----

----

----

| x | ANNUAL REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|------------------------------------------------------------------------------------------------|

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

| Wisconsin                                                           | 37-1203599                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |
|                                                                |                                      |
| N27      W24025 Paul Court, Pewaukee, Wisconsin                     | 53072                                     |
| (Address      of principal executive offices)                       | (Zip      Code)                           |

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

----

|            |                                                                                                                                 | Page   |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|            | Part      I                                                                                                                          |   |
| Item      1     | —      Business                                                                                                                | 3      |
| Item      1A    | —      Risk Factors                                                                                                            | 14     |
| Item      1B    | —      Unresolved Staff Comments                                                                                               | 24     |
| Item      2     | —      Properties                                                                                                              | 24     |
| Item      3     | —      Legal Proceedings                                                                                                       | 24     |
| Item      4     | —      Reserved                                                                                                                | 25     |
|            | Part      II                                                                                                                         |   |
| Item      5     | —      Market for Registrant’s Common Equity, Related Stockholder Matters and      Issuer Purchases of Equity Securities | 26     |
| Item      6     | —      Selected Financial Data                                                                                                 | 27     |
| Item      7     | —      Management’s Discussion and Analysis of Financial Condition and Results of      Operations                        | 28     |
| Item      7A    | —      Quantitative and Qualitative Disclosures About Market Risk                                                              | 56     |
| Item      8     | —      Financial Statements and Supplementary Data                                                                             | 60     |
| Item      9     | —      Changes in and Disagreements with Accountants on Accounting and Financial      Disclosure                               | 106    |
| Item      9A(T) | —      Controls and Procedures                                                                                                 | 106    |
| Item      9B    | —      Other Information                                                                                                       | 107    |
|            | Part      III                                                                                                                        |   |
| Item      10    | —      Directors, Executive Officers and Corporate Governance                                                                  | 107    |
| Item      11    | —      Executive Compensation                                                                                                  | 108    |
| Item      12    | —      Security Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                     | 108    |
| Item      13    | —      Certain Relationships and Related Transactions, and Director      Independence                                          | 108    |
| Item      14    | —      Principal Accountant Fees and Services                                                                                  | 108    |
|            | Part      IV                                                                                                                         |   |
| Item      15    | —      Exhibits and Financial Statement Schedules                                                                              | 109    |
| Signatures      |                                                                                                                                 | 111    |

----

----

----

----

|   | • | core      capital (commonly referred to as Tier 1 capital), which generally includes      common equity, qualifying noncumulative perpetual preferred stock, and for      bank holding companies, a limited amount of qualifying cumulative      perpetual preferred stock and minority interests in equity accounts of      consolidated subsidiaries (including junior subordinated debentures net of      investment in trust, provided that not more than 25% of the qualifying      Tier 1 capital may consist of junior subordinated debentures, net of      investment in trust), less goodwill and certain other intangible assets;      and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | supplementary      capital (commonly referred to as Tier 2 capital), which includes, among      other items, perpetual preferred stock not meeting the Tier 1 definition,      mandatory convertible securities, and limited amounts of subordinated debt      and reserves for loan losses. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|   | · | require      banks to disclose credit terms in meaningful and consistent      ways; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | prohibit      discrimination against an applicant in any consumer or business credit      transaction; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | prohibit      discrimination in housing-related lending  activities; |
|--------|--------|----------------------------------------------------------------------|

|   | · | regulate      the manner in which banks must deal with customers and certain information      about customers; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | require      banks to collect and report applicant and borrower data regarding loans      for home purchases or improvementprojects; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | require      lenders to provide borrowers with information regarding the nature and      cost of real estate settlements; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | prohibit      certain lending practices and limit escrow account amounts with respect to      real estate transactions; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | prescribe      possible penalties for violations of the requirements of consumer      protection statutes andregulations. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|  | · | operating,      legal, and regulatory risks; |
|--|--------|----------------------------------------------|

|  | · | economic,      political, and competitive forces affecting CIB Marine’s banking      business; |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | · | impact      on net interest income from changes in monetary policy and general      economic conditions; |
|--|--------|----------------------------------------------------------------------------------------------------------|

|  | · | the      risk that CIB Marine’s analyses of these risks and forces could be      incorrect and/or that the strategies developed to address them could be      unsuccessful; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | other      factors discussed under Item 1A, “Risk Factors” below and elsewhere      herein. |
|--|--------|---------------------------------------------------------------------------------------------------------|

----

----

----

|   | · | CIB      Marine expects to face increased regulation of its industry. Compliance      with such regulation may increase its costs and limit its ability to      pursue business opportunities. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | CIBM      Bank’s ability to assess the creditworthiness of its customers may be      impaired if the models and approaches it uses to select, manage and      underwrite its customers become less predictive of future      behaviors. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      process CIBM Bank uses to estimate losses inherent in its credit exposure      requires difficult, subjective and complex judgments, including forecasts      of economic conditions and how these economic predictions might impair the      ability of its borrowers to repay their loans, which may no longer be      capable of accurate estimation and which may, in turn, impact the      reliability of the process. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | CIBM      Bank will be required to pay significantly higher FDIC premiums because      market developments have significantly further depleted the Deposit      Insurance Fund and reduced the ratio of reserves to insured      deposits. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | CIB      Marine’s liquidity could be negatively impacted by an inability to access      the capital markets, unforeseen or extraordinary demands on cash, or      regulatory restrictions, which could, among other things, materially and      adversely affect its business prospects and financial      condition. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | · | Restrictions      on dividend payments and redemption of shares of CIB Marine stock without      regulatory approval; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | Adoption      of a comprehensive plan to improveearnings; |
|--------|--------|-----------------------------------------------------------|

|   | · | Development      of a plan to correct and prevent violations of banking laws and      regulations related to affiliatetransactions. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Location                                                     |   | Owned orLeased |   | Date Openedor Acquired |   |
|--------------------------------------------------------------|--------|---------------------|--------|----------------------------------|--------|
| CIBM      BANK:                                              |   |                |   |                             |   |
| Sidney,      Illinois                                        |   | Owned               |   |                             | 09/87  |   |
| Champaign,      Illinois                                     |   | Owned               |   |                             | 09/88  |   |
| Urbana,      Illinois                                        |   | Owned               |   |                             | 03/90  |   |
| Arrowsmith,      Illinois                                    |   | Owned               |   |                             | 10/91  |   |
| Champaign,      Illinois (Midtown)                           |   | Owned               |   |                             | 04/94  |   |
| Monticello,      Illinois                                    |   | Leased              |   |                             | 05/95  |   |
| Danville,      Illinois                                      |   | Owned               |   |                             | 08/95  |   |
| Decatur,      Illinois                                       |   | Leased              |   |                             | 10/95  |   |
| Peoria,      Illinois                                        |   | Leased              |   |                             | 09/97  |   |
| East      Peoria, Illinois                                   |   | Leased              |   |                             | 10/97  |   |
| Bloomington,      Illinois                                   |   | Owned               |   |                             | 10/00  |   |
| Peoria,      Illinois (Knoxville) (a loan production office) |   | Leased              |   |                             | 12/01  |   |
| Peoria,      Illinois (Grand Prairie)                        |   | Leased              |   |                             | 04/03  |   |
| Pewaukee,      Wisconsin                                     |   | Leased              |   |                             | 02/98  |   |
| Wauwatosa,      Wisconsin                                    |   | Leased              |   |                             | 05/98  |   |
| Franklin,      Wisconsin                                     |   | Leased              |   |                             | 08/00  |   |
| Indianapolis,      Indiana                                   |   | Leased              |   |                             | 09/98  |   |
| Scottsdale,      Arizona                                     |   | Leased              |   |                             | 10/01  |   |
| CIB      MARINE BANCSHARES, INC.                             |   |                |   |                             |   |   |
| Naperville,      Illinois                                    |   | Leased              |   |                             | 02/06  |   |

----

| Name      and Age             |   | Office      and Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| John      P. Hickey, Jr. (62) |   | Mr.      Hickey has served as President and Chief Executive Officer of CIB Marine      since March 2007; Chairman of CIB Marine since February 1, 2009; Director      of CIB Marine since May 2007; and Director, President and CEO of CIBM Bank      since April 2006. Prior to joining CIBM Bank, Mr. Hickey was Senior Vice      President of Business Banking at Guaranty Bank in 2006; and from 2001 to      2005 held senior management positions with Marsh McLennan, first as      Managing Director of the Western region, then as the Managing Director of      a substantial business segment of the company. |
|                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Edwin      J. Depenbrok (53)  |   | Mr.      Depenbrok was appointed a non-employee Senior Vice President and Chief      Financial Officer of CIB Marine in January 2008. Mr. Depenbrok, through      his consulting firm, dbrok group, LLC (“dbrok”), was engaged as a      consultant by CIB Marine in February 2007 to provide financial management      services. Mr. Depenbrok founded and has been employed by dbrok since      2001.                                                                                                                                                                                                      |
|                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Charles      J. Ponicki (59)  |   | Mr.      Ponicki has served as Senior Vice President and Chief Credit Officer of      CIB Marine since January 2008, and was Wisconsin Market President of      Marine Bank from September 2007 to December 2007. From 2006 to September      2007, Mr. Ponicki provided acquisition sourcing and due diligence, credit      policy and governance, and de novo formation consulting services to banks.      From 2002 to 2005, Mr. Ponicki was Executive Vice President of Business      Banking at Cole TaylorBank.                                                                                                    |

----

| Daniel      J. Rasmussen (44) |         | Mr.      Rasmussen has served as Senior Vice President, General Counsel and      Secretary of CIB Marine since April 2005. Mr. Rasmussen was appointed a      non-employee Senior Vice President, General Counsel and Secretary of CIB      Marine through a company owned by him, effective January 1, 2010. He was      Vice President and Senior Attorney of CIB Marine from 1999 to      2005. |
|-------------------------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |         |                                                                                                                                                                                                                                                                                                                                                                                               |
| Patrick      J. Straka (43)   |    | Mr.      Straka has served as Senior Vice President, Chief Investment Officer and      Economist of CIB Marine since February1999.                                                                                                                                                                                                                                                                 |

|                           |   | OTCBB Bid Quotations |   |
|--------------------------------|--------|--------------------------------|--------|
| Fiscal Quarter Ended |   | High                           |   |   | Low |   |
| March      31, 2008            |   | $                              | 3.35   |   |   | $ | 1.2000 |   |
| June      30, 2008             |   |                           | 2.95   |   |   |   | 1.3500 |   |
| September      30, 2008        |   |                           | 1.35   |   |   |   | 0.2500 |   |
| December      31, 2008         |   |                           | 0.50   |   |   |   | 0.0100 |   |
| March      31, 2009            |   |                           | 0.30   |   |   |   | 0.0050 |   |
| June      30, 2009             |   |                           | 0.10   |   |   |   | 0.0010 |   |
| September      30, 2009        |   |                           | 0.03   |   |   |   | 0.0002 |   |
| December      31, 2009         |   |                           | 0.03   |   |   |   | 0.0050 |   |

