----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|---|--------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|---|---------------------------------------------------------------------|

|   Virginia                 |   54-1829288      |
|---------------------------------|------------------------|
| (State or other jurisdiction of |  (I.R.S. Employer |
| incorporation or organization)  | Identification No.)    |

| 590 Peter Jefferson Parkway, Charlottesville, Virginia | 22911      |
|--------------------------------------------------------|------------|
| (Address of principal executive offices)               | (Zip Code) |

----

| STELLARONE CORPORATION         |
|--------------------------------|
| INDEX                          |
| PART I - FINANCIAL INFORMATION |
|                           |   |   |
| ITEM 1                         | Financial Statements (Unaudited): |   |
|                           |   |   |
|                           | Consolidated Balance Sheets | 3 |
|                           | Consolidated Statements of Income | 4-5 |
|                           | Consolidated Statements of Changes in Stockholders' Equity | 6 |
|                           | Consolidated Statements of Cash Flows | 7 |
|                           | Notes to Consolidated Financial Statements | 8-22 |
|                           |   |   |
| ITEM 2                         | Management's Discussion and Analysis of Financial Condition and Results of Operations | 23-37 |
|                           |   |   |
| ITEM 3                         | Quantitative and Qualitative Disclosures About Market Risk | 37 |
|                           |   |   |
| ITEM 4                         | Controls and Procedures | 38 |
|                           |   |   |
| PART II - OTHER INFORMATION    |
|                           |   |   |
| ITEM 1                         | Legal Proceedings | 39 |
|                           |   |   |
| ITEM 1A                        | Risk Factors | 39 |
|                           |   |   |
| ITEM 2                         | Unregistered Sales of Equity Securities and Use of Proceeds | 39 |
|                           |   |   |
| ITEM 3                         | Defaults Upon Senior Securities | 39 |
|                           |   |   |
| ITEM 4                         | (Removed and Reserved) | 39 |
|                           |   |   |
| ITEM 5                         | Other Information | 39 |
|                           |   |   |
| ITEM 6                         | Exhibits | 40 |

----

Table of Contents

| STELLARONE CORPORATION AND SUBSIDIARIES                                                                                                                              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                                          |   |
| (In thousands)                                                                                                                                                       |   |
|                                                                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                                                                 |   | SEPTEMBER 30, |   |   | DECEMBER 31, |   |
|                                                                                                                                                                 |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |
| Assets                                                                                                                                                               |   |   |   |   |   |   |
|   Cash and due from banks                                                                                                                                  |   | $ | 46,388 |   |   | $ | 52,120 |   |
|   Federal funds sold                                                                                                                                       |   |   | 32,743 |   |   |   | 44,244 |   |
|   Interest-bearing deposits in banks                                                                                                                       |   |   | 29,745 |   |   |   | 56,562 |   |
|     Cash and cash equivalents                                                                                                                    |   |   | 108,876 |   |   |   | 152,926 |   |
|   Investment securities (fair value: 2010, $403,415; 2009, $378,964)                                                                                       |   |   | 403,415 |   |   |   | 378,961 |   |
|   Mortgage loans held for sale                                                                                                                             |   |   | 46,624 |   |   |   | 44,165 |   |
|   Loans receivable, net of allowance for loan losses, 2010, $39,973; 2009, $40,172                                                                         |   |   | 2,043,537 |   |   |   | 2,146,335 |   |
|   Premises and equipment, net                                                                                                                              |   |   | 79,737 |   |   |   | 83,546 |   |
|   Accrued interest receivable                                                                                                                              |   |   | 9,427 |   |   |   | 9,459 |   |
|   Deferred income tax asset                                                                                                                                |   |   | - |   |   |   | 882 |   |
|   Core deposit intangibles, net                                                                                                                            |   |   | 7,075 |   |   |   | 8,408 |   |
|   Goodwill                                                                                                                                                 |   |   | 113,652 |   |   |   | 113,652 |   |
|   Bank owned life insurance                                                                                                                                |   |   | 30,792 |   |   |   | 30,196 |   |
|   Foreclosed assets                                                                                                                                        |   |   | 10,535 |   |   |   | 4,505 |   |
|   Other assets                                                                                                                                             |   |   | 65,900 |   |   |   | 60,066 |   |
|     Total assets                                                                                                                                 |   | $ | 2,919,570 |   |   | $ | 3,033,101 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                                                                          |   |   |   |   |   |   |   |   |
|   Deposits:                                                                                                                                                |   |   |   |   |   |   |   |   |
| Noninterest-bearing                                                                                                                                                  |   | $ | 304,178 |   |   | $ | 302,009 |   |
| Interest-bearing                                                                                                                                                     |   |   | 2,044,726 |   |   |   | 2,134,111 |   |
| Total deposits                                                                                                                                                       |   |   | 2,348,904 |   |   |   | 2,436,120 |   |
|   Short-term borrowings                                                                                                                                    |   |   | 1,156 |   |   |   | 783 |   |
|   Federal Home Loan Bank advances                                                                                                                          |   |   | 85,000 |   |   |   | 130,000 |   |
|   Subordinated debt                                                                                                                                        |   |   | 32,991 |   |   |   | 32,991 |   |
|   Accrued interest payable                                                                                                                                 |   |   | 2,760 |   |   |   | 3,626 |   |
|   Deferred income tax liability                                                                                                                            |   |   | 1,062 |   |   |   | - |   |
|   Other liabilities                                                                                                                                        |   |   | 18,243 |   |   |   | 8,796 |   |
| Total liabilities                                                                                                                                                    |   |   | 2,490,116 |   |   |   | 2,612,316 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Stockholders' Equity                                                                                                                                                 |   |   |   |   |   |   |   |   |
|   Preferred stock; no par value; 5,000,000 shares authorized; no shares issued and outstanding;                                                            |   |   | - |   |   |   | - |   |
|   Preferred stock; $1,000 per share liquidation preference; 30,000 shares issued and outstanding;                                                          |   |   | 28,669 |   |   |   | 28,398 |   |
|   Common stock; $1 par value; 35,000,000 shares authorized; 2010: 22,748,062 shares issued and outstanding; 2009: 22,661,125 shares issued and outstanding |   |   | 22,748 |   |   |   | 22,661 |   |
|   Additional paid-in capital                                                                                                                               |   |   | 269,870 |   |   |   | 268,965 |   |
|   Retained earnings                                                                                                                                        |   |   | 99,748 |   |   |   | 96,947 |   |
|   Accumulated other comprehensive income, net                                                                                                              |   |   | 8,419 |   |   |   | 3,814 |   |
|     Total stockholders' equity                                                                                                                   |   |   | 429,454 |   |   |   | 420,785 |   |
|     Total liabilities and stockholders' equity                                                                                                   |   | $ | 2,919,570 |   |   | $ | 3,033,101 |   |

----

Table of Contents

| STELLARONE CORPORATION AND SUBSIDIARIES                                                  |   |
|------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                    |   |
| (In thousands, except per share data)                                                    |   |
|                                                                                     |   |   |   |   |   |   |
|                                                                                     |   | THREE MONTHS ENDED |   |
|                                                                                     |   | SEPTEMBER 30, |   |
|                                                                                     |   | 2010 |   |   | 2009 |   |
| Interest and Dividend Income                                                             |   |   |   |   |   |   |
|   Loans, including fees                                                        |   | $ | 28,226 |   |   | $ | 30,954 |   |
|   Federal funds sold and deposits in other banks                               |   |   | 62 |   |   |   | 74 |   |
|   Investment securities:                                                       |   |   |   |   |   |   |   |   |
|     Taxable                                                          |   |   | 2,134 |   |   |   | 2,107 |   |
|     Tax-exempt                                                       |   |   | 1,149 |   |   |   | 1,112 |   |
|     Dividends                                                        |   |   | 11 |   |   |   | 195 |   |
|       Total interest income                                |   |   | 31,582 |   |   |   | 34,442 |   |
|                                                                                     |   |   |   |   |   |   |   |   |
| Interest Expense                                                                         |   |   |   |   |   |   |   |   |
|   Deposits                                                                     |   |   | 6,744 |   |   |   | 10,857 |   |
|   Federal funds repurchased and securities sold under agreements to repurchase |   |   | 8 |   |   |   | 4 |   |
|   Federal Home Loan Bank advances                                              |   |   | 1,010 |   |   |   | 1,320 |   |
|   Subordinated debt                                                            |   |   | 286 |   |   |   | 292 |   |
|       Total interest expense                               |   |   | 8,048 |   |   |   | 12,473 |   |
|   Net interest income                                                          |   |   | 23,534 |   |   |   | 21,969 |   |
|   Provision for loan losses                                                    |   |   | 3,500 |   |   |   | 20,050 |   |
|       Net interest income after provision for loan losses  |   |   | 20,034 |   |   |   | 1,919 |   |
|                                                                                     |   |   |   |   |   |   |   |   |
| Noninterest Income                                                                       |   |   |   |   |   |   |   |   |
|   Retail banking fees                                                          |   |   | 4,125 |   |   |   | 4,329 |   |
|   Commissions and fees from fiduciary activities                               |   |   | 818 |   |   |   | 736 |   |
|   Brokerage fee income                                                         |   |   | 318 |   |   |   | 369 |   |
|   Mortgage banking-related fees                                                |   |   | 2,602 |   |   |   | 1,783 |   |
|   Losses on mortgage indemnifications and repurchases                          |   |   | (809 | ) |   |   | (55 | ) |
|   Losses on sale of premises and equipment                                     |   |   | - |   |   |   | (17 | ) |
|   Impairments of equity securities available for sale                          |   |   | (53 | ) |   |   | (1,870 | ) |
|   Gains on sale of securities available for sale                               |   |   | 336 |   |   |   | 32 |   |
|   Losses / impairments on foreclosed assets                                    |   |   | (18 | ) |   |   | (122 | ) |
|   Income from bank owned life insurance                                        |   |   | 322 |   |   |   | 328 |   |
|   Other operating income                                                       |   |   | 606 |   |   |   | 378 |   |
|       Total noninterest income                             |   |   | 8,247 |   |   |   | 5,891 |   |
| Non-interest Expense                                                                     |   |   |   |   |   |   |   |   |
|   Compensation and employee benefits                                           |   |   | 11,687 |   |   |   | 11,027 |   |
|   Net occupancy                                                                |   |   | 1,996 |   |   |   | 2,121 |   |
|   Supplies and equipment                                                       |   |   | 1,963 |   |   |   | 2,069 |   |
|   Amortization of intangible assets                                            |   |   | 413 |   |   |   | 432 |   |
|   Marketing                                                                    |   |   | 313 |   |   |   | 404 |   |
|   State franchise taxes                                                        |   |   | 554 |   |   |   | 574 |   |
|   FDIC insurance                                                               |   |   | 1,617 |   |   |   | 1,159 |   |
|   Data processing                                                              |   |   | 634 |   |   |   | 391 |   |
|   Professional fees                                                            |   |   | 656 |   |   |   | 609 |   |
|   Telecommunications                                                           |   |   | 410 |   |   |   | 452 |   |
|   Other operating expenses                                                     |   |   | 3,422 |   |   |   | 3,510 |   |
|       Total noninterest expense                            |   |   | 23,665 |   |   |   | 22,748 |   |
|                                                                                     |   |   |   |   |   |   |   |   |
|       Income (loss) before income taxes                    |   |   | 4,616 |   |   |   | (14,938 | ) |
|   Income tax expense (benefit)                                                 |   |   | 1,088 |   |   |   | (6,043 | ) |
|       Net income (loss)                                    |   | $ | 3,528 |   |   | $ | (8,895 | ) |
|   Dividends and accretion on preferred stock                                   |   |   | (470 | ) |   |   | (464 | ) |
|       Net income (loss) available to common shareholders   |   | $ | 3,058 |   |   | $ | (9,359 | ) |
|                                                                                     |   |   |   |   |   |   |   |   |
| Basic net income (loss) per common share available to common shareholders                |   | $ | 0.13 |   |   | $ | (0.41 | ) |
| Diluted net income (loss) per common share available to common shareholders              |   | $ | 0.13 |   |   | $ | (0.41 | ) |

