 31,303 |         |   |   | 21,672      |   |   |        | 72,560  |   |   |   | 8,941 |   |   |   | 188,098 |   |
| 4            |   |       | 31,031  |   |         |   | 9,324  |         |   |   | 10,016      |   |   |        | 40,664  |   |   |   | 1,965 |   |   |   | 93,000 |   |
| 5            |   |       | 10,526  |   |         |   | 1,170  |         |   |   | 1,928       |   |   |        | 29,112  |   |   |   | 3,270 |   |   |   | 46,006 |   |
| 6            |   |       | 19,584  |   |         |   | 2,534  |         |   |   | 1,448       |   |   |        | 47,523  |   |   |   | 60,543 |   |   |   | 131,632 |   |
| 7            |   |       | 139     |   |         |   | -0-    |         |   |   | -0-         |   |   |        | -0-     |   |   |   | -0- |   |   |   | 139 |   |
| Total        |   | $          | 129,771 |   |         | $      | 64,354 |         |   | $      | 49,391      |   |   | $           | 201,571 |   |   | $      | 75,126 |   |   | $ | 520,213 |   |

|            |   | Residential |   |   |     |   |   |   |   |
|-----------------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
| Risk Rating:    |   | Real Estate |   |   | Consumer |   |   | Total  |   |
| Pass            |   | $           | 75,087 |   |     | $      | 48,141 |   |   | $ | 123,228 |   |
| Special Mention |   |        | 924    |   |     |   | 283    |   |   |   | 1,207 |   |
| Substandard     |   |        | 10,450 |   |     |   | 2,377  |   |   |   | 12,827 |   |
| Doubtful        |   |        | 212    |   |     |   | 0      |   |   |   | 212 |   |
| Total           |   | $           | 86,673 |   |     | $      | 50,801 |   |   | $ | 137,474 |   |

|         |   |       |    |   |         |   |   |         |   |   |        |   |   | Commercial  |    |   |   |   |
|--------------|--------|------------|---------|--------|--------------|--------|--------|--------------|--------|--------|-------------|--------|--------|-------------|---------|--------|--------|--------|
|         |   |       |    |   |         |   |   | Agricultural |   |   | Commercial  |   |   | Real Estate |    |   |   |   |
| Risk Rating: |   | Commercial |    |   | Agricultural |   |   | Real Estate  |   |   | Real Estate |   |   | Development |    |   | Total  |   |
| 1-2          |   | $          | 3,921   |   |         | $      | 12,680 |         |   | $      | 5,346       |   |   | $           | 5,676   |   |   | $      | 52 |   |   | $ | 27,675 |   |
| 3            |   |       | 90,147  |   |         |   | 41,653 |         |   |   | 27,742      |   |   |        | 101,219 |   |   |   | 13,631 |   |   |   | 274,392 |   |
| 4            |   |       | 23,495  |   |         |   | 17,319 |         |   |   | 9,195       |   |   |        | 29,985  |   |   |   | 8,744 |   |   |   | 88,738 |   |
| 5            |   |       | 3,370   |   |         |   | 2,994  |         |   |   | 3,385       |   |   |        | 25,814  |   |   |   | 22,414 |   |   |   | 57,977 |   |
| 6            |   |       | 17,392  |   |         |   | 3,440  |         |   |   | 693         |   |   |        | 42,607  |   |   |   | 43,561 |   |   |   | 107,693 |   |
| 7            |   |       | -0-     |   |         |   | -0-    |         |   |   | -0-         |   |   |        | -0-     |   |   |   | -0- |   |   |   | -0- |   |
| Total        |   | $          | 138,325 |   |         | $      | 78,086 |         |   | $      | 46,361      |   |   | $           | 205,301 |   |   | $      | 88,402 |   |   | $ | 556,475 |   |

----

|            |   | Residential |   |   |     |   |   |   |   |
|-----------------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
| Risk Rating:    |   | Real Estate |   |   | Consumer |   |   | Total  |   |
| Pass            |   | $           | 81,504 |   |     | $      | 53,958 |   |   | $ | 135,462 |   |
| Special Mention |   |        | 314    |   |     |   | 147    |   |   |   | 461 |   |
| Substandard     |   |        | 9,051  |   |     |   | 2,539  |   |   |   | 11,590 |   |
| Doubtful        |   |        | -0-    |   |     |   | 86     |   |   |   | 86 |   |
| Total           |   | $           | 90,869 |   |     | $      | 56,730 |   |   | $ | 147,599 |   |

