----

----

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

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

| CALIFORNIA                               | 68-0454068                           |
|------------------------------------------|--------------------------------------|
| (State of Incorporation)                 | (I.R.S. Employer Identification No.) |
|                                     |                                 |
| 202 West Napa Street Sonoma, California  | 95476                                |
| (Address of principal executive offices) | (Zip Code)                           |

| Large accelerated filer |   |  ̈ |   |                                          |   | Accelerated filer         |  ̈ |   |
|-------------------------|--------|--------|--------|-----------------------------------------------|--------|---------------------------|--------|--------|
| Non-accelerated filer   |   |  ̈ |   | (Do not check if a smaller reporting company) |   | Smaller reporting company | x      |   |

----

----

| Part I  Financial Information                                                                                                                                                                        | Page Number          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
|                                                                                                                                                                                                           |                 |
| Item 1. Financial Statements (Unaudited):                                                                                                                                                                      |                 |
|                                                                                                                                                                                                           |                 |
|      Consolidated Balance Sheets at September 30, 2009,(as restated)  December 31, 2008 and September 30, 2008                                                              | 4                    |
|                                                                                                                                                                                                           |                 |
|      Consolidated Statements of Operations for the three and nine months ended September 30, 2009  (as restated) and 2008                                              | 5                    |
|                                                                                                                                                                                                           |                 |
|      Consolidated Statements of Changes in Shareholders’ Equity for the nine months ended September 30, 2009, (as restated) and the years ended December 31, 2008 and 2007 | 6                    |
|                                                                                                                                                                                                           |                 |
|      Consolidated Statements of Cash Flows for the nine months ended September 30, 2009(as restated) and 2008                                                                    | 8                    |
|                                                                                                                                                                                                           |                 |
|      Notes to Consolidated Financial Statements (as restated)                                                                                                                         | 9                    |
|                                                                                                                                                                                                           |                 |
|  Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (as restated)                                                                                              |    14 |
|                                                                                                                                                                                                           |                 |
|             Average Balances/Yields and Rates Paid for the nine months ended September 30, 2009 (as restated) and 2008                        |    17 |
|                                                                                                                                                                                                           |                 |
|             Average Balances/Yields and Rates Paid for the three months ended September 30, 2009 (as restated) and 2008                       | 30                   |
|                                                                                                                                                                                                           |                 |
|  Item 3. Quantitative and Qualitative Disclosure About Market Risk                                                                                                                                        | 34                   |
|                                                                                                                                                                                                           |                 |
|  Item 4. Controls and Procedures                                                                                                                                                                          | 34                   |
|                                                                                                                                                                                                           |                 |
|  Part II  Other Information                                                                                                                                                                     |                 |
|                                                                                                                                                                                                           |                 |
|  Item 1. Legal Proceedings                                                                                                                                                                                | 36                   |
|                                                                                                                                                                                                           |                 |
| Item 1A. Risk Factors                                                                                                                                                                                          | 36                   |
|                                                                                                                                                                                                           |                 |
|  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                      | 38                   |
|                                                                                                                                                                                                           |                 |
|  Item 3. Defaults Upon Senior Securities                                                                                                                                                                  | 38                   |
|                                                                                                                                                                                                           |                 |
|  Item 4. Submission of Matters to a Vote of Security Holders                                                                                                                                              | 38                   |
|                                                                                                                                                                                                           |                 |
|  Item 5. Other Information                                                                                                                                                                                | 38                   |
|                                                                                                                                                                                                           |                 |
|  Item 6. Exhibits                                                                                                                                                                                         | 38                   |
|                                                                                                                                                                                                           |                 |
|  Signatures                                                                                                                                                                                               | 39                   |
|                                                                                                                                                                                                           |                 |
| Certifications                                                                                                                                                                                                 | 40                   |

----

|                                                                                                                                                                                                                                              |   | September 30, 2009 (As Restated) |        |   | December 31, 2008  |   |        | September 30, 2008  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-------------|--------|------------------------------|--------|-------------|-------------------------------|--------|
| ASSETS                                                                                                                                                                                                                                            |   |                                       |        |   |                         |   |        |                          |   |
| Cash and due from banks                                                                                                                                                                                                                           |   | $                                          | 4,590,608   |   |                         | $      | 6,302,692   |                          |   | $ | 6,891,263 |   |
| Interest-bearing due from banks                                                                                                                                                                                                                   |   |                                       | 21,761,642  |   |                         |   | 11,930,363  |                          |   |   | 15,381,775 |   |
| Total cash and cash equivalents                                                                                                                                                                                                                   |   |                                       | 26,352,250  |   |                         |   | 18,233,055  |                          |   |   | 22,273,038 |   |
| Investment securities available-for-sale at fair value                                                                                                                                                                                            |   |                                       | 10,561,357  |   |                         |   | 6,578,924   |                          |   |   | 2,036,539 |   |
| Investment securities held-to-maturity (fair value of $13,849,348, $14,028,111 and $13,524,623 respectively)                                                                                                                                      |   |                                       | 13,396,977  |   |                         |   | 13,862,911  |                          |   |   | 13,382,308 |   |
| Loans and lease financing receivables, net                                                                                                                                                                                                        |   |                                       | 258,113,125 |   |                         |   | 262,376,784 |                          |   |   | 259,543,134 |   |
| Premises and equipment, net                                                                                                                                                                                                                       |   |                                       | 614,696     |   |                         |   | 734,091     |                          |   |   | 786,261 |   |
| Accrued interest receivable                                                                                                                                                                                                                       |   |                                       | 1,669,685   |   |                         |   | 1,678,547   |                          |   |   | 1,659,077 |   |
| Other real estate owned                                                                                                                                                                                                                           |   |                                       | 478,610     |   |                         |   | 285,665     |                          |   |   | 320,416 |   |
| Cash surrender value of life insurance                                                                                                                                                                                                            |   |                                       | 11,058,594  |   |                         |   | 10,777,482  |                          |   |   | 10,673,741 |   |
| Other assets                                                                                                                                                                                                                                      |   |                                       | 13,383,896  |   |                         |   | 7,420,622   |                          |   |   | 6,774,039 |   |
| Total assets                                                                                                                                                                                                                                      |   | $                                          | 335,629,190 |   |                         | $      | 321,948,081 |                          |   | $ | 317,448,553 |   |
| LIABILITIES                                                                                                                                                                                                                                       |   |                                       |        |   |                         |   |        |                          |   |   |   |   |
| Noninterest-bearing demand deposits                                                                                                                                                                                                               |   | $                                          | 50,941,938  |   |                         | $      | 48,279,759  |                          |   | $ | 54,162,469 |   |
| Interest-bearing transaction deposits                                                                                                                                                                                                             |   |                                       | 32,471,725  |   |                         |   | 31,062,597  |                          |   |   | 28,306,822 |   |
| Savings and money market deposits                                                                                                                                                                                                                 |   |                                       | 90,202,813  |   |                         |   | 88,317,397  |                          |   |   | 81,724,337 |   |
| Time deposits, $100,000 and over                                                                                                                                                                                                                  |   |                                       | 79,077,355  |   |                         |   | 50,694,468  |                          |   |   | 51,394,535 |   |
| Other time deposits                                                                                                                                                                                                                               |   |                                       | 36,365,253  |   |                         |   | 35,591,280  |                          |   |   | 31,767,944 |   |
| Total deposits                                                                                                                                                                                                                                    |   |                                       | 289,059,084 |   |                         |   | 253,945,501 |                          |   |   | 247,356,107 |   |
| Other borrowings                                                                                                                                                                                                                                  |   |                                       | 20,000,000  |   |                         |   | 30,000,000  |                          |   |   | 33,000,000 |   |
| Accrued interest payable and other liabilities                                                                                                                                                                                                    |   |                                       | 7,394,973   |   |                         |   | 7,142,484   |                          |   |   | 6,745,006 |   |
| Total liabilities                                                                                                                                                                                                                                 |   |                                       | 316,454,057 |   |                         |   | 291,087,985 |                          |   |   | 287,101,113 |   |
| SHAREHOLDERS' EQUITY                                                                                                                                                                                                                              |   |                                       |        |   |                         |   |        |                          |   |   |   |   |
| Preferred stock, no par value; $1,000 per share liquidation  preference; 2,000,000 shares authorized; 8,653 Series A and 433 Series B at September 30, 2009 and none at December 31, 2008 and September 30, 2008 issued and outstanding |   |                                       | 8,699,301   |   |                         |   | 0           |                          |   |   | 0 |   |
| Common stock, no par value; 10,000,000 shares authorized; 2,326,803 shares at September 30, 2009, 2,290,657 shares at December 31, 2008 and 2,288,709 shares at September 30, 2008 issued and outstanding                                         |   |                                       | 16,852,765  |   |                         |   | 16,402,084  |                          |   |   | 16,385,614 |   |
| Additional paid-in-capital                                                                                                                                                                                                                        |   |                                       | 2,579,498   |   |                         |   | 2,577,855   |                          |   |   | 2,520,540 |   |
| Retained earnings                                                                                                                                                                                                                                 |   |                                       | (8,977,301  | )      |                         |   | 11,863,688  |                          |   |   | 11,451,730 |   |
| Accumulated other comprehensive income (loss)                                                                                                                                                                                                     |   |                                       | 20,870      |   |                         |   | 16,469      |                          |   |   | (10,444 | ) |
| Total shareholders' equity                                                                                                                                                                                                                        |   |                                       | 19,175,133  |   |                         |   | 30,860,096  |                          |   |   | 30,347,440 |   |
| Total liabilities and shareholders' equity                                                                                                                                                                                                        |   | $                                          | 335,629,190 |   |                         | $      | 321,948,081 |                          |   | $ | 317,448,553 |   |