----

Table of Contents

| STELLARONE CORPORATION AND SUBSIDIARIES                                                  |   |
|------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                    |   |
| (In thousands, except per share data)                                                    |   |
|                                                                                     |   |   |   |   |   |   |
|                                                                                     |   | NINE MONTHS ENDED |   |
|                                                                                     |   | SEPTEMBER 30, |   |
|                                                                                     |   | 2010 |   |   | 2009 |   |
| Interest and Dividend Income                                                             |   |   |   |   |   |   |
|   Loans, including fees                                                        |   | $ | 86,162 |   |   | $ | 95,140 |   |
|   Federal funds sold and deposits in other banks                               |   |   | 193 |   |   |   | 158 |   |
|   Investment securities:                                                       |   |   |   |   |   |   |   |   |
|     Taxable                                                          |   |   | 6,560 |   |   |   | 7,262 |   |
|     Tax-exempt                                                       |   |   | 3,226 |   |   |   | 2,932 |   |
|     Dividends                                                        |   |   | 71 |   |   |   | 117 |   |
|       Total interest income                                |   |   | 96,212 |   |   |   | 105,609 |   |
|                                                                                     |   |   |   |   |   |   |   |   |
| Interest Expense                                                                         |   |   |   |   |   |   |   |   |
|   Deposits                                                                     |   |   | 22,953 |   |   |   | 33,868 |   |
|   Federal funds repurchased and securities sold under agreements to repurchase |   |   | 22 |   |   |   | 11 |   |
|   Federal Home Loan Bank advances                                              |   |   | 3,179 |   |   |   | 4,441 |   |
|   Subordinated debt                                                            |   |   | 808 |   |   |   | 992 |   |
|       Total interest expense                               |   |   | 26,962 |   |   |   | 39,312 |   |
|   Net interest income                                                          |   |   | 69,250 |   |   |   | 66,297 |   |
|   Provision for loan losses                                                    |   |   | 17,550 |   |   |   | 34,300 |   |
|       Net interest income after provision for loan losses  |   |   | 51,700 |   |   |   | 31,997 |   |
|                                                                                     |   |   |   |   |   |   |   |   |
| Noninterest Income                                                                       |   |   |   |   |   |   |   |   |
|   Retail banking fees                                                          |   |   | 12,338 |   |   |   | 12,153 |   |
|   Commissions and fees from fiduciary activities                               |   |   | 2,496 |   |   |   | 2,238 |   |
|   Brokerage fee income                                                         |   |   | 1,103 |   |   |   | 867 |   |
|   Mortgage banking-related fees                                                |   |   | 6,620 |   |   |   | 5,374 |   |
|   Losses on mortgage indemnifications and repurchases                          |   |   | (1,411 | ) |   |   | (231 | ) |
|   Gain on sale of financial center                                             |   |   | 748 |   |   |   | - |   |
|   Gains (losses) on sale of premises and equipment                             |   |   | 27 |   |   |   | (107 | ) |
|   Impairments of equity securities available for sale                          |   |   | (53 | ) |   |   | (1,870 | ) |
|   Gains on sale of securities available for sale                               |   |   | 656 |   |   |   | 44 |   |
|   Losses / impairments on foreclosed assets                                    |   |   | (459 | ) |   |   | (797 | ) |
|   Income from bank owned life insurance                                        |   |   | 972 |   |   |   | 962 |   |
|   Other operating income                                                       |   |   | 2,405 |   |   |   | 2,055 |   |
|       Total noninterest income                             |   |   | 25,442 |   |   |   | 20,688 |   |
| Non-interest Expense                                                                     |   |   |   |   |   |   |   |   |
|   Compensation and employee benefits                                           |   |   | 34,095 |   |   |   | 32,390 |   |
|   Net occupancy                                                                |   |   | 6,218 |   |   |   | 6,375 |   |
|   Supplies and equipment                                                       |   |   | 6,295 |   |   |   | 6,475 |   |
|   Amortization of intangible assets                                            |   |   | 1,238 |   |   |   | 1,305 |   |
|   Marketing                                                                    |   |   | 786 |   |   |   | 914 |   |
|   State franchise taxes                                                        |   |   | 1,662 |   |   |   | 1,744 |   |
|   FDIC insurance                                                               |   |   | 4,048 |   |   |   | 4,352 |   |
|   Data processing                                                              |   |   | 1,741 |   |   |   | 1,893 |   |
|   Professional fees                                                            |   |   | 2,071 |   |   |   | 1,602 |   |
|   Telecommunications                                                           |   |   | 1,256 |   |   |   | 1,396 |   |
|   Other operating expenses                                                     |   |   | 9,593 |   |   |   | 10,436 |   |
|       Total noninterest expense                            |   |   | 69,003 |   |   |   | 68,882 |   |
|                                                                                     |   |   |   |   |   |   |   |   |
|       Income (loss) before income taxes                    |   |   | 8,139 |   |   |   | (16,197 | ) |
|   Income tax expense (benefit)                                                 |   |   | 1,203 |   |   |   | (7,121 | ) |
|       Net income (loss)                                    |   | $ | 6,936 |   |   | $ | (9,076 | ) |
|   Dividends and accretion on preferred stock                                   |   |   | (1,393 | ) |   |   | (1,367 | ) |
|       Net income (loss) available to common shareholders   |   | $ | 5,543 |   |   | $ | (10,443 | ) |
|                                                                                     |   |   |   |   |   |   |   |   |
| Basic net income (loss) per common share available to common shareholders                |   | $ | 0.24 |   |   | $ | (0.46 | ) |
| Diluted net income (loss) per common share available to common shareholders              |   | $ | 0.24 |   |   | $ | (0.46 | ) |

----

Table of Contents

| STELLARONE CORPORATION AND SUBSIDIARIES                                                                |   |
|--------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND OTHER COMPREHENSIVE INCOME (LOSS) |   |
| FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009                                                  |   |
| (In thousands, except per share data)                                                                  |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   | Other |   |   | Compre- |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Compre- |   |   | hensive |   |   |   |   |
|                                                                                                   |   | Preferred |   |   | Common |   |   | Paid-In |   |   | Retained |   |   | hensive |   |   | (Loss) |   |   |   |   |
|                                                                                                   |   | Stock |   |   | Stock |   |   | Capital |   |   | Earnings |   |   | Income |   |   | Income |   |   | Total |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2009                                                                               |   | $ | 28,121 |   |   | $ | 22,605 |   |   | $ | 268,293 |   |   | $ | 113,661 |   |   | $ | 876 |   |   |   |   |   | $ | 433,556 |   |
| Comprehensive loss:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (9,076 | ) |   |   | - |   |   | $ | (9,076 | ) |   |   | (9,076 | ) |
| Other comprehensive loss, net of tax:                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains arising during the period (net of tax, $3,452)                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,411 |   |   |   | - |   |
| Reclassification adjustment (net of tax, $639)                                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,187 | ) |   |   | - |   |
| Other comprehensive income                                                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,224 |   |   |   | 5,224 |   |   |   | 5,224 |   |
| Total comprehensive loss                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | (3,852 | ) |   |   | - |   |
| Cash dividends paid or accrued:                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Common ($0.24 per share)                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,442 | ) |   |   | - |   |   |   |   |   |   |   | (5,442 | ) |
| Preferred cumulative 5%                                                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,122 | ) |   |   | - |   |   |   |   |   |   |   | (1,122 | ) |
| Accretion on preferred stock discount                                                                  |   |   | 245 |   |   |   | - |   |   |   | - |   |   |   | (245 | ) |   |   | - |   |   |   |   |   |   |   | - |   |
| Preferred stock issuance costs                                                                         |   |   | (56 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (56 | ) |
| Stock-based compensation expense (20,029 shares)                                                       |   |   | - |   |   |   | 20 |   |   |   | 351 |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 371 |   |
| Exercise of stock options (35,915 shares)                                                              |   |   | - |   |   |   | 36 |   |   |   | 207 |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 243 |   |
| Balance, September 30, 2009                                                                            |   | $ | 28,310 |   |   | $ | 22,661 |   |   | $ | 268,851 |   |   | $ | 97,776 |   |   | $ | 6,100 |   |   |   |   |   |   | $ | 423,698 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2010                                                                               |   | $ | 28,398 |   |   | $ | 22,661 |   |   | $ | 268,965 |   |   | $ | 96,947 |   |   | $ | 3,814 |   |   |   |   |   |   | $ | 420,785 |   |
| Comprehensive income:                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,936 |   |   |   | - |   |   | $ | 6,936 |   |   |   | 6,936 |   |
| Other comprehensive income, net of tax:                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains arising during the period (net of tax, $2,374)                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,409 |   |   |   | - |   |
| Reclassification adjustment (net of tax, $211)                                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 392 |   |   |   | - |   |
| Change in post retirement liability (net of tax, $66)                                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (122 | ) |   |   | - |   |
| Change in cash flow hedge market value (net of tax, $40)                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (74 | ) |   |   |   |   |
| Other comprehensive income                                                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,605 |   |   |   | 4,605 |   |   |   | 4,605 |   |
| Total comprehensive income                                                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 11,541 |   |   |   | - |   |
| Cash dividends paid or accrued:                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common ($0.12 per share)                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,742 | ) |   |   | - |   |   |   |   |   |   |   | (2,742 | ) |
| Preferred cumulative 5%                                                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,122 | ) |   |   | - |   |   |   |   |   |   |   | (1,122 | ) |
| Accretion on preferred stock discount                                                                  |   |   | 271 |   |   |   | - |   |   |   | - |   |   |   | (271 | ) |   |   | - |   |   |   |   |   |   |   | - |   |
| Stock-based compensation expense (26,615 shares)                                                       |   |   | - |   |   |   | 27 |   |   |   | 455 |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 482 |   |
| Exercise of stock options (60,322 shares)                                                              |   |   | - |   |   |   | 60 |   |   |   | 450 |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 510 |   |
| Balance, September 30, 2010                                                                            |   | $ | 28,669 |   |   | $ | 22,748 |   |   | $ | 269,870 |   |   | $ | 99,748 |   |   | $ | 8,419 |   |   |   |   |   |   | $ | 429,454 |   |