|   | 1 Prime Quality: This category includes all obligors whose balance sheet, current position, capitalization, profitability and cash flow have been demonstrated to be consistently of such high quality that the potential for significant disruption in their financial performance is virtually nonexistent. Such borrowers have excellent management in place with depth, well defined and established product lines or services, and operate businesses generally isolated from the normal influences of the business cycle. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2   High Quality: Borrowers assigned this rating are considered above average with high quality and excellent credit standards based on leverage, liquidity and debt coverage ratios, as well as having excellent management in critical areas. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3   Satisfactory “Average” Quality: This category includes borrowers that have average leverage, liquidity and debt service ratios that compare favorably with industry standards. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4  Low Pass: This risk rating includes borrowers that have below average leverage, liquidity and debt service coverage ratios and management that may not be as solid on a historical basis or may compare less favorably with industry standards but are still considered acceptable. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5   Watch/Special Mention (OAEM): A borrower assigned to this rating category exhibits potential weaknesses or early warning signals that deserve close monitoring by management. If left uncorrected, these potential weaknesses may result in the borrower being unable to meet its financial obligations at some future date. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6   Substandard: A substandard rating is assigned to a borrower whose credit is inadequately protected by the paying capacity of the borrower, or by the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These credits are characterized by the distinct possibility that the Corporation will sustain some loss if deficiencies are not corrected. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7   Doubtful: Borrowers assigned to this rating category have all of the weaknesses inherent in a substandard rating with the added factor that the weaknesses are pronounced to the point where, on the basis of current facts, conditions and values, collection or liquidation in full is highly questionable or improbable. While the possibility of loss is extremely high, the existence of specific pending factors, which may work to the borrower’s advantage, warrants that the estimated loss be deferred until a more exact status can be determined. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | 30-59 Days |   |   | 60-89 Days |   |   | >90 Days |   |   | Total    |   |   | Total   |   |   | Total  |   |
|------------------------------------|--------|------------|--------|--------|------------|--------|--------|-------------|--------|--------|----------|--------|--------|---------|--------|--------|--------|--------|
|                               |   | Past Due   |   |   | Past Due   |   |   | Past Due    |   |   | Past Due |   |   | Current |   |   | Loans  |   |
| Commercial                         |   | $          | 790    |   |       | $      | 1,052  |        |   | $      | 274      |   |   | $       | 2,116  |   |   | $      | 117,808 |   |   | $ | 119,924 |   |
| Agricultural                       |   |       | 656    |   |       |   | -0-    |        |   |   | -0-      |   |   |    | 656    |   |   |   | 61,876 |   |   |   | 62,532 |   |
| Agricultural Real Estate           |   |       | 20     |   |       |   | -0-    |        |   |   | -0-      |   |   |    | 20     |   |   |   | 48,293 |   |   |   | 48,313 |   |
| Commercial Real Estate             |   |       | 4,350  |   |       |   | 3,238  |        |   |   | -0-      |   |   |    | 7,588  |   |   |   | 169,126 |   |   |   | 176,714 |   |
| Commercial Real Estate Development |   |       | 698    |   |       |   | -0-    |        |   |   | 2,195    |   |   |    | 2,893  |   |   |   | 39,575 |   |   |   | 42,468 |   |
| Residential Real Estate            |   |       | -0-    |   |       |   | 1,763  |        |   |   | -0-      |   |   |    | 1,763  |   |   |   | 77,819 |   |   |   | 79,582 |   |
| Consumer                           |   |       | 880    |   |       |   | 343    |        |   |   | -0-      |   |   |    | 1,223  |   |   |   | 48,907 |   |   |   | 50,130 |   |
| Non-Accrual                        |   |       | 272    |   |       |   | 722    |        |   |   | 74,582   |   |   |    | 75,576 |   |   |   | 2,448 |   |   |   | 78,024 |   |
| Total                              |   | $          | 7,666  |   |       | $      | 7,118  |        |   | $      | 77,051   |   |   | $       | 91,835 |   |   | $      | 565,852 |   |   | $ | 657,687 |   |

|                               |   | 30-59 Days |   |   | 60-89 Days |   |   | >90 Days |   |   | Total    |   |   | Total   |   |   | Total       |   |
|------------------------------------|--------|------------|--------|--------|------------|--------|--------|-------------|--------|--------|----------|--------|--------|---------|--------|--------|-------------|--------|
|                               |   | Past Due   |   |   | Past Due   |   |   | Past Due    |   |   | Past Due |   |   | Current |   |   |  Loans |   |
| Commercial                         |   | $          | 2,221  |   |       | $      | 420    |        |   | $      | 222      |   |   | $       | 2,863  |   |        | $      | 126,621 |   |   | $ | 129,484 |   |
| Agricultural                       |   |       | 284    |   |       |   | -0-    |        |   |   | -0-      |   |   |    | 284    |   |        |   | 75,892 |   |   |   | 76,176 |   |
| Agricultural Real Estate           |   |       | 249    |   |       |   | -0-    |        |   |   | -0-      |   |   |    | 249    |   |        |   | 45,667 |   |   |   | 45,916 |   |
| Commercial Real Estate             |   |       | 3,288  |   |       |   | 1,324  |        |   |   | 1,140    |   |   |    | 5,752  |   |        |   | 173,890 |   |   |   | 179,642 |   |
| Commercial Real Estate Development |   |       | 669    |   |       |   | -0-    |        |   |   | -0-      |   |   |    | 669    |   |        |   | 50,642 |   |   |   | 51,311 |   |
| Residential Real Estate            |   |       | 4,340  |   |       |   | 1,601  |        |   |   | 199      |   |   |    | 6,140  |   |        |   | 77,970 |   |   |   | 84,110 |   |
| Consumer                           |   |       | 681    |   |       |   | 156    |        |   |   | -0-      |   |   |    | 837    |   |        |   | 55,176 |   |   |   | 56,013 |   |
| Non-Accrual                        |   |       | 846    |   |       |   | 8,390  |        |   |   | 53,393   |   |   |    | 62,629 |   |        |   | 18,793 |   |   |   | 81,422 |   |
| Total                              |   | $          | 12,578 |   |       | $      | 11,891 |        |   | $      | 54,954   |   |   | $       | 79,423 |   |        | $      | 624,651 |   |   | $ | 704,074 |   |