----

|                                                                                           |   | For the Three Months |        |    | For the Nine Months |    |
|------------------------------------------------------------------------------------------------|--------|----------------------|-------------|---------|---------------------|---------|
|                                                                                           |   | Ended September 30,  |        |    | Ended September 30, |    |
|                                                                                           |   | 2009(As Restated)    |        |    | 2008                |    |   | 2009(As Restated) |   |   | 2008 |   |
|  INTEREST INCOME                                                                          |   |                 |        |    |                |    |   |   |   |   |   |   |
|      Loans and leases                                                 |   | $                    | 4,412,063   |    |                | $       | 4,661,936 |   |   |  $ | 13,296,869 |   |   |  $ | 14,335,110 |   |
|      Taxable securities                                                    |   |                 | 42,695      |    |                |    | 14,473 |   |   |   | 124,173 |   |   |   | 83,440 |   |
|      Tax-exempt securities                                                 |   |                 | 131,925     |    |                |    | 129,822 |   |   |   | 400,219 |   |   |   | 399,165 |   |
|      Federal funds sold and other                                          |   |                 | 17,346      |    |                |    | 6,029 |   |   |   | 30,510 |   |   |   | 38,469 |   |
|      Dividends/CA Warrants                                                 |   |                 | 4,161       |    |                |    | 24,377 |   |   |   | 4,258 |   |   |   | 74,224 |   |
| Total interest income                                                                          |   |                 | 4,608,190   |    |                |    | 4,836,637 |   |   |   | 13,856,029 |   |   |   | 14,930,408 |   |
|   INTEREST EXPENSE                                                                   |   |                 |        |    |                |    |   |   |   |   |   |   |   |   |   |   |
|     Interest-bearing transaction deposits                                  |   |                 | 13,631      |    |                |    | 12,457 |   |   |   | 31,061 |   |   |   | 37,592 |   |
|     Savings and money market deposits                                      |   |                 | 199,734     |    |                |    | 348,426 |   |   |   | 649,318 |   |   |   | 1,112,540 |   |
|     Time deposits, $100,000 and over                                       |   |                 | 395,921     |    |                |    | 442,232 |   |   |   | 1,151,891 |   |   |   | 1,546,942 |   |
|     Other time deposits                                                    |   |                 | 183,456     |    |                |    | 252,826 |   |   |   | 611,447 |   |   |   | 886,185 |   |
|     Other borrowings                                                       |   |                 | 187,324     |    |                |    | 179,922 |   |   |   | 600,669 |   |   |   | 623,716 |   |
| Total interest expense                                                                         |   |                 | 980,066     |    |                |    | 1,235,863 |   |   |   | 3,044,386 |   |   |   | 4,206,975 |   |
|   NET INTEREST INCOME                                                                |   |                 | 3,628,124   |    |                |    | 3,600,774 |   |   |   | 10,811,643 |   |   |   | 10,723,433 |   |
|     Provision for loan and lease losses                                    |   |                 | 24,450,000  |    |                |    | 300,000 |   |   |   | 29,330,000 |   |   |   | 830,000 |   |
| NET INTEREST INCOME AFTERPROVISION FOR LOAN ANDLEASE LOSSES                                    |   |                 | (20,821,876 | )  |                |    | 3,300,774 |   |   |   | (18,518,357 | )  |   |   | 9,893,433 |   |
|   NON-INTEREST INCOME                                                                |   |                 | 520,321     |    |                |    | 528,883 |   |   |   | 1,501,932 |   |   |   | 1,617,271 |   |
|   NON-INTEREST EXPENSE                                                               |   |                 |        |    |                |    |   |   |   |   |   |   |   |   |   |   |
|     Salaries and employee benefits                                         |   |                 | 1,228,353   |    |                |    | 1,414,357 |   |   |   | 3,816,582 |   |   |   | 4,229,827 |   |
|     Premises and equipment                                                 |   |                 | 243,835     |    |                |    | 233,897 |   |   |   | 738,178 |   |   |   | 698,697 |   |
|     Other                                                                  |   |                 | 1,108,153   |    |                |    | 805,485 |   |   |   | 3,239,432 |   |   |   | 2,253,235 |   |
| Total non-interest expense                                                                     |   |                 | 2,580,341   |    |                |    | 2,453,739 |   |   |   | 7,794,192 |   |   |   | 7,181,759 |   |
|     (Loss)Income before provision for income taxes                         |   |                 | (22,881,896 | )       |                |    | 1,375,918 |   |   |   | (24,810,617 | )  |   |   | 4,328,945 |   |
|     Provision for income taxes                                             |   |                 | (3,989,513  | )       |                |    | 459,843 |   |   |   | (4,998,287 | )  |   |   | 1,438,956 |   |
| NET (LOSS)INCOME                                                                               |   |  $              | (18,892,383 | )  |                |  $ | 916,075 |   |   |  $ | (19,812,330 | ) |   |  $ | 2,889,989 |   |
|     Preferred stock dividends and amortization of preferred stock discount |   |                 | (136,935    | )       |                |    | 0 |   |   |   | (334,513 | ) |   |   | 0 |   |
| NET (LOSS)INCOME AVAILABLE TO COMMON SHAREHOLDERS                                         |   |                 | (19,029,318 | )       |                |    | 916,075 |   |   |   | (20,146,843 | ) |   |   | 2,889,989 |   |
| (LOSS)EARNINGS PER SHARE AVAILABLE TO COMMON SHAREHOLDERS                                      |   |                 |        |    |                |    |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                          |   | $                    | (8.27       | )       |                | $       | .41 |   |   | $ | (8.75 | ) |   | $ | 1.28 |   |
| Diluted                                                                                        |   | $                    | (8.27       | )       |                | $       | .40 |   |   | $ | (8.75 | ) |   | $ | 1.26 |   |
| Dividends declared per common share                                                            |   | $                    | .00         |    |                | $       | .00 |   |   | $ | .30 |   |   | $ | .60 |   |
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                                                  |   |                 |        |    |                |    |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                          |   |                 | 2,302,269   |    |                |    | 2,260,255 |   |   |   | 2,302,269 |   |   |   | 2,260,255 |   |
| Diluted                                                                                        |   |                 | 2,302,269   |    |                |    | 2,294,794 |   |   |   | 2,302,269 |   |   |   | 2,294,794 |   |