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Table of Contents

| STELLARONE CORPORATION AND SUBSIDIARIES                                                               |   |
|-------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                 |   |
| (In thousands)                                                                                        |   |
|                                                                                                  |   | NINE MONTHS ENDED |   |
|                                                                                                  |   | SEPTEMBER 30, |   |
|                                                                                                  |   | 2010 |   |   | 2009 |   |
|                                                                                                  |   |   |   |   |   |   |
| Cash Flows from Operating Activities                                                                  |   |   |   |   |   |   |
| Net income (loss)                                                                                     |   | $ | 6,936 |   |   | $ | (9,076 | ) |
| Adjustments to reconcile net income to net cash used in operating activities:                         |   |   |   |   |   |   |   |   |
| Depreciation                                                                                          |   |   | 4,691 |   |   |   | 4,735 |   |
| Amortization of intangible assets                                                                     |   |   | 1,333 |   |   |   | 1,305 |   |
| Provision for loan losses                                                                             |   |   | 17,550 |   |   |   | 34,300 |   |
| Deferred tax benefit                                                                                  |   |   | (536 | ) |   |   | (3,836 | ) |
| Stock-based compensation expense                                                                      |   |   | 482 |   |   |   | 371 |   |
| Losses / impairments on foreclosed assets                                                             |   |   | 459 |   |   |   | 797 |   |
| Losses on mortgage indemnifications and repurchases                                                   |   |   | 1,411 |   |   |   | 231 |   |
| Gain on sale of financial center                                                                      |   |   | (748 | ) |   |   | - |   |
| (Gains) losses on sale of premises and equipment                                                      |   |   | (27 | ) |   |   | 107 |   |
| Gains on sale of securities available for sale                                                        |   |   | (656 | ) |   |   | (44 | ) |
| Impairments of equity securities available for sale                                                   |   |   | 53 |   |   |   | 1,870 |   |
| Mortgage banking-related fees                                                                         |   |   | (6,620 | ) |   |   | (5,374 | ) |
| Proceeds from sale of mortgage loans                                                                  |   |   | 371,407 |   |   |   | 430,313 |   |
| Origination of mortgage loans for sale                                                                |   |   | (367,247 | ) |   |   | (454,831 | ) |
| Amortization of securities premiums and accretion of discounts, net                                   |   |   | 1,063 |   |   |   | (1,264 | ) |
| Income on bank owned life insurance                                                                   |   |   | (972 | ) |   |   | (962 | ) |
| Changes in assets and liabilities:                                                                    |   |   |   |   |   |   |   |   |
| Decrease in accrued interest receivable                                                               |   |   | 32 |   |   |   | 368 |   |
| Increase in other assets                                                                              |   |   | (6,729 | ) |   |   | (407 | ) |
| Decrease in accrued interest payable                                                                  |   |   | (840 | ) |   |   | (1,265 | ) |
| Increase (decrease) in other liabilities                                                              |   |   | 9,199 |   |   |   | (807 | ) |
|  Net cash provided (used) by operating activities                                                |   | $ | 30,241 |   |   | $ | (3,469 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                                                  |   |   |   |   |   |   |   |   |
| Proceeds from maturities and principal payments of securities available for sale                      |   | $ | 64,695 |   |   | $ | 71,304 |   |
| Proceeds from sales and calls of securities available for sale                                        |   |   | 30,979 |   |   |   | 30,320 |   |
| Purchase of securities available for sale                                                             |   |   | (113,117 | ) |   |   | (113,703 | ) |
| Net decrease in loans                                                                                 |   |   | 73,608 |   |   |   | 16,600 |   |
| Proceeds from sale of premises and equipment                                                          |   |   | 26 |   |   |   | 637 |   |
| Purchase of premises and equipment                                                                    |   |   | (2,236 | ) |   |   | (3,254 | ) |
| Proceeds from sale of foreclosed assets                                                               |   |   | 5,285 |   |   |   | 1,949 |   |
| Cash paid in sale of financial center, net                                                            |   |   | (13,349 | ) |   |   | - |   |
| Net cash provided by investing activities                                                             |   | $ | 45,891 |   |   | $ | 3,853 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                                                  |   |   |   |   |   |   |   |   |
| Net increase in demand, money market and savings deposits                                             |   | $ | 30,612 |   |   | $ | 112,357 |   |
| Net decrease in certificates of deposit                                                               |   |   | (102,813 | ) |   |   | (30,914 | ) |
| Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase |   |   | 373 |   |   |   | (127 | ) |
| Principal payments on Federal Home Loan Bank advances                                                 |   |   | (45,000 | ) |   |   | (42,700 | ) |
| Proceeds from exercise of stock options                                                               |   |   | 510 |   |   |   | 350 |   |
| Payment of preferred stock issuance costs                                                             |   |   | - |   |   |   | (56 | ) |
| Cash dividends paid                                                                                   |   |   | (3,864 | ) |   |   | (6,425 | ) |
|  Net cash (used) provided by financing activities                                                |   | $ | (120,182 | ) |   | $ | 32,485 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
|  (Decrease) increase in cash and cash equivalents                                                |   | $ | (44,050 | ) |   | $ | 32,869 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents                                                                             |   |   |   |   |   |   |   |   |
| Beginning                                                                                             |   |   | 152,926 |   |   |   | 115,529 |   |
| Ending                                                                                                |   | $ | 108,876 |   |   | $ | 148,398 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Supplemental Schedule of Noncash Activities                                                           |   |   |   |   |   |   |   |   |
| Foreclosed assets acquired in settlement of loans                                                     |   | $ | 11,774 |   |   | $ | 3,556 |   |

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Table of Contents

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|  1. | Organization |
|----------|--------------|

----

Table of Contents

|  3. | Investment Securities |
|----------|-----------------------|

|                                |   | September 30, 2010 |    |   | December 31, 2009 |   |
|-------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                |   |               |    |   | Gross             |   |   | Gross |   |   | Estimated |   |   |   |   |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                |   | Amortized          |    |   | Unrealized        |   |   | Unrealized |   |   | Fair |   |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                |   | Cost               |    |   | Gains             |   |   | (Losses) |   |   | Value |   |   | Cost |   |   | Gains |   |   | (Losses) |   |   | Value |   |
| Securities Held to Maturity:        |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipal                 |   | $                  | -       |   |              | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | 426 |   |   | $ | 2 |   |   | $ | - |   |   | $ | 428 |   |
| Mortgage backed securities          |   |               | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |   |   | 21 |   |   |   | 1 |   |   |   | - |   |   |   | 22 |   |
| Total                               |   | $                  | -       |   |              | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | 447 |   |   | $ | 3 |   |   | $ | - |   |   | $ | 450 |   |
|                                |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Available for Sale:      |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U. S. Treasuries                    |   | $                  | 10,008  |   |              | $      | 9 |   |   | $ | - |   |   | $ | 10,017 |   |   | $ | 20,168 |   |   | $ | 35 |   |   | $ | - |   |   | $ | 20,203 |   |
| U. S. Government agencies           |   |               | 105,386 |   |              |   | 1,847 |   |   |   | - |   |   |   | 107,233 |   |   |   | 62,612 |   |   |   | 823 |   |   |   | (20 | ) |   |   | 63,415 |   |
| State and municipals                |   |               | 121,125 |   |              |   | 7,066 |   |   |   | (8 | ) |   |   | 128,183 |   |   |   | 109,431 |   |   |   | 3,921 |   |   |   | (168 | ) |   |   | 113,184 |   |
| Corporate bonds                     |   |               | 6,536   |   |              |   | 429 |   |   |   | - |   |   |   | 6,965 |   |   |   | 6,560 |   |   |   | 374 |   |   |   | - |   |   |   | 6,934 |   |
| Collateralized mortgage obligations |   |               | 11,616  |   |              |   | 374 |   |   |   | (10 | ) |   |   | 11,980 |   |   |   | 13,172 |   |   |   | 117 |   |   |   | (263 | ) |   |   | 13,026 |   |
| Mortgage backed securities          |   |               | 131,765 |   |              |   | 5,581 |   |   |   | - |   |   |   | 137,346 |   |   |   | 156,588 |   |   |   | 3,862 |   |   |   | (863 | ) |   |   | 159,587 |   |
| Certificates of deposit             |   |               | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |   |   | 685 |   |   |   | - |   |   |   | - |   |   |   | 685 |   |
| Equity securities                   |   |               | 517     |   |              |   | 37 |   |   |   | (135 | ) |   |   | 419 |   |   |   | 1,484 |   |   |   | 7 |   |   |   | (22 | ) |   |   | 1,469 |   |
| Other                               |   |               | 1,272   |   |              |   | - |   |   |   | - |   |   |   | 1,272 |   |   |   | 11 |   |   |   | - |   |   |   | - |   |   |   | 11 |   |
| Total                               |   | $                  | 388,225 |   |              | $      | 15,343 |   |   | $ | (153 | ) |   | $ | 403,415 |   |   | $ | 370,711 |   |   | $ | 9,139 |   |   | $ | (1,336 | ) |   | $ | 378,514 |   |