----

|                                |   |     |   |   |      |   |    |      |   |   |        |   |   |                |   |   |        |   |      |       |   |
|-------------------------------------|--------|----------|--------|--------|-----------|--------|---------|-----------|--------|--------|-------------|--------|--------|---------------------|--------|--------|-------------|--------|-----------|------------|--------|
|                                |   |     |   |   |      |   |    |      |   |   | Six Months  |   |   |   Three Months |   |
|                                |   |     |   |   |      |   |    |      |   |   | Ended       |   |   | Ended               |   |
|                                |   |     |   |   |      |   |    |      |   |   | Average     |   |   |                |   |   | Average     |   |      |       |   |
|                                |   |     |   |   | Unpaid    |   |    |      |   |   | Investment  |   |   | Interest            |   |   | Investment  |   |      | Interest   |   |
|                                |   | Recorded |   |   | Principal |   |    | Specific  |   |   | in Impaired |   |   | Income              |   |   | in Impaired |   |      | Income     |   |
|                                |   | Balance  |   |   | Balance   |   |    | Allowance |   |   | Loans       |   |   | Recognized          |   |   | Loans       |   |      | Recognized |   |
| With no related allowance recorded: |   |     |   |   |      |   |    |      |   |   |        |   |   |                |   |   |        |   |      |       |   |
| Commercial                          |   | $        | 9,737  |   |      | $      | 11,450  |      |   | $      | -0-         |   |   | $                   | 9,812  |   |        | $      | 55        |       |   | $ | 9,922 |   |   | $ | 27 |   |
| Commercial Real Estate              |   |     | 25,852 |   |      |   | 34,249  |      |   |   | -0-         |   |   |                | 19,378 |   |        |   | 36        |       |   | $ | 29,481 |   |   | $ | 13 |   |
| Commercial Real Estate Development  |   |     | 25,631 |   |      |   | 42,877  |      |   |   | -0-         |   |   |                | 26,163 |   |        |   | 96        |       |   | $ | 29,627 |   |   | $ | 46 |   |
| Residential Real Estate             |   |     | 6,374  |   |      |   | 7,588   |      |   |   | -0-         |   |   |                | 5,527  |   |        |   | 15        |       |   | $ | 6,846 |   |   | $ | 4 |   |
| Consumer                            |   |     | 657    |   |      |   | 783     |      |   |   | -0-         |   |   |                | 329    |   |        |   | 8         |       |   | $ | 731 |   |   | $ | 3 |   |
| With an allowance recorded:         |   |     |   |   |      |   |    |      |   |   |        |   |   |                |   |   |        |   |      |       |   |   |   |   |   |   |   |   |
| Commercial                          |   | $        | 3,562  |   |      | $      | 3,930   |      |   | $      | 1,879       |   |   | $                   | 2,735  |   |        | $      | 8         |       |   | $ | 3,691 |   |   | $ | 2 |   |
| Commercial Real Estate              |   |     | 7,145  |   |      |   | 7,351   |      |   |   | 1,169       |   |   |                | 12,638 |   |        |   | 181       |       |   | $ | 7,159 |   |   | $ | 85 |   |
| Commercial Real Estate Development  |   |     | 14,714 |   |      |   | 15,294  |      |   |   | 4,722       |   |   |                | 16,611 |   |        |   | 151       |       |   | $ | 14,799 |   |   | $ | 73 |   |
| Residential Real Estate             |   |     | 3,525  |   |      |   | 3,615   |      |   |   | 757         |   |   |                | 3,699  |   |        |   | 36        |       |   | $ | 3,548 |   |   | $ | 11 |   |
| Consumer                            |   |     | 409    |   |      |   | 409     |      |   |   | 298         |   |   |                | 589    |   |        |   | 6         |       |   | $ | 412 |   |   | $ | 3 |   |
| Total:                              |   |     |   |   |      |   |    |      |   |   |        |   |   |                |   |   |        |   |      |       |   |   |   |   |   |   |   |   |
| Commercial                          |   | $        | 86,641 |   |      | $      | 115,151 |      |   | $      | 7,770       |   |   | $                   | 87,336 |   |        | $      |  527 |       |   | $ | 94,677 |   |   | $ | 246 |   |
| Residential                         |   | $        | 9,899  |   |      | $      | 11,203  |      |   | $      | 757         |   |   | $                   | 9,226  |   |        | $      | 51        |       |   | $ | 10,394 |   |   | $ | 15 |   |
| Consumer                            |   | $        | 1,066  |   |      | $      | 1,192   |      |   | $      | 298         |   |   | $                   | 917    |   |        | $      | 14        |       |   | $ | 1,143 |   |   | $ | 6 |   |