----

|                                                                                                                                  |   | At or for the Year Ended December 31,                        |       |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                  |   | 2009                                                                                            |       |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                                                                                  |   | (Dollars in thousands, except share and per share data) |       |
| Selected      Statements of Operations Data                                                                                           |   |                                                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      and dividend income                                                                                                     |   | $                                                                                               | 39,409     |   |   | $ | 56,141 |   |   | $ | 62,694 |   |   | $ | 61,509 |   |   | $ | 59,849 |   |
| Interest      expense                                                                                                                 |   |                                                                                            | 23,926     |   |   |   | 34,501 |   |   |   | 40,067 |   |   |   | 38,242 |   |   |   | 34,795 |   |
| Net      interest income                                                                                                              |   |                                                                                            | 15,483     |   |   |   | 21,640 |   |   |   | 22,627 |   |   |   | 23,267 |   |   |   | 25,054 |   |
| Provision      for (reversal of) loan losses                                                                                          |   |                                                                                            | 27,373     |   |   |   | 22,063 |   |   |   | 6,413 |   |   |   | (4,384 | ) |   |   | (8,669 | ) |
| Net      interest income (loss) after provision for (reversal of) loan      losses                                                    |   |                                                                                            | (11,890    | ) |   |   | (423 | ) |   |   | 16,214 |   |   |   | 27,651 |   |   |   | 33,723 |   |
| Noninterest      income(1)                                                                                                            |   |                                                                                            | 1,500      |   |   |   | 4,366 |   |   |   | 3,050 |   |   |   | 3,408 |   |   |   | 909 |   |
| Noninterest      expense                                                                                                              |   |                                                                                            | 30,994     |   |   |   | 39,856 |   |   |   | 34,472 |   |   |   | 40,997 |   |   |   | 48,984 |   |
| Loss      from continuing operations before income taxes                                                                              |   |                                                                                            | (41,384    | ) |   |   | (35,913 | ) |   |   | (15,208 | ) |   |   | (9,938 | ) |   |   | (14,352 | ) |
| Income      tax expense (benefit)                                                                                                     |   |                                                                                            | 99         |   |   |   | 320 |   |   |   | 3 |   |   |   | (99 | ) |   |   | (1,208 | ) |
| Net      loss from continuing operations                                                                                              |   |                                                                                            | (41,483    | ) |   |   | (36,233 | ) |   |   | (15,211 | ) |   |   | (9,839 | ) |   |   | (13,144 | ) |
| Discontinued      operations:                                                                                                         |   |                                                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from discontinued operations before income taxes                                                                          |   |                                                                                            | 711        |   |   |   | 493 |   |   |   | 417 |   |   |   | 660 |   |   |   | 3,850 |   |
| Income      tax expense (benefit)                                                                                                     |   |                                                                                            | —    |   |   |   | (1,341 | ) |   |   | (1,023 | ) |   |   | 99 |   |   |   | 2,367 |   |
| Net      income from discontinued operations                                                                                          |   |                                                                                            | 711        |   |   |   | 1,834 |   |   |   | 1,440 |   |   |   | 561 |   |   |   | 1,483 |   |
| Net      loss before extraordinary net gain                                                                                           |   |                                                                                            | (40,772    | ) |   |   | (34,399 | ) |   |   | (13,771 | ) |   |   | (9,278 | ) |   |   | (11,661 | ) |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs        |   |                                                                                            | 54,497     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net      income (loss)                                                                                                                |   | $                                                                                               | 13,725     |   |   | $ | (34,399 | ) |   | $ | (13,771 | ) |   | $ | (9,278 | ) |   | $ | (11,661 | ) |
| Common      Share Data                                                                                                                |   |                                                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted-loss from continuing operations                                                                                |   | $                                                                                               | (2.28      | ) |   | $ | (1.98 | ) |   | $ | (0.83 | ) |   | $ | (0.54 | ) |   | $ | (0.72 | ) |
| Net      income (loss)                                                                                                                |   | $                                                                                               | 0.75       |   |   | $ | (1.88 | ) |   | $ | (0.75 | ) |   | $ | (0.51 | ) |   | $ | (0.64 | ) |
| Dividends                                                                                                                             |   |                                                                                            | —    |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Book      value per share                                                                                                             |   | $                                                                                               | 1.36       |   |   | $ | 0.81 |   |   | $ | 3.29 |   |   | $ | 3.91 |   |   | $ | 4.32 |   |
| Weighted      average shares outstanding-basic                                                                                        |   |                                                                                            | 18,217,608 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |
| Weighted      average shares outstanding-diluted                                                                                      |   |                                                                                            | 18,313,520 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |
| Financial      Condition Data                                                                                                         |   |                                                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets excluding assets of companies held for disposal                                                                     |   | $                                                                                               | 708,686    |   |   | $ | 905,408 |   |   | $ | 1,003,936 |   |   | $ | 993,472 |   |   | $ | 1,132,515 |   |
| Loans      excluding loans of companies held for disposal                                                                             |   |                                                                                            | 470,668    |   |   |   | 555,207 |   |   |   | 595,259 |   |   |   | 522,624 |   |   |   | 515,544 |   |
| Allowance      for loan losses                                                                                                        |   |                                                                                            | (16,240    | ) |   |   | (19,242 | ) |   |   | (20,706 | ) |   |   | (20,906 | ) |   |   | (24,882 | ) |
| Securities                                                                                                                            |   |                                                                                            | 182,971    |   |   |   | 280,452 |   |   |   | 316,321 |   |   |   | 345,602 |   |   |   | 493,409 |   |
| Deposits                                                                                                                              |   |                                                                                            | 589,450    |   |   |   | 694,632 |   |   |   | 745,590 |   |   |   | 739,784 |   |   |   | 867,700 |   |
| Deposits      of branches held for sale                                                                                               |   |                                                                                            | —    |   |   |   | — |   |   |   | — |   |   |   | 55,365 |   |   |   | 66,991 |   |
| Borrowings,      including junior subordinated debentures                                                                             |   |                                                                                            | 30,572     |   |   |   | 151,663 |   |   |   | 159,473 |   |   |   | 91,510 |   |   |   | 94,108 |   |
| Stockholders’      equity                                                                                                       |   |                                                                                            | 84,695     |   |   |   | 14,802 |   |   |   | 60,306 |   |   |   | 71,613 |   |   |   | 79,182 |   |
| Financial      Ratios and Other Data                                                                                                  |   |                                                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performance      Ratios:                                                                                                              |   |                                                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest margin (2)                                                                                                          |   |                                                                                            | 1.90       | % |   |   | 2.19 | % |   |   | 2.39 | % |   |   | 2.29 | % |   |   | 2.06 | % |
| Net      interest spread (3)                                                                                                          |   |                                                                                            | 1.49       |   |   |   | 1.64 |   |   |   | 1.57 |   |   |   | 1.59 |   |   |   | 1.57 |   |
| Noninterest      income to average assets (4)                                                                                         |   |                                                                                            | 0.12       |   |   |   | 0.43 |   |   |   | 0.31 |   |   |   | 0.32 |   |   |   | 0.04 |   |
| Noninterest      expense to average assets                                                                                            |   |                                                                                            | 3.77       |   |   |   | 3.97 |   |   |   | 3.54 |   |   |   | 3.90 |   |   |   | 3.89 |   |
| Efficiency      ratio (5)                                                                                                             |   |                                                                                            | 188.62     |   |   |   | 153.26 |   |   |   | 134.25 |   |   |   | 153.69 |   |   |   | 191.28 |   |
| Loss      on average assets (6)                                                                                                       |   |                                                                                            | (5.04      | ) |   |   | (3.61 | ) |   |   | (1.56 | ) |   |   | (0.94 | ) |   |   | (1.04 | ) |
| Loss      on average equity (7)                                                                                                       |   |                                                                                            | (2,016.67  | ) |   |   | (84.32 | ) |   |   | (22.21 | ) |   |   | (13.56 | ) |   |   | (15.23 | ) |
| Asset      Quality Ratios:                                                                                                            |   |                                                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual      loans restructured loans and loans 90 days or more past due and still      accruing to total loans (8)                |   |                                                                                            | 10.97      | % |   |   | 2.90 | % |   |   | 3.18 | % |   |   | 4.24 | % |   |   | 8.17 | % |
| Nonperforming      assets and loans 90 days or more past due and still accruing to total      asset (8)                               |   |                                                                                            | 7.40       |   |   |   | 1.89 |   |   |   | 2.02 |   |   |   | 2.24 |   |   |   | 3.98 |   |
| Allowance      for loan losses to total loans                                                                                         |   |                                                                                            | 3.45       |   |   |   | 3.47 |   |   |   | 3.48 |   |   |   | 4.00 |   |   |   | 4.83 |   |
| Allowance      for loan losses to nonaccrual loans, restructured loans and loans 90 days      or more past due and still accruing (8) |   |                                                                                            | 31.45      |   |   |   | 119.43 |   |   |   | 109.37 |   |   |   | 94.37 |   |   |   | 59.06 |   |
| Net      charge-offs (recoveries) to average loans                                                                                    |   |                                                                                            | 5.82       |   |   |   | 3.90 |   |   |   | 1.14 |   |   |   | (0.08 | ) |   |   | (0.67 | ) |
| Capital      Ratios:                                                                                                                  |   |                                                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      equity to total continuing assets                                                                                          |   |                                                                                            | 11.95      | % |   |   | 1.63 | % |   |   | 6.01 | % |   |   | 7.21 | % |   |   | 6.99 | % |
| Total      risk-based capital ratio                                                                                                   |   |                                                                                            | 16.51      |   |   |   | 10.04 |   |   |   | 17.26 |   |   |   | 20.95 |   |   |   | 21.54 |   |
| Tier      1 risk-based capital ratio                                                                                                  |   |                                                                                            | 15.24      |   |   |   | 5.02 |   |   |   | 10.62 |   |   |   | 14.32 |   |   |   | 15.45 |   |
| Leverage      capital ratio                                                                                                           |   |                                                                                            | 12.08      |   |   |   | 3.58 |   |   |   | 7.92 |   |   |   | 9.51 |   |   |   | 9.20 |   |
| Other      Data:                                                                                                                      |   |                                                                                            |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number      of employees (full-time equivalent)                                                                                       |   |                                                                                            | 165        |   |   |   | 197 |   |   |   | 258 |   |   |   | 301 |   |   |   | 359 |   |
| Number      of banking facilities                                                                                                     |   |                                                                                            | 17         |   |   |   | 18 |   |   |   | 25 |   |   |   | 30 |   |   |   | 37 |   |

----

| (1) | Noninterest      income from continuing operations includes pretax gains on investment      securities of $0.6 million and $0.4 million for the years ended December      31, 2009 and 2005, respectively. There were no pretax gains on investment      securities in 2008, 2007 and 2006. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Net      interest margin is the ratio of net interest income, on a tax-equivalent      basis, to average interest-earning assets. In the future, CIB Marine does      not expect to realize all the tax benefits associated with tax-exempt      assets due to substantial losses it has incurred and for all years      presented no U.S. federal or state loss carryback potential remains.      Accordingly, interest income on tax-exempt earning assets has not been      adjusted to reflect the tax-equivalent basis. If 2009, 2008, 2007, 2006      and 2005 had been shown on a tax-equivalent basis of 35%, the net interest      margin would have been 1.95%, 2.20%, 2.43%, 2.34% and 2.13%,      respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net      interest rate spread is the yield on average interest-earning assets less      the rate on average interest-bearing  liabilities. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Noninterest      income to average assets excludes gains and losses on      securities. |
|-----|-----------------------------------------------------------------------------------------|

----

| (5) | The      efficiency ratio is noninterest expense divided by the sum of net interest      income, on a tax-equivalent basis, plus noninterest income, excluding      gains and losses on securities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Loss      on average assets is net loss from continuing operations divided by      average total assets. |
|-----|----------------------------------------------------------------------------------------------------------|

| (7) | Loss      on average equity is net loss from continuing operations divided by      average common equity. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (8) | Excludes      loans held for sale from nonaccrual loans, nonperforming assets and 90      days or more past due and still accruingloans. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                                       |   | Year Ended December 31, |    |
|--------------------------------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                                       |   | 2009                                   |    |   | 2008 |   |   | 2007 |   |
|                                                                                       |   | AverageBalance                         |    |   | InterestEarned/Paid |   |   | AverageYield/Cost |   |   | AverageBalance |   |   | InterestEarned/Paid |   |   | AverageYield/Cost |   |   | AverageBalance |   |   | InterestEarned/Paid |   |   | AverageYield/Cost |   |
|                                                                                       |   | (Dollars      in thousands)            |    |
| Assets                                                                                     |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                                                              |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      (1):                                                                       |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable      (2)                                                                           |   | $                                      | 234,621 |   |   | $ | 11,950 |   |   |   | 5.09 | % |   | $ | 322,143 |   |   | $ | 16,158 |   |   |   | 5.02 | % |   | $ | 302,541 |   |   | $ | 14,755 |   |   |   | 4.88 | % |
| Tax-exempt      (3)                                                                        |   |                                   | 299     |   |   |   | 15 |   |   |   | 5.02 |   |   |   | 785 |   |   |   | 41 |   |   |   | 5.22 |   |   |   | 1,569 |   |   |   | 81 |   |   |   | 5.16 |   |
| Total      securities                                                                      |   |                                   | 234,920 |   |   |   | 11,965 |   |   |   | 5.09 |   |   |   | 322,928 |   |   |   | 16,199 |   |   |   | 5.02 |   |   |   | 304,110 |   |   |   | 14,836 |   |   |   | 4.88 |   |
| Loans      held for sale (2)                                                               |   |                                   | 5,019   |   |   |   | 30 |   |   |   | 0.60 |   |   |   | 1,406 |   |   |   | 19 |   |   |   | 1.35 |   |   |   | 61 |   |   |   | 5 |   |   |   | 8.20 |   |
| Loans      (2)(4) (5):                                                                     |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                 |   |                                   | 77,068  |   |   |   | 3,916 |   |   |   | 5.08 |   |   |   | 77,938 |   |   |   | 4,503 |   |   |   | 5.78 |   |   |   | 62,004 |   |   |   | 4,683 |   |   |   | 7.55 |   |
| Commercial      real estate (6)                                                            |   |                                   | 335,283 |   |   |   | 16,517 |   |   |   | 4.93 |   |   |   | 402,029 |   |   |   | 25,307 |   |   |   | 6.29 |   |   |   | 408,064 |   |   |   | 30,558 |   |   |   | 7.49 |   |
| Consumer                                                                                   |   |                                   | 109,367 |   |   |   | 6,728 |   |   |   | 6.15 |   |   |   | 126,506 |   |   |   | 8,801 |   |   |   | 6.96 |   |   |   | 112,491 |   |   |   | 9,386 |   |   |   | 8.34 |   |
| Total      loans                                                                           |   |                                   | 521,718 |   |   |   | 27,161 |   |   |   | 5.21 |   |   |   | 606,473 |   |   |   | 38,611 |   |   |   | 6.37 |   |   |   | 582,559 |   |   |   | 44,627 |   |   |   | 7.66 |   |
| Federal      funds sold, reverse repo and interest-bearing due from    banks               |   |                                   | 54,446  |   |   |   | 253 |   |   |   | 0.46 |   |   |   | 57,090 |   |   |   | 1,312 |   |   |   | 2.30 |   |   |   | 58,802 |   |   |   | 3,226 |   |   |   | 5.49 |   |
| Total      interest-earning assets                                                         |   |                                   | 816,103 |   |   |   | 39,409 |   |   |   | 4.83 |   |   |   | 987,897 |   |   |   | 56,141 |   |   |   | 5.68 |   |   |   | 945,532 |   |   |   | 62,694 |   |   |   | 6.63 |   |
|                                                                                       |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning      assets:                                                           |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks                                                               |   |                                   | 9,750   |   |   |   |   |   |   |   |   |   |   |   | 15,918 |   |   |   |   |   |   |   |   |   |   |   | 17,415 |   |   |   |   |   |   |   |   |   |
| Premises      and equipment (5)                                                            |   |                                   | 5,409   |   |   |   |   |   |   |   |   |   |   |   | 7,590 |   |   |   |   |   |   |   |   |   |   |   | 10,087 |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses (5)                                                         |   |                                   | (18,244 | ) |   |   |   |   |   |   |   |   |   |   | (21,426 | ) |   |   |   |   |   |   |   |   |   |   | (19,919 | ) |   |   |   |   |   |   |   |   |
| Receivables      from sale of stock                                                        |   |                                   | (13     | ) |   |   |   |   |   |   |   |   |   |   | (68 | ) |   |   |   |   |   |   |   |   |   |   | (127 | ) |   |   |   |   |   |   |   |   |
| Accrued      interest receivable and other assets (5)                                      |   |                                   | 9,587   |   |   |   |   |   |   |   |   |   |   |   | 14,759 |   |   |   |   |   |   |   |   |   |   |   | 20,485 |   |   |   |   |   |   |   |   |   |
| Total      noninterest- earning assets                                                     |   |                                   | 6,489   |   |   |   |   |   |   |   |   |   |   |   | 16,773 |   |   |   |   |   |   |   |   |   |   |   | 27,941 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                          |   | $                                      | 822,592 |   |   |   |   |   |   |   |   |   |   | $ | 1,004,670 |   |   |   |   |   |   |   |   |   |   | $ | 973,473 |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and Stockholders’ Equity                                            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      demand deposits                                                      |   | $                                      | 32,010  |   |   | $ | 109 |   |   |   | 0.34 | % |   | $ | 36,981 |   |   | $ | 266 |   |   |   | 0.72 | % |   | $ | 36,132 |   |   | $ | 363 |   |   |   | 1.00 | % |
| Money      market                                                                          |   |                                   | 113,909 |   |   |   | 1,404 |   |   |   | 1.23 |   |   |   | 143,149 |   |   |   | 3,276 |   |   |   | 2.29 |   |   |   | 170,966 |   |   |   | 7,018 |   |   |   | 4.10 |   |
| Other      savings deposits                                                                |   |                                   | 8,465   |   |   |   | 18 |   |   |   | 0.21 |   |   |   | 12,112 |   |   |   | 99 |   |   |   | 0.82 |   |   |   | 15,224 |   |   |   | 151 |   |   |   | 0.99 |   |
| Time      deposits (6)                                                                     |   |                                   | 459,013 |   |   |   | 15,071 |   |   |   | 3.28 |   |   |   | 473,707 |   |   |   | 19,102 |   |   |   | 4.03 |   |   |   | 466,151 |   |   |   | 22,163 |   |   |   | 4.75 |   |
| Total      interest-bearing deposits(5)                                                    |   |                                   | 613,397 |   |   |   | 16,602 |   |   |   | 2.71 |   |   |   | 665,949 |   |   |   | 22,743 |   |   |   | 3.42 |   |   |   | 688,473 |   |   |   | 29,695 |   |   |   | 4.31 |   |
| Borrowings-short-term                                                                      |   |                                   | 19,892  |   |   |   | 123 |   |   |   | 0.62 |   |   |   | 108,054 |   |   |   | 2,097 |   |   |   | 1.94 |   |   |   | 39,328 |   |   |   | 1,698 |   |   |   | 4.32 |   |
| Borrowings-long-term                                                                       |   |                                   | 22,307  |   |   |   | 917 |   |   |   | 4.11 |   |   |   | 17,738 |   |   |   | 774 |   |   |   | 4.36 |   |   |   | 2,542 |   |   |   | 118 |   |   |   | 4.64 |   |
| Junior      subordinated debentures                                                        |   |                                   | 61,518  |   |   |   | 6,284 |   |   |   | 10.21 |   |   |   | 61,857 |   |   |   | 8,887 |   |   |   | 14.37 |   |   |   | 61,857 |   |   |   | 8,556 |   |   |   | 13.83 |   |
| Total      borrowed funds                                                                  |   |                                   | 103,717 |   |   |   | 7,324 |   |   |   | 7.06 |   |   |   | 187,649 |   |   |   | 11,758 |   |   |   | 6.27 |   |   |   | 103,727 |   |   |   | 10,372 |   |   |   | 10.00 |   |
| Total      interest-bearing liabilities                                                    |   |                                   | 717,114 |   |   |   | 23,926 |   |   |   | 3.34 |   |   |   | 853,598 |   |   |   | 34,501 |   |   |   | 4.04 |   |   |   | 792,200 |   |   |   | 40,067 |   |   |   | 5.06 |   |
|                                                                                       |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing      liabilities:                                                      |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing      demand deposits(5)                                                |   |                                   | 55,133  |   |   |   |   |   |   |   |   |   |   |   | 65,374 |   |   |   |   |   |   |   |   |   |   |   | 75,670 |   |   |   |   |   |   |   |   |   |
| Accrued      interest and other liabilities (5)                                            |   |                                   | 48,288  |   |   |   |   |   |   |   |   |   |   |   | 42,725 |   |   |   |   |   |   |   |   |   |   |   | 37,119 |   |   |   |   |   |   |   |   |   |
| Total      noninterest- bearing liabilities                                                |   |                                   | 103,421 |   |   |   |   |   |   |   |   |   |   |   | 108,099 |   |   |   |   |   |   |   |   |   |   |   | 112,789 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                                     |   | $                                      | 820,535 |   |   |   |   |   |   |   |   |   |   | $ | 961,697 |   |   |   |   |   |   |   |   |   |   | $ | 904,989 |   |   |   |   |   |   |   |   |   |
| Stockholders’      equity                                                            |   |                                   | 2,057   |   |   |   |   |   |   |   |   |   |   |   | 42,973 |   |   |   |   |   |   |   |   |   |   |   | 68,484 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders’ equity                                      |   | $                                      | 822,592 |   |   |   |   |   |   |   |   |   |   | $ | 1,004,670 |   |   |   |   |   |   |   |   |   |   | $ | 973,473 |   |   |   |   |   |   |   |   |   |
| Net      interest income and net interest spread (2)(7)                                    |   |                                   |    |   |   | $ | 15,483 |   |   |   | 1.49 | % |   |   |   |   |   | $ | 21,640 |   |   |   | 1.64 | % |   |   |   |   |   | $ | 22,627 |   |   |   | 1.57 | % |
| Net      interest-earning assets                                                           |   | $                                      | 98,989  |   |   |   |   |   |   |   |   |   |   | $ | 134,299 |   |   |   |   |   |   |   |   |   |   | $ | 153,332 |   |   |   |   |   |   |   |   |   |
| Net      interest margin (2)(8)                                                            |   |                                   |    |   |   |   |   |   |   |   | 1.90 | % |   |   |   |   |   |   |   |   |   |   | 2.19 | % |   |   |   |   |   |   |   |   |   |   | 2.39 | % |
| Ratio      of average interest-earning assets to average interest-bearing      liabilities |   |                                   | 1.14    |   |   |   |   |   |   |   |   |   |   |   | 1.16 |   |   |   |   |   |   |   |   |   |   |   | 1.19 |   |   |   |   |   |   |   |   |   |