|                      |   | Three Months Ended |   |   | Nine Months Ended |    |
|---------------------------|--------|--------------------|--------|--------|-------------------|---------|
|                      |   | September 30,      |   |   | September 30,     |    |
|                      |   | 2010               |   |   | 2009              |    |   | 2010 |   |   | 2009 |   |
|                      |   |               |   |   |              |    |   |   |   |   |   |   |
| Proceeds from sales/calls |   |  $            | 7,539  |   |              |  $ | 11,015 |   |   |  $ | 30,979 |   |   |  $ | 30,320 |   |
| Gross realized gains      |   |               | 336    |   |              |    | 37 |   |   |   | 664 |   |   |   | 49 |   |
| Gross realized losses     |   |               | -      |   |              |    | (5 | ) |   |   | (8 | ) |   |   | (5 | ) |
| Impairment losses         |   |               | (53    | )      |              |    | (1,870 | ) |   |   | (53 | ) |   |   | (1,870 | ) |

|                                |   | Less than 12 months |   |   | 12 months or more |   |   | Total      |   |
|-------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|------------|--------|
| Description of Securities           |   | Estimated           |   |   | Unrealized        |   |   | Estimated  |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |
|                                |   | Fair Value          |   |   | Losses            |   |   | Fair Value |   |   | Losses |   |   | Fair Value |   |   | Losses |   |
| Available for Sale                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| U. S. Government Agencies           |   | $                   | -      |   |              | $      | -      |       |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Mortgage backed securities          |   |                | -      |   |              |   | -      |       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| State and municipals                |   |                | 1,860  |   |              |   | 8      |       |   |   | - |   |   |   | - |   |   |   | 1,860 |   |   |   | 8 |   |
| Collateralized mortgage obligations |   |                | -      |   |              |   | -      |       |   |   | 242 |   |   |   | 10 |   |   |   | 242 |   |   |   | 10 |   |
| Subtotal debt securities            |   |                | 1,860  |   |              |   | 8      |       |   |   | 242 |   |   |   | 10 |   |   |   | 2,102 |   |   |   | 18 |   |
| Equity securities                   |   |                | 293    |   |              |   | 135    |       |   |   | - |   |   |   | - |   |   |   | 293 |   |   |   | 135 |   |
| Total                               |   | $                   | 2,153  |   |              | $      | 143    |       |   | $ | 242 |   |   | $ | 10 |   |   | $ | 2,395 |   |   | $ | 153 |   |

----

Table of Contents

|                                   |   | Available for Sale |    |
|----------------------------------------|--------|--------------------|---------|
|                                   |   | Amortized Cost     |    |   | Fair Value |   |
| Due in one year or less                |   | $                  | 35,685  |   |   | $ | 36,005 |   |
| Due after one year through five years  |   |               | 122,000 |   |   |   | 125,905 |   |
| Due after five years through ten years |   |               | 66,318  |   |   |   | 69,748 |   |
| Due after ten years                    |   |               | 162,433 |   |   |   | 170,066 |   |
| Equity securities                      |   |               | 517     |   |   |   | 419 |   |
| Other                                  |   |               | 1,272   |   |   |   | 1,272 |   |
| Total                                  |   | $                  | 388,225 |   |   | $ | 403,415 |   |

| 4. | Cash Flow Hedge |
|----|-----------------|

----

Table of Contents

|  5. | Loans Receivable |
|----------|------------------|

|                                         |   | September 30, |      |   | December 31, |   |
|----------------------------------------------|--------|---------------|-----------|--------|--------------|--------|
|                                         |   | 2010          |      |   | 2009         |   |
| Real estate loans:                           |   |          |      |   |         |   |
| Construction and land development            |   | $             | 269,958   |   |         | $      | 296,489 |   |
| Secured by 1-4 family residential            |   |          | 778,312   |   |         |   | 785,385 |   |
| Commercial and multifamily                   |   |          | 822,674   |   |         |   | 845,561 |   |
| Commercial, financial and agricultural loans |   |          | 173,025   |   |         |   | 211,903 |   |
| Consumer loans                               |   |          | 32,042    |   |         |   | 39,173 |   |
| All other loans                              |   |          | 6,790     |   |         |   | 7,027 |   |
| Total loans                                  |   |          | 2,082,801 |   |         |   | 2,185,538 |   |
| Deferred loan costs                          |   |          | 709       |   |         |   | 969 |   |
| Allowance for loan losses                    |   |          | (39,973   | )      |         |   | (40,172 | ) |
| Net loans                                    |   | $             | 2,043,537 |   |         | $      | 2,146,335 |   |

|  6. | Allowance for Loan Losses |
|----------|---------------------------|

|                       |   | Nine Months Ended |    |
|----------------------------|--------|-------------------|---------|
|                       |   | September 30,     |    |
|                       |   | 2010              |    |   | 2009 |   |
|                       |   |              |    |   |   |   |
| Balance, beginning         |   | $                 | 40,172  |   |   | $ | 30,464 |   |
| Provisions for loan losses |   |              | 17,550  |   |   |   | 34,300 |   |
| Loans charged off          |   |              | (19,385 | ) |   |   | (25,796 | ) |
| Loan recoveries            |   |              | 1,636   |   |   |   | 2,072 |   |
| Net loan charge-offs       |   |              | (17,749 | ) |   |   | (23,724 | ) |
|                       |   |              |    |   |   |   |   |   |
| Balance, ending            |   | $                 | 39,973  |   |   | $ | 41,040 |   |

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Table of Contents

|                                                                             |   | September 30, |   |   | December 31, |   |
|----------------------------------------------------------------------------------|--------|---------------|--------|--------|--------------|--------|
|                                                                             |   | 2010          |   |   | 2009         |   |
|                                                                             |   |          |   |   |         |   |
| Impaired loans for which an allowance has been provided                          |   | $             | 45,159 |   |         | $      | 45,895 |   |
| Impaired loans for which an allowance has not been provided                      |   |          | 19,696 |   |         |   | 19,777 |   |
| Total impaired loans                                                             |   | $             | 64,855 |   |         | $      | 65,672 |   |
|                                                                             |   |          |   |   |         |   |   |   |
| Allowance provided for impaired loans, included in the allowance for loan losses |   | $             | 8,769  |   |         | $      | 8,357 |   |

|                                                             |   | September 30, |
|------------------------------------------------------------------|--------|---------------|
| (In thousands, except share and per share amounts)               |   | 2010          |   |   | 2009 |   |
|                                                             |   |          |   |   |   |   |
| Net income (loss)                                                |   | $             | 3,528 |   |   | $ | (8,895 | ) |
| Less:                                                            |   |          |   |   |   |   |   |   |
| Preferred stock dividends                                        |   |          | (378 | ) |   |   | (378 | ) |
| Accretion of preferred stock discount                            |   |          | (92 | ) |   |   | (86 | ) |
| Net income (loss) available to common shareholders (numerator)   |   | $             | 3,058 |   |   | $ | (9,359 | ) |
|                                                             |   |          |   |   |   |   |   |   |
| Earnings (loss) per common share                                 |   |          |   |   |   |   |   |   |
| Weighted average common shares outstanding (denominator)         |   |          | 22,745,527 |   |   |   | 22,657,474 |   |
| Earnings (loss) per common share                                 |   | $             | 0.13 |   |   | $ | (0.41 | ) |
|                                                             |   |          |   |   |   |   |   |   |
| Diluted earnings (loss) per common share                         |   |          |   |   |   |   |   |   |
| Weighted average common shares issued and outstanding            |   |          | 22,745,527 |   |   |   | 22,657,474 |   |
| Add:                                                             |   |          |   |   |   |   |   |   |
| Restricted stock                                                 |   |          | 43,299 |   |   |   | - |   |
| Incentive stock options                                          |   |          | 845 |   |   |   | - |   |
| Stock options                                                    |   |          | 5,461 |   |   |   | - |   |
| Diluted weighted average common shares outstanding (denominator) |   |          | 22,795,132 |   |   |   | 22,657,474 |   |
| Diluted earnings (loss) per common share                         |   | $             | 0.13 |   |   | $ | (0.41 | ) |

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Table of Contents

|                                                             |   | September 30, |
|------------------------------------------------------------------|--------|---------------|
| (In thousands, except share and per share amounts)               |   | 2010          |   |   | 2009 |   |
|                                                             |   |          |   |   |   |   |
| Net income (loss)                                                |   | $             | 6,936 |   |   | $ | (9,076 | ) |
| Less:                                                            |   |          |   |   |   |   |   |   |
| Preferred stock dividends                                        |   |          | (1,122 | ) |   |   | (1,122 | ) |
| Accretion of preferred stock discount                            |   |          | (271 | ) |   |   | (245 | ) |
| Net income (loss) available to common shareholders (numerator)   |   | $             | 5,543 |   |   | $ | (10,443 | ) |
|                                                             |   |          |   |   |   |   |   |   |
| Earnings (loss) per common share                                 |   |          |   |   |   |   |   |   |
| Weighted average common shares outstanding (denominator)         |   |          | 22,712,383 |   |   |   | 22,639,473 |   |
| Earnings (loss) per common share                                 |   | $             | 0.24 |   |   | $ | (0.46 | ) |
|                                                             |   |          |   |   |   |   |   |   |
| Diluted earnings (loss) per common share                         |   |          |   |   |   |   |   |   |
| Weighted average common shares issued and outstanding            |   |          | 22,712,383 |   |   |   | 22,639,473 |   |
| Add:                                                             |   |          |   |   |   |   |   |   |
| Restricted stock                                                 |   |          | 44,113 |   |   |   | - |   |
| Incentive stock options                                          |   |          | 1,895 |   |   |   | - |   |
| Stock options                                                    |   |          | 9,471 |   |   |   | - |   |
| Diluted weighted average common shares outstanding (denominator) |   |          | 22,767,862 |   |   |   | 22,639,473 |   |
| Diluted earnings (loss) per common share                         |   | $             | 0.24 |   |   | $ | (0.46 | ) |