|                                |   |     |   |   |      |   |    |      |   |   | Average     |   |   |       |   |
|-------------------------------------|--------|----------|--------|--------|-----------|--------|---------|-----------|--------|--------|-------------|--------|--------|------------|--------|
|                                |   |     |   |   | Unpaid    |   |    |      |   |   | Investment  |   |   | Interest   |   |
|                                |   | Recorded |   |   | Principal |   |    | Specific  |   |   | in Impaired |   |   | Income     |   |
|                                |   | Balance  |   |   | Balance   |   |    | Allowance |   |   | Loans       |   |   | Recognized |   |
| With no related allowance recorded: |   |     |   |   |      |   |    |      |   |   |        |   |   |       |   |
| Commercial                          |   | $        | 9,887  |   |      | $      | 11,660  |      |   | $      | -0-         |   |   | $          | 5,874  |   |   | $ | 36 |   |
| Commercial Real Estate              |   |     | 12,903 |   |      |   | 13,220  |      |   |   | -0-         |   |   |       | 8,915  |   |   |   | 480 |   |
| Commercial Real Estate Development  |   |     | 26,695 |   |      |   | 36,909  |      |   |   | -0-         |   |   |       | 21,573 |   |   |   | 225 |   |
| Residential Real Estate             |   |     | 4,680  |   |      |   | 5,306   |      |   |   | -0-         |   |   |       | 5,591  |   |   |   | 96 |   |
| Consumer                            |   |     | -0-    |   |      |   | -0-     |      |   |   | -0-         |   |   |       | -0-    |   |   |   | -0- |   |
| With an allowance recorded:         |   |     |   |   |      |   |    |      |   |   |        |   |   |       |   |   |   |   |   |   |
| Commercial                          |   | $        | 1,908  |   |      | $      | 2,095   |      |   | $      | 1,004       |   |   | $          | 1,384  |   |   | $ | 59 |   |
| Commercial Real Estate              |   |     | 18,130 |   |      |   | 18,130  |      |   |   | 3,425       |   |   |       | 9,065  |   |   |   | 77 |   |
| Commercial Real Estate Development  |   |     | 18,507 |   |      |   | 18,507  |      |   |   | 6,906       |   |   |       | 14,444 |   |   |   | 428 |   |
| Residential Real Estate             |   |     | 3,873  |   |      |   | 3,873   |      |   |   | 484         |   |   |       | 3,505  |   |   |   | 82 |   |
| Consumer                            |   |     | 768    |   |      |   | 735     |      |   |   | 426         |   |   |       | 679    |   |   |   | 14 |   |
| Total:                              |   |     |   |   |      |   |    |      |   |   |        |   |   |       |   |   |   |   |   |   |
| Commercial                          |   | $        | 88,030 |   |      | $      | 100,521 |      |   | $      | 11,335      |   |   | $          | 61,254 |   |   | $ | 1,305 |   |
| Residential                         |   | $        | 8,553  |   |      | $      | 9,179   |      |   | $      | 484         |   |   | $          | 9,096  |   |   | $ | 178 |   |
| Consumer                            |   | $        | 768    |   |      | $      | 735     |      |   | $      | 426         |   |   | $          | 679    |   |   | $ | 14 |   |

----

|                               |   | June 30, |   |   | December 31, |   |
|------------------------------------|--------|----------|--------|--------|--------------|--------|
|                               |   | 2011     |   |   | 2010         |   |
| Commercial                         |   | $        | 9,847  |   |         | $      | 8,841 |   |
| Agricultural                       |   |     | 1,822  |   |         |   | 1,910 |   |
| Agricultural Real Estate           |   |     | 1,078  |   |         |   | 444 |   |
| Commercial Real Estate             |   |     | 24,857 |   |         |   | 25,659 |   |
| Commercial Real Estate Development |   |     | 32,658 |   |         |   | 37,091 |   |
| Residential Real Estate            |   |     | 7,091  |   |         |   | 6,760 |   |
| Consumer                           |   |     | 671    |   |         |   | 717 |   |
| Total                              |   | $        | 78,024 |   |         | $      | 81,422 |   |

|   | Level 1 | Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange.  Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2 | Valuations for assets and liabilities traded in less active dealer or broker markets.  Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use 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 and 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. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

| June 30, 2011                                                                                |   | Fair Value Measurements Using |    |
|----------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                                         |   |                          |    |   | Quoted Prices in |   |   |   |   |   | Significant |   |
|                                                                                         |   |                          |    |   | Active Markets for |   |   | Significant Other |   |   | Unobservable |   |
| (in thousands)                                                                               |   | Fair Value                    |    |   | Identical Assets |   |   | Observable Inputs |   |   | Inputs |   |
|                                                                                         |   |                          |    |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                                                                                         |   |                          |    |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities                                                                |   |                          |    |   |   |   |   |   |   |   |   |   |
| United States Government and federal agency and U.S. Government sponsored enterprises (GSEs) |   | $                             | 75,310  |   |   | $ | - |   |   | $ | 75,310 |   |   | $ | - |   |
| State and Municipal                                                                          |   |                          | 90,735  |   |   |   | - |   |   |   | 90,735 |   |   |   | - |   |
| Collateralized mortgage obligations:                                                         |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE Residential                                                                              |   |                          | 67,838  |   |   |   | - |   |   |   | 67,838 |   |   |   | - |   |
| Total                                                                                        |   | $                             | 233,883 |   |   | $ | - |   |   | $ | 233,883 |   |   | $ | - |   |

|   December 31, 2010                                                                     |   | Fair Value Measurements Using |    |
|----------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                                         |   |                          |    |   | Quoted Prices in |   |   |   |   |   |   Significant |   |
|                                                                                         |   |                          |    |   | Active Markets for |   |   | Significant Other |   |   | Unobservable  |   |
| (in thousands)                                                                               |   | Fair Value                    |    |   | Identical Assets |   |   | Observable Inputs |   |   | Inputs |   |
|                                                                                         |   |                          |    |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                                                                                         |   |                          |    |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities                                                                |   |                          |    |   |   |   |   |   |   |   |   |   |
| United States Government and federal agency and U.S. Government sponsored enterprises (GSEs) |   | $                             | 78,204  |   |   | $ | - |   |   | $ | 78,204 |   |   | $ | - |   |
| State and Municipal                                                                          |   |                          | 115,654 |   |   |   | - |   |   |   | 115,654 |   |   |   | - |   |
| Collateralized mortgage obligations:                                                         |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE Residential                                                                              |   |                          | 54,894  |   |   |   | - |   |   |   | 54,894 |   |   |   | - |   |
| Total                                                                                        |   | $                             | 248,752 |   |   | $ | - |   |   | $ | 248,752 |   |   | $ | - |   |