----

|                                                                                                                                                           |   | Comprehensive |      | Preferred |    | Common Stock |      |      | Additional Paid-in |      |       | Retained   |      |   | Accumulated Other Comprehensive |      |   |         |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|-----------|---------|--------------|-----------|-----------|--------------------|-----------|------------|------------|-----------|--------|---------------------------------|-----------|--------|--------------|------------|
|                                                                                                                                                           |   | Income        |      | Stock     |    | Shares       |      |      | Amount             |      |       | Capital    |      |   | Earnings                        |      |   | Income(Loss) |       |   | Total |   |
| BALANCE AT JANUARY 1, 2007                                                                                                                                     |   |          |      |      |    |         | 2,283,047 |      |               | $         | 15,479,556 |       |      | $      | 1,872,648                       |      |   | $            | 9,206,716  |   |   | $ | (154,849 | ) |   | $ | 26,404,071 |   |
| Redemption and retirement  of stock                                                                                                                  |   |          |      |      |    |         | (100,415  | )         |               |      | (689,422   | )          |      |   |                            |      |   |         | (2,243,816 | ) |   |   |   |   |   |   | (2,933,238 | ) |
| Stock options exercised and related tax benefits                                                                                                               |   |          |      |      |    |         | 60,177    |      |               |      | 626,019    |       |      |   | 358,353                         |      |   |         |       |   |   |   |   |   |   |   | 984,372 |   |
| Cash dividend of $.60 per share                                                                                                                                |   |          |      |      |    |         |      |      |               |      |       |       |      |   |                            |      |   |         | (1,371,471 | ) |   |   |   |   |   |   | (1,371,471 | ) |
| Stock options vested                                                                                                                                           |   |          |      |      |    |         |      |      |               |      |       |       |      |   | 216,473                         |      |   |         |       |   |   |   |   |   |   |   | 216,473 |   |
| Restricted stock vested and related tax benefits                                                                                                               |   |          |      |      |    |         |      |      |               |      | 162,750    |       |      |   | 7,935                           |      |   |         |       |   |   |   |   |   |   |   | 170,685 |   |
| Net income for the year                                                                                                                                        |   | $             | 4,343,538 |      |    |         |      |      |               |      |       |       |      |   |                            |      |   |         |       | 4,343,538 |   |   |   |   |   |   |   | 4,343,538 |   |
| Other comprehensive income, net of tax: Unrealized holding gains on securities available- for-sale arising during the year, net of taxes of $83,819            |   |          | 119,850   |      |    |         |      |      |               |      |       |       |      |   |                            |      |   |         |       |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net of taxes                                                                                                                       |   |          | 119,850   |      | _______ |         | ________  |      |               | _________ |       |       | _________ |   |                            | _________ |   |         |       | 119,850 |   |   |   | 119,850 |   |
| Total comprehensive income                                                                                                                                     |   | $             | 4,463,388 |      |    |         |      |      |               |      |       |       |      |   |                            |      |   |         |       |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                           |   |          |      |      |    |         |      |      |               |      |       |       |      |   |                            |      |   |         |       |   |   |   |   |   |   |   |   |   |   |
| BALANCE AT  DECEMBER 31, 2007                                                                                                                        |   |          |      |      |    |         |      | 2,242,809 |               |      |       | 15,578,903 |      |   |                            | 2,455,409 |   |         |       | 9,934,967 |   |   |   | (34,999 | ) |   |   | 27,934,280 |   |
| Redemption and retirement  of stock                                                                                                                  |   |          |      |      |    |         |      | (1,190    | )                  |      |       | (8,526     | )         |   |                            |      |   |         |       | (13,414 | ) |   |   |   |   |   |   | (21,940 | ) |
| Stock options exercised and related tax benefits                                                                                                               |   |          |      |      |    |         |      | 49,038    |               |      |       | 668,957    |      |   |                            | 72,318    |   |         |       |   |   |   |   |   |   |   |   | 741,275 |   |
| Cash dividend of $.60 per share                                                                                                                                |   |          |      |      |    |         |      |      |               |      |       |       |      |   |                            |      |   |         |       | (1,373,226 | ) |   |   |   |   |   |   | (1,373,226 | ) |
| Stock options vested                                                                                                                                           |   |          |      |      |    |         |      |      |               |      |       |       |      |   |                            | 64,805    |   |         |       |   |   |   |   |   |   |   |   | 64,805 |   |
| Restricted stock vested and related tax benefit                                                                                                                |   |          |      |      |    |         |      |      |               |      |       | 162,750    |      |   |                            | (14,677   | )      |         |       |   |   |   |   |   |   |   |   | 148,073 |   |
| Net income for the year                                                                                                                                        |   | $             | 3,315,361 |      |    |         |      |      |               |      |       |       |      |   |                            |      |   |         |       | 3,315,361 |   |   |   |   |   |   |   | 3,315,361 |   |
| Other comprehensive  income, net of tax: Unrealized holding gains on securities available- for-sale arising during the year, net of taxes of $35,994 |   |          | 51,468    |      |    |         |      |      |               |      |       |       |      |   |                            |      |   |         |       |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive  income, net of taxes                                                                                                            |   |          | 51,468    |      | _______ |         | ________  |      |               | _________ |       |       | _________ |   |                            | _________ |   |         |       | 51,468 |   |   |   | 51,468 |   |
| Total comprehensive income                                                                                                                                     |   | $             | 3,366,829 |      |    |         |      |      |               |      |       |       |      |   |                            |      |   |         |       |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                            |   | Comprehensive |        |   | Preferred |      |      | Common Stock |      |   | Additional Paid-in |      |       | Retained |       |   | Accumulated Other Comprehensive |      |      |         |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|-----------|-----------|-----------|--------------|-----------|--------|--------------------|-----------|------------|----------|------------|--------|---------------------------------|-----------|-----------|--------------|------------|
|                                                                                                                                            |   | Income(Loss)  |        |   | Stock     |      |      | Shares       |      |   | Amount             |      |       | Capital  |       |   | Earnings                        |      |      | Income(Loss) |       |   | Total |   |
| BALANCE AT DECEMBER 31, 2008                                                                                                                    |   |          |        |   |      |      |      |         | 2,290,657 |   |               | $         | 16,402,084 |     |       | $      | 2,577,855                       |      |      | $            | 11,863,688 |   |   | $ | 16,469 |   |   | $ | 30,860,096 |   |
| Issuance of preferred stock                                                                                                                     |   |          |        |   | $         | 8,653,000 |      |         |      |   |               |      |       |     |       |   |                            |      |      |         |       |   |   |   |   |   |   |   |   | 8,653,000 |   |
| Dividends on preferred stock                                                                                                                    |   |          |        |   |      |      |      |         |      |   |               |      |       |     |       |   |                            |      |      |         |       | (288,212 | ) |   |   |   |   |   |   | (288,212 | ) |
| Amortization/ Accretion of preferred stock,net                                                                                                  |   |          |        |   |      | 46,301    |      |         |      |   |               |      |       |     |       |   |                            |      |      |         |       | (46,301 | ) |   |   |   |   |   |   |   |   |
| Stock options exercised and related tax benefits                                                                                                |   |          |        |   |      |      |      |         |      | 36,146 |               |      |       | 287,931  |       |   |                            | 38,618    |      |         |       |   |   |   |   |   |   |   |   | 326,549 |   |
| Cash dividend of $.30 per share                                                                                                                 |   |          |        |   |      |      |      |         |      |   |               |      |       |     |       |   |                            |      |      |         |       | (694,146 | ) |   |   |   |   |   |   | (694,146 | ) |
| Stock options vested                                                                                                                            |   |          |        |   |      |      |      |         |      |   |               |      |       |     |       |   |                            | 50,465    |      |         |       |   |   |   |   |   |   |   |   | 50,465 |   |
| Restricted stock vested                                                                                                                         |   |          |        |   |      |      |      |         |      |   |               |      |       | 162,750  |       |   |                            | (87,440   | )         |         |       |   |   |   |   |   |   |   |   | 75,310 |   |
| Net loss for the year                                                                                                                           |   | $             | (19,812,330 | )      |      |      |      |         |      |   |               |      |       |     |       |   |                            |      |      |         |       |   | (19,812,330 | ) |   |   |   |   |   |   | (19,812,330 | ) |
| Other comprehensive loss, net of tax: Unrealized holding loss on securities available- for-sale arising during the year, net of taxes of $3,078 |   |          | 4,401       |   |      |      |      |         |      |   |               |      |       |     |       |   |                            |      |      |         |       |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive loss, net of taxes                                                                                                          |   |          | 4,401       |   |      | _______   |      |         | ________  |   |               | _________ |       |     | _________  |   |                            | _________ |      |         |       | 4,401 |   |   |   | 4,401 |   |
| Total comprehensive loss                                                                                                                        |   | $             | (19,807,929 | )      |      |      |      |         |      |   |               |      |       |     |       |   |                            |      |      |         |       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |          |        |   |      |      |      |         |      |   |               |      |       |     |       |   |                            |      |      |         |       |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE AT September 30, 2009                                                                                                                   |   |          |        |   |      | $         | 8,699,301 |         |      |   | 2,326,803          |      |       | $        | 16,852,765 |   |                            | $         | 2,579,498 |         |       | $ | (8,977,301 | ) |   | $ | 20,870 |   |   | $ | 19,175,133 |   |

----

|                                                                              |   | 2009 (As Restated) |        |   | 2008   |   |
|-----------------------------------------------------------------------------------|--------|-------------------------|-------------|--------|--------|--------|
| OPERATING ACTIVITIES                                                              |   |                    |        |   |   |   |
| Net (loss)income                                                                  |   | $                       | (19,812,330 | )      |   | $      | 2,889,989 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                    |        |   |   |   |   |   |
| Provision for loan and lease losses                                               |   |                    | 29,330,000  |   |   |   | 830,000 |   |
| Depreciation                                                                      |   |                    | 174,518     |   |   |   | 172,946 |   |
| Amortization and other                                                            |   |                    | 42,607      |   |   |   | 55,799 |   |
| Stock-based compensation expense                                                  |   |                    | 125,775     |   |   |   | 155,568 |   |
| Provision for foreclosed real estate                                              |   |                    | 57,055      |   |   |   | 0 |   |
| Net change in interest receivable                                                 |   |                    | 8,862       |   |   |   | 23,132 |   |
| Net change in cash surrender value of life insurance                              |   |                    | (281,112    | )      |   |   | (319,588 | ) |
| Net change in other assets                                                        |   |                    | (5,927,734  | )      |   |   | (431,303 | ) |
| Net change in interest payable and other liabilities                              |   |                    | (35,723     | )      |   |   | 367,707 |   |
| NET CASH PROVIDED BY OPERATING ACTIVITIES                                         |   |                    | 3,681,918   |   |   |   | 3,744,250 |   |
| INVESTING ACTIVITIES                                                              |   |                    |        |   |   |   |   |   |
| Purchases of securities available-for-sale                                        |   |                    | (10,476,627 | )      |   |   | (1,008,605 | ) |
| Proceeds from maturing securities held-to-maturity                                |   |                    | 425,000     |   |   |   | 1,128,100 |   |
| Proceeds from maturing securities available-for-sale                              |   |                    | 6,500,000   |   |   |   | 7,205,000 |   |
| Net change in loans and leases                                                    |   |                    | (25,316,341 | )      |   |   | (13,955,332 | ) |
| Purchases of premises and equipment                                               |   |                    | (55,123     | )      |   |   | (166,752 | ) |
| NET CASH USED FOR INVESTING ACTIVITIES                                            |   |                    | (28,923,091 | )      |   |   | (6,797,589 | ) |
| FINANCING ACTIVITIES                                                              |   |                    |        |   |   |   |   |   |
| Net change in demand, interest-bearing transaction and savings deposits           |   |                    | 5,956,723   |   |   |   | 1,941,296 |   |
| Net change in time deposits                                                       |   |                    | 29,156,860  |   |   |   | 9,367,112 |   |
| Proceeds from issuance of Preferred stock                                         |   |                    | 8,653,000   |   |   |   | 0 |   |
| Cash dividend paid                                                                |   |                    | (694,146    | )      |   |   | (1,373,226 | ) |
| Proceeds from FHLB borrowings                                                     |   |                    | 15,000,000  |   |   |   | 25,000,000 |   |
| Repayments of FHLB borrowings                                                     |   |                    | (25,000,000 | )      |   |   | (19,500,000 | ) |
| Stock options exercised                                                           |   |                    | 287,931     |   |   |   | 557,561 |   |
| NET CASH  PROVIDED BY FINANCING ACTIVITIES                              |   |                    | 33,360,368  |   |   |   | 15,992,743 |   |
| NET CHANGE IN CASH AND CASH EQUIVALENTS                                           |   |                    | 8,119,195   |   |   |   | 12,939,404 |   |
| Cash and cash equivalents at beginning of period                                  |   |                    | 18,233,055  |   |   |   | 9,333,634 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                        |   | $                       | 26,352,250  |   |   | $      | 22,273,038 |   |
|                                                                              |   |                    |        |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                |   |                    |        |   |   |   |   |   |
| Cash paid during the year for:                                                    |   |                    |        |   |   |   |   |   |
| Interest expense                                                                  |   | $                       | 3,049,185   |   |   | $      | 4,253,548 |   |
| Income taxes                                                                      |   | $                       | 1,015,570   |   |   | $      | 1,662,156 |   |
| SUPPLEMENTAL DISCLOSURES OF NONCASH ACTIVITIES:                                   |   |                    |        |   |   |   |   |   |
| Loans transferred to other real estate owned                                      |   | $                       | 250,000     |   |   | $      | 320,416 |   |
| Net change in unrealized gains and losses on securities                           |   | $                       | 7,479       |   |   | $      | 41,727 |   |
| Net change in deferred income taxes on unrealized gains on securities             |   | $                       | (3,078      | )      |   | $      | (17,172 | ) |
| Accrued preferred stock dividends                                                 |   | $                       | (288,212    | )      |   |   | 0 |   |
| Amortization/Accretion of preferred stock discount/premium, net                   |   | $                       | (46,301     | )      |   |   | 0 |   |