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Table of Contents

|                             |   | 2010   |    |   | 2009     |   |
|----------------------------------|--------|--------|---------|--------|----------|--------|
|                             |   |   |    |   | Weighted |   |   |   |   |   | Weighted |   |
|                             |   | Number |    |   | Average  |   |   | Number |   |   | Average |   |
|                             |   | of     |    |   | Exercise |   |   | of |   |   | Exercise |   |
|                             |   | Shares |    |   | Price    |   |   | Shares |   |   | Price |   |
|                             |   |   |    |   |     |   |   |   |   |   |   |   |
|  Outstanding, January 1     |   |   | 575,046 |   |     | $      | 18.93 |   |   |   | 614,198 |   |   | $ | 18.58 |   |
|  Granted                    |   |   | -       |   |     |   | - |   |   |   | 17,392 |   |   |   | 12.78 |   |
|  Forfeited                  |   |   | (3,216  | )      |     |   | 13.27 |   |   |   | (5,672 | ) |   |   | 19.37 |   |
|  Expired                    |   |   | (7,834  | )      |     |   | 22.40 |   |   |   | - |   |   |   | - |   |
|  Exercised                  |   |   | (60,322 | )      |     |   | 9.78 |   |   |   | (35,915 | ) |   |   | 9.77 |   |
|  Outstanding, September 30, |   |   | 503,674 |   |     | $      | 20.01 |   |   |   | 590,003 |   |   | $ | 18.93 |   |
|                             |   |   |    |   |     |   |   |   |   |   |   |   |   |   |   |   |
|  Exercisable, September 30, |   |   | 433,706 |   |     |   |   |   |   |   | 475,075 |   |   |   |   |   |

| Nonvested Shares                |   | Number of Shares |    |   | Weighted-Average Grant-Date Fair Value |   |   | (In thousands) Total Intrinsic Value |   |
|---------------------------------|--------|------------------|---------|--------|--------------------------------------------------|--------|--------|--------------------------------------|--------|
|                            |   |             |    |   |                                             |   |   |                                 |   |
| Nonvested at January 1, 2010    |   |             | 70,936  |   |                                             | $      | 13.80  |                                 |   | $ | 707 |   |
| Granted                         |   |             | 113,939 |   |                                             |   | 11.43  |                                 |   |   |   |   |
| Vested & Exercised          |   |             | (26,615 | )      |                                             |   | 13.25  |                                 |   | $ | (359 | ) |
| Forfeited                       |   |             | (5,274  | )      |                                             |   | 12.19  |                                 |   |   |   |   |
| Nonvested at September 30, 2010 |   |             | 152,986 |   |                                             | $      | 12.19  |                                 |   | $ | 1,946 |   |

----

Table of Contents

|                                        |   | Stock Options |   |   | Nonvested Restricted Stock |   |   | Total  |   |
|---------------------------------------------|--------|---------------|--------|--------|----------------------------|--------|--------|--------|--------|
|                                        |   |          |   |   |                       |   |   |   |   |
| For the remaining three months of 2010      |   | $             | 16     |   |                       | $      | 162    |   |   | $ | 178 |   |
| For year ended December 31,  2011 |   |          | 62     |   |                       |   | 481    |   |   |   | 543 |   |
| For year ended December 31,  2012 |   |          | 62     |   |                       |   | 384    |   |   |   | 446 |   |
| For year ended December 31,  2013 |   |          | 21     |   |                       |   | 323    |   |   |   | 344 |   |
| For year ended December 31,  2014 |   |          | 1      |   |                       |   | 98     |   |   |   | 99 |   |
| For year ended December 31,  2015 |   |          | -      |   |                       |   | 9      |   |   |   | 9 |   |
| Total                                       |   | $             | 162    |   |                       | $      | 1,457  |   |   | $ | 1,619 |   |

----

----

Table of Contents

|                                                                 |   |   |    |   | Fair Value Measurements at |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|----------------------------|--------|
|                                                                 |   |   |    |   | September 30, 2010         |   |
|                                                                 |   |   |    |   | Using                      |   |
|                                                                 |   |   |    |   | Level 1                    |   |   | Level 2 |   |   | Level 3 |   |
|                                                                 |   | Total  |    |   | (Quoted Prices)            |   |   | (Significant Other Observable Inputs) |   |   | (Significant Unobservable Inputs) |   |
| Investment securities available-for-sale                             |   |   |    |   |                       |   |   |   |   |   |   |   |
| U. S. Treasuries                                                     |   | $      | 10,017  |   |                       | $      | 10,017 |   |   | $ | - |   |   | $ | - |   |
| U. S. Government agencies                                            |   |   | 107,233 |   |                       |   | - |   |   |   | 107,233 |   |   |   | - |   |
| State and municipals                                                 |   |   | 128,183 |   |                       |   | - |   |   |   | 128,183 |   |   |   | - |   |
| Corporate bonds                                                      |   |   | 6,965   |   |                       |   | - |   |   |   | 6,965 |   |   |   | - |   |
| Collateralized mortgage obligations                                  |   |   | 11,980  |   |                       |   | - |   |   |   | 11,980 |   |   |   | - |   |
| Mortgage backed securities                                           |   |   | 137,346 |   |                       |   | - |   |   |   | 137,346 |   |   |   | - |   |
| Equity securities                                                    |   |   | 419     |   |                       |   | 419 |   |   |   | - |   |   |   | - |   |
| Other                                                                |   |   | 1,272   |   |                       |   | 1,272 |   |   |   | - |   |   |   | - |   |
|  Total assets at fair value                                     |   | $      | 403,415 |   |                       | $      | 11,708 |   |   | $ | 391,707 |   |   | $ | - |   |
|                                                                 |   |   |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedge                                                      |   | $      | 115     |   |                       | $      | - |   |   | $ | 115 |   |   | $ | - |   |
| Other liabilities (1)                                                |   |   | 3,496   |   |                       |   | 3,496 |   |   |   | - |   |   |   | - |   |
| Total liabilities at fair value                                      |   | $      | 3,611   |   |                       | $      | 3,496 |   |   | $ | 115 |   |   | $ | - |   |
|                                                                 |   |   |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| (1) Includes liabilities associated with deferred compensation plans |   |   |    |   |                       |   |   |   |   |   |   |   |   |

|                                                                 |   |   |    |   | Fair Value Measurements at |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|----------------------------|--------|
|                                                                 |   |   |    |   | December 31, 2009          |   |
|                                                                 |   |   |    |   | Using                      |   |
|                                                                 |   |   |    |   | Level 1                    |   |   | Level 2 |   |   | Level 3 |   |
|                                                                 |   | Total  |    |   | (Quoted Prices)            |   |   | (Significant Other Observable Inputs) |   |   | (Significant Unobservable Inputs) |   |
| Investment securities available-for-sale                             |   |   |    |   |                       |   |   |   |   |   |   |   |
| U. S. Treasuries                                                     |   | $      | 20,203  |   |                       | $      | 20,203 |   |   | $ | - |   |   | $ | - |   |
| U. S. Government agencies                                            |   |   | 63,415  |   |                       |   | - |   |   |   | 63,415 |   |   |   | - |   |
| State and municipals                                                 |   |   | 113,184 |   |                       |   | - |   |   |   | 113,184 |   |   |   | - |   |
| Corporate bonds                                                      |   |   | 6,934   |   |                       |   | - |   |   |   | 6,934 |   |   |   | - |   |
| Collateralized mortgage obligations                                  |   |   | 13,026  |   |                       |   | - |   |   |   | 13,026 |   |   |   | - |   |
| Mortgage backed securities                                           |   |   | 159,587 |   |                       |   | - |   |   |   | 159,587 |   |   |   | - |   |
| Certificates of deposit                                              |   |   | 685     |   |                       |   | - |   |   |   | 685 |   |   |   | - |   |
| Equity securities                                                    |   |   | 1,469   |   |                       |   | 1,469 |   |   |   | - |   |   |   | - |   |
| Other                                                                |   |   | 11      |   |                       |   | 11 |   |   |   | - |   |   |   | - |   |
|  Total assets at fair value                                     |   | $      | 378,514 |   |                       | $      | 21,683 |   |   | $ | 356,831 |   |   | $ | - |   |
|                                                                 |   |   |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Other liabilities (1)                                                |   | $      | 2,882   |   |                       | $      | 2,882 |   |   | $ | - |   |   | $ | - |   |
| Total liabilities at fair value                                      |   | $      | 2,882   |   |                       | $      | 2,882 |   |   | $ | - |   |   | $ | - |   |
|                                                                 |   |   |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| (1) Includes liabilities associated with deferred compensation plans |   |   |    |   |                       |   |   |   |   |   |   |   |   |

----

Table of Contents

|                               |   |   |    |   | Fair Value Measurements at |   |
|------------------------------------|--------|--------|---------|--------|----------------------------|--------|
|                               |   |   |    |   | September 30, 2010         |   |
|                               |   |   |    |   | Using                      |   |
|                               |   |   |    |   | Level 1                    |   |   | Level 2 |   |   | Level 3 |   |
|                               |   | Total  |    |   | (Quoted Prices)            |   |   | (Significant Other Observable Inputs) |   |   | (Significant Unobservable Inputs) |   |
| Loans - impaired loans             |   | $      | 64,855  |   |                       | $      | - |   |   | $ | 27,271 |   |   | $ | 37,584 |   |
| Loans held for sale - mortgage     |   |   | 46,624  |   |                       |   | - |   |   |   | 46,624 |   |   |   | - |   |
| Loans held for sale - other assets |   |   | 519     |   |                       |   | - |   |   |   | - |   |   |   | 519 |   |
| Foreclosed assets                  |   |   | 10,535  |   |                       |   | - |   |   |   | - |   |   |   | 10,535 |   |
|  Total assets at fair value   |   | $      | 122,533 |   |                       | $      | - |   |   | $ | 73,895 |   |   | $ | 48,638 |   |
|                               |   |   |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities at fair value    |   | $      | -       |   |                       | $      | - |   |   | $ | - |   |   | $ | - |   |

|                               |   |   |    |   | Fair Value Measurements at |   |
|------------------------------------|--------|--------|---------|--------|----------------------------|--------|
|                               |   |   |    |   | December 31, 2009          |   |
|                               |   |   |    |   | Using                      |   |
|                               |   |   |    |   | Level 1                    |   |   | Level 2 |   |   | Level 3 |   |
|                               |   | Total  |    |   | (Quoted Prices)            |   |   | (Significant Other Observable Inputs) |   |   | (Significant Unobservable Inputs) |   |
| Loans - impaired loans             |   | $      | 65,672  |   |                       | $      | - |   |   | $ | 22,182 |   |   | $ | 43,490 |   |
| Loans held for sale - mortgage     |   |   | 44,165  |   |                       |   | - |   |   |   | 44,165 |   |   |   | - |   |
| Loans held for sale - other assets |   |   | 936     |   |                       |   | - |   |   |   | - |   |   |   | 936 |   |
| Foreclosed assets                  |   |   | 4,505   |   |                       |   | - |   |   |   | - |   |   |   | 4,505 |   |
|  Total assets at fair value   |   | $      | 115,278 |   |                       | $      | - |   |   | $ | 66,347 |   |   | $ | 48,931 |   |
|                               |   |   |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities at fair value    |   | $      | -       |   |                       | $      | - |   |   | $ | - |   |   | $ | - |   |