----

| June 30, 2011                         |   |                          |   |   |               |   |   |              |   |   |         |   |
|---------------------------------------|--------|-------------------------------|--------|--------|--------------------|--------|--------|-------------------|--------|--------|--------------|--------|
| (in thousands)                        |   | Fair Value Measurements Using |   |
|                                  |   |                          |   |   | Quoted Prices in   |   |   |              |   |   | Significant  |   |
|                             |   |                          |   |   | Active Markets foe |   |   | Significant Other |   |   | Unobservable |   |
|                                  |   | Fair Value                    |   |   | Identical Assets   |   |   | Observable Inputs |   |   | Inputs       |   |
|                                  |   |                          |   |   | (Level 1)          |   |   | (Level 2)         |   |   | (Level 3)    |   |
|                                  |   |                          |   |   |               |   |   |              |   |   |         |   |
| Impaired loans (collateral dependent) |   | $                             | 78,541 |   |               |   | -      |              |   |   | -            |   |   | $ | 78,541 |   |
| Other real estate owned               |   |                          | 2,768  |   |               |   | -      |              |   |   | -            |   |   |   | 2,768 |   |

| December 31, 2010                     |   |                          |   |   |               |   |   |              |   |   |         |   |
|---------------------------------------|--------|-------------------------------|--------|--------|--------------------|--------|--------|-------------------|--------|--------|--------------|--------|
| (in thousands)                        |   | Fair Value Measurements Using |   |
|                                  |   |                          |   |   | Quoted Prices in   |   |   |              |   |   | Significant  |   |
|                                  |   |                          |   |   | Active Markets for |   |   | Significant Other |   |   | Unobservable |   |
|                                  |   | Fair Value                    |   |   | Identical Assets   |   |   | Observable Inputs |   |   | Inputs       |   |
|                                  |   |                          |   |   | (Level 1)          |   |   | (Level 2)         |   |   | (Level 3)    |   |
|                                  |   |                          |   |   |               |   |   |              |   |   |         |   |
| Impaired loans (collateral dependent) |   | $                             | 30,756 |   |               |   | -      |              |   |   | -            |   |   | $ | 30,756 |   |
| Mortgage servicing rights             |   |                          | 3,385  |   |               |   | -      |              |   |   | -            |   |   |   | 3,385 |   |
| Other real estate owned               |   |                          | 2,899  |   |               |   | -      |              |   |   | -            |   |   |   | 2,899 |   |

----

|                                                        |   | June 30, 2011 |      |   | December 31, 2010 |   |
|-------------------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                                        |   | Carrying      |      |   | Fair              |   |   | Carrying |   |   | Fair |   |
| (in thousands)                                              |   | Value         |      |   | Value             |   |   | Value |   |   | Value |   |
| Financial Assets:                                           |   |          |      |   |              |   |   |   |   |   |   |   |
|                                                        |   |          |      |   |              |   |   |   |   |   |   |   |
| Cash and due from banks                                     |   | $             | 18,349    |   |              | $      | 18,349 |   |   | $ | 12,992 |   |   | $ | 12,992 |   |
| Interest-bearing deposits in financial institutions         |   |          | 55,634    |   |              |   | 55,634 |   |   |   | 30,888 |   |   |   | 30,888 |   |
| Investment securities                                       |   |          | 245,233   |   |              |   | 245,385 |   |   |   | 260,939 |   |   |   | 261,224 |   |
| Loans, net, including loans held for sale                   |   |          | 641,173   |   |              |   | 645,373 |   |   |   | 679,863 |   |   |   | 684,438 |   |
| Accrued interest receivable                                 |   |          | 6,116     |   |              |   | 6,116 |   |   |   | 7,482 |   |   |   | 7,482 |   |
|      Total financial assets        |   | $             | 966,505   |   |              | $      | 970,857 |   |   | $ | 992,164 |   |   | $ | 997,024 |   |
|                                                        |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities:                                      |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing demand deposits                        |   | $             | 142,579   |   |              | $      | 142,579 |   |   | $ | 138,683 |   |   | $ | 138,683 |   |
| Interest-bearing deposits                                   |   |          | 796,836   |   |              |   | 799,863 |   |   |   | 824,278 |   |   |   | 827,266 |   |
| Borrowings                                                  |   |          | 69,287    |   |              |   | 69,334 |   |   |   | 71,559 |   |   |   | 71,615 |   |
| Accrued interest payable                                    |   |          | 1,223     |   |              |   | 1,223 |   |   |   | 1,335 |   |   |   | 1.335 |   |
|      Total financial liabilities   |   | $             | 1,009,925 |   |              | $      | 1,012,999 |   |   | $ | 1,035,855 |   |   | $ | 1,038,899 |   |
|                                                        |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Unrecognized financial instruments (net of contract amount) |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to originate loans                              |   | $             | -         |   |              | $      | - |   |   | $ | - |   |   | $ | - |   |
| Lines of credit                                             |   |          | -         |   |              |   | - |   |   |   | - |   |   |   | - |   |
| Letters of credit                                           |   |          | -         |   |              |   | - |   |   |   | - |   |   |   | - |   |