----

| (1) | FHLBC  and      Federal Reserve Bank stock are included in average balance and      yields. |
|-----|-------------------------------------------------------------------------------------------------------|

| (2) | Balance      totals include respective nonaccrualassets. |
|-----|----------------------------------------------------------|

| (3) | In      the future, CIB Marine does not expect to realize all of the tax benefits      associated with tax-exempt assets due to substantial losses it has      incurred, and at December 31, 2009, 2008 and 2007 no U.S. federal or state      loss carryback potential remains. Accordingly, 2009, 2008 and 2007 are not      presented on a tax-equivalent basis. If 2009, 2008 and 2007 had been shown      on a tax-equivalent basis of 35%, the net interest margin would have been      1.95%, 2.20% and 2.43%,respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Interest      earned on loans includes amortized loan fees of $0.02 million, $0.4      million and $0.6 million for the years ended December 31, 2009, 2008 and      2007, respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes      fixed assets and deposits of branches held for sale or sold during 2008      and 2007. |
|-----|------------------------------------------------------------------------------------------------------|

| (6) | Interest      rates and amounts include the effects of derivatives entered into for      interest rate risk management and accounted for as fair value      hedges. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Net      interest rate spread is the yield on average interest-earning assets less      the rate on interest-bearingliabilities. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (8) | Net      interest margin is the ratio of net interest income, on a tax-equivalent      basis, to average interest-earningassets. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                            |   | Year Ended December 31, 2009 Compared toYear Ended December 31, 2008 (3) |   |   | Year Ended December 31, 2008 Compared toYear Ended December 31, 2007 (3) |   |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                            |   | Volume                                                                                                                          |   |   | Rate                                                                                                                            |   |   | Total |   |   | % Change |   |   | Volume |   |   | Rate |   |   | Total |   |   | % Change |   |
|                                                                                            |   | (Dollars in thousands)                                                                                                |   |
| Interest      Income                                                                            |   |                                                                                                                            |   |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities-taxable                                                                              |   | $                                                                                                                               | (4,454 | )      |                                                                                                                            | $      | 246 |   |   | $ | (4,208 | ) |   |   | (26.04 | )% |   | $ | 975 |   |   | $ | 428 |   |   | $ | 1,403 |   |   |   | 9.51 | % |
| Securities-tax-exempt      (1)                                                                  |   |                                                                                                                            | (24    | )      |                                                                                                                            |   | (2 | ) |   |   | (26 | ) |   |   | (63.41 | ) |   |   | (41 | ) |   |   | 1 |   |   |   | (40 | ) |   |   | (49.38 | ) |
| Total      securities (2)                                                                       |   |                                                                                                                            | (4,478 | )      |                                                                                                                            |   | 244 |   |   |   | (4,234 | ) |   |   | (26.14 | ) |   |   | 934 |   |   |   | 429 |   |   |   | 1,363 |   |   |   | 9.19 |   |
| Loans      held for sale                                                                        |   |                                                                                                                            | 27     |   |                                                                                                                            |   | (16 | ) |   |   | 11 |   |   |   | 57.89 |   |   |   | 21 |   |   |   | (7 | ) |   |   | 14 |   |   |   | 280.00 |   |
| Commercial                                                                                      |   |                                                                                                                            | (49    | )      |                                                                                                                            |   | (538 | ) |   |   | (587 | ) |   |   | (13.04 | ) |   |   | 1,056 |   |   |   | (1,236 | ) |   |   | (180 | ) |   |   | (3.84 | ) |
| Commercial      real estate                                                                     |   |                                                                                                                            | (3,805 | )      |                                                                                                                            |   | (4,985 | ) |   |   | (8,790 | ) |   |   | (34.73 | ) |   |   | (446 | ) |   |   | (4,805 | ) |   |   | (5,251 | ) |   |   | (17.18 | ) |
| Consumer                                                                                        |   |                                                                                                                            | (1,118 | )      |                                                                                                                            |   | (955 | ) |   |   | (2,073 | ) |   |   | (23.55 | ) |   |   | 1,086 |   |   |   | (1,671 | ) |   |   | (585 | ) |   |   | (6.23 | ) |
| Total      loans (including fees)                                                               |   |                                                                                                                            | (4,972 | )      |                                                                                                                            |   | (6,478 | ) |   |   | (11,450 | ) |   |   | (29.65 | ) |   |   | 1,696 |   |   |   | (7,712 | ) |   |   | (6,016 | ) |   |   | (13.48 | ) |
| Reverse      repurchase securities, federal funds sold and interest-bearing due from      banks |   |                                                                                                                            | (57    | )      |                                                                                                                            |   | (1,002 | ) |   |   | (1,059 | ) |   |   | (80.72 | ) |   |   | (91 | ) |   |   | (1,823 | ) |   |   | (1,914 | ) |   |   | (59.33 | ) |
| Total      interest income (1)                                                                  |   |                                                                                                                            | (9,480 | )      |                                                                                                                            |   | (7,252 | ) |   |   | (16,732 | ) |   |   | (29.80 | ) |   |   | 2,560 |   |   |   | (9,113 | ) |   |   | (6,553 | ) |   |   | (10.45 | ) |
| Interest      Expense                                                                           |   |                                                                                                                            |   |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      demand deposits                                                           |   |                                                                                                                            | (32    | )      |                                                                                                                            |   | (125 | ) |   |   | (157 | ) |   |   | (59.02 | ) |   |   | 8 |   |   |   | (105 | ) |   |   | (97 | ) |   |   | (26.72 | ) |
| Money      market                                                                               |   |                                                                                                                            | (574   | )      |                                                                                                                            |   | (1,298 | ) |   |   | (1,872 | ) |   |   | (57.14 | ) |   |   | (1,006 | ) |   |   | (2,736 | ) |   |   | (3,742 | ) |   |   | (53.32 | ) |
| Other      savings deposits                                                                     |   |                                                                                                                            | (24    | )      |                                                                                                                            |   | (57 | ) |   |   | (81 | ) |   |   | (81.82 | ) |   |   | (27 | ) |   |   | (25 | ) |   |   | (52 | ) |   |   | (34.44 | ) |
| Time      deposits                                                                              |   |                                                                                                                            | (576   | )      |                                                                                                                            |   | (3,455 | ) |   |   | (4,031 | ) |   |   | (21.10 | ) |   |   | 355 |   |   |   | (3,416 | ) |   |   | (3,061 | ) |   |   | (13.81 | ) |
| Total      deposits                                                                             |   |                                                                                                                            | (1,206 | )      |                                                                                                                            |   | (4,935 | ) |   |   | (6,141 | ) |   |   | (27.00 | ) |   |   | (670 | ) |   |   | (6,282 | ) |   |   | (6,952 | ) |   |   | (23.41 | ) |
| Borrowings-short-term                                                                           |   |                                                                                                                            | (1,076 | )      |                                                                                                                            |   | (898 | ) |   |   | (1,974 | ) |   |   | (94.13 | ) |   |   | 1,726 |   |   |   | (1,327 | ) |   |   | 399 |   |   |   | 23.50 |   |
| Borrowings-long-term                                                                            |   |                                                                                                                            | 191    |   |                                                                                                                            |   | (48 | ) |   |   | 143 |   |   |   | 18.48 |   |   |   | 663 |   |   |   | (7 | ) |   |   | 656 |   |   |   | 555.93 |   |
| Junior      subordinated debentures                                                             |   |                                                                                                                            | (49    | )      |                                                                                                                            |   | (2,554 | ) |   |   | (2,603 | ) |   |   | (29.29 | ) |   |   | — |   |   |   | 331 |   |   |   | 331 |   |   |   | 3.87 |   |
| Total      borrowed funds                                                                       |   |                                                                                                                            | (934   | )      |                                                                                                                            |   | (3,500 | ) |   |   | (4,434 | ) |   |   | (37.71 | ) |   |   | 2,389 |   |   |   | (1,003 | ) |   |   | 1,386 |   |   |   | 13.36 |   |
| Total      interest expense                                                                     |   |                                                                                                                            | (2,140 | )      |                                                                                                                            |   | (8,435 | ) |   |   | (10,575 | ) |   |   | (30.65 | ) |   |   | 1,719 |   |   |   | (7,285 | ) |   |   | (5,566 | ) |   |   | (13.89 | ) |
| Net      interest income (1)                                                                    |   | $                                                                                                                               | (7,340 | )      |                                                                                                                            | $      | 1,183 |   |   | $ | (6,157 | ) |   |   | (28.45 | )% |   | $ | 841 |   |   | $ | (1,828 | ) |   | $ | (987 | ) |   |   | (4.36 | )% |

----

|   | (1) | In      the future, CIB Marine does not expect to realize all of the tax benefits      associated with tax-exempt assets due to substantial losses it has      incurred, and at December 31, 2009, 2008 and 2007 no U.S. federal or state      loss carryback potential remains. Accordingly, 2009, 2008 and 2007 are not      presented on a tax-equivalentbasis. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | FHLBC      and Federal Reserve Bank stock are included in average balance and      yields. |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (3) | Variances      which were not specifically attributable to volume or rate have been      allocated proportionally between volume and rate using absolute values as      a basis for the allocation. Nonaccruing loans were included in the average      balances used in determiningyields. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | Compensation      and employee benefits decreased $3.4 million, or 20.9%, during 2009      compared to 2008, primarily due to staff reductions due to the sale of CIB      Marine’s Florida banking subsidiary during the third quarter of 2008 and a      reduction in force in the first quarter of 2009. The total number of      full-time equivalent employees decreased from 197 at December 31, 2008 to      165 at December 31, 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Equipment      and occupancy expense together decreased $1.0 million, or 22.3%, during      2009 compared to 2008 primarily due to the sale of CIB Marine’s Florida      banking subsidiary during the third quarter of  2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      litigation reserve of $3.4 million was recorded and paid in 2008. There      was no litigation reserve in 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | FDIC      deposit insurance expense was $1.8 million for 2009 compared to $0.7      million for 2008. The increase of $1.1 million was the result of an effort      by the FDIC to replenish the Deposit Insurance Fund in the wake of the      recent increase in bank failures in the U.S. The FDIC changed its rate      structure in December 2008 to generally increase premiums effective for      assessments in the first quarter of 2009. Further, in May 2009, the FDIC      issued a rule to impose a special one-time assessment against all      financial institutions in the second quarter of 2009, payable in the third      quarter of 2009. The special assessment for CIBM Bank was $0.4      million. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Write      down of assets was $3.4 million for 2009 primarily as a result of a $0.6      million write down of two foreclosed properties during 2009, the write      down of $1.8 million of loans held for sale, and a $0.3 million write down      of fixed assets. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Professional      services increased $1.5 million, or 44.2%, during 2008 compared to 2007,      primarily due to increased legal fees related to loan collection and      workout-related services, as well as services related to implementation of      the capital plan. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Data      processing increased $1.0 million during 2008 compared to 2007. During the      fourth quarter of 2007, CIB Marine began outsourcing its data processing,      which was previously performed in-house. The offset reduction for the      increase in data processing was reflected in compensation and employee      benefits due to a reduction inforce. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Foreclosed      property expense increased $0.3 million during 2008 compared to 2007      mainly due to two commercial properties that were foreclosed upon related      to one borrowing relationship located in Illinois. The properties were      acquired in the third quarter of2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      $3.4 million settlement expense was recognized in  2008. |
|--------|--------|-----------------------------------------------------------------|