----

Table of Contents

|                                                                       |   | September 30, 2010 |      |   | December 31, 2009 |   |
|----------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                       |   | Carrying           |      |   | Estimated Fair    |   |   | Carrying |   |   | Estimated Fair |   |
|                                                                       |   | Amount             |      |   | Value             |   |   | Amount |   |   | Value |   |
| Financial assets:                                                          |   |               |      |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                  |   | $                  | 108,876   |   |              | $      | 108,876 |   |   | $ | 152,926 |   |   | $ | 152,926 |   |
| Investment securities                                                      |   |               | 403,415   |   |              |   | 403,415 |   |   |   | 378,961 |   |   |   | 378,964 |   |
| Mortgage loans held for sale                                               |   |               | 46,624    |   |              |   | 46,624 |   |   |   | 44,165 |   |   |   | 44,165 |   |
|    Loans held for sale - other assets                       |   |               |  519 |   |              |   | 519 |   |   |   | -  |   |   |   | -  |   |
| Loans, net                                                                 |   |               | 2,043,537 |   |              |   | 1,853,919 |   |   |   | 2,146,335 |   |   |   | 1,917,338 |   |
| Accrued interest receivable                                                |   |               | 9,427     |   |              |   | 9,427 |   |   |   | 9,459 |   |   |   | 9,459 |   |
|                                                                       |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                                                     |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                   |   | $                  | 2,348,904 |   |              | $      | 2,361,836 |   |   | $ | 2,436,120 |   |   | $ | 2,446,354 |   |
| Federal funds purchased and securities sold under agreements to repurchase |   |               | 1,156     |   |              |   | 1,156 |   |   |   | 783 |   |   |   | 783 |   |
| Federal Home Loan Bank advances                                            |   |               | 85,000    |   |              |   | 87,450 |   |   |   | 130,000 |   |   |   | 134,321 |   |
| Subordinated debt                                                          |   |               | 32,991    |   |              |   | 32,943 |   |   |   | 32,991 |   |   |   | 32,807 |   |
| Accrued interest payable                                                   |   |               | 2,760     |   |              |   | 2,760 |   |   |   | 3,626 |   |   |   | 3,626 |   |

|  10. | Restricted Investment in FHLB Stock |
|-----------|-------------------------------------|

----

Table of Contents

|  11. | Segment Information |
|-----------|---------------------|

| At and for the Three Months Ended September 30, 2010 (In thousands): |   |       |      |   |     |   |   |       |   |   |
|----------------------------------------------------------------------|--------|------------|-----------|--------|----------|--------|--------|------------|--------|--------|
|                                                                 |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   | Commercial |      |   | Mortgage |   |   | Wealth     |   |   |   |   |   | Intersegment |   |   |   |   |
|                                                                 |   | Bank       |      |   | Banking  |   |   | Management |   |   | Other |   |   | Elimination |   |   | Consolidated |   |
| Net interest income                                                  |   | $          | 23,437    |   |     | $      | 383    |       |   | $      | - |   |   | $ | (286 | ) |   | $ | - |   |   | $ | 23,534 |   |
| Provision for loan losses                                            |   |       | 3,500     |   |     |   | -      |       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,500 |   |
| Noninterest income                                                   |   |       | 6,129     |   |     |   | 1,857  |       |   |   | 1,136 |   |   |   | 213 |   |   |   | (1,088 | ) |   |   | 8,247 |   |
| Noninterest expense                                                  |   |       | 21,197    |   |     |   | 2,032  |       |   |   | 997 |   |   |   | 527 |   |   |   | (1,088 | ) |   |   | 23,665 |   |
| Provision for income taxes                                           |   |       | 1,208     |   |     |   | 62     |       |   |   | 42 |   |   |   | (224 | ) |   |   | - |   |   |   | 1,088 |   |
| Net income (loss)                                                    |   | $          | 3,661     |   |     | $      | 146    |       |   | $      | 97 |   |   | $ | (376 | ) |   | $ | - |   |   | $ | 3,528 |   |
|                                                                 |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                                         |   | $          | 2,855,275 |   |     | $      | 47,977 |       |   | $      | 654 |   |   | $ | 466,998 |   |   | $ | (451,334 | ) |   | $ | 2,919,570 |   |
| Average Assets                                                       |   | $          | 2,918,727 |   |     | $      | 41,029 |       |   | $      | 330 |   |   | $ | 465,035 |   |   | $ | (447,516 | ) |   | $ | 2,977,605 |   |

----

Table of Contents

| At and for the Three Months Ended September 30, 2009 (In thousands): |   |       |      |   |     |   |   |       |   |   |
|----------------------------------------------------------------------|--------|------------|-----------|--------|----------|--------|--------|------------|--------|--------|
|                                                                 |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   | Commercial |      |   | Mortgage |   |   | Wealth     |   |   |   |   |   | Intersegment |   |   |   |   |
|                                                                 |   | Bank       |      |   | Banking  |   |   | Management |   |   | Other |   |   | Elimination |   |   | Consolidated |   |
| Net interest income                                                  |   | $          | 21,817    |   |     | $      | 443    |       |   | $      | - |   |   | $ | (291 | ) |   | $ | - |   |   | $ | 21,969 |   |
| Provision for loan losses                                            |   |       | 20,050    |   |     |   | -      |       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,050 |   |
| Noninterest income                                                   |   |       | 5,713     |   |     |   | 1,781  |       |   |   | 1,105 |   |   |   | (1,657 | ) |   |   | (1,051 | ) |   |   | 5,891 |   |
| Noninterest expense                                                  |   |       | 20,904    |   |     |   | 1,429  |       |   |   | 915 |   |   |   | 551 |   |   |   | (1,051 | ) |   |   | 22,748 |   |
| Provision for income taxes                                           |   |       | (5,027    | )      |     |   | 239    |       |   |   | 57 |   |   |   | (1,312 | ) |   |   | - |   |   |   | (6,043 | ) |
| Net income (loss)                                                    |   | $          | (8,397    | )      |     | $      | 556    |       |   | $      | 133 |   |   | $ | (1,187 | ) |   | $ | - |   |   | $ | (8,895 | ) |
|                                                                 |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                                         |   | $          | 2,914,691 |   |     | $      | 48,134 |       |   | $      | 635 |   |   | $ | 461,093 |   |   | $ | (403,517 | ) |   | $ | 3,021,036 |   |
| Average Assets                                                       |   | $          | 2,949,156 |   |     | $      | 42,057 |       |   | $      | 406 |   |   | $ | 464,863 |   |   | $ | (405,147 | ) |   | $ | 3,051,335 |   |

| At and for the Nine Months Ended September 30, 2010 (In thousands): |   |       |      |   |     |   |   |       |   |   |
|---------------------------------------------------------------------|--------|------------|-----------|--------|----------|--------|--------|------------|--------|--------|
|                                                                |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | Commercial |      |   | Mortgage |   |   | Wealth     |   |   |   |   |   | Intersegment |   |   |   |   |
|                                                                |   | Bank       |      |   | Banking  |   |   | Management |   |   | Other |   |   | Elimination |   |   | Consolidated |   |
| Net interest income                                                 |   | $          | 69,010    |   |     | $      | 1,049  |       |   | $      | - |   |   | $ | (809 | ) |   | $ | - |   |   | $ | 69,250 |   |
| Provision for loan losses                                           |   |       | 17,550    |   |     |   | -      |       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 17,550 |   |
| Noninterest income                                                  |   |       | 20,281    |   |     |   | 5,269  |       |   |   | 2,463 |   |   |   | 638 |   |   |   | (3,209 | ) |   |   | 25,442 |   |
| Noninterest expense                                                 |   |       | 63,245    |   |     |   | 5,469  |       |   |   | 1,948 |   |   |   | 1,550 |   |   |   | (3,209 | ) |   |   | 69,003 |   |
| Provision for income taxes                                          |   |       | 1,457     |   |     |   | 255    |       |   |   | 155 |   |   |   | (664 | ) |   |   | - |   |   |   | 1,203 |   |
| Net income (loss)                                                   |   | $          | 7,039     |   |     | $      | 594    |       |   | $      | 360 |   |   | $ | (1,057 | ) |   | $ | - |   |   | $ | 6,936 |   |
|                                                                |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Assets                                                      |   | $          | 2,933,782 |   |     | $      | 35,528 |       |   | $      | 340 |   |   | $ | 461,711 |   |   | $ | (444,260 | ) |   | $ | 2,987,101 |   |

| At and for the Nine Months Ended September 30, 2009 (In thousands): |   |       |      |   |     |   |   |       |   |   |
|---------------------------------------------------------------------|--------|------------|-----------|--------|----------|--------|--------|------------|--------|--------|
|                                                                |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | Commercial |      |   | Mortgage |   |   | Wealth     |   |   |   |   |   | Intersegment |   |   |   |   |
|                                                                |   | Bank       |      |   | Banking  |   |   | Management |   |   | Other |   |   | Elimination |   |   | Consolidated |   |
| Net interest income                                                 |   | $          | 66,044    |   |     | $      | 1,241  |       |   | $      | - |   |   | $ | (988 | ) |   | $ | - |   |   | $ | 66,297 |   |
| Provision for loan losses                                           |   |       | 34,300    |   |     |   | -      |       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 34,300 |   |
| Noninterest income                                                  |   |       | 17,988    |   |     |   | 5,144  |       |   |   | 1,999 |   |   |   | (1,291 | ) |   |   | (3,152 | ) |   |   | 20,688 |   |
| Noninterest expense                                                 |   |       | 64,142    |   |     |   | 4,700  |       |   |   | 1,861 |   |   |   | 1,331 |   |   |   | (3,152 | ) |   |   | 68,882 |   |
| Provision for income taxes                                          |   |       | (6,343    | )      |     |   | 506    |       |   |   | 41 |   |   |   | (1,325 | ) |   |   | - |   |   |   | (7,121 | ) |
| Net income (loss)                                                   |   | $          | (8,067    | )      |     | $      | 1,179  |       |   | $      | 97 |   |   | $ | (2,285 | ) |   | $ | - |   |   | $ | (9,076 | ) |
|                                                                |   |       |      |   |     |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Assets                                                      |   | $          | 2,932,227 |   |     | $      | 39,386 |       |   | $      | 476 |   |   | $ | 466,409 |   |   | $ | (406,875 | ) |   | $ | 3,031,623 |   |