----

| (in thousands) |   |   |   |   |   |   |   |   |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|                                                |   | Three Months Ended |   |   | Six Months Ended |   |
|-----------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                |   | June 30,           |   |   | June 30,         |   |
|                                                |   | 2011               |   |   | 2010             |   |   | 2011 |   |   | 2010 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |
| Computed "expected" tax benefit                     |   | $                  | (1,870 | )      |             | $      | (86 | ) |   | $ | (1,310 | ) |   | $ | (267 | ) |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in income taxes resulting from: |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt income                                   |   |               | (300   | )      |             |   | (461 | ) |   |   | (610 | ) |   |   | (924 | ) |
| State income tax, net of federal tax effect         |   |               | (692   | )      |             |   | (42 | ) |   |   | (627 | ) |   |   | (104 | ) |
| Bank-owned life insurance income                    |   |               | (77    | )      |             |   | (77 | ) |   |   | (155 | ) |   |   | (159 | ) |
| Other, net                                          |   |               | 364    |   |             |   | (6 | ) |   |   | 39 |   |   |   | (12 | ) |
| Actual tax benefit                                  |   | $                  | (2,575 | )      |             | $      | (672 | ) |   | $ | (2,663 | ) |   | $ | (1,467 | ) |

----

----

----

----

----

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----

|                                                                   |   | June 30, |      |   | December 31, |   |   | June 30,                  |   |
|------------------------------------------------------------------------|--------|----------|-----------|--------|--------------|--------|--------|---------------------------|--------|
|                                                                   |   | 2011     |      |   | 2010         |   |   | 2010                      |   |
|                                                                   |   |     |      |   | % of         |   |   |                      |   |   | % of |   |   |   |   |   | % of |   |
|                                                    |   | Amount   |      |   | Total        |   |   | Amount                    |   |   | Total |   |   | Amount |   |   | Total |   |
|                                                                   |   |     |      |   |         |   |   |                      |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                             |   | $        | 129,771   |   |         |   | 19.7   | %     |   | $ | 138,325 |   |   |   | 19.6 | % |   | $ | 140,955 |   |   |   | 19.0 | % |
| Agricultural                                                           |   |     | 64,354    |   |         |   | 9.8    |                      |   |   | 78,086 |   |   |   | 11.1 |   |   |   | 70,555 |   |   |   | 9.5 |   |
| Agricultural real estate                                               |   |     | 49,391    |   |         |   | 7.5    |                      |   |   | 46,361 |   |   |   | 6.6 |   |   |   | 44,940 |   |   |   | 6.1 |   |
| Commercial real estate                                                 |   |     | 201,571   |   |         |   | 30.6   |                      |   |   | 205,301 |   |   |   | 29.2 |   |   |   | 208,565 |   |   |   | 28.1 |   |
| Commercial real estate development       |   |     | 75,126    |   |         |   | 11.4   |                      |   |   | 88,402 |   |   |   | 12.6 |   |   |   | 111,688 |   |   |   | 15.0 |   |
| Residential real estate                                                |   |     | 86,673    |   |         |   | 13.2   |                      |   |   | 90,869 |   |   |   | 12.9 |   |   |   | 100,642 |   |   |   | 13.6 |   |
| Total Real Estate                                                      |   |     | 412,761   |   |         |   | 62.8   |                      |   |   | 430,933 |   |   |   | 61.2 |   |   |   | 465,835 |   |   |   | 62.8 |   |
|                                                                   |   |     |      |   |         |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                                                               |   |     | 50,801    |   |         |   | 7.7    |                      |   |   | 56,730 |   |   |   | 8.1 |   |   |   | 64,579 |   |   |   | 8.7 |   |
| Total loans                                                            |   | $        | 657,687   |   |         |   | 100.0  | %                         |   | $ | 704,074 |   |   |   | 100.0 | % |   | $ | 741,924 |   |   |   | 100.0 | % |
|                                                                   |   |     |      |   |         |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                           |   | $        | 1,069,761 |   |         |   |   |                      |   | $ | 1,096,471 |   |   |   |   |   |   |  $ | 1,130,827  |   |   |   |   |   |
| Loans to total assets                                                  |   |     | 61.5      | %      |         |   |   |                      |   |   | 64.2 | % |   |   |   |   |   |   | 65.6  |  % |   |   |   |   |

----

----

|                                  |   | June 30, |    |   | December 31, |   |    | June 30, |   |
|---------------------------------------|--------|----------|---------|--------|--------------|--------|---------|----------|--------|
|                                  |   | 2011     |    |   | 2010         |   |    | 2010     |   |
| Non-accrual                           |   | $        | 69,550  |   |         | $      | 72,404  |     |   | $ | 54,004 |   |
| 90 days past due and accruing         |   |     | 2,469   |   |         |   | 1,561   |     |   |   | 509 |   |
| Restructured                          |   |     | 24,950  |   |         |   | 23,386  |     |   |   | 15,098 |   |
| Total non-performing loans            |   | $        | 96,969  |   |         | $      | 97,351  |     |   | $ | 69,611 |   |
|                                  |   |     |    |   |         |   |    |     |   |   |   |   |
| Other real estate owned               |   |     | 18,308  |   |         |   | 20,652  |     |   |   | 19,701 |   |
| Total non-performing assets           |   | $        | 115,277 |   |         | $      | 118,003 |     |   | $ | 89,312 |   |
|                                  |   |     |    |   |         |   |    |     |   |   |   |   |
| Non-performing loans to total loans   |   |     |    |   |         |   |    |     |   |   |   |   |
| (net of unearned interest)            |   |     | 14.74   | %      |         |   | 13.83   | %        |   |   | 9.38 | % |
| Non-performing assets to total assets |   |     | 10.78   | %      |         |   | 10.76   | %        |   |   | 7.90 | % |