----

----

|                                                 |   | Directors |   |   | Officers |   |
|------------------------------------------------------|--------|-----------|--------|--------|----------|--------|
|                                                 |   | 2009      |   |   | 2008     |   |   | 2009 |   |   | 2008 |   |
| Service cost                                         |   | $         | 45,229 |   |     | $      | 30,525 |   |   | $ | 81,008 |   |   | $ | 223,760 |   |
| Interest cost on projected benefit obligation        |   |      | 34,873 |   |     |   | 21,639 |   |   |   | 169,995 |   |   |   | 208,199 |   |
| Amortization of unrecognized liability at transition |   |      | (9,913 | )      |     |   | (7,570 | ) |   |   | 17,777 |   |   |   | 126,814 |   |
| Net periodic pension cost recognized                 |   | $         | 70,189 |   |     | $      | 44,594 |   |   | $ | 268,780 |   |   | $ | 558,773 |   |

| At September 30, 2009         |   |
|-------------------------------|--------|
|                          |   | Total |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Available-for-sale securities |   | $ | 10,561,357 |   |   | $ | 14,752 |   |   | $ | 10,546,605 |   |   | $ | 0 |   |

----

| September 30, 2009      |   |
|-------------------------|--------|
|                    |   | Total |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Impaired Loans          |   | $ | 23,451,243 |   |   | $ | 0 |   |   | $ | 23,451,243 |   |   | $ | 0 |   |
| Other Real Estate Owned |   | $ | 478,610 |   |   | $ | 0 |   |   | $ | 478,610 |   |   | $ | 0 |   |

----

|                                                                                         | Restated   |   | Previously Reported |   | Effect of Change |   |
|---------------------------------------------------------------------------------------------------|-----------------|--------|---------------------|--------|------------------|--------|
| Consolidated Balance Sheet at September 30, 2009 (unaudited):                                     |            |   |                |   |             |   |
| Loans and lease financing receivable, net                                                         | $258,113,125    |   | $280,013,125        |   | $(21,900,000)    |   |
| Accrued interest receivable                                                                       |  1,669,685 |   |  1,859,477     |   |  (189,792)  |   |
| Other assets                                                                                      | 13,383,896      |   | 9,828,242           |   | 3,555,654        |   |
| Total assets                                                                                      | 335,629,190     |   | 354,163,328         |   | (18,534,138)     |   |
| Retained earnings                                                                                 | (8,977,301)     |   | 9,556,837           |   | (18,534,138)     |   |
| Total shareholders’ equity                                                                  | 19,175,133      |   | 37,709,271          |   | (18,534,138)     |   |
| Total liabilities and shareholders’ equity                                                  | 335,629,190     |   | 354,163,328         |   | (18,534,138)     |   |
|                                                                                              |            |   |                |   |
| Consolidated Statements of  Operations (unaudited)Three Months ended September 30, 2009 |            |   |                |   |
| Loans and leases                                                                                  | 4,412,063       |   | 4,601,855           |   | (189,792)        |   |
| Total interest income                                                                             | 4,608,190       |   | 4,797,982           |   | (189,792)        |   |
| Net interest income                                                                               | 3,628,124       |   | 3,817,916           |   | (189,792)        |   |
| Provision for loan and lease losses                                                               | 24,450,000      |   | 2,550,000           |   | 21,900,000       |   |
| Net interest income after provision  for loan and lease losses                          | (20,821,876)    |   | 1,267,916           |   | (22,089,792)     |   |
| Loss before provision for income taxes                                                            | (22,881,896)    |   | (792,104)           |   | (22,089,792)     |   |
| Income tax benefit                                                                                | (3,989,513)     |   | (433,859)           |   | (3,555,654)      |   |
| Net loss                                                                                          | (18,892,383)    |   | (358,245)           |   | (18,534,138)     |   |
| Net loss available to common shareholders;                                                        | (19,029,318)    |   | (495,180)           |   | (18,534,138)     |   |
| Net loss earnings per share available to  Common shareholders’ basic              | (8.27)          |   | (0.22)              |   | (8.05)           |   |
| Net loss earnings per share available to  Common shareholders’ diluted            | (8.27)          |   | (0.21)              |   | (8.06)           |   |
|                                                                                              |            |   |                |   |             |
| Consolidated Statements of Operations (unaudited)Nine Months Ended September 30, 2009             |            |   |                |   |             |
| Loans and leases                                                                                  | 13,296,869      |   | 13,486,661          |   | (189,792)        |   |
| Total interest income                                                                             | 13,856,029      |   | 14,045,821          |   | (189,792)        |   |
| Net interest income                                                                               | 10,811,643      |   | 11,001,435          |   | (189,792)        |   |
| Provision for loan and lease losses                                                               | 29,330,000      |   | 7,430,000           |   | 21,900,000       |   |
| Net interest income after provision  for loan and lease losses                          | (18,518,357)    |   | 3,571,435           |   | (22,089,792)     |   |
| (Loss) Income before provision for income taxes                                                   | (24,810,617)    |   | (2,720,825)         |   | (22,089,792)     |   |
| Provision income taxes                                                                            | (4,998,287)     |   | (1,442,633)         |   | (3,555,654)      |   |
| Net (loss) income                                                                                 | (19,812,330)    |   | (1,278,192)         |   | (18,534,138)     |   |
| Net (loss) available to common shareholders;                                                      | (20,146,843)    |   | (1,612,705)         |   | (18,534,138)     |   |
| Net loss per share available to  Common shareholders’ basic                       | (8.75)          |   | (0.70)              |   | (9.45)           |   |
| Net loss per share available to Common shareholders’ diluted                                | (8.75)          |   | (0.70)              |   | (9.45)           |   |