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| 12. | New Authoritative Accounting Guidance |
|-----|---------------------------------------|

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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|                                                                                         |   | For the Three Months Ended September 30, |      |
|----------------------------------------------------------------------------------------------|--------|------------------------------------------|-----------|
|                                                                                         |   | 2010                                     |      |   | 2009 |   |
|                                                                                         |   | Average                                  |      |   | Interest |   |   | Average |   |   | Average |   |   | Interest |   |   | Average |   |
| Dollars in thousands                                                                         |   | Balance                                  |      |   | Inc/Exp |   |   | Rates |   |   | Balance |   |   | Inc/Exp |   |   | Rates |   |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                                                                                       |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable, net                                                                        |   | $                                        | 2,144,270 |   |   | $ | 28,274 |   |   |   | 5.23 | % |   | $ | 2,260,411 |   |   | $ | 31,055 |   |   |   | 5.45 | % |
| Investment securities                                                                        |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                      |   |                                     | 279,963   |   |   |   | 2,143 |   |   |   | 3.00 | % |   |   | 232,267 |   |   |   | 2,302 |   |   |   | 3.88 | % |
| Tax exempt (1)                                                                               |   |                                     | 117,933   |   |   |   | 1,769 |   |   |   | 5.87 | % |   |   | 111,982 |   |   |   | 1,710 |   |   |   | 5.98 | % |
| Total investments                                                                            |   |                                     | 397,896   |   |   |   | 3,912 |   |   |   | 3.85 | % |   |   | 344,249 |   |   |   | 4,012 |   |   |   | 4.56 | % |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                                                                    |   |                                     | 61,574    |   |   |   | 37 |   |   |   | 0.24 | % |   |   | 54,109 |   |   |   | 36 |   |   |   | 0.26 | % |
| Federal funds sold                                                                           |   |                                     | 39,114    |   |   |   | 25 |   |   |   | 0.25 | % |   |   | 69,632 |   |   |   | 38 |   |   |   | 0.21 | % |
|                                                                                         |   |                                     | 498,584   |   |   |   | 3,974 |   |   |   | 3.12 | % |   |   | 467,990 |   |   |   | 4,086 |   |   |   | 3.42 | % |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total earning assets                                                                         |   |                                     | 2,642,854 |   |   | $ | 32,248 |   |   |   | 4.84 | % |   |   | 2,728,401 |   |   | $ | 35,141 |   |   |   | 5.11 | % |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total nonearning assets                                                                      |   |                                     | 334,751   |   |   |   |   |   |   |   |   |   |   |   | 322,934 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                 |   | $                                        | 2,977,605 |   |   |   |   |   |   |   |   |   |   | $ | 3,051,335 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits                                                                    |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest checking                                                    |   | $                                        | 558,996   |   |   | $ | 583 |   |   |   | 0.41 | % |   | $ | 536,184 |   |   | $ | 1,276 |   |   |   | 0.94 | % |
|     Money market                                                         |   |                                     | 398,846   |   |   |   | 1,117 |   |   |   | 1.11 | % |   |   | 312,479 |   |   |   | 1,199 |   |   |   | 1.52 | % |
|     Savings                                                              |   |                                     | 235,379   |   |   |   | 443 |   |   |   | 0.75 | % |   |   | 194,314 |   |   |   | 431 |   |   |   | 0.88 | % |
|     Time deposits:                                                       |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Less than $100,000                           |   |                                     | 594,434   |   |   |   | 2,933 |   |   |   | 1.96 | % |   |   | 713,888 |   |   |   | 5,071 |   |   |   | 2.82 | % |
|         $100,000 and more                            |   |                                     | 283,747   |   |   |   | 1,668 |   |   |   | 2.33 | % |   |   | 359,362 |   |   |   | 2,880 |   |   |   | 3.18 | % |
| Total interest-bearing deposits                                                              |   |                                     | 2,071,402 |   |   |   | 6,744 |   |   |   | 1.29 | % |   |   | 2,116,227 |   |   |   | 10,857 |   |   |   | 2.04 | % |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal funds purchased and securities sold under agreements to repurchase                   |   |                                     | 1,087     |   |   |   | 8 |   |   |   | 2.88 | % |   |   | 554 |   |   |   | 4 |   |   |   | 2.95 | % |
| Federal Home Loan Bank advances and other borrowings                                         |   |                                     | 118,587   |   |   |   | 1,010 |   |   |   | 3.33 | % |   |   | 145,000 |   |   |   | 1,320 |   |   |   | 3.56 | % |
| Subordinated debt                                                                            |   |                                     | 32,991    |   |   |   | 286 |   |   |   | 3.39 | % |   |   | 32,991 |   |   |   | 292 |   |   |   | 3.46 | % |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                     | 152,665   |   |   |   | 1,304 |   |   |   | 3.34 | % |   |   | 178,545 |   |   |   | 1,616 |   |   |   | 3.54 | % |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total interest-bearing liabilities                                   |   |                                     | 2,224,067 |   |   |   | 8,048 |   |   |   | 1.43 | % |   |   | 2,294,772 |   |   |   | 12,473 |   |   |   | 2.16 | % |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total noninterest-bearing liabilities                                |   |                                     | 325,307   |   |   |   |   |   |   |   |   |   |   |   | 328,219 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                            |   |                                     | 2,549,374 |   |   |   |   |   |   |   |   |   |   |   | 2,622,991 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                         |   |                                     | 428,231   |   |   |   |   |   |   |   |   |   |   |   | 428,344 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                                                   |   | $                                        | 2,977,605 |   |   |   |   |   |   |   |   |   |   | $ | 3,051,335 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income (tax equivalent)                                                         |   |                                     |      |   |   | $ | 24,200 |   |   |   |   |   |   |   |   |   |   | $ | 22,668 |   |   |   |   |   |
|     Average interest rate spread                                         |   |                                     |      |   |   |   |   |   |   |   | 3.41 | % |   |   |   |   |   |   |   |   |   |   | 2.95 | % |
|     Interest expense as percentage of average earning assets             |   |                                     |      |   |   |   |   |   |   |   | 1.21 | % |   |   |   |   |   |   |   |   |   |   | 1.81 | % |
|     Net interest margin                                                  |   |                                     |      |   |   |   |   |   |   |   | 3.63 | % |   |   |   |   |   |   |   |   |   |   | 3.30 | % |
|                                                                                         |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  (1) Income and yields are reported on a taxable equivalent basis using a 35% tax rate. |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                                                                         |   | For the Nine Months Ended September 30, |      |
|----------------------------------------------------------------------------------------------|--------|-----------------------------------------|-----------|
|                                                                                         |   | 2010                                    |      |   | 2009 |   |
|                                                                                         |   | Average                                 |      |   | Interest |   |   | Average |   |   | Average |   |   | Interest |   |   | Average |   |
| Dollars in thousands                                                                         |   | Balance                                 |      |   | Inc/Exp |   |   | Rates |   |   | Balance |   |   | Inc/Exp |   |   | Rates |   |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                                                                                       |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable, net                                                                        |   | $                                       | 2,172,148 |   |   | $ | 86,311 |   |   |   | 5.31 | % |   | $ | 2,278,781 |   |   | $ | 95,455 |   |   |   | 5.60 | % |
| Investment securities                                                                        |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                      |   |                                    | 269,614   |   |   |   | 6,631 |   |   |   | 3.24 | % |   |   | 229,777 |   |   |   | 7,379 |   |   |   | 4.23 | % |
| Tax exempt (1)                                                                               |   |                                    | 109,296   |   |   |   | 4,963 |   |   |   | 5.99 | % |   |   | 97,682 |   |   |   | 4,511 |   |   |   | 6.09 | % |
| Total investments                                                                            |   |                                    | 378,910   |   |   |   | 11,594 |   |   |   | 4.03 | % |   |   | 327,459 |   |   |   | 11,890 |   |   |   | 4.79 | % |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                                                                    |   |                                    | 55,560    |   |   |   | 95 |   |   |   | 0.23 | % |   |   | 51,972 |   |   |   | 80 |   |   |   | 0.20 | % |
| Federal funds sold                                                                           |   |                                    | 51,298    |   |   |   | 98 |   |   |   | 0.25 | % |   |   | 48,691 |   |   |   | 78 |   |   |   | 0.21 | % |
|                                                                                         |   |                                    | 485,768   |   |   |   | 11,787 |   |   |   | 3.20 | % |   |   | 428,122 |   |   |   | 12,048 |   |   |   | 3.71 | % |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total earning assets                                                                         |   |                                    | 2,657,916 |   |   | $ | 98,098 |   |   |   | 4.93 | % |   |   | 2,706,903 |   |   | $ | 107,503 |   |   |   | 5.31 | % |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total nonearning assets                                                                      |   |                                    | 329,185   |   |   |   |   |   |   |   |   |   |   |   | 324,720 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                 |   | $                                       | 2,987,101 |   |   |   |   |   |   |   |   |   |   | $ | 3,031,623 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits                                                                    |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest checking                                                    |   | $                                       | 563,238   |   |   | $ | 2,817 |   |   |   | 0.67 | % |   | $ | 525,761 |   |   | $ | 3,928 |   |   |   | 1.00 | % |
|     Money market                                                         |   |                                    | 393,675   |   |   |   | 3,532 |   |   |   | 1.20 | % |   |   | 274,671 |   |   |   | 3,076 |   |   |   | 1.50 | % |
|     Savings                                                              |   |                                    | 219,969   |   |   |   | 1,374 |   |   |   | 0.84 | % |   |   | 191,522 |   |   |   | 1,261 |   |   |   | 0.88 | % |
|     Time deposits:                                                       |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Less than $100,000                           |   |                                    | 617,562   |   |   |   | 9,884 |   |   |   | 2.14 | % |   |   | 756,730 |   |   |   | 17,056 |   |   |   | 3.01 | % |
|         $100,000 and more                            |   |                                    | 295,455   |   |   |   | 5,346 |   |   |   | 2.42 | % |   |   | 329,713 |   |   |   | 8,547 |   |   |   | 3.47 | % |
| Total interest-bearing deposits                                                              |   |                                    | 2,089,899 |   |   |   | 22,953 |   |   |   | 1.47 | % |   |   | 2,078,397 |   |   |   | 33,868 |   |   |   | 2.18 | % |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal funds purchased and securities sold under agreements to repurchase                   |   |                                    | 967       |   |   |   | 22 |   |   |   | 2.95 | % |   |   | 455 |   |   |   | 11 |   |   |   | 3.19 | % |
| Federal Home Loan Bank advances and other borrowings                                         |   |                                    | 122,857   |   |   |   | 3,179 |   |   |   | 3.41 | % |   |   | 166,319 |   |   |   | 4,441 |   |   |   | 3.52 | % |
| Subordinated debt                                                                            |   |                                    | 32,991    |   |   |   | 808 |   |   |   | 3.23 | % |   |   | 32,991 |   |   |   | 992 |   |   |   | 3.97 | % |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                    | 156,815   |   |   |   | 4,009 |   |   |   | 3.37 | % |   |   | 199,765 |   |   |   | 5,444 |   |   |   | 3.59 | % |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total interest-bearing liabilities                                   |   |                                    | 2,246,714 |   |   |   | 26,962 |   |   |   | 1.60 | % |   |   | 2,278,162 |   |   |   | 39,312 |   |   |   | 2.30 | % |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total noninterest-bearing liabilities                                |   |                                    | 315,705   |   |   |   |   |   |   |   |   |   |   |   | 323,199 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                            |   |                                    | 2,562,419 |   |   |   |   |   |   |   |   |   |   |   | 2,601,361 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                         |   |                                    | 424,682   |   |   |   |   |   |   |   |   |   |   |   | 430,262 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                                                   |   | $                                       | 2,987,101 |   |   |   |   |   |   |   |   |   |   | $ | 3,031,623 |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income (tax equivalent)                                                         |   |                                    |      |   |   | $ | 71,136 |   |   |   |   |   |   |   |   |   |   | $ | 68,191 |   |   |   |   |   |
|     Average interest rate spread                                         |   |                                    |      |   |   |   |   |   |   |   | 3.33 | % |   |   |   |   |   |   |   |   |   |   | 3.01 | % |
|     Interest expense as percentage of average earning assets             |   |                                    |      |   |   |   |   |   |   |   | 1.36 | % |   |   |   |   |   |   |   |   |   |   | 1.94 | % |
|     Net interest margin                                                  |   |                                    |      |   |   |   |   |   |   |   | 3.58 | % |   |   |   |   |   |   |   |   |   |   | 3.37 | % |
|                                                                                         |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  (1) Income and yields are reported on a taxable equivalent basis using a 35% tax rate. |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                         |   | September 30, |   |   | December 31, |   |
|----------------------------------------------|--------|---------------|--------|--------|--------------|--------|
|                                         |   | 2010          |   |   | 2009         |   |
| Performing restructurings                    |   |          |   |   |         |   |
| Real estate loans:                           |   |          |   |   |         |   |
| Construction and land development            |   | $             | 5,040  |   |         | $      | 1,986 |   |
| Secured by 1-4 family residential            |   |          | 20,951 |   |         |   | 14,549 |   |
| Commercial and multifamily                   |   |          | 5,577  |   |         |   | 4,145 |   |
| Commercial, financial and agricultural loans |   |          | 3,259  |   |         |   | - |   |
| Total performing restructurings              |   |          | 34,827 |   |         |   | 20,680 |   |
|                                         |   |          |   |   |         |   |   |   |
| Nonperforming restructurings                 |   |          | 2,411  |   |         |   | 2,678 |   |
| Total restructurings                         |   | $             | 37,238 |   |         | $      | 23,358 |   |