|   | · | Write      down and losses on assets increased $2.8 million, mainly due to the      charge-off of CIB Marine’s investment in four statutory trusts during the      fourth quarter of 2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FDIC      and state assessment increased $0.4 million during 2008 compared to 2007      as a result of increased FDIC insurance  premiums. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      increases in the noninterest expense items listed above were offset by      decreases in compensation and employee benefits, equipment, occupancy and      premises of approximately $3.5 million in 2008. The number of full-time      equivalent employees declined to 197 at December 31, 2008 from 258 at      December 31, 2007. These decreases were primarily due to management cost      savings initiatives, branch sales andclosures. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                  |   | As of December 31, (1) |    |
|-------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                  |   | 2009                                       |    |   | 2008 |   |   | 2007 |   |
|                                                  |   | Amount                                     |    |   | Yield toMaturity |   |   | Amount |   |   | Yield toMaturity |   |   | Amount |   |   | Yield toMaturity |   |
|                                                  |   | (Dollars      in thousands)                |    |
| U.S.      government agencies                         |   | $                                          | 18,588  |   |   |   | 4.70 | % |   | $ | 44,835 |   |   |   | 4.62 | % |   | $ | 63,104 |   |   |   | 4.78 | % |
| Obligations      of states and political subdivisions |   |                                       | 30,126  |   |   |   | 5.26 |   |   |   | 30,236 |   |   |   | 5.26 |   |   |   | 31,031 |   |   |   | 5.26 |   |
| Trust      preferred collateralized debt obligations  |   |                                       | 8,535   |   |   |   | 0.88 |   |   |   | 8,662 |   |   |   | 2.63 |   |   |   | 9,098 |   |   |   | 5.96 |   |
| Other      debt obligations                           |   |                                       | 150     |   |   |   | 1.21 |   |   |   | 350 |   |   |   | 3.07 |   |   |   | — |   |   |   | — |   |
| Corporate      commercial paper                       |   |                                       | — |   |   |   | — |   |   |   | 4,800 |   |   |   | 1.25 |   |   |   | — |   |   |   | — |   |
| Mortgage-backed      securities (agencies)            |   |                                       | 67,697  |   |   |   | 4.86 |   |   |   | 107,194 |   |   |   | 5.37 |   |   |   | 111,276 |   |   |   | 4.93 |   |
| Mortgage-backed      securities (non-agencies)        |   |                                       | 63,103  |   |   |   | 5.64 |   |   |   | 93,428 |   |   |   | 5.76 |   |   |   | 100,430 |   |   |   | 5.43 |   |
| Total      securities before market value adjustment  |   |                                       | 188,199 |   |   |   | 4.99 | % |   |   | 289,505 |   |   |   | 5.22 | % |   |   | 314,939 |   |   |   | 5.12 | % |
| Other      equities                                   |   |                                       | 955     |   |   |   | — |   |   |   | 955 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Available      for sale fair value adjustment         |   |                                       | (6,183  | ) |   |   |   |   |   |   | (10,008 | ) |   |   |   |   |   |   | 1,382 |   |   |   |   |   |
| Total      securities available for sale              |   | $                                          | 182,971 |   |   |   |   |   |   | $ | 280,452 |   |   |   |   |   |   | $ | 316,321 |   |   |   |   |   |

----

| (1) | In      the future, CIB Marine does not expect to realize all of the tax benefits      associated with tax-exempt assets due to substantial losses it has      incurred. Accordingly, 2009, 2008 and 2007 are not presented on a      tax-equivalent basis. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                       |   | December 31, 2009 (1) |    |
|------------------------------------------------------------|--------|--------------------------------------|---------|
|                                                       |   | 1 Year and Less       |    |   | 1 to 5 Years |   |   | 5 to 10 Years |   |   | Over 10 Years |   |   | Total |   |
|                                                       |   | Balance                              |    |   | Yield toMaturity |   |   | Balance |   |   | Yield toMaturity |   |   | Balance |   |   | Yield toMaturity |   |   | Balance |   |   | Yield toMaturity |   |   | Balance |   |   | Yield toMaturity |   |
|                                                       |   | (Dollars in thousands)     |    |
| U.S.      government agencies                              |   | $                                    | 6,062   |   |   |   | 4.65 | % |   | $ | 12,526 |   |   |   | 4.72 | % |   | $ | — |   |   |   | — | % |   | $ | — |   |   |   | — | % |   | $ | 18,588 |   |   |   | 4.70 | % |
| Obligations      of states and political subdivisions      |   |                                 | 76      |   |   |   | 4.91 |   |   |   | 5,854 |   |   |   | 4.98 |   |   |   | 12,932 |   |   |   | 5.15 |   |   |   | 11,264 |   |   |   | 5.55 |   |   |   | 30,126 |   |   |   | 5.26 |   |
| Trust      preferred collateralized debt obligations       |   |                                 | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 8,535 |   |   |   | 0.88 |   |   |   | 8,535 |   |   |   | 0.88 |   |
| Other      debt obligations                                |   |                                 | — |   |   |   | — |   |   |   | 150 |   |   |   | 1.21 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 150 |   |   |   | 1.21 |   |
| Residential      mortgage-backed securities (agencies)     |   |                                 | — |   |   |   | — |   |   |   | 1,285 |   |   |   | 4.25 |   |   |   | 18,363 |   |   |   | 4.68 |   |   |   | 48,049 |   |   |   | 4.95 |   |   |   | 67,697 |   |   |   | 4.86 |   |
| Residential      mortgage-backed securities (non-agencies) |   |                                 | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 9,096 |   |   |   | 4.91 |   |   |   | 54,007 |   |   |   | 5.02 |   |   |   | 63,103 |   |   |   | 5.64 |   |
| Total      securities before market value adjustment       |   | $                                    | 6,138   |   |   |   | 4.65 | % |   | $ | 19,815 |   |   |   | 4.74 | % |   | $ | 40,391 |   |   |   | 4.88 | % |   | $ | 121,855 |   |   |   | 5.08 | % |   | $ | 188,199 |   |   |   | 4.99 | % |
| Other      Equities                                        |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 955 |   |   |   |   |   |
| Available      for sale unrealized loss                    |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,183 | ) |   |   |   |   |
| Total      securities                                      |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 182,971 |   |   |   |   |   |

----

| (1) | In      the future, CIB Marine does not expect to realize all of the tax benefits      associated with tax-exempt assets due to substantial losses it has      incurred. Accordingly, 2009, 2008 and 2007 are not presented on a      tax-equivalent basis. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |   | December 31,                |    |
|------------------------------------------|--------|----------------------------------|---------|
|                                     |   | 2009                             |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                     |   | Balance                          |    |   | % |   |   | Balance |   |   | % |   |   | Balance |   |   | % |   |   | Balance |   |   | % |   |   | Balance |   |   | % |   |
|                                     |   | (Dollars in thousands) |    |
| Commercial                               |   | $                                | 71,921  |   |   |   | 15.3 | % |   | $ | 75,289 |   |   |   | 13.6 | % |   | $ | 63,046 |   |   |   | 10.6 | % |   | $ | 49,777 |   |   |   | 9.5 | % |   | $ | 69,048 |   |   |   | 13.4 | % |
| Commercial      real estate              |   |                             | 243,811 |   |   |   | 51.9 |   |   |   | 258,881 |   |   |   | 46.8 |   |   |   | 258,265 |   |   |   | 43.5 |   |   |   | 282,233 |   |   |   | 54.0 |   |   |   | 323,384 |   |   |   | 62.6 |   |
| Commercial      real estate construction |   |                             | 49,795  |   |   |   | 10.7 |   |   |   | 86,909 |   |   |   | 15.7 |   |   |   | 139,663 |   |   |   | 23.5 |   |   |   | 111,040 |   |   |   | 21.3 |   |   |   | 89,313 |   |   |   | 17.3 |   |
| Residential      real estate             |   |                             | 19,322  |   |   |   | 4.1 |   |   |   | 26,110 |   |   |   | 4.7 |   |   |   | 20,938 |   |   |   | 3.5 |   |   |   | 19,125 |   |   |   | 3.7 |   |   |   | 19,925 |   |   |   | 3.9 |   |
| Home      equity loans (1)               |   |                             | 81,832  |   |   |   | 17.4 |   |   |   | 103,253 |   |   |   | 18.7 |   |   |   | 108,486 |   |   |   | 18.3 |   |   |   | 57,990 |   |   |   | 11.1 |   |   |   | 12,603 |   |   |   | 2.4 |   |
| Consumer      loans                      |   |                             | 2,701   |   |   |   | 0.6 |   |   |   | 2,990 |   |   |   | 0.5 |   |   |   | 3,241 |   |   |   | 0.6 |   |   |   | 2,363 |   |   |   | 0.4 |   |   |   | 2,179 |   |   |   | 0.4 |   |
| Receivables      from sale of stock      |   |                             | — |   |   |   | — |   |   |   | (51 | ) |   |   | (0.0 | ) |   |   | (121 | ) |   |   | (0.0 | ) |   |   | (151 | ) |   |   | (0.0 | ) |   |   | (202 | ) |   |   | (0.0 | ) |
| Gross      loans                         |   |                             | 469,382 |   |   |   | 100.0 | % |   |   | 553,381 |   |   |   | 100.0 | % |   |   | 593,518 |   |   |   | 100.0 | % |   |   | 522,377 |   |   |   | 100.0 | % |   |   | 516,250 |   |   |   | 100.0 | % |
| Deferred      loan fees                  |   |                             | 1,286   |   |   |   |   |   |   |   | 1,826 |   |   |   |   |   |   |   | 1,741 |   |   |   |   |   |   |   | 247 |   |   |   |   |   |   |   | (706 | ) |   |   |   |   |
| Total      loans                         |   |                             | 470,668 |   |   |   |   |   |   |   | 555,207 |   |   |   |   |   |   |   | 595,259 |   |   |   |   |   |   |   | 522,624 |   |   |   |   |   |   |   | 515,544 |   |   |   |   |   |
| Allowance      for loan losses           |   |                             | (16,240 | ) |   |   |   |   |   |   | (19,242 | ) |   |   |   |   |   |   | (20,706 | ) |   |   |   |   |   |   | (20,906 | ) |   |   |   |   |   |   | (24,882 | ) |   |   |   |   |
| Net      loans                           |   | $                                | 454,428 |   |   |   |   |   |   | $ | 535,965 |   |   |   |   |   |   | $ | 574,553 |   |   |   |   |   |   | $ | 501,718 |   |   |   |   |   |   | $ | 490,662 |   |   |   |   |   |

----

|   | (1) | Includes      purchased fixed rate home equity pools. At December 31, 2009, 2008, 2007      and 2006 the total outstanding balance of these purchased pools was $35.1      million, $52.2 million, $73.0 million and $42.2 million, respectively and      the loss reserves allocated to these two pools totaled $3.9 million, $4.5      million, $5.3 million and $1.1 million, respectively. At December 31,      2009, 2008 and 2007 the amount of loans past due 30 to 89 days and still      accruing interest was $1.2 million, $2.0 million and $1.5 million,      respectively. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                          |   | December 31, 2009      |    |
|-----------------------------------------------|--------|----------------------------------|---------|
|                                          |   | 1 year and less   |    |   | 1 to 5 Years |   |   | Over 5 years |   |   | Total |   |
|                                          |   | (Dollars in thousands) |    |
| Commercial                                    |   | $                                | 41,673  |   |   | $ | 27,054 |   |   | $ | 3,194 |   |   | $ | 71,921 |   |
| Commercial      real estate                   |   |                             | 39,355  |   |   |   | 185,987 |   |   |   | 18,469 |   |   |   | 243,811 |   |
| Commercial      real estate construction      |   |                             | 43,784  |   |   |   | 5,706 |   |   |   | 305 |   |   |   | 49,795 |   |
| Residential      real estate                  |   |                             | 7,116   |   |   |   | 2,910 |   |   |   | 9,296 |   |   |   | 19,322 |   |
| Home      equity loans                        |   |                             | 4,238   |   |   |   | 15,052 |   |   |   | 62,542 |   |   |   | 81,832 |   |
| Consumer      loans                           |   |                             | 1,701   |   |   |   | 977 |   |   |   | 23 |   |   |   | 2,701 |   |
| Total      gross loans                        |   | $                                | 137,867 |   |   | $ | 237,686 |   |   | $ | 93,829 |   |   | $ | 469,382 |   |
| Sensitivity      to changes in interest rates |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed      rates                              |   |                             | 45,004  |   |   |   | 179,691 |   |   |   | 66,920 |   |   |   | 291,615 |   |
| Variable      rates                           |   |                             | 92,863  |   |   |   | 57,995 |   |   |   | 26,909 |   |   |   | 177,767 |   |
| Total      gross loans                        |   | $                                | 137,867 |   |   | $ | 237,686 |   |   | $ | 93,829 |   |   | $ | 469,382 |   |

| INDUSTRY                                 |   | OutstandingBalance              |   |   | % ofLoans |   |   | % ofStockholders’Equity |   |
|------------------------------------------|--------|---------------------------------|--------|--------|----------------|--------|--------|------------------------------------|--------|
|                                     |   | (Dollars in millions) |   |   |           |   |   |                               |   |
| Real      Estate, Rental & Leasing   |   | $                               | 181.3  |   |           |   | 39     | %                                  |   |   | 214 | % |
| Construction                             |   |                            | 63.9   |   |           |   | 14     |                               |   |   | 75 |   |
| Health      Care & Social Assistance |   |                            | 41.1   |   |           |   | 9      |                               |   |   | 47 |   |
| Accommodation      & Food Services   |   |                            | 22.9   |   |           |   | 5      |                               |   |   | 26 |   |