----

|                                                                                        | Restated  |   | Previously Reported |   | Effect of Change |   |
|---------------------------------------------------------------------------------------------|----------------|--------|---------------------|--------|------------------|--------|
| Consolidated Statements of Shareholders’ Equity                                       |           |   |                |   |             |
| Net loss for the nine months ended September 30, 2009                                       | (19,812,330)   |   | (1,278,192)         |   | (18,534,138)     |   |
| Balance at September 30, 2009 retained earnings                                             | (8,977,301)    |   | 9,556,837           |   | (18,534,138)     |   |
| Balance at September 30, 2009 total shareholders’ equity                              | 19,175,133     |   | 37,709,271          |   | (18,534,138)     |   |
|                                                                                        |           |   |                |   |             |   |
| Consolidated Statements of Cash Flows (unaudited) Nine Months Ended September 30, 2009 |           |   |                |   |             |
| Net loss                                                                                    | (19,812,330)   |   | (1,278,192)         |   | (18,534,138)     |   |
| Provision for loan and lease losses                                                         | 29,330,000     |   | 7,430,000           |   | 21,900,000       |   |
| Net change in interest receivable                                                           | 8,862          |   | (180,930)           |   | 189,792          |   |
| Net change in other assets                                                                  | (5,927,734)    |   | (2,372,080)         |   | (3,555,654)      |   |
|                                                                                        |           |   |                |   |             |   |
| Loan Net Charge-OffsNine Months Ended September 30, 2009                                    |           |   |                |   |             |   |
| Charge-offs, net of recoveries                                                              | (21,555,575)   |   | (6,470,608)         |   | (15,084,967)     |   |
| Provision for loan losses                                                                   | 29,330,000     |   | 7,430,000           |   | (21,900,000)     |   |
| Balance at period end                                                                       | 12,806,925     |   | 5,991,892           |   | (6,815,033)      |   |
|                                                                                        |           |   |                |   |             |   |
| Nonaccrual Loans at September 30, 2009                                                      | 26,586,588     |   | 6,588,400           |   | 19,998,188       |   |
|                                                                                        |           |   |                |   |             |   |
| Regulatory Capital Sonoma Valley Bancorpat September 30, 2009                               |           |   |                |   |             |   |
| Tier 1 leverage ratio                                                                       | 4.25%          |   | 9.64%               |   | (5.39)%          |   |
| Tier 1 risk-based capital ratio                                                             | 5.22%          |   | 11.50%              |   | (6.28)%          |   |
| Total risk-based capital ratio                                                              | 6.51%          |   | 12.76%              |   | (6.25)%          |   |
|                                                                                        |           |   |                |   |             |   |
| Regulatory Capital Sonoma Valley Bankat September 30, 2009                                  |           |   |                |   |             |   |
| Tier 1 leverage ratio                                                                       | 4.16%          |   | 9.11%               |   | (4.95)%          |   |
| Tier 1 risk-based capital ratio                                                             | 5.11%          |   | 10.88%              |   | (5.77)%          |   |
| Total risk-based capital ratio                                                              | 6.40%          |   | 12.14%              |   | (5.74)%          |   |
|                                                                                        |           |   |                |   |             |   |
| Fair Value Measurements as ofSeptember 30, 2009:                                            |           |   |                |   |             |   |
| Impaired Loans                                                                              |           |   |                |   |             |   |
| Level 2                                                                                     | 23,451,243     |   | 29,363,436          |   | (5,912,193)      |   |
| Level 3                                                                                     | 0              |   | 19,106,108          |   | (19,106,108)     |   |
| Total                                                                                       | 23,451,243     |   | 48,469,544          |   | (25,018,301)     |   |
| Liquidity and Capital ResourcesNine Months ended September 30, 2009                         |           |   |                |   |             |   |
| Return on average assets                                                                    | (7.94)%        |   | (0.50)%             |   | (7.44)%          |   |
| Return on average equity                                                                    | (73.60)%       |   | (4.53)%             |   | (69.07)%         |   |
| Average Balances/yields and rates paidThree Months Ended September 30, 2009                 |           |   |                |   |             |   |
| Interest-earning assets:                                                                    |           |   |                |   |             |   |
|   Loans:                                                                          |           |   |                |   |             |   |
|    Average Balance                                                           | 285,334,573    |   | 289,001,239         |   | (3,666,666)      |   |
|     Interest income                                                     | 4,426,586      |   | 4,616,378           |   | (189,792)        |   |
|     Average yield/rate                                                  | 6.15%          |   | 6.34%               |   | (0.19)%          |   |
| Total interest-earning assets/interest income:                                              |           |   |                |   |             |   |
|     Average Balance                                                     | 340,997,253    |   | 344,663,919         |   | (3,666,666)      |   |
|   Interest and dividends                                                          | 4,690,672      |   | 4,880,464           |   | (189,792)        |   |
|   Average yield/rate                                                              | 5.46%          |   | 5.62%               |   | (0.16)%          |   |
| Shareholders equity:                                                                        |           |   |                |   |             |   |
|   Average balance                                                                 | 34,954,405     |   | 38,621,072          |   | (3,666,667)      |   |
|  Net interest income                                                                   | 4,690,672      |   | 4,880,464           |   | (189,792)        |   |
| Interest rate spread                                                                        | 3.99%          |   | 4.16%               |   | (0.17)%          |   |
| Net interest margin                                                                         | 4.32%          |   | 4.49%               |   | (0.17)%          |   |

----

|                                           | Restated  |   | Previously Reported |   | Effect of Change |   |
|------------------------------------------------|----------------|--------|---------------------|--------|------------------|--------|
| Nine Months Ended September 30, 2009           |           |   |                |   |             |   |
| Interest-earning assets:                       |           |   |                |   |             |   |
|   Loans:                             |           |   |                |   |             |   |
|    Average Balance              | 280,836,300    |   | 281,936,300         |   | (1,100,000)      |   |
|     Interest income        | 13,340,545     |   | 13,530,337          |   | (189,792)        |   |
|     Average yield/rate     | 6.35%          |   | 6.42%               |   | (0.07)%          |   |
| Total interest-earning assets/interest income: |           |   |                |   |             |   |
|     Average Balance        | 320,597,028    |   | 321,697,028         |   | (1,100,000)      |   |
|   Interest and dividends             | 14,105,878     |   | 14,295,670          |   | (189,792)        |   |
|   Average yield/rate                 | 5.88%          |   | 5.94%               |   | (0.06)%          |   |
| Shareholders equity:                           |           |   |                |   |             |   |
|                                           |           |   |                |   |             |   |
|   Average balance                    | 36,596,614     |   | 37,696,614          |   | (1,100,000)      |   |
| Net interest income                            | 14,105,878     |   | 14,295,670          |   | (189,792)        |   |
| Interest rate spread                           | 4.23%          |   | 4.29%               |   | (0.06)%          |   |
| Net interest margin                            | 4.61%          |   | 4.67%               |   | (0.06)%          |   |

----

----

----

|                                       |   | 2009                                    |        |   | 2008                                    |   |
|--------------------------------------------|--------|-----------------------------------------|-------------|--------|-----------------------------------------|--------|
| ASSETS                                     |   | Average Balance (As Restated) |        |   | Income/ Expense (As Restated) |   |   | Yield/ Rate  |   |   | Average Balance |   |   | Income/ Expense |   |   | Yield/ Rate |   |
| Interest-earning assets:                   |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans(2):                                  |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                 |   | $                                       | 193,074,487 |   |                                    | $      | 9,226,106 |   |   |   | 6.39 | % |   | $ | 176,487,467 |   |   | $ | 9,856,967 |   |   |   | 7.47 | % |
| Consumer                                   |   |                                    | 37,687,842  |   |                                    |   | 1,779,258 |   |   |   | 6.31 | % |   |   | 31,149,537 |   |   |   | 1,696,535 |   |   |   | 7.28 | % |
| Real estate construction                   |   |                                    | 26,685,185  |   |                                    |   | 1,098,542 |   |   |   | 5.50 | % |   |   | 26,852,216 |   |   |   | 1,612,353 |   |   |   | 8.03 | % |
| Real estate mortgage                       |   |                                    | 21,533,527  |   |                                    |   | 1,108,178 |   |   |   | 6.88 | % |   |   | 19,430,397 |   |   |   | 1,078,099 |   |   |   | 7.42 | % |
| Tax exempt loans (1)                       |   |                                    | 2,084,563   |   |                                    |   | 128,461 |   |   |   | 8.24 | % |   |   | 2,195,780 |   |   |   | 135,664 |   |   |   | 8.26 | % |
| Leases                                     |   |                                    | 11,560      |   |                                    |   | 0 |   |   |   | 0.00 | % |   |   | 19,673 |   |   |   | 1,617 |   |   |   | 10.99 | % |
| Unearned loan fees                         |   |                                    | (240,864    | )      |                                    |   |   |   |   |   |   |   |   |   | (328,825 | ) |   |   |   |   |   |   |   |   |
| Total loans                                |   |                                    | 280,836,300 |   |                                    |   | 13,340,545 |   |   |   | 6.35 | % |   |   | 255,806,245 |   |   |   | 14,381,235 |   |   |   | 7.52 | % |
| Investment securities                      |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for sale:                        |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                    |   |                                    | 6,909,964   |   |                                    |   | 127,594 |   |   |   | 2.47 | % |   |   | 3,402,856 |   |   |   | 83,917 |   |   |   | 3.30 | % |
| Hold to maturity:                          |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax exempt (1)                             |   |                                    | 13,660,263  |   |                                    |   | 606,392 |   |   |   | 5.94 | % |   |   | 14,006,800 |   |   |   | 604,795 |   |   |   | 5.77 | % |
| Total investment securities                |   |                                    | 20,570,227  |   |                                    |   | 733,986 |   |   |   | 4.77 | % |   |   | 17,409,656 |   |   |   | 688,712 |   |   |   | 5.29 | % |
| CA Warrants                                |   |                                    | 30,823      |   |                                    |   | 837 |   |   |   | 3.63 | % |   |   | 0 |   |   |   | 0 |   |   |   | 0.00 | % |
| Federal funds sold                         |   |                                    | 0           |   |                                    |   | 0 |   |   |   | 0.00 | % |   |   | 64,672 |   |   |   | 1,284 |   |   |   | 2.65 | % |
| FHLB stock                                 |   |                                    | 1,592,385   |   |                                    |   | 0 |   |   |   | 0.00 | % |   |   | 1,658,850 |   |   |   | 73,747 |   |   |   | 5.94 | % |
| Total due from banks/interest-bearing      |   |                                    | 17,567,293  |   |                                    |   | 30,510 |   |   |   | 0.23 | % |   |   | 2,266,925 |   |   |   | 37,186 |   |   |   | 2.19 | % |
| Total interest-earning assets         |   |                                    | 320,597,028 |   |                                    | $      | 14,105,878 |   |   |   | 5.88 | % |   |   | 277,206,348 |   |   | $ | 15,182,164 |   |   |   | 7.32 | % |
| Noninterest-bearing assets:                |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reserve for loan losses                    |   |                                    | (7,434,435  | )      |                                    |   |   |   |   |   |   |   |   |   | (3,898,303 | ) |   |   |   |   |   |   |   |   |
| Cash and due from banks                    |   |                                    | 5,086,751   |   |                                    |   |   |   |   |   |   |   |   |   | 5,579,748 |   |   |   |   |   |   |   |   |   |
| Premises and equipment                     |   |                                    | 683,916     |   |                                    |   |   |   |   |   |   |   |   |   | 804,965 |   |   |   |   |   |   |   |   |   |
| Other real estate owned                    |   |                                    | 275,042     |   |                                    |   |   |   |   |   |   |   |   |   | 228,366 |   |   |   |   |   |   |   |   |   |
| Other assets                               |   |                                    | 20,107,957  |   |                                    |   |   |   |   |   |   |   |   |   | 16,650,308 |   |   |   |   |   |   |   |   |   |
| Total assets                               |   | $                                       | 339,316,259 |   |                                    |   |   |   |   |   |   |   |   | $ | 296,571,432 |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY       |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:              |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest- bearing deposits                 |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing transaction               |   | $                                       | 31,144,230  |   |                                    | $      | 31,061 |   |   |   | 0.13 | % |   | $ | 30,176,377 |   |   | $ | 37,592 |   |   |   | 0.17 | % |
| Savings deposits                           |   |                                    | 90,803,579  |   |                                    |   | 649,318 |   |   |   | 0.96 | % |   |   | 77,548,456 |   |   |   | 1,112,540 |   |   |   | 1.92 | % |
| Time deposits over $100,000                |   |                                    | 60,603,767  |   |                                    |   | 1,151,891 |   |   |   | 2.54 | % |   |   | 51,073,637 |   |   |   | 1,546,942 |   |   |   | 4.05 | % |
| Other time deposits                        |   |                                    | 36,781,942  |   |                                    |   | 611,447 |   |   |   | 2.22 | % |   |   | 31,230,447 |   |   |   | 886,185 |   |   |   | 3.79 | % |
| Total interest-bearing deposits            |   |                                    | 219,333,518 |   |                                    |   | 2,443,717 |   |   |   | 1.49 | % |   |   | 190,028,917 |   |   |   | 3,583,259 |   |   |   | 2.52 | % |
| Federal funds purchased                    |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   | 156,934 |   |   |   | 2,578 |   |   |   | 2.20 | % |
| Other borrowings                           |   |                                    | 26,835,897  |   |                                    |   | 600,669 |   |   |   | 2.99 | % |   |   | 20,617,153 |   |   |   | 621,138 |   |   |   | 4.03 | % |
| Total interest-bearing liabilities         |   |                                    | 246,169,415 |   |                                    | $      | 3,044,386 |   |   |   | 1.65 | % |   |   | 210,803,004 |   |   | $ | 4,206,975 |   |   |   | 2.67 | % |
| Non-interest-bearing liabilities:          |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing demand deposits       |   |                                    | 49,012,034  |   |                                    |   |   |   |   |   |   |   |   |   | 49,487,970 |   |   |   |   |   |   |   |   |   |
| Other liabilities                          |   |                                    | 7,538,196   |   |                                    |   |   |   |   |   |   |   |   |   | 6,559,041 |   |   |   |   |   |   |   |   |   |
| Shareholders' equity                       |   |                                    | 36,596,614  |   |                                    |   |   |   |   |   |   |   |   |   | 29,721,417 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders' equity |   | $                                       | 339,316,259 |   |                                    |   |   |   |   |   |   |   |   | $ | 296,571,432 |   |   |   |   |   |   |   |   |   |
| Interest rate spread                       |   |                                    |        |   |                                    |   |   |   |   |   | 4.23 | % |   |   |   |   |   |   |   |   |   |   | 4.65 | % |
| Interest income                            |   |                                    |        |   |                                    | $      | 14,105,878 |   |   |   | 5.88 | % |   |   |   |   |   | $ | 15,182,164 |   |   |   | 7.32 | % |
| Interest expense                           |   |                                    |        |   |                                    |   | 3,044,386 |   |   |   | 1.27 | % |   |   |   |   |   |   | 4,206,975 |   |   |   | 2.03 | % |
| Net interest income/margin                 |   |                                    |        |   |                                    | $      | 11,061,492 |   |   |   | 4.61 | % |   |   |   |   |   | $ | 10,975,189 |   |   |   | 5.29 | % |