----

| Loan-to-Value |   | Amount |   |
|---------------|--------|--------|--------|
| 0 - 50%       |   | $      | 973    |   |
| 50 - 60%      |   | $      | 41     |   |
| 60 - 70%      |   | $      | 57     |   |
| 70 - 80%      |   | $      | -0-    |   |
| 80 - 90%      |   | $      | 239    |   |
| 90% +         |   | $      | 847    |   |

----

|                                                                                 |   | June 30, |    |   | December 31, |   |    | June 30, |   |
|--------------------------------------------------------------------------------------|--------|----------|---------|--------|--------------|--------|---------|----------|--------|
|                                                                                 |   | 2011     |    |   | 2010         |   |    | 2010     |   |
|                                                                                 |   |     |    |   |         |   |    |     |   |
| Amount of loans outstanding at end of period (net of unearned interest)              |   | $        | 657,687 |   |         | $      | 704,074 |     |   | $ | 741,924 |   |
| Average amount of loans outstanding for the period (net of unearned interest)        |   | $        | 691,101 |   |         | $      | 687,177 |     |   | $ | 765,342 |   |
| Allowance for loan losses at beginning of period                                     |   | $        | 29,726  |   |         | $      | 12,075  |     |   | $ | 12,075 |   |
| Charge-offs:                                                                         |   |     |    |   |         |   |    |     |   |   |   |   |
| Agricultural                                                                         |   |     | 38      |   |         |   | 68      |     |   |   | -0- |   |
| Commercial                                                                           |   |     | 18,498  |   |         |   | 19,525  |     |   |   | 2,141 |   |
| Real estate-mortgage                                                                 |   |     | 1,439   |   |         |   | 2,266   |     |   |   | 508 |   |
| Installment                                                                          |   |     | 682     |   |         |   | 1,307   |     |   |   | 140 |   |
|                                                                                 |   |     |    |   |         |   |    |     |   |   |   |   |
| Total charge-offs                                                                    |   |     | 20,657  |   |         |   | 23,166  |     |   |   | 2,789 |   |
|                                                                                 |   |     |    |   |         |   |    |     |   |   |   |   |
| Recoveries:                                                                          |   |     |    |   |         |   |    |     |   |   |   |   |
| Agricultural                                                                         |   |     | -0-     |   |         |   | -0-     |     |   |   | -0- |   |
| Commercial                                                                           |   |     | 45      |   |         |   | 45      |     |   |   | 30 |   |
| Real estate-mortgage                                                                 |   |     | 7       |   |         |   | -0-     |     |   |   | -0- |   |
| Installment                                                                          |   |     | 83      |   |         |   | 222     |     |   |   | 84 |   |
|                                                                                 |   |     |    |   |         |   |    |     |   |   |   |   |
| Total recoveries                                                                     |   |     | 135     |   |         |   | 267     |     |   |   | 114 |   |
|                                                                                 |   |     |    |   |         |   |    |     |   |   |   |   |
| Net loans charged off                                                                |   |     | 20,522  |   |         |   | 22,899  |     |   |   | 2,675 |   |
| Provision for loan losses                                                            |   |     | 9,925   |   |         |   | 40,550  |     |   |   | 6,575 |   |
|                                                                                 |   |     |    |   |         |   |    |     |   |   |   |   |
| Allowance for loan losses at end of period                                           |   | $        | 19,129  |   |         | $      | 29,726  |     |   | $ | 15,975 |   |
|                                                                                 |   |     |    |   |         |   |    |     |   |   |   |   |
| Net loans charged off to average loans (annualized)                                  |   |     | 5.94    | %      |         |   | 3.33    | %        |   |   | 0.70 | % |
| Allowance for loan losses to non-performing loans                                    |   |     | 19.73   | %      |         |   | 30.53   | %        |   |   | 24.16 | % |
| Allowance for loan losses to total loans at end of period (net of unearned interest) |   |     | 2.91    | %      |         |   | 4.22    | %        |   |   | 2.15 | % |