----

----

|                                                                                                                                  |   | Years Ended December 31, |    |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                                                  |   | 2009                                    |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                                                                                  |   | (Dollars in thousands)        |    |
| Balance      at beginning of year                                                                                                     |   | $                                       | 19,242  |   |   | $ | 20,706 |   |   | $ | 20,906 |   |   | $ | 24,882 |   |   | $ | 29,551 |   |
| Loans      charged-off:                                                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                            |   |                                    | (422    | ) |   |   | (1,359 | ) |   |   | (939 | ) |   |   | (64 | ) |   |   | (1,380 | ) |
| Commercial      real estate:                                                                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      real estate                                                                                                           |   |                                    | (5,236  | ) |   |   | (994 | ) |   |   | (4,985 | ) |   |   | (471 | ) |   |   | (1,945 | ) |
| Commercial      real estate construction                                                                                              |   |                                    | (11,291 | ) |   |   | (9,722 | ) |   |   | (27 | ) |   |   | — |   |   |   | (524 | ) |
| Consumer:                                                                                                                             |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      real estate                                                                                                          |   |                                    | (540    | ) |   |   | (807 | ) |   |   | (198 | ) |   |   | (78 | ) |   |   | (49 | ) |
| Home      equity                                                                                                                      |   |                                    | (13,350 | ) |   |   | (12,609 | ) |   |   | (2,015 | ) |   |   | — |   |   |   | — |   |
| Consumer                                                                                                                              |   |                                    | (22     | ) |   |   | (67 | ) |   |   | (28 | ) |   |   | (9 | ) |   |   | (13 | ) |
| Total      charged-off                                                                                                                |   |                                    | (30,861 | ) |   |   | (25,558 | ) |   |   | (8,192 | ) |   |   | (622 | ) |   |   | (3,911 | ) |
| Recoveries      of loans charged-off:                                                                                                 |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                            |   |                                    | 237     |   |   |   | 425 |   |   |   | 663 |   |   |   | 664 |   |   |   | 6,017 |   |
| Commercial      real estate:                                                                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      real estate                                                                                                           |   |                                    | 2       |   |   |   | 992 |   |   |   | 307 |   |   |   | 352 |   |   |   | 1,769 |   |
| Commercial      real estate construction                                                                                              |   |                                    | — |   |   |   | 46 |   |   |   | 531 |   |   |   | — |   |   |   | 89 |   |
| Consumer:                                                                                                                             |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      real estate                                                                                                          |   |                                    | 1       |   |   |   | 87 |   |   |   | 7 |   |   |   | — |   |   |   | 23 |   |
| Home      equity                                                                                                                      |   |                                    | 244     |   |   |   | 327 |   |   |   | 62 |   |   |   | — |   |   |   | — |   |
| Consumer                                                                                                                              |   |                                    | 2       |   |   |   | 11 |   |   |   | 9 |   |   |   | 14 |   |   |   | 13 |   |
| Total      recoveries                                                                                                                 |   |                                    | 486     |   |   |   | 1,888 |   |   |   | 1,579 |   |   |   | 1,030 |   |   |   | 7,911 |   |
| Net      loans recovered (charged-off)                                                                                                |   |                                    | (30,375 | ) |   |   | (23,670 | ) |   |   | (6,613 | ) |   |   | 408 |   |   |   | 4,000 |   |
| Provision      for (reversal of) loan losses (1)                                                                                      |   |                                    | 27,373  |   |   |   | 22,277 |   |   |   | 6,413 |   |   |   | (4,384 | ) |   |   | (8,669 | ) |
| Allowance      for loan loss sold                                                                                                     |   |                                    | — |   |   |   | (581 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Transfer      from accrual for unfunded standby letters of credit for funded standby      letters of credit                           |   |                                    | — |   |   |   | 510 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Balance      at end of year                                                                                                           |   | $                                       | 16,240  |   |   | $ | 19,242 |   |   | $ | 20,706 |   |   | $ | 20,906 |   |   | $ | 24,882 |   |
| Ratios                                                                                                                                |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses to total loans                                                                                         |   |                                    | 3.45    | % |   |   | 3.47 | % |   |   | 3.48 | % |   |   | 4.00 | % |   |   | 4.83 | % |
| Allowance      for loan losses to nonaccrual loans, restructured loans and loans 90 days      or more past due and still accruing (2) |   |                                    | 31.45   |   |   |   | 119.43 |   |   |   | 109.37 |   |   |   | 94.37 |   |   |   | 59.06 |   |
| Net      charge-offs (recoveries) to average loans:                                                                                   |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                            |   |                                    | 0.24    |   |   |   | 1.20 |   |   |   | 0.45 |   |   |   | (1.19 | ) |   |   | (4.06 | ) |
| Commercial      real estate and commercial real estate construction                                                                   |   |                                    | 4.93    |   |   |   | 2.41 |   |   |   | 1.02 |   |   |   | 0.03 |   |   |   | 0.13 |   |
| Residential      real estate, home equity and consumer                                                                                |   |                                    | 12.49   |   |   |   | 10.32 |   |   |   | 1.92 |   |   |   | 0.13 |   |   |   | 0.11 |   |
| Total      loans                                                                                                                      |   |                                    | 5.82    |   |   |   | 3.90 |   |   |   | 1.14 |   |   |   | (0.08 | ) |   |   | (0.67 | ) |
| Ratio      of recoveries to loans charged-off                                                                                         |   |                                    | 1.57    |   |   |   | 7.39 |   |   |   | 19.27 |   |   |   | 165.59 |   |   |   | 202.28 |   |
| Total      loans                                                                                                                      |   | $                                       | 470,668 |   |   | $ | 555,207 |   |   | $ | 595,259 |   |   | $ | 522,624 |   |   | $ | 515,544 |   |
| Average      total loans                                                                                                              |   |                                    | 521,718 |   |   |   | 606,473 |   |   |   | 582,559 |   |   |   | 525,158 |   |   |   | 594,714 |   |

----

|   | (1) | The      provision for loan losses as presented in the consolidated statement of      operations is net of $0.2 million recovery of accrued unfunded commitments      and standby letters of credit for the year ended December 31,      2008. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Excludes      loans held for sale from nonaccrual loans, nonperforming assets and 90      days or more past due and still accruingloans. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |   | December 31,           |   |
|------------------------------------------|--------|-----------------------------|--------|
|                                     |   | 2009                        |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                     |   | AllowanceAmount             |   |   | % ofLoans toTotalLoans |   |   | AllowanceAmount |   |   | % ofLoans toTotalLoans |   |   | AllowanceAmount |   |   | % ofLoans toTotalLoans |   |   | AllowanceAmount |   |   | % ofLoans toTotalLoans |   |   | AllowanceAmount |   |   | % ofLoans toTotalLoans |   |
|                                     |   | (Dollars      in thousands) |   |
| Commercial                               |   | $                           | 2,771  |   |   |   | 15.3 | % |   | $ | 2,045 |   |   |   | 13.6 | % |   | $ | 2,233 |   |   |   | 10.6 | % |   | $ | 3,024 |   |   |   | 9.5 | % |   | $ | 4,165 |   |   |   | 13.4 | % |
| Commercial      real estate              |   |                        | 6,579  |   |   |   | 51.9 |   |   |   | 4,585 |   |   |   | 46.8 |   |   |   | 6,769 |   |   |   | 43.5 |   |   |   | 12,859 |   |   |   | 54.0 |   |   |   | 17,721 |   |   |   | 62.6 |   |
| Commercial      real estate construction |   |                        | 1,453  |   |   |   | 10.7 |   |   |   | 6,506 |   |   |   | 15.7 |   |   |   | 5,134 |   |   |   | 23.5 |   |   |   | 2,383 |   |   |   | 21.3 |   |   |   | 2,193 |   |   |   | 17.3 |   |
| Residential      real estate             |   |                        | 454    |   |   |   | 4.1 |   |   |   | 593 |   |   |   | 4.7 |   |   |   | 635 |   |   |   | 3.5 |   |   |   | 625 |   |   |   | 3.7 |   |   |   | 433 |   |   |   | 3.9 |   |
| Home      equity loans                   |   |                        | 4,920  |   |   |   | 17.4 |   |   |   | 5,448 |   |   |   | 18.7 |   |   |   | 5,862 |   |   |   | 18.3 |   |   |   | 1,928 |   |   |   | 11.1 |   |   |   | 292 |   |   |   | 2.4 |   |
| Consumer      loans                      |   |                        | 63     |   |   |   | 0.6 |   |   |   | 65 |   |   |   | 0.5 |   |   |   | 73 |   |   |   | 0.6 |   |   |   | 87 |   |   |   | 0.4 |   |   |   | 78 |   |   |   | 0.4 |   |
| Total      allowance                     |   | $                           | 16,240 |   |   |   | 100.0 | % |   | $ | 19,242 |   |   |   | 100.0 | % |   | $ | 20,706 |   |   |   | 100.0 | % |   | $ | 20,906 |   |   |   | 100.0 | % |   | $ | 24,882 |   |   |   | 100.0 | % |

| Commercial                                                                               |   | December 31, 2009      |    |
|------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                     |   | (dollars in thousands) |    |
|                                                                                     |   | Balances                         |    |   | % of Balances |   |
| Loans                                                                                    |   | $                                | 71,921  |   |   |   | 100.0 | % |
| Nonperforming      loans                                                                 |   |                             | 2,642   |   |   |   | 3.7 |   |
| Nonaccrual                                                                               |   |                             | 2,642   |   |   |   | 3.7 |   |
| Renegotiated,      accrual                                                               |   |                             | — |   |   |   | — |   |
| 30      or more days past due, accrual                                                   |   |                             | 633     |   |   |   | 0.9 |   |
| Allowance      for loan losses                                                           |   |                             | 2,771   |   |   |   | 3.9 |   |
| Loans      assessed in groups of loans for allowance for loan losses                     |   |                             | 69,304  |   |   |   | 96.4 |   |
| Allowance      for loan losses for groups of loans                                       |   |                             | 1,513   |   |   |   | 2.2 | (1) |
| Loans      assessed individually for allowance for loan losses                           |   |                             | 2,617   |   |   |   | 3.6 |   |
| Allowance      for loan losses for individually impaired loans                           |   |                             | 1,258   |   |   |   | 48.1 | (1) |
| Net      charge-offs year-to date                                                        |   |                             | 186     |   |   |   |   |   |
| Provisions      to allowance for loan losses year-to-date                                |   |                             | 912     |   |   |   |   |   |
|                                                                                     |   |                             |    |   |   |   |   |   |
| Allowance      for loan losses/nonperforming loans                                       |   |                             |    |   |   |   | 105 | % |
| Allowance      for loan losses/nonperforming loans less charged down impaired      loans |   |                             |    |   |   |   | 111 | (2) |

| Commercial Real Estate                                                         |   | December 31, 2009      |    |
|------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                     |   | (dollars in thousands) |    |
|                                                                                     |   | Balances                         |    |   | % of Balances |   |
| Loans                                                                                    |   | $                                | 243,811 |   |   |   | 100.0 | % |
| Nonperforming      loans                                                                 |   |                             | 19,649  |   |   |   | 8.1 |   |
| Nonaccrual                                                                               |   |                             | 19,649  |   |   |   | 8.1 |   |
| Renegotiated,      accrual                                                               |   |                             | — |   |   |   | — |   |
| 30      or more days past due, accrual                                                   |   |                             | 955     |   |   |   | 0.4 |   |
| Allowance      for loan losses                                                           |   |                             | 6,579   |   |   |   | 2.7 |   |
| Loans      assessed in groups of loans for allowance for loan losses                     |   |                             | 224,216 |   |   |   | 92.0 |   |
| Allowance      for loan losses for groups of loans                                       |   |                             | 4,417   |   |   |   | 2.0 | (1) |
| Loans      assessed individually for allowance for loan losses                           |   |                             | 19,595  |   |   |   | 8.0 |   |
| Allowance      for loan losses for individually impaired loans                           |   |                             | 2,162   |   |   |   | 11.0 | (1) |
| Net      charge-offs year-to date                                                        |   |                             | 5,234   |   |   |   |   |   |
| Provisions      to allowance for loan losses year-to-date                                |   |                             | 7,228   |   |   |   |   |   |
|                                                                                     |   |                             |    |   |   |   |   |   |
| Allowance      for loan losses/nonperforming loans                                       |   |                             |    |   |   |   | 33 | % |
| Allowance      for loan losses/nonperforming loans less charged down impaired      loans |   |                             |    |   |   |   | 64 | (2) |

----

| Construction and Development Loans                                        |   | December 31, 2009      |    |
|------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                     |   | (dollars in thousands) |    |
|                                                                                     |   | Balances                         |    |   | % of Balances |   |
| Loans                                                                                    |   | $                                | 49,795  |   |   |   | 100.0 | % |
| Nonperforming      loans                                                                 |   |                             | 24,678  |   |   |   | 49.6 |   |
| Nonaccrual                                                                               |   |                             | 24,678  |   |   |   | 49.6 |   |
| Renegotiated,      accrual                                                               |   |                             | — |   |   |   | — |   |
| 30      or more days past due, accrual                                                   |   |                             | 372     |   |   |   | 0.7 |   |
| Allowance      for loan losses                                                           |   |                             | 1,454   |   |   |   | 2.9 |   |
| Loans      assessed in groups of loans for allowance for loan losses                     |   |                             | 25,155  |   |   |   | 50.5 |   |
| Allowance      for loan losses for groups of loans                                       |   |                             | 1,428   |   |   |   | 5.7 | (1) |
| Loans      assessed individually for allowance for loan losses                           |   |                             | 24,640  |   |   |   | 49.5 |   |
| Allowance      for loan losses for individually impaired loans                           |   |                             | 25      |   |   |   | 0.1 | (1) |
| Net      charge-offs year-to date                                                        |   |                             | 11,291  |   |   |   |   |   |
| Provisions      to allowance for loan losses year-to-date                                |   |                             | 6,239   |   |   |   |   |   |
|                                                                                     |   |                             |    |   |   |   |   |   |
| Allowance      for loan losses/nonperforming loans                                       |   |                             |    |   |   |   | 6 | % |
| Allowance      for loan losses/nonperforming loans less charged down impaired      loans |   |                             |    |   |   |   | 677 | (2) |

| Residential (1-4 Family First Lien)                                  |   | December 31, 2009      |    |
|------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                     |   | (dollars in thousands) |    |
|                                                                                     |   | Balances                         |    |   | % of Balances |   |
| Loans                                                                                    |   | $                                | 19,322  |   |   |   | 100.0 | % |
| Nonperforming      loans                                                                 |   |                             | 3,083   |   |   |   | 16.0 |   |
| Nonaccrual                                                                               |   |                             | 3,083   |   |   |   | 16.0 |   |
| Renegotiated,      accrual                                                               |   |                             | — |   |   |   | — |   |
| 30      or more days past due, accrual                                                   |   |                             | 72      |   |   |   | 0.4 |   |
| Allowance      for loan losses                                                           |   |                             | 454     |   |   |   | 2.4 |   |
| Loans      assessed in groups of loans for allowance for loan losses                     |   |                             | 16,318  |   |   |   | 84.5 |   |
| Allowance      for loan losses for groups of loans                                       |   |                             | 268     |   |   |   | 1.6 | (1) |
| Loans      assessed individually for allowance for loan losses                           |   |                             | 3,005   |   |   |   | 15.6 |   |
| Allowance      for loan losses for individually impaired loans                           |   |                             | 186     |   |   |   | 6.2 | (1) |
| Net      charge-offs year-to date                                                        |   |                             | 58      |   |   |   |   |   |
| Provisions      to allowance for loan losses year-to-date                                |   |                             | (81     | ) |   |   |   |   |
|                                                                                     |   |                             |    |   |   |   |   |   |
| Allowance      for loan losses/nonperforming loans                                       |   |                             |    |   |   |   | 15 | % |
| Allowance      for loan losses/nonperforming loans less charged down impaired      loans |   |                             |    |   |   |   | 55 | (2) |

| Home Equity Loans (Line and Term Loans)                    |   | December 31, 2009      |   |
|------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                     |   | (dollars in thousands) |   |
|                                                                                     |   | Balances                         |   |   | % of Balances |   |
| Loans                                                                                    |   | $                                | 81,832 |   |   |   | 100.0 | % |
| Nonperforming      loans                                                                 |   |                             | 1,591  |   |   |   | 1.9 |   |
| Nonaccrual                                                                               |   |                             | 760    |   |   |   | 0.9 |   |
| Renegotiated,      accrual                                                               |   |                             | 831    |   |   |   | 1.0 |   |
| 30      or more days past due, accrual                                                   |   |                             | 1,917  |   |   |   | 2.3 |   |
| Allowance      for loan losses                                                           |   |                             | 4,920  |   |   |   | 6.0 |   |
| Loans      assessed in groups of loans for allowance for loan losses                     |   |                             | 80,315 |   |   |   | 98.1 |   |
| Allowance      for loan losses for groups of loans                                       |   |                             | 4,766  |   |   |   | 5.9 | (1) |
| Loans      assessed individually for allowance for loan losses                           |   |                             | 1,517  |   |   |   | 1.9 |   |
| Allowance      for loan losses for individually impaired loans                           |   |                             | 154    |   |   |   | 10.2 | (1) |
| Net      charge-offs year-to date                                                        |   |                             | 13,586 |   |   |   |   |   |
| Provisions      to allowance for loan losses year-to-date                                |   |                             | 13,058 |   |   |   |   |   |
|                                                                                     |   |                             |   |   |   |   |   |   |
| Allowance      for loan losses/nonperforming loans                                       |   |                             |   |   |   |   | 309 | % |
| Allowance      for loan losses/nonperforming loans less charged down impaired      loans |   |                             |   |   |   |   | 309 | (2) |