|   | (1) | Fully tax equivalent adjustments are based on a federal income tax rate of 34% in 2009 and 2008. |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (2) | Non accrual loans have been included in loans for the purposes of the above presentation.  Loan fees of approximately $194,649 and $291,943 for the nine months ended September 30, 2009 and 2008, respectively, were amortized to the appropriate interest income categories.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                     |   | September 30, |        |   | Percentage |   |   | September 30, |   |   | Percentage  |   |
|------------------------------------------|--------|---------------|-------------|--------|------------|--------|--------|---------------|--------|--------|-------------|--------|
|                                     |   | 2009          |        |   | of Total   |   |   | 2008          |   |   | of Total    |   |
|                                     |   |          |        |   |       |   |   |          |   |   |        |   |
| One to four family residential           |   | $             | 62,329,294  |   |       |   | 23.0   | %             |   | $      | 55,799,862  |   |   |   | 21.1 | % |
| Multifamily residential                  |   |          | 21,081,633  |   |       |   | 7.8    | %             |   |   | 19,105,223  |   |   |   | 7.2 | % |
| Farmland                                 |   |          | 8,904,884   |   |       |   | 3.3    | %             |   |   | 7,140,993   |   |   |   | 2.7 | % |
| Commercial real estate                   |   |          | 108,205,901 |   |       |   | 39.9   | %             |   |   | 108,456,774 |   |   |   | 41.1 | % |
| Construction/Land Development 1-4 family |   |          | 26,883,826  |   |       |   | 9.9    | %             |   |   | 23,174,666  |   |   |   | 8.8 | % |
| Other construction/land development      |   |          | 19,652,681  |   |       |   | 7.2    | %             |   |   | 26,840,182  |   |   |   | 10.2 | % |
| Consumer loans                           |   |          | 2,703,531   |   |       |   | 1.0    | %             |   |   | 3,170,297   |   |   |   | 1.2 | % |
| Other loans to farmers                   |   |          | 3,652,179   |   |       |   | 1.3    | %             |   |   | 3,614,057   |   |   |   | 1.4 | % |
| Commercial, non real estate              |   |          | 15,773,036  |   |       |   | 5.8    | %             |   |   | 14,539,890  |   |   |   | 5.5 | % |
| Municipalities                           |   |          | 1,982,833   |   |       |   | 0.8    | %             |   |   | 2,099,035   |   |   |   | 0.8 | % |
| Lease financing receivables              |   |          | 0           |   |       |   | 0.0    | %             |   |   | 17,868      |   |   |   | 0.0 | % |
| Total gross loans                        |   |          | 271,169,798 |   |       |   | 100.0  | %             |   |   | 263,958,847 |   |   |   | 100.0 | % |
| Deferred loan fees                       |   |          | (249,748    | )      |       |   |   |          |   |   | (285,242    | )      |   |   |   |   |
| Loans net of deferred loan fees          |   | $             | 270,920,050 |   |       |   |   |          |   | $      | 263,700,605 |   |   |   |   |   |

----

----

|                                                                        |   | September 30, 2009 |       |   | September 30, 2008 |   |
|-----------------------------------------------------------------------------|--------|--------------------|------------|--------|--------------------|--------|
| Non-accrual loans                                                           |   | $                  | 26,586,588 |   |               | $      | 1,916,867 |   |
| Other real estate owned                                                     |   |               | 478,610    |   |               |   | 320,416 |   |
| Restructured loans                                                          |   |               | 7,317,831  |   |               |   | 325,163 |   |
| Total non performing assets                                                 |   | $                  | 34,383,029 |   |               | $      | 2,562,446 |   |
|                                                                        |   |               |       |   |               |   |   |   |
| Nonperforming assets as a percent of loans, net of unearned fees, plus OREO |   |               | 12.67      | %      |               |   | .96 | % |
| Nonperforming assets as a percent of total assets                           |   |               | 10.24      | %      |               |   | .76 | % |

----

|                                |   | September 30,2009 |        |   | September 30,2008 |   |
|-------------------------------------|--------|-------------------|-------------|--------|-------------------|--------|
|                                |   |              |        |   |              |   |
| Beginning balance                   |   | $                 | 5,032,500   |   |              | $      | 3,723,217 |   |
| Provision for loan and lease losses |   |              | 29,330,000  |   |              |   | 830,000 |   |
| Loans charged off:                  |   |              |        |   |              |   |   |   |
| Commercial                          |   |              | (17,961,610 | )      |              |   | (120,120 | ) |
| Consumer                            |   |              | (798,711    | )      |              |   | (236,932 | ) |
| Real Estate Construction            |   |              | (2,368,456  | )      |              |   | 0 |   |
| Real Estate Loans                   |   |              | (383,513    | )      |              |   | (28,400 | ) |
| Leases                              |   |              | (17,635     | )      |              |   | 0 |   |
| Overdrafts                          |   |              | (88,212     | )      |              |   | (30,802 | ) |
| Total charge-offs                   |   |              | (21,618,137 | )      |              |   | (416,254 | ) |
| Recoveries:                         |   |              |        |   |              |   |   |   |
| Commercial                          |   |              | 56,329      |   |              |   | 13,444 |   |
| Consumer                            |   |              | 5,219       |   |              |   | 1,508 |   |
| Leases                              |   |              | 0           |   |              |   | 0 |   |
| Overdrafts                          |   |              | 1,014       |   |              |   | 5,556 |   |
| Total recoveries                    |   |              | 62,562      |   |              |   | 20,508 |   |
| Net recoveries (charge-offs)        |   |              | (21,555,575 | )      |              |   | (395,746 | ) |
| Ending balance                      |   | $                 | 12,806,925  |   |              | $      | 4,157,471 |   |