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|                                             |   | September 30, 2010 |      |
|--------------------------------------------------|--------|--------------------|-----------|
|                                             |   | Loans Outstanding  |      |   | Nonaccrual Loans |   |   | Nonaccrual Loans to Loans Outstanding |   |
| Commercial:                                      |   |               |      |   |   |   |   |   |   |
| Commercial & industrial                      |   | $                  | 172,241   |   |   | $ | 6,588 |   |   |   | 3.82 | % |
| Agriculture                                      |   |               | 784       |   |   |   | - |   |   |   | N/A |   |
| Total commercial                                 |   |               | 173,025   |   |   |   | 6,588 |   |   |   | 3.81 | % |
|                                             |   |               |      |   |   |   |   |   |   |   |   |   |
| Commercial real estate:                          |   |               |      |   |   |   |   |   |   |   |   |   |
| Construction, land development & vacant land |   |               | 251,880   |   |   |   | 23,303 |   |   |   | 9.25 | % |
| Non-owner occupied                               |   |               | 356,493   |   |   |   | 3,374 |   |   |   | 0.95 | % |
| Owner occupied                                   |   |               | 384,951   |   |   |   | 2,907 |   |   |   | 0.76 | % |
| Farmland                                         |   |               | 18,077    |   |   |   | 147 |   |   |   | 0.81 | % |
| Total commercial real estate                     |   |               | 1,011,401 |   |   |   | 29,731 |   |   |   | 2.94 | % |
|                                             |   |               |      |   |   |   |   |   |   |   |   |   |
| Consumer                                         |   |               | 32,043    |   |   |   | 16 |   |   |   | 0.05 | % |
|                                             |   |               |      |   |   |   |   |   |   |   |   |   |
| Residential real estate:                         |   |               |      |   |   |   |   |   |   |   |   |   |
| Residential                                      |   |               | 733,304   |   |   |   | 13,210 |   |   |   | 1.80 | % |
| Multi-family                                     |   |               | 81,231    |   |   |   | 182 |   |   |   | 0.22 | % |
| Home equity lines                                |   |               | 45,007    |   |   |   | 1,357 |   |   |   | 3.02 | % |
| Total residential                                |   |               | 859,542   |   |   |   | 14,749 |   |   |   | 1.72 | % |
|                                             |   |               |      |   |   |   |   |   |   |   |   |   |
| All other loans                                  |   |               | 6,790     |   |   |   | - |   |   |   | N/A |   |
|                                             |   |               |      |   |   |   |   |   |   |   |   |   |
| Total loans                                      |   | $                  | 2,082,801 |   |   | $ | 51,084 |   |   |   | 2.45 | % |

|                                                                          |   | September 30, |   |   | December 31, |   |   | September 30, |   |
|-------------------------------------------------------------------------------|--------|---------------|--------|--------|--------------|--------|--------|---------------|--------|
|                                                                          |   | 2010          |   |   | 2009         |   |   | 2009          |   |
|                                                                          |   |          |   |   |         |   |   |          |   |
|  Non-accrual loans                                                       |   | $             | 48,673 |   |         | $      | 56,624 |          |   | $ | 42,617 |   |
|  Troubled debt restructurings                                            |   |          | 2,411  |   |         |   | 2,678  |          |   |   | - |   |
|  Foreclosed assets                                                       |   |          | 10,535 |   |         |   | 4,505  |          |   |   | 4,189 |   |
|  Loans held for sale                                                     |   |          | 519    |   |         |   | 936    |          |   |   | - |   |
|  Total non-performing assets                                             |   | $             | 62,138 |   |         | $      | 64,743 |          |   | $ | 46,806 |   |
|  Nonperforming assets to total assets                                    |   |          | 2.13   | %      |         |   | 2.18   | %             |   |   | 1.55 | % |
|  Nonperforming assets to loans and foreclosed property                   |   |          | 2.97   | %      |         |   | 3.03   | %             |   |   | 2.10 | % |
|  Allowance for loan losses as a percentage of loans receivable           |   |          | 1.92   | %      |         |   | 1.84   | %             |   |   | 1.85 | % |
|  Allowance for loan losses as a percentage of nonperforming loans        |   |          | 78.25  | %      |         |   | 67.74  | %             |   |   | 82.06 | % |
|  Annualized net charge-offs as a percentage of average loans receiveable |   |          | 0.94   | %      |         |   | 1.24   | %             |   |   | 2.47 | % |

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|                                                             |   | Corporation |      |   | Bank   |   |
|------------------------------------------------------------------|--------|-------------|-----------|--------|--------|--------|
| Tier 1 capital                                                   |   | $           | 335,972   |   |   | $      | 280,408 |   |
| Tier 2 capital                                                   |   |        | 29,129    |   |   |   | 28,945 |   |
| Total risk-based capital                                         |   |        | 365,101   |   |   |   | 309,353 |   |
| Total risk-weighted assets                                       |   |        | 2,319,443 |   |   |   | 2,304,551 |   |
| Average adjusted total assets                                    |   |        | 2,850,347 |   |   |   | 2,833,133 |   |
| Capital ratios:                                                  |   |        |      |   |   |   |   |   |
| Tier 1 risk-based capital ratio                                  |   |        | 14.49     | %      |   |   | 12.17 | % |
| Total risk-based capital ratio                                   |   |        | 15.74     | %      |   |   | 13.42 | % |
| Leverage ratio (Tier 1 capital to average adjusted total assets) |   |        | 11.79     | %      |   |   | 9.90 | % |
| Equity to assets ratio                                           |   |        | 14.22     | %      |   |   | 13.84 | % |
| Tangible common equity to assets ratio                           |   |        | 10.01     | %      |   |   | 10.33 | % |

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ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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ITEM 4 – CONTROLS AND PROCEDURES

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| ITEM 1. |  LEGAL PROCEEDINGS. |
|---------|--------------------------|

ITEM 1a.

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
|---------|--------------------------------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
|---------|----------------------------------|

ITEM 4. 

| ITEM 5. | OTHER INFORMATION. |
|---------|--------------------|

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EXHIBITS:

|   | Exhibit No. 2.1 | Agreement and Plan of Reorganization, dated as of July 26, 2007, between Virginia Financial Group, Inc. and FNB Corporation.  (incorporated by reference to Exhibit 2.1 to Current Report on Form 8-K filed July 30, 2007. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit No. 3.1 | Articles of Incorporation StellarOne Corporation, as amended. (incorporated by reference to Exhibit 3.1 to Form 8-K filed on May 10, 2010) |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit No. 3.2 | Bylaws of StellarOne Corporation, as amended and restated February 28, 2008. (incorporated by reference to Exhibit 3.2 to Current Report on Form 8-K filed on May 28, 2010) |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit No. 4.1 | Warrant to purchase up to 302,623 shares of Common Stock (incorporated by reference to Exhibit 4.1 to Form 8K filed on December 23, 2008) |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit No. 31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. |
|--------|------------------|-------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit No. 31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. |
|--------|------------------|-------------------------------------------------------------------------------------------------------------------------|

|   | Exhibit No. 32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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