----

| Consumer Loans                                                                      |   | December 31, 2009      |    |
|------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                     |   | (dollars in thousands) |    |
|                                                                                     |   | Balances                         |    |   | % of Balances |   |
| Loans                                                                                    |   | $                                | 2,701   |   |   |   | 100.0 | % |
| Nonperforming      loans                                                                 |   |                             | — |   |   |   | — |   |
| Nonaccrual                                                                               |   |                             | — |   |   |   | — |   |
| Renegotiated,      accrual                                                               |   |                             | — |   |   |   | — |   |
| 30      or more days past due, accrual                                                   |   |                             | 8       |   |   |   | 0.3 |   |
| Allowance      for loan losses                                                           |   |                             | 63      |   |   |   | 2.3 |   |
| Loans      assessed in groups of loans for allowance for loan losses                     |   |                             | 2,701   |   |   |   | 100.0 |   |
| Allowance      for loan losses for groups of loans                                       |   |                             | 63      |   |   |   | 2.3 | (1) |
| Loans      assessed individually for allowance for loan losses                           |   |                             | — |   |   |   | — |   |
| Allowance      for loan losses for individually impaired loans                           |   |                             | — |   |   |   | — | (1) |
| Net      charge-offs year-to date                                                        |   |                             | 20      |   |   |   |   |   |
| Provisions      to allowance for loan losses year-to-date                                |   |                             | 19      |   |   |   |   |   |
|                                                                                     |   |                             |    |   |   |   |   |   |
| Allowance      for loan losses/nonperforming loans                                       |   |                             |    |   |   | NA | % |
| Allowance      for loan losses/nonperforming loans less charged down impaired      loans |   |                             |    |   |   | NA | (2) |

----

|   | (1) | %      of respective ALLL assessmentgroup. |
|--------|-----|--------------------------------------------|

|   | (2) | Non-performing      loans less those that are impaired and have been fully charged down to      their estimated impairment value and have no additional reserves allocated      to them at this time. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                    |   | December 31, (1)       |    |
|-------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                                                    |   | 2009                             |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                                                                    |   | (Dollars in thousands) |    |
| Nonperforming      assets                                                                                               |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual      loans:                                                                                                  |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                              |   | $                                | 3,615   |   |   | $ | 1,792 |   |   | $ | 1,855 |   |   | $ | 3,881 |   |   | $ | 6,426 |   |
| Commercial      real estate                                                                                             |   |                             | 18,676  |   |   |   | 890 |   |   |   | 2,814 |   |   |   | 16,110 |   |   |   | 21,148 |   |
| Commercial      real estate construction                                                                                |   |                             | 24,678  |   |   |   | 11,413 |   |   |   | 11,378 |   |   |   | 142 |   |   |   | 1,149 |   |
| Residential      real estate                                                                                            |   |                             | 3,083   |   |   |   | 969 |   |   |   | 393 |   |   |   | 536 |   |   |   | 379 |   |
| Home      equity loans                                                                                                  |   |                             | 760     |   |   |   | — |   |   |   | 2,416 |   |   |   | — |   |   |   | — |   |
| Consumer      loans                                                                                                     |   |                             | — |   |   |   | 8 |   |   |   | 10 |   |   |   | — |   |   |   | 3 |   |
|                                                                                                                    |   |                             | 50,812  |   |   |   | 15,072 |   |   |   | 18,866 |   |   |   | 20,669 |   |   |   | 29,105 |   |
| Loans      held for sale                                                                                                |   |                             | 7,056   |   |   |   | 2,025 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total      nonaccrual loans                                                                                             |   |                             | 57,868  |   |   |   | 17,097 |   |   |   | 18,866 |   |   |   | 20,669 |   |   |   | 29,105 |   |
| Foreclosed      property                                                                                                |   |                             | 830     |   |   |   | 980 |   |   |   | 1,344 |   |   |   | 102 |   |   |   | 2,931 |   |
| Restructured      loans                                                                                                 |   |                             | 831     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,486 |   |
| Total      nonperforming assets                                                                                         |   | $                                | 59,529  |   |   | $ | 18,077 |   |   | $ | 20,210 |   |   | $ | 20,771 |   |   | $ | 33,522 |   |
| Loans      90 days or more past due and still accruing                                                                  |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                              |   | $                                | — |   |   | $ | — |   |   | $ | — |   |   | $ | 100 |   |   | $ | 589 |   |
| Commercial      real estate                                                                                             |   |                             | — |   |   |   | 1,040 |   |   |   | 19 |   |   |   | 1,385 |   |   |   | 2,962 |   |
| Commercial      real estate construction                                                                                |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 7,991 |   |
| Residential      real estate                                                                                            |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Home      equity loans                                                                                                  |   |                             | — |   |   |   | — |   |   |   | 47 |   |   |   | — |   |   |   | — |   |
| Consumer      loans                                                                                                     |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                                                                                    |   |                             | — |   |   |   | 1,040 |   |   |   | 66 |   |   |   | 1,485 |   |   |   | 11,542 |   |
| Loans      held for sale                                                                                                |   |                             | — |   |   |   | 1,680 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total      loans 90 days or more past due and still accruing                                                            |   | $                                | — |   |   | $ | 2,720 |   |   | $ | 66 |   |   | $ | 1,485 |   |   | $ | 11,542 |   |
|                                                                                                                    |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses                                                                                          |   | $                                | 16,240  |   |   | $ | 19,242 |   |   | $ | 20,706 |   |   | $ | 20,906 |   |   | $ | 24,882 |   |
| Loans      at end of period                                                                                             |   | $                                | 470,668 |   |   | $ | 555,207 |   |   | $ | 595,259 |   |   | $ | 522,624 |   |   | $ | 515,544 |   |
| Ratios                                                                                                                  |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual      loans to total loans (2)                                                                                |   |                             | 10.80   | % |   |   | 2.71 | % |   |   | 3.17 | % |   |   | 3.95 | % |   |   | 5.65 | % |
| Foreclosed      properties to total assets                                                                              |   |                             | 0.12    |   |   |   | 0.11 |   |   |   | 0.13 |   |   |   | 0.01 |   |   |   | 0.26 |   |
| Nonperforming      assets to total assets (2)                                                                           |   |                             | 7.40    |   |   |   | 1.77 |   |   |   | 2.01 |   |   |   | 2.09 |   |   |   | 2.96 |   |
| Nonaccrual      loans, restructured loans and loans 90 days or more past due and still      accruing to total loans (2) |   |                             | 10.97   |   |   |   | 2.90 |   |   |   | 3.18 |   |   |   | 4.24 |   |   |   | 8.17 |   |
| Nonperforming      assets and 90 days or more past due and still accruing loans to total      assets (2)                |   |                             | 7.40    |   |   |   | 1.89 |   |   |   | 2.02 |   |   |   | 2.24 |   |   |   | 3.98 |   |

----

|   | (1) | For      comparative purposes, all periods presented exclude the assets of      companies held for disposal and companies that were sold during the      period. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Excludes      loans held for sale from nonaccrual loans, nonperforming assets and 90      days or more past due and still accruingloans. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $16.5      million in Arizona and Nevada consisting of five    relationships |
|--------|--------|------------------------------------------------------------------------------|

|   | · | $13.1      million in Illinois consisting of three  relationships |
|--------|--------|-------------------------------------------------------------------|

----

|   | · | $9.1      million in Wisconsin consisting of three  relationships |
|--------|--------|-------------------------------------------------------------------|

|   | · | $1.7      million in Indiana consisting of one  relationship |
|--------|--------|--------------------------------------------------------------|

|   | · | Maintenance      of minimum capital levels; |
|--------|--------|---------------------------------------------|

|   | · | Restrictions      on dividend payments and redemption of shares of CIB Marine without      regulatory approval; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | Adoption      of a comprehensive plan to improveearnings; |
|--------|--------|-----------------------------------------------------------|

|   | · | Development      of a plan to correct and prevent violations of banking laws and      regulations related to affiliatetransactions; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Restrictions      on distribution of interest or dividends on its TruPS without regulatory      approval; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

----

|   | · | Restrictions      on borrowings and debt, including debt to stockholders, without regulatory      approval. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

----

|                                                                         |   | December 31,                |    |
|------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                         |   | 2009                             |    |   | 2008 |   |
|                                                                         |   | (Dollars in thousands) |    |
| Prepaid      expenses                                                        |   | $                                | 628     |   |   | $ | 950 |   |
| Accounts      receivable                                                     |   |                             | 80      |   |   |   | 124 |   |
| Trust      preferred securities underwriting fee, net of amortization    (1) |   |                             | — |   |   |   | 1,225 |   |
| Other      investments                                                       |   |                             | 1,027   |   |   |   | 1,167 |   |
| Income      tax receivable (2)                                               |   |                             | 80      |   |   |   | 890 |   |
| Other                                                                        |   |                             | 7       |   |   |   | 9 |   |
|                                                                         |   | $                                | 1,822   |   |   | $ | 4,365 |   |

----

|   | (1) | Asset      was written off at confirmation of thePlan. |
|--------|-----|--------------------------------------------------------|

|   | (2) | December      31, 2008 includes $0.7 million tax receivable from company held for      disposal per tax sharing agreement. This tax receivable was written off in      the third quarter of 2009. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | Year Ended December 31, |    |
|--------------------------------------|--------|----------------------------------------|---------|
|                                 |   | 2009                                   |    |   | 2008 |   |   | 2007 |   |
|                                 |   | AverageBalance                         |    |   | % of TotalDeposits |   |   | AverageRate |   |   | AverageBalance |   |   | % of TotalDeposits |   |   | AverageRate |   |   | AverageBalance |   |   | % of TotalDeposits |   |   | AverageRate |   |
|                                 |   | (Dollars in thousands)       |    |
| Interest-bearing      demand         |   | $                                      | 32,010  |   |   |   | 4.79 | % |   |   | 0.34 | % |   | $ | 36,981 |   |   |   | 5.06 | % |   |   | 0.72 | % |   | $ | 36,132 |   |   |   | 4.73 | % |   |   | 1.00 | % |
| Money      market                    |   |                                   | 113,909 |   |   |   | 17.04 |   |   |   | 1.23 |   |   |   | 143,149 |   |   |   | 19.57 |   |   |   | 2.29 |   |   |   | 170,966 |   |   |   | 22.37 |   |   |   | 4.10 |   |
| Other      savings                   |   |                                   | 8,465   |   |   |   | 1.26 |   |   |   | 0.21 |   |   |   | 12,112 |   |   |   | 1.66 |   |   |   | 0.82 |   |   |   | 15,224 |   |   |   | 1.99 |   |   |   | 0.99 |   |
| Time      deposits                   |   |                                   | 459,013 |   |   |   | 68.66 |   |   |   | 3.28 |   |   |   | 473,707 |   |   |   | 64.77 |   |   |   | 4.03 |   |   |   | 466,151 |   |   |   | 61.01 |   |   |   | 4.75 |   |
| Total      interest-bearing deposits |   |                                   | 613,397 |   |   |   | 91.75 |   |   |   | 2.71 |   |   |   | 665,949 |   |   |   | 91.06 |   |   |   | 3.42 |   |   |   | 688,473 |   |   |   | 90.10 |   |   |   | 4.31 |   |
| Noninterest-bearing                  |   |                                   | 55,133  |   |   |   | 8.25 |   |   |   | — |   |   |   | 65,374 |   |   |   | 8.94 |   |   |   | — |   |   |   | 75,670 |   |   |   | 9.90 |   |   |   | — |   |
| Total      deposits                  |   | $                                      | 668,530 |   |   |   | 100.00 | % |   |   | 2.48 | % |   | $ | 731,323 |   |   |   | 100.00 | % |   |   | 3.11 | % |   | $ | 764,143 |   |   |   | 100.00 | % |   |   | 3.89 | % |