----

|                                       |   | September 30, 2009 |        |   | Percentage  of Total |   |   | December 31, 2008 |   |   | Percentage  of Total |   |   | September 30, 2008 |   |   | Percentage  of Total |   |
|--------------------------------------------|--------|-------------------------|-------------|--------|---------------------------|--------|--------|------------------------|--------|--------|--------------------------------|--------|--------|-------------------------|--------|--------|---------------------------|--------|
|                                       |   |                    |        |   |                      |   |   |                   |   |   |                           |   |   |                    |   |   |                      |   |
| Interest-bearing transaction deposits      |   | $                       | 32,471,725  |   |                      |   | 11.2   | %                      |   | $      | 31,062,597                     |   |   |                    | 12.2   | %      |                      | $      | 28,306,822 |   |   |   | 11.5 | % |
| Savings deposits                           |   |                    | 90,202,813  |   |                      |   | 31.2   | %                      |   |   | 88,317,397                     |   |   |                    | 34.8   | %      |                      |   | 81,724,337 |   |   |   | 33.0 | % |
| Time deposits, $100,000 and over           |   |                    | 79,077,355  |   |                      |   | 27.4   | %                      |   |   | 50,694,468                     |   |   |                    | 20.0   | %      |                      |   | 51,394,535 |   |   |   | 20.8 | % |
| Other time deposits                        |   |                    | 36,365,253  |   |                      |   | 12.6   | %                      |   |   | 35,591,280                     |   |   |                    | 14.0   | %      |                      |   | 31,767,944 |   |   |   | 12.8 | % |
| Total interest-bearing  deposits |   |                    | 238,117,146 |   |                      |   | 82.4   | %                      |   |   | 205,665,742                    |   |   |                    | 81.0   | %      |                      |   | 193,193,638 |   |   |   | 78.1 | % |
| Demand deposits                            |   |                    | 50,941,938  |   |                      |   | 17.6   | %                      |   |   | 48,279,759                     |   |   |                    | 19.0   | %      |                      |   | 54,162,469 |   |   |   | 21,9 | % |
| Total deposits                             |   | $                       | 289,059,084 |   |                      |   | 100.0  | %                      |   | $      | 253,945,501                    |   |   |                    | 100.0  | %      |                      | $      | 247,356,107 |   |   |   | 100.0 | % |

----

----

----

| Variation from a constant rate scenario |   |   | $ Change in NII |   |
|-----------------------------------------|--------|--------|-----------------|--------|
|                                    | +300   | bp     |            | $      | 1,000 |   |
|                                    | +200   | bp     |            | $      | 533 |   |
|                                    | +100   | bp     |            | $      | 187 |   |
|                                    | -25    | bp     |            | $      | (24 | ) |

----

|  SEPTEMBER 30, 2009   (dollars in thousands) |   | Immediate Reprice |    |   | Up to 3 Months |   |    | 4 to 6 Months |   |   | 7 to 12 Months |   |   | Over 12 Months |     |   | Total  |   |
|------------------------------------------------------------------|--------|------------------------|---------|--------|---------------------|--------|---------|--------------------|--------|--------|---------------------|--------|--------|---------------------|----------|--------|--------|--------|
| FFS + overnight IBB                                              |   | $                      | 21,762  |   |                |   |    |               |   |   |                |   |   |                |     |   |   | $      | 21,762 |   |
| Securities + Other IBB                                           |   |                   | 0       |   |                | $      | 985     |               |   | $      | 421                 |   |   | $                   | 843      |   |   | $      | 21,709 |   |   |   | 23,958 |   |
| Loans                                                            |   |                   | 41,924  |   |                |   | 10,723  |               |   |   | 17,330              |   |   |                | 32,183   |   |   |   | 155,953 |   |   |   | 258,113 |   |
| Total RSA                                                        |   | $                      | 63,686  |   |                | $      | 11,708  |               |   | $      | 17,751              |   |   | $                   | 33,026   |   |   | $      | 177,662 |   |   | $ | 303,833 |   |
|                                                             |   |                   |    |   |                |   |    |               |   |   |                |   |   |                |     |   |   |   |   |   |   |   |   |   |
|                                                             |   |                   |    |   |                |   |    |               |   |   |                |   |   |                |     |   |   |   |   |   |   |   |   |   |
| MMDA/NOW/SAV                                                     |   | $                      | 122,674 |   |                |   |    |               |   |   |                |   |   |                |     |   |   |   |   |   |   | $ | 122,674 |   |
| CD’s <$100k                                             |   |                   | 0       |   |                | $      | 10,298  |               |   | $      | 10,465              |   |   | $                   | 10,465   |   |   | $      | 5,138 |   |   |   | 36,366 |   |
| CD’s >$100k                                             |   |                   | 0       |   |                |   | 23,944  |               |   |   | 34,856              |   |   |                | 8,714    |   |   |   | 11,564 |   |   |   | 79,078 |   |
| Borrowings                                                       |   |                   | 0       |   |                |   | 0       |               |   |   | 0                   |   |   |                | 5,000    |   |   |   | 15,000 |   |   |   | 20,000 |   |
| Total RSL                                                        |   | $                      | 122,674 |   |                | $      | 34,242  |               |   | $      | 45,321              |   |   | $                   | 24,179   |   |   | $      | 31,702 |   |   | $ | 257,118 |   |
|                                                             |   |                   |    |   |                |   |    |               |   |   |                |   |   |                |     |   |   |   |   |   |   |   |   |   |
|                                                             |   |                   |    |   |                |   |    |               |   |   |                |   |   |                |     |   |   |   |   |   |   |   |   |   |
| GAP                                                              |   | $                      | (58,988 | )      |                | $      | (22,534 | )                  |   | $      | (27,570             | )      |   | $                   | 8,847    |   |   | $      | 145,960 |   |   | $ | 46,134 |   |
| Cumulative                                                       |   | $                      | (58,988 | )      |                | $      | (81,522 | )                  |   | $      | (109,092            | )      |   | $                   | (100,245 | )      |   | $      | 45,715 |   |   |   |   |   |
| % Assets                                                         |   |                   | -17.6   | %      |                |   | -24.3   | %                  |   |   | -32.6               | %      |   |                | -29.9    | %      |   |   | 13.6 | % |   |   |   |   |