----

----

----

----

|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |
|-----------------------------------------------|--------|---------------------------------|-----------|--------|---------------------------------|--------|--------|--------|--------|--------|---------|--------|--------|----------|-----------|--------|--------|--------|
|                                          |   | Six Months Ended, June 30, 2011 |      |   | Six Months Ended, June 30, 2010 |   |
|                                          |   | Average                         |      |   |                            |   |   | Yield/ |   |   | Average |   |   |     |      |   | Yield/ |   |
|                                          |   | Balance                         |      |   | Interest                        |   |   | Cost   |   |   | Balance |   |   | Interest |      |   | Cost   |   |
| Average Interest-Earning Assets               |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |
| Interest-bearing deposits                     |   | $                               | 47,180    |   |                            | $      | 56     |   |   |   | 0.24    | %      |   | $        | 61,577    |   |   | $      | 72 |   |   |   | 0.24 | % |
| Taxable investment securities                 |   |                            | 162,888   |   |                            |   | 3,107  |   |   |   | 3.85    | %      |   |     | 134,655   |   |   |   | 2,647 |   |   |   | 3.96 | % |
| Tax-exempt investment securities              |   |                            | 84,713    |   |                            |   | 2,517  |   |   |   | 5.99    | %      |   |     | 125,765   |   |   |   | 4,073 |   |   |   | 6.53 | % |
| Federal funds sold                            |   |                            | 0         |   |                            |   | 0      |   |   |   | 0.00    | %      |   |     | 139       |   |   |   | 0 |   |   |   | 0.00 | % |
| Net loans                                     |   |                            | 604,960   |   |                            |   | 17,119 |   |   |   | 5.71    | %      |   |     | 711,002   |   |   |   | 20,500 |   |   |   | 5.81 | % |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets                 |   |                            | 899,741   |   |                            |   | 22,799 |   |   |   | 5.11    | %      |   |     | 1,033,138 |   |   |   | 27,292 |   |   |   | 5.33 | % |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Average non-interest earning assets           |   |                            | 190,943   |   |                            |   |   |   |   |   |    |   |   |     | 158,790   |   |   |   |   |   |   |   |   |   |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Total average assets                          |   | $                               | 1,090,684 |   |                            |   |   |   |   |   |    |   |   | $        | 1,191,927 |   |   |   |   |   |   |   |   |   |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Average Interest-Bearing Liabilities          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits              |   | $                               | 382,769   |   |                            |   | 1,176  |   |   |   | 0.62    | %      |   | $        | 383,475   |   |   |   | 1,683 |   |   |   | 0.89 | % |
| Savings deposits                              |   |                            | 81,035    |   |                            |   | 29     |   |   |   | 0.07    | %      |   |     | 72,716    |   |   |   | 31 |   |   |   | 0.09 | % |
| Time deposits                                 |   |                            | 351,130   |   |                            |   | 2,167  |   |   |   | 1.24    | %      |   |     | 446,103   |   |   |   | 4,316 |   |   |   | 1.95 | % |
| Interest-bearing demand notes                 |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
|    issued to the U.S. Treasury |   |                            | 1,075     |   |                            |   | 0      |   |   |   | 0.02    | %      |   |     | 892       |   |   |   | 0 |   |   |   | 0.02 | % |
| Federal funds purchased and                   |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
|   customer repurchase agreements    |   |                            | 37,506    |   |                            |   | 120    |   |   |   | 0.65    | %      |   |     | 39,130    |   |   |   | 160 |   |   |   | 0.82 | % |
| Advances from Federal Home Loan Bank          |   |                            | 6,746     |   |                            |   | 32     |   |   |   | 0.96    | %      |   |     | 25,058    |   |   |   | 266 |   |   |   | 2.14 | % |
| Trust preferred securities                    |   |                            | 25,000    |   |                            |   | 232    |   |   |   | 1.86    | %      |   |     | 25,000    |   |   |   | 710 |   |   |   | 5.73 | % |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities            |   |                            | 885,261   |   |                            |   | 3,756  |   |   |   | 0.86    | %      |   |     | 992,373   |   |   |   | 7,166 |   |   |   | 1.46 | % |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Net yield on average interest-earning assets  |   |                            | $         | 19,043 |                            |   |   | 4.27   | %      |   |    |   |   |     | $         | 20,126 |   |   |   | 3.93 | % |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Average non-interest-bearing liabilities      |   |                            | 147,665   |   |                            |   |   |   |   |   |    |   |   |     | 122,991   |   |   |   |   |   |   |   |   |   |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Average stockholders' equity                  |   |                            | 57,758    |   |                            |   |   |   |   |   |    |   |   |     | 76,563    |   |   |   |   |   |   |   |   |   |
|                                          |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Total average liabilities and                 |   |                            |      |   |                            |   |   |   |   |   |    |   |   |     |      |   |   |   |   |   |   |
|    stockholders' equity        |   | $                               | 1,090,684 |   |                            |   |   |   |   |   |    |   |   | $        | 1,191,927 |   |   |   |   |   |   |   |   |   |

|                                  |   | For the Six Months Ended |   |
|---------------------------------------|--------|--------------------------|--------|
|                                  |   | June 30,                 |   |
|                                  |   | 2011                     |   |   | 2010 |   |
| Net interest income as stated         |   | $                        | 18,113 |   |   | $ | 18,668 |   |
| Tax equivalent adjustment-investments |   |                     | 856    |   |   |   | 1,385 |   |
| Tax equivalent adjustment-loans       |   |                     | 74     |   |   |   | 73 |   |
|                                  |   |                     |   |   |   |   |   |   |
| Tax equivalent net interest income    |   | $                        | 19,043 |   |   | $ | 20,126 |   |
|                                  |   |                     |   |   |   |   |   |   |

----

| (a)   | Disclosure controls and procedures.  We evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2011.  Our disclosure controls and procedures are the controls and other procedures that we designed to ensure that we record, process, summarize and report in a timely manner the information we must disclose in reports that we file with or submit to the SEC.  Thomas D. Ogaard, President and Chief Executive Officer, and Rodney D. Stickle, Senior Vice President and Chief Financial Officer, reviewed and participated in this evaluation.  Based on this evaluation, management concluded that, as of the date of their evaluation, our disclosure controls were effective. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Internal controls.  There have not been any significant changes in our internal accounting controls or other factors during the quarter ended June 30, 2011 that could significantly affect those controls. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|