----

|                          |   | December 31, 2009      |    |
|-------------------------------|--------|----------------------------------|---------|
|                          |   | (Dollars in thousands) |    |
| Maturity                      |   |                             |    |
| 3      months or less         |   | $                                | 20,985  |   |
| Over      3 through 6 months  |   |                             | 22,976  |   |
| Over      6 through 12 months |   |                             | 43,242  |   |
| Over      12 months           |   |                             | 25,674  |   |
|                          |   | $                                | 112,877 |   |

|                                             |   | As of December 31, |    |   | For the Year |   |
|--------------------------------------------------|--------|-----------------------------------|---------|--------|------------------------|--------|
|                                        |   | Balance                           |    |   | Weighted-AverageRate   |   |   | % of TotalBorrowings |   |   | DailyAverageBalances |   |   | Weighted-AverageRate |   |   | HighestBalances atMonth End |   |
|                                             |   | (Dollars in thousands)  |    |
| Short-Term      Borrowings                       |   |                              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                             |   |                              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      sold under repurchase agreements |   | $                                 | 9,684   |   |                   |   | 0.42 | % |   |   | 31.67 | % |   | $ | 11,180 |   |   |   | 0.76 | % |   | $ | 15,939 |   |
| Federal      Home Loan Bank                      |   |                              | — |   |                   |   | — |   |   |   | — |   |   |   | 8,370 |   |   |   | 0.46 |   |   |   | 40,000 |   |
| Treasury,      tax and loan note                 |   |                              | 2,888   |   |                   |   | 0.00 |   |   |   | 9.45 |   |   |   | 342 |   |   |   | — |   |   |   | 2,888 |   |
| Total      short-term borrowings                 |   | $                                 | 12,572  |   |                   |   | 0.32 | % |   |   | 41.12 |   |   | $ | 19,892 |   |   |   | 0.62 | % |   |   |   |   |
| 2008                                             |   |                              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      funds purchased                     |   | $                                 | — |   |                   |   | — | % |   |   | — | % |   | $ | 12,744 |   |   |   | 0.20 | % |   | $ | 4,157 |   |
| Securities      sold under repurchase agreements |   |                              | 19,908  |   |                   |   | 0.68 |   |   |   | 13.13 |   |   |   | 16,382 |   |   |   | 1.62 |   |   |   | 27,762 |   |
| Federal      Home Loan Bank                      |   |                              | 40,000  |   |                   |   | 0.55 |   |   |   | 26.37 |   |   |   | 78,312 |   |   |   | 2.29 |   |   |   | 100,150 |   |
| Treasury,      tax and loan note                 |   |                              | 2,898   |   |                   |   | 0.00 |   |   |   | 1.91 |   |   |   | 616 |   |   |   | 1.68 |   |   |   | 2,898 |   |
| Total      short-term borrowings                 |   | $                                 | 62,806  |   |                   |   | 0.57 | % |   |   | 41.41 |   |   | $ | 108,054 |   |   |   | 1.94 | % |   |   |   |   |
| 2007                                             |   |                              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      funds purchased                     |   | $                                 | — |   |                   |   | — | % |   |   | — | % |   | $ | 2,400 |   |   |   | 5.26 | % |   | $ | 12,811 |   |
| Securities      sold under repurchase agreements |   |                              | 16,276  |   |                   |   | 3.17 |   |   |   | 10.21 |   |   |   | 21,012 |   |   |   | 4.11 |   |   |   | 27,016 |   |
| Federal      Home Loan Bank                      |   |                              | 67,100  |   |                   |   | 3.90 |   |   |   | 42.08 |   |   |   | 15,044 |   |   |   | 4.35 |   |   |   | 67,100 |   |
| Treasury,      tax and loan note                 |   |                              | 2,240   |   |                   |   | 3.59 |   |   |   | 1.40 |   |   |   | 872 |   |   |   | 5.68 |   |   |   | 2,848 |   |
| Total      short-term borrowings                 |   | $                                 | 85,616  |   |                   |   | 3.76 | % |   |   | 53.69 | % |   | $ | 39,328 |   |   |   | 4.32 | % |   |   |   |   |

| Long-Term Borrowings           |   | As of December 31, |    |
|-------------------------------------|--------|-----------------------------------|---------|
|                                |   | 2009                              |    |   | 2008 |   |   | 2007 |   |
|                                |   | Balance                           |    |   | AverageRate |   |   | % of TotalBorrowings |   |   | Balance |   |   | AverageRate |   |   | % of TotalBorrowings |   |   | Balance |   |   | AverageRate |   |   | % of TotalBorrowings |   |
|                                |   | (Dollars in thousands)  |    |
| Federal      Home Loan Bank         |   | $                                 | 18,000  |   |   |   | 3.95 | % |   |   | 58.88 | % |   | $ | 27,000 |   |   |   | 4.13 | % |   |   | 17.80 | % |   | $ | 12,000 |   |   |   | 4.52 | % |   |   | 7.52 | % |
| Junior      subordinated debentures |   |                              | — |   |   |   | — |   |   |   | — |   |   |   | 61,857 |   |   |   | 9,40 |   |   |   | 40.79 |   |   |   | 61,857 |   |   |   | 9,89 |   |   |   | 38.79 |   |
| Total      long-term borrowings     |   | $                                 | 18,000  |   |   |   | 3.95 | % |   |   | 58.88 | % |   | $ | 88,857 |   |   |   | 7.80 | % |   |   | 58.59 | % |   | $ | 73,857 |   |   |   | 9.02 | % |   |   | 46.31 | % |

----

|                                            |   | December 31,                |   |
|-------------------------------------------------|--------|----------------------------------|--------|
|                                            |   | 2009                             |   |   | 2008 |   |
|                                            |   | (Dollars in thousands) |   |
| Accounts      payable                           |   | $                                | 199    |   |   | $ | 179 |   |
| Accrued      real estate taxes                  |   |                             | 155    |   |   |   | 147 |   |
| Accrued      compensation and employee benefits |   |                             | 562    |   |   |   | 681 |   |
| Accrued      professional fees                  |   |                             | 497    |   |   |   | 490 |   |
| Accrued      other expenses                     |   |                             | 946    |   |   |   | 448 |   |
| Other      liabilities                          |   |                             | 406    |   |   |   | 278 |   |
|                                            |   | $                                | 2,765  |   |   | $ | 2,223 |   |

----

|                                                                |   | Total  |    |   | Less than 1 year |   |    | 1-2 years |   |   | 2-3 years |   |   | 3-4 years |   |   | 4-5 years |   |    | Morethan 5years |   |
|---------------------------------------------------------------------|--------|--------|---------|--------|---------------------------------|--------|---------|----------------|--------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|---------|----------------------|--------|
| Certificate      of deposit and other time deposit      obligations |   | $      | 386,786 |   |                            | $      | 288,197 |           |   | $      | 55,602         |   |   | $              | 25,711 |   |           | $      | 8,529   |                 |   | $ | 8,381 |   |   | $ | 366 |   |
| Long-term      debt                                                 |   |   | 18,000  |   |                            |   | 8,000   |           |   |   | 5,000          |   |   |           | 5,000  |   |           |   | — |                 |   |   | — |   |   |   | — |   |
| Operating      leases                                               |   |   | 2,907   |   |                            |   | 874     |           |   |   | 600            |   |   |           | 532    |   |           |   | 217     |                 |   |   | 105 |   |   |   | 579 |   |
| Total                                                               |   | $      | 407,693 |   |                            | $      | 297,071 |           |   | $      | 61,202         |   |   | $              | 31,243 |   |           | $      | 8,746   |                 |   | $ | 8,486 |   |   | $ | 945 |   |

----

----

|                                                                                          |   | December 31,                |    |
|-----------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                          |   | 2009                             |    |   | 2008 |   |   | 2007 |   |
|                                                                                          |   | (Dollars in thousands) |    |
| Risk-weighted      assets                                                                     |   | $                                | 596,438 |   |   | $ | 656,304 |   |   | $ | 743,970 |   |
| Average      assets(1)                                                                        |   | $                                | 752,541 |   |   | $ | 920,519 |   |   | $ | 997,708 |   |
| Capital      components                                                                       |   |                             |    |   |   |   |   |   |   |   |   |   |
| Stockholders’      equity                                                               |   | $                                | 84,695  |   |   | $ | 14,802 |   |   | $ | 60,306 |   |
| Restricted      core capital:                                                                 |   |                             |    |   |   |   |   |   |   |   |   |   |
| Junior      subordinated debentures net of investment in trust                                |   |                             | — |   |   |   | 60,000 |   |   |   | 60,000 |   |
| Total      restricted core capital elements                                                   |   |                             | — |   |   |   | 60,000 |   |   |   | 60,000 |   |
| Disallowed      amounts                                                                       |   |                             | — |   |   |   | (51,730 | ) |   |   | (39,898 | ) |
| Maximum      allowable in Tier 1 capital                                                      |   |                             | — |   |   |   | 8,270 |   |   |   | 20,102 |   |
| Nonfinancial      equity items                                                                |   |                             | — |   |   |   | — |   |   |   | — |   |
| Less:      disallowed intangibles                                                             |   |                             | — |   |   |   | — |   |   |   | — |   |
| Add:      unrealized (income) loss on securities                                              |   |                             | 6,183   |   |   |   | 10,008 |   |   |   | (1,382 | ) |
| Less:      unrealized income (loss) on equities                                               |   |                             | 19      |   |   |   | (138 | ) |   |   | — |   |
| Tier      1 capital                                                                           |   |                             | 90,897  |   |   |   | 32,942 |   |   |   | 79,026 |   |
| Allowable      allowance for loan losses                                                      |   |                             | 7,564   |   |   |   | 8,340 |   |   |   | 9,449 |   |
| Subordinated      debentures net of investment in trust (not included in Tier 1      capital) |   |                             | — |   |   |   | 51,730 |   |   |   | 39,898 |   |
| Tier      2 capital                                                                           |   |                             | 7,564   |   |   |   | 60,070 |   |   |   | 49,347 |   |
| Allowable      Tier 2 Capital (2)                                                             |   |                             | 7,564   |   |   |   | 32,942 |   |   |   | 49,347 |   |
| Total      risk-based capital                                                                 |   | $                                | 98,461  |   |   | $ | 65,884 |   |   | $ | 128,373 |   |

|                                        |   | Actual                           |    |   | Minimum Required Tobe AdequatelyCapitalized |   |
|---------------------------------------------|--------|----------------------------------|---------|--------|------------------------------------------------------------|--------|
|                                        |   | Amount                           |    |   | Ratio                                                      |   |   | Amount |   |   | Ratio |   |
|                                        |   | (Dollars in thousands) |    |
| December      31, 2009                      |   |                             |    |   |                                                       |   |   |   |   |   |   |   |
| Total      capital to risk weighted assets  |   | $                                | 98,461  |   |                                                       |   | 16.51 | % |   | $ | 47,715 |   |   |   | 8.00 | % |
| Tier      1 capital to risk weighted assets |   |                             | 90,897  |   |                                                       |   | 15.24 |   |   |   | 23,858 |   |   |   | 4.00 |   |
| Tier      1 leverage to average assets      |   |                             | 90,897  |   |                                                       |   | 12.08 |   |   |   | 30,102 |   |   |   | 4.00 |   |
|                                        |   |                             |    |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2008                      |   |                             |    |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Total      capital to risk weighted assets  |   | $                                | 65,884  |   |                                                       |   | 10.04 | % |   | $ | 52,504 |   |   |   | 8.00 | % |
| Tier      1 capital to risk weighted assets |   |                             | 32,942  |   |                                                       |   | 5.02 |   |   |   | 26,252 |   |   |   | 4.00 |   |
| Tier      1 leverage to average assets      |   |                             | 32,942  |   |                                                       |   | 3.58 |   |   |   | 36,821 |   |   |   | 4.00 |   |
|                                        |   |                             |    |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2007                      |   |                             |    |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Total      capital to risk-weighted assets  |   | $                                | 128,373 |   |                                                       |   | 17.26 | % |   | $ | 59,518 |   |   |   | 8.00 | % |
| Tier      1 capital to risk-weighted assets |   |                             | 79,026  |   |                                                       |   | 10.62 |   |   |   | 29,759 |   |   |   | 4.00 |   |
| Tier      1 leverage to average assets      |   |                             | 79,026  |   |                                                       |   | 7.92 |   |   |   | 39,908 |   |   |   | 4.00 |   |

----

|   | (1) | Average      assets as calculated in accordance with 12 C.F.R. Part 325 of the FDIC      rules and regulations which requires a quarter to date average and allows      for current period adjustments of goodwill and other intangible      assets. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Allowable      Tier 2 capital cannot exceed 100% of Tier 1  capital. |
|--------|-----|----------------------------------------------------------------------|

----

|   | · | The      exchange of the high-interest indebtedness for CIB Marine Preferred      provided CIB Marine with a more stable capital  structure; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | The      elimination of $107.2 million of indebtedness from CIB Marine’s balance      sheet significantly improved its regulatory capital    position; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      interest expense related to the Debentures as reflected in the      Consolidated Statements of Income was $6.3 million in 2009 and $8.9      million in 2008. No interest expense on the Debentures will be reflected      in 2010 operating results; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Plan allowed for the substitution of noncumulative 7% dividends on the CIB      Marine Preferred for higher-rate cumulative interest on the Debentures,      thereby improving operatingresults. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                      |   | December, 31, 2009     |    |
|-----------------------------------------------------------|--------|----------------------------------|---------|
|                                                      |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | 0-3 Months                  |    |   | 4-6 Months |   |   | 7-12 Months |   |   | 2-5 Years |   |   | Over 5 Years |   |   | Total |   |
|                                                      |   | (Dollars in thousands) |    |
| Interest-earning      assets:                             |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                     |   | $                                | 229,817 |   |   | $ | 36,236 |   |   | $ | 47,361 |   |   | $ | 155,387 |   |   | $ | 1,867 |   |   | $ | 470,668 |   |
| Loans      held for sale                                  |   |                             | 13,451  |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 13,451 |   |
| Securities                                                |   |                             | 18,391  |   |   |   | 17,367 |   |   |   | 23,473 |   |   |   | 89,904 |   |   |   | 33,836 |   |   |   | 182,971 |   |
| Reverse      repurchase securities and federal funds sold |   |                             | 5,500   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 5,500 |   |
| Total      interest-earning assets                        |   |                             | 267,159 |   |   |   | 53,603 |   |   |   | 70,834 |   |   |   | 245,291 |   |   |   | 35,703 |   |   |   | 672,590 |   |
| Interest-bearing      liabilities:                        |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time      deposits                                        |   |                             | 65,844  |   |   |   | 78,632 |   |   |   | 145,952 |   |   |   | 96,028 |   |   |   | 330 |   |   |   | 386,786 |   |
| Savings      and interest-bearing demand deposits         |   |                             | 149,914 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 149,914 |   |
| Short-term      borrowings                                |   |                             | 10,572  |   |   |   | 2,000 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 12,572 |   |
| Long-term      borrowings                                 |   |                             | 5,000   |   |   |   | — |   |   |   | 3,000 |   |   |   | 10,000 |   |   |   | — |   |   |   | 18,000 |   |
| Total      interest-bearing liabilities                   |   |                             | 231,330 |   |   |   | 80,632 |   |   |   | 148,952 |   |   |   | 106,028 |   |   |   | 330 |   |   |   | 567,272 |   |
| Interest      sensitivity gap (by period)                 |   | $                                | 35,829  |   |   | $ | (27,029 | ) |   | $ | (78,118 | ) |   | $ | 139,263 |   |   | $ | 35,373 |   |   | $ | 105,318 |   |
| Interest      sensitivity gap (cumulative)                |   |                             | 35,829  |   |   |   | 8,800 |   |   |   | (69,318 | ) |   |   | 69,945 |   |   |   | 105,318 |   |   |   | 105,318 |   |
| Cumulative      gap as a % of total assets                |   |                             | 5.05    | % |   |   | 1.24 | % |   |   | (9.76 | )% |   |   | 9.85 | % |   |   | 14.83 | % |   |   |   |   |

----

|                                          |   | Basis Point Changes |   |
|-----------------------------------------------|--------|-------------------------------|--------|
|                                          |   |                          | +200   |   |   |   | +100 |   |   |   | -100 | (1) |   |   | -200 | (1) |
| Net      interest income change over one year |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2009                        |   |                          | (1.03  | )% |   |   | (0.97 | )% |   |   | (5.52 | )% |   |   | (10.52 | )% |
| December      31, 2008                        |   |                          | (9.21  | )% |   |   | (3.88 | )% |   |   | (0.35 | )% |   |   | (1.46 | )% |

----

|   | · | The      balance sheet size was assumed to remain  constant; |
|--------|--------|--------------------------------------------------------------|

|   | · | All      maturing assets and liabilities were invested or deposited into similar      financial or derivativeinstruments; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | Spreads      to the benchmark interest rates for pricing new volume to replace maturing      or paying older volumes were similar to spreads currently inherent in      those financial instruments, except for marketable securities which      reflects current market spreads; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      interest rates of financial instruments with like terms were assumed to      change by the same number of basis points except that the timing,      magnitude, and direction of change of interest rates paid on non-maturing      savings and interest-bearing demand deposits were assumed to change in a      way similar to that experienced in the past, which is less than perfectly      correlated with the other interest rate changes. Current anticipated      pricing strategies for non-maturing deposits were also      utilized. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | /s/      Crowe Horwath LLP |
|--------|----------------------------|
|   |                       |

----

| KPMG      LLP |
|---------------|

----

|                                                                                                                                                                                                                            |   | December 31,                                                  |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|----------|
|                                                                                                                                                                                                                            |   | 2009                                                               |     |   | 2008 |   |
|                                                                                                                                                                                                                            |   | (Dollars in thousands, except share data) |     |
| Assets                                                                                                                                                                                                                          |   |                                                               |     |   |   |   |
| Cash      and cash equivalents:                                                                                                                                                                                                 |   |                                                               |     |   |   |   |
| Cash      and due from banks                                                                                                                                                                                                    |   | $                                                                  | 30,235   |   |   | $ | 27,854 |   |
| Reverse      repurchase securities                                                                                                                                                                                              |   |                                                               | 5,000    |   |   |   | 27,682 |   |
| Federal      funds sold                                                                                                                                                                                                         |   |                                                               | 500      |   |   |   | 1,695 |   |
| Total      cash and cash equivalents                                                                                                                                                                                            |   |                                                               | 35,735   |   |   |   | 57,231 |   |
| Securities      available for sale                                                                                                                                                                                              |   |                                                               | 182,971  |   |   |   | 280,452 |   |
| Loans      held for sale                                                                                                                                                                                                        |   |                                                               | 13,451   |   |   |   | 4,777 |   |
| Loans                                                                                                                                                                                                                           |   |                                                               | 470,668  |   |   |   | 555,207 |   |
| Allowance      for loan losses                                                                                                                                                                                                  |   |                                                               | (16,240  | ) |   |   | (19,242 | ) |
| Net      loans                                                                                                                                                                                                                  |   |                                                               | 454,428  |   |   |   | 535,965 |   |
| Federal      Home Loan Bank Stock                                                                                                                                                                                               |   |                                                               | 11,555   |   |   |   | 11,555 |   |
| Premises      and equipment, net                                                                                                                                                                                                |   |                                                               | 5,047    |   |   |   | 5,794 |   |
| Accrued      interest receivable                                                                                                                                                                                                |   |                                                               | 2,847    |   |   |   | 4,289 |   |
| Foreclosed      properties                                                                                                                                                                                                      |   |                                                               | 830      |   |   |   | 980 |   |
| Assets      of company held for disposal                                                                                                                                                                                        |   |                                                               | 1,171    |   |   |   | 988 |   |
| Other      assets                                                                                                                                                                                                               |   |                                                               | 1,822    |   |   |   | 4,365 |   |
| Total      assets                                                                                                                                                                                                               |   | $                                                                  | 709,857  |   |   | $ | 906,396 |   |
| Liabilities      and Stockholders’ Equity                                                                                                                                                                                 |   |                                                               |     |   |   |   |   |   |
| Deposits:                                                                                                                                                                                                                       |   |                                                               |     |   |   |   |   |   |
| Noninterest-bearing      demand                                                                                                                                                                                                 |   |                                                               | 52,750   |   |   |   | 48,060 |   |
| Interest-bearing      demand                                                                                                                                                                                                    |   |                                                               | 32,325   |   |   |   | 34,308 |   |
| Savings                                                                                                                                                                                                                         |   |                                                               | 117,589  |   |   |   | 123,092 |   |
| Time                                                                                                                                                                                                                            |   |                                                               | 386,786  |   |   |   | 489,172 |   |
| Total      deposits                                                                                                                                                                                                             |   |                                                               | 589,450  |   |   |   | 694,632 |   |
| Short-term      borrowings                                                                                                                                                                                                      |   |                                                               | 12,572   |   |   |   | 62,806 |   |
| Long-term      borrowings                                                                                                                                                                                                       |   |                                                               | 18,000   |   |   |   | 27,000 |   |
| Junior      subordinated debentures                                                                                                                                                                                             |   |                                                               | —  |   |   |   | 61,857 |   |
| Accrued      interest payable                                                                                                                                                                                                   |   |                                                               | 1,204    |   |   |   | 41,377 |   |
| Liabilities      of company held for disposal                                                                                                                                                                                   |   |                                                               | 1,171    |   |   |   | 1,699 |   |
| Other      liabilities                                                                                                                                                                                                          |   |                                                               | 2,765    |   |   |   | 2,223 |   |
| Total      liabilities                                                                                                                                                                                                          |   |                                                               | 625,162  |   |   |   | 891,594 |   |
| Commitments      and contingent liabilities (Note 18)                                                                                                                                                                           |   |                                                               | —  |   |   |   | — |   |
| Stockholders’      Equity                                                                                                                                                                                                 |   |                                                               |     |   |   |   |   |   |
| Preferred      stock, $1 par value; 5,000,000 authorized shares; 7% fixed noncumulative      perpetual issued-55,624 shares of Series A and 4,376 shares of Series B      convertible; aggregate liquidation preference-$60,000 |   |                                                               | 51,000   |   |   |   | — |   |
| Common      stock, $1 par value; 50,000,000 authorized shares;18,346,442 issued      shares, 18,135,395 at December 31, 2009 and 18,341,231 at December 31,      2008 outstanding shares                                        |   |                                                               | 18,346   |   |   |   | 18,346 |   |
| Capital      surplus                                                                                                                                                                                                            |   |                                                               | 158,682  |   |   |   | 158,613 |   |
| Accumulated      deficit                                                                                                                                                                                                        |   |                                                               | (136,621 | ) |   |   | (151,936 | ) |
| Accumulated      other comprehensive loss related to available for sale      securities                                                                                                                                         |   |                                                               | (1,290   | ) |   |   | (10,008 | ) |
| Accumulated      other comprehensive loss related to non-credit other-than-temporary      impairments                                                                                                                           |   |                                                               | (4,893   | ) |   |   | — |   |
| Accumulated      other comprehensive loss, net                                                                                                                                                                                  |   |                                                               | (6,183   | ) |   |   | (10,008 | ) |
| Receivables      from sale of stock                                                                                                                                                                                             |   |                                                               | —  |   |   |   | (51 | ) |
| Treasury      stock shares at cost; 218,499 at December 31, 2009 and 12,663 at December      31, 2008                                                                                                                           |   |                                                               | (529     | ) |   |   | (162 | ) |
| Total      stockholders’ equity                                                                                                                                                                                           |   |                                                               | 84,695   |   |   |   | 14,802 |   |
| Total      liabilities and stockholders’ equity                                                                                                                                                                           |   | $                                                                  | 709,857  |   |   | $ | 906,396 |   |

----

|                                                                                                                           |   | Years Ended December 31,                                                         |    |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|---------|
|                                                                                                                           |   | 2009                                                                                            |    |   | 2008 |   |   | 2007 |   |
|                                                                                                                           |   | (Dollars in thousands, except share and per share data) |    |
| Interest      and Dividend Income                                                                                              |   |                                                                                            |    |   |   |   |   |   |   |
| Loans                                                                                                                          |   | $                                                                                               | 27,161  |   |   | $ | 38,611 |   |   | $ | 44,627 |   |
| Loans      held for sale                                                                                                       |   |                                                                                            | 30      |   |   |   | 19 |   |   |   | 5 |   |
| Securities:                                                                                                                    |   |                                                                                            |    |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                        |   |                                                                                            | 11,950  |   |   |   | 16,128 |   |   |   | 14,516 |   |
| Tax-exempt                                                                                                                     |   |                                                                                            | 15      |   |   |   | 41 |   |   |   | 81 |   |
| Dividends                                                                                                                      |   |                                                                                            | — |   |   |   | 30 |   |   |   | 239 |   |
| Federal      funds sold                                                                                                        |   |                                                                                            | 253     |   |   |   | 1,312 |   |   |   | 3,226 |   |
| Total      interest and dividend income                                                                                        |   |                                                                                            | 39,409  |   |   |   | 56,141 |   |   |   | 62,694 |   |
| Interest      Expense                                                                                                          |   |                                                                                            |    |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                       |   |                                                                                            | 16,602  |   |   |   | 22,743 |   |   |   | 29,695 |   |
| Short-term      borrowings                                                                                                     |   |                                                                                            | 123     |   |   |   | 2,097 |   |   |   | 1,698 |   |
| Long-term      borrowings                                                                                                      |   |                                                                                            | 917     |   |   |   | 774 |   |   |   | 118 |   |
| Junior      subordinated debentures                                                                                            |   |                                                                                            | 6,284   |   |   |   | 8,887 |   |   |   | 8,556 |   |
| Total      interest expense                                                                                                    |   |                                                                                            | 23,926  |   |   |   | 34,501 |   |   |   | 40,067 |   |
| Net      interest income                                                                                                       |   |                                                                                            | 15,483  |   |   |   | 21,640 |   |   |   | 22,627 |   |
| Provision      for loan losses                                                                                                 |   |                                                                                            | 27,373  |   |   |   | 22,063 |   |   |   | 6,413 |   |
| Net      interest income (loss) after provision for loan losses                                                                |   |                                                                                            | (11,890 | ) |   |   | (423 | ) |   |   | 16,214 |   |
| Noninterest      Income                                                                                                        |   |                                                                                            |    |   |   |   |   |   |   |   |   |   |
| Loan      fees                                                                                                                 |   |                                                                                            | 146     |   |   |   | 325 |   |   |   | 421 |   |
| Deposit      service charges                                                                                                   |   |                                                                                            | 921     |   |   |   | 942 |   |   |   | 963 |   |
| Other      service fees                                                                                                        |   |                                                                                            | 123     |   |   |   | 122 |   |   |   | 119 |   |
| Other      income                                                                                                              |   |                                                                                            | 11      |   |   |   | 585 |   |   |   | 233 |   |
| Total      other-than-temporary impairment losses                                                                              |   |                                                                                            |    |   |   |   |   |   |   |   |   |   |
| Total      impairment loss                                                                                                     |   |                                                                                            | (2,112  | ) |   |   | (1,792 | ) |   |   | — |   |
| Loss      recognized in other comprehensive income                                                                             |   |                                                                                            | 1,711   |   |   |   | — |   |   |   | — |   |
| Net      impairment loss recognized in earnings                                                                                |   |                                                                                            | (401    | ) |   |   | (1,792 | ) |   |   | — |   |
| Net      gains on sale of securities                                                                                           |   |                                                                                            | 551     |   |   |   | — |   |   |   | — |   |
| Net      gains on sale of loans                                                                                                |   |                                                                                            | 139     |   |   |   | 34 |   |   |   | 36 |   |
| Net      gain on sale of assets and deposits                                                                                   |   |                                                                                            | 10      |   |   |   | 4,150 |   |   |   | 1,278 |   |
| Total      noninterest income                                                                                                  |   |                                                                                            | 1,500   |   |   |   | 4,366 |   |   |   | 3,050 |   |
| Noninterest      Expense                                                                                                       |   |                                                                                            |    |   |   |   |   |   |   |   |   |   |
| Compensation      and employee benefits                                                                                        |   |                                                                                            | 12,950  |   |   |   | 16,375 |   |   |   | 18,167 |   |
| Equipment                                                                                                                      |   |                                                                                            | 1,407   |   |   |   | 1,884 |   |   |   | 3,155 |   |
| Occupancy      and premises                                                                                                    |   |                                                                                            | 2,157   |   |   |   | 2,700 |   |   |   | 3,134 |   |
| Data      processing                                                                                                           |   |                                                                                            | 904     |   |   |   | 1,089 |   |   |   | 79 |   |
| Federal      deposit insurance                                                                                                 |   |                                                                                            | 1,805   |   |   |   | 697 |   |   |   | 297 |   |
| Professional      services                                                                                                     |   |                                                                                            | 3,934   |   |   |   | 4,828 |   |   |   | 3,348 |   |
| Write      down and losses on assets                                                                                           |   |                                                                                            | 3,381   |   |   |   | 3,707 |   |   |   | 936 |   |
| Other      expense                                                                                                             |   |                                                                                            | 4,456   |   |   |   | 8,576 |   |   |   | 5,356 |   |
| Total      noninterest expense                                                                                                 |   |                                                                                            | 30,994  |   |   |   | 39,856 |   |   |   | 34,472 |   |
| Loss      from continuing operations before income taxes                                                                       |   |                                                                                            | (41,384 | ) |   |   | (35,913 | ) |   |   | (15,208 | ) |
| Income      tax expense                                                                                                        |   |                                                                                            | 99      |   |   |   | 320 |   |   |   | 3 |   |
| Loss      from continuing operations                                                                                           |   |                                                                                            | (41,483 | ) |   |   | (36,233 | ) |   |   | (15,211 | ) |
| Discontinued      operations:                                                                                                  |   |                                                                                            |    |   |   |   |   |   |   |   |   |   |
| Pretax      income from discontinued operations                                                                                |   |                                                                                            | 711     |   |   |   | 493 |   |   |   | 417 |   |
| Income      tax benefit                                                                                                        |   |                                                                                            | — |   |   |   | (1,341 | ) |   |   | (1,023 | ) |
| Income      from discontinued operations                                                                                       |   |                                                                                            | 711     |   |   |   | 1,834 |   |   |   | 1,440 |   |
| Net      loss before extraordinary net gain                                                                                    |   |                                                                                            | (40,772 | ) |   |   | (34,399 | ) |   |   | (13,771 | ) |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                                                                                            | 54,497  |   |   |   | — |   |   |   | — |   |
| Net      income (loss)                                                                                                         |   |                                                                                            | 13,725  |   |   |   | (34,399 | ) |   |   | (13,771 | ) |
| Preferred      stock dividends                                                                                                 |   |                                                                                            | — |   |   |   | — |   |   |   | — |   |
| Net      income (loss) (attributable) available to common    stockholders                                                      |   | $                                                                                               | 13,725  |   |   | $ | (34,399 | ) |   | $ | (13,771 | ) |

----

| Earnings      (Loss) Per Share           |   |   |       |   |   |   |       |   |   |
|------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Basic:                                   |   |   |       |   |   |   |       |   |   |
| Loss      from continuing operations     |   | $      | (2.28      | )      |   | $      | (1.98      | )      |   | $ | (0.83 | ) |
| Income      from discontinued operations |   |   | 0.04       |   |   |   | 0.10       |   |   |   | 0.08 |   |
| Loss      before extraordinary net gain  |   |   | (2.24      | )      |   |   | (1.88      | )      |   |   | (0.75 | ) |
| Extraordinary      net gain              |   |   | 2.99       |   |   |   | —    |   |   |   | — |   |
| Net      income (loss)                   |   | $      | 0.75       |   |   | $      | (1.88      | )      |   | $ | (0