----

|                                       |   | 2009                                    |        |   | 2008                                    |   |
|--------------------------------------------|--------|-----------------------------------------|-------------|--------|-----------------------------------------|--------|
| ASSETS                                     |   | Average Balance (As Restated) |        |   | Income/ Expense (As Restated) |   |   | Yield/ Rate  |   |   | Average Balance |   |   | Income/ Expense |   |   | Yield/ Rate |   |
| Interest-earning assets:                   |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans(2):                                  |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                 |   | $                                       | 198,569,474 |   |                                    | $      | 3,071,735 |   |   |   | 6.14 | % |   | $ | 175,215,278 |   |   | $ | 3,134,791 |   |   |   | 7.10 | % |
| Consumer                                   |   |                                    | 36,505,309  |   |                                    |   | 580,864 |   |   |   | 6.31 | % |   |   | 32,782,080 |   |   |   | 578,947 |   |   |   | 7.01 | % |
| Real estate construction                   |   |                                    | 24,787,167  |   |                                    |   | 310,094 |   |   |   | 4.96 | % |   |   | 29,788,071 |   |   |   | 569,324 |   |   |   | 7.58 | % |
| Real estate mortgage                       |   |                                    | 23,670,818  |   |                                    |   | 421,179 |   |   |   | 7.06 | % |   |   | 19,796,888 |   |   |   | 348,622 |   |   |   | 6.99 | % |
| Tax exempt loans (1)                       |   |                                    | 2,055,303   |   |                                    |   | 42,714 |   |   |   | 8.25 | % |   |   | 2,168,815 |   |   |   | 45,018 |   |   |   | 8.24 | % |
| Leases                                     |   |                                    | 0           |   |                                    |   | 0 |   |   |   | 0.00 | % |   |   | 18,459 |   |   |   | 539 |   |   |   | 11.58 | % |
| Unearned loan fees                         |   |                                    | (253,498    | )      |                                    |   |   |   |   |   |   |   |   |   | (276,328 | ) |   |   |   |   |   |   |   |   |
| Total loans                                |   |                                    | 285,334,573 |   |                                    |   | 4,426,586 |   |   |   | 6.15 | % |   |   | 259,493,263 |   |   |   | 4,677,241 |   |   |   | 7.15 | % |
| Investment securities                      |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for sale:                        |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                    |   |                                    | 8,672,875   |   |                                    |   | 46,019 |   |   |   | 2.11 | % |   |   | 2,040,040 |   |   |   | 14,553 |   |   |   | 2.83 | % |
| Hold to maturity:                          |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax exempt (1)                             |   |                                    | 13,461,701  |   |                                    |   | 199,884 |   |   |   | 5.89 | % |   |   | 13,651,033 |   |   |   | 196,700 |   |   |   | 5.72 | % |
| Total investment securities                |   |                                    | 22,134,578  |   |                                    |   | 245,903 |   |   |   | 4.41 | % |   |   | 15,691,073 |   |   |   | 211,253 |   |   |   | 5.34 | % |
| CA Warrants                                |   |                                    | 91,706      |   |                                    |   | 837 |   |   |   | 3.62 | % |   |   | 0 |   |   |   | 0 |   |   |   | 0.00 | % |
| Federal funds sold                         |   |                                    | 0           |   |                                    |   | 0 |   |   |   | 0.00 | % |   |   | 23,555 |   |   |   | 76 |   |   |   | 1.28 | % |
| FHLB stock                                 |   |                                    | 1,645,000   |   |                                    |   | 0 |   |   |   | 0.00 | % |   |   | 1,477,089 |   |   |   | 24,298 |   |   |   | 6.53 | % |
| Total due from banks/interest-bearing      |   |                                    | 31,791,398  |   |                                    |   | 17,346 |   |   |   | 0.22 | % |   |   | 3,055,401 |   |   |   | 5,953 |   |   |   | .77 | % |
| Total interest-earning assets              |   |                                    | 340,997,253 |   |                                    | $      | 4,690,672 |   |   |   | 5.46 | % |   |   | 279,740,381 |   |   | $ | 4,918,821 |   |   |   | 6.98 | % |
| Noninterest-bearing assets:                |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reserve for loan losses                    |   |                                    | (8,615,790  | )      |                                    |   |   |   |   |   |   |   |   |   | (4,087,362 | ) |   |   |   |   |   |   |   |   |
| Cash and due from banks                    |   |                                    | 5,090,475   |   |                                    |   |   |   |   |   |   |   |   |   | 5,510,959 |   |   |   |   |   |   |   |   |   |
| Premises and equipment                     |   |                                    | 646,315     |   |                                    |   |   |   |   |   |   |   |   |   | 792,107 |   |   |   |   |   |   |   |   |   |
| Other real estate owned                    |   |                                    | 297,832     |   |                                    |   |   |   |   |   |   |   |   |   | 320,416 |   |   |   |   |   |   |   |   |   |
| Other assets                               |   |                                    | 20,113,662  |   |                                    |   |   |   |   |   |   |   |   |   | 17,010,745 |   |   |   |   |   |   |   |   |   |
| Total assets                               |   | $                                       | 358,529,747 |   |                                    |   |   |   |   |   |   |   |   | $ | 299,287,246 |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY       |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:              |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest- bearing deposits                 |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing transaction               |   | $                                       | 33,855,559  |   |                                    | $      | 13,631 |   |   |   | 0.16 | % |   | $ | 29,773,852 |   |   | $ | 12,457 |   |   |   | 0.17 | % |
| Savings deposits                           |   |                                    | 93,034,074  |   |                                    |   | 199,734 |   |   |   | 0.85 | % |   |   | 79,737,471 |   |   |   | 348,426 |   |   |   | 1.73 | % |
| Time deposits over $100,000                |   |                                    | 70,166,186  |   |                                    |   | 395,921 |   |   |   | 2.24 | % |   |   | 51,496,000 |   |   |   | 442,232 |   |   |   | 3.41 | % |
| Other time deposits                        |   |                                    | 39,354,763  |   |                                    |   | 183,456 |   |   |   | 1.85 | % |   |   | 31,748,081 |   |   |   | 252,826 |   |   |   | 3.16 | % |
| Total interest-bearing deposits            |   |                                    | 236,410,582 |   |                                    |   | 792,742 |   |   |   | 1.33 | % |   |   | 192,755,404 |   |   |   | 1,055,941 |   |   |   | 2.17 | % |
| Federal funds purchased                    |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   | 539,674 |   |   |   | 2,578 |   |   |   | 1.90 | % |
| Other borrowings                           |   |                                    | 29,428,315  |   |                                    |   | 187,324 |   |   |   | 2.53 | % |   |   | 17,524,412 |   |   |   | 177,344 |   |   |   | 4.01 | % |
| Total interest-bearing liabilities         |   |                                    | 265,838,897 |   |                                    | $      | 980,066 |   |   |   | 1.46 | % |   |   | 210,819,490 |   |   | $ | 1,235,863 |   |   |   | 2.33 | % |
| Non-interest-bearing liabilities:          |   |                                    |        |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing demand deposits       |   |                                    | 50,148,413  |   |                                    |   |   |   |   |   |   |   |   |   | 51,086,420 |   |   |   |   |   |   |   |   |   |
| Other liabilities                          |   |                                    | 7,588,031   |   |                                    |   |   |   |   |   |   |   |   |   | 6,960,284 |   |   |   |   |   |   |   |   |   |
| Shareholders' equity                       |   |                                    | 34,954,405  |   |                                    |   |   |   |   |   |   |   |   |   | 30,421,052 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders' equity |   | $                                       | 358,529,746 |   |                                    |   |   |   |   |   |   |   |   | $ | 299,287,246 |   |   |   |   |   |   |   |   |   |
| Interest rate spread                       |   |                                    |        |   |                                    |   |   |   |   |   | 3.99 | % |   |   |   |   |   |   |   |   |   |   | 4.65 | % |
| Interest income                            |   |                                    |        |   |                                    | $      | 4,690,672 |   |   |   | 5.46 | % |   |   |   |   |   | $ | 4,918,821 |   |   |   | 6.98 | % |
| Interest expense                           |   |                                    |        |   |                                    |   | 980,066 |   |   |   | 1.14 | % |   |   |   |   |   |   | 1,235,863 |   |   |   | 1.75 | % |
| Net interest income/margin                 |   |                                    |        |   |                                    | $      | 3,710,606 |   |   |   | 4.32 | % |   |   |   |   |   | $ | 3,682,958 |   |   |   | 5.23 | % |

|   | (1) | Fully tax equivalent adjustments are based on a federal income tax rate of 34% in 2009 and 2008. |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (2) | Non accrual loans have been included in loans for the purposes of the above presentation.  Loan fees of approximately $58,683 and $73,855 for the three months ended September 30, 2009 and 2008, respectively, were amortized to the appropriate interest income categories. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | For the Three Month Periods |
|--------|--------|-----------------------------|

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|   | Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK |
|--------|------------------------------------------------------------------------------|

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| ·   | The design of the Company’s disclosure controls and procedures was effective.  In making this determination management concluded that  (i) the Company had qualified individuals administering, analyzing and managing the Company’s accounting decisions and the information disclosed in reports filed with the SEC, (ii) the Company maintained policies and procedures necessary to allow the Company to make proper accounting determinations, (iii) the Company designed and followed policies and procedures that allowed information and analysis about the Company’s loans to be communicated fully and frequently to management and the loan committee and (iv) the Company maintained effective policies and procedures that allowed management, the Company’s loan committee and an independent third party loan review specialist to review, analyze and oversee the Company’s loan portfolio and the accounting decisions relating thereto. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   |
|--------------------|--------|

| ·   | The Company’s disclosure controls and procedures operated properly.  Management concluded that the Company followed all of its policies and procedures as well as the applicable accounting standards and regulatory guidelines in existence at September 30, 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company did not have a material weakness in its ICFR as of September 30, 2009. The bank regulators made different accounting conclusions regarding the Company’s loans than the Company made in the Original Report, which differing conclusions led to the filing of an amended call report for the quarter ended September 30, 2009 and this Amended Report.  These conclusions are based upon differences in interpretation and judgment of subjective factors, which, given the regulatory environment and deteriorating real estate conditions in general, the Company does not believe constitute a material weakness in ICFR. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | • | a decrease in the demand for loans or other products and services offered by us; |
|--------|--------|---------|----------------------------------------------------------------------------------|

|   |   | • | a decrease in the value of our loans or other assets secured by consumer or commercial real estate; |
|--------|--------|---------|-----------------------------------------------------------------------------------------------------|

|   |   | • | a decrease to deposit balances due to overall reductions in the accounts of customers; |
|--------|--------|---------|----------------------------------------------------------------------------------------|

|   |         | • | an impairment of certain intangible assets or investment securities; |
|--------|--------------------------------------------|---------|----------------------------------------------------------------------|

|   |   |
|--------|--------|

|   |   | • | an increase in the number of borrowers who become delinquent, file for protection under bankruptcy laws or default on their loans or other obligations to us. An increase in the number of delinquencies, bankruptcies or defaults could result in a higher level of nonperforming assets, net charge-offs and provision for credit losses. |
|--------|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act |
|--------|------|------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Principal Financial Officer and Principal Accounting Officer  pursuant to Section 302 of the Sarbanes-Oxley Act |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

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|   |                                               |   | SONOMA VALLEY BANCORP                                          |   |
|--------|----------------------------------------------------|--------|----------------------------------------------------------------|--------|
|   |                                               |   | (Registrant)                                                   |   |
|   |                                               |   |                                                           |   |
|   |                                               |   |                                                           |   |
| Date:  |       March 30, 2010 |   | /s/Sean C. Cutting                                             |   |
|   |                                               |   | Sean C. Cutting                                                |   |
|   |                                               |   | President and Chief Executive Officer                          |   |
|   |                                               |   | (Principal Executive Officer)                                  |   |
|   |                                               |   |                                                           |   |
|   |                                               |   |                                                           |   |
| Date:  |     March 30, 2010             |   | /s/Mary Dieter Smith                                           |   |
|   |                                               |   | Mary Dieter Smith                                              |   |
|   |                                               |   | Executive Vice President and Chief Financial Officer           |   |
|   |                                               |   | (Principal Financial Officer and Principal Accounting Officer) |   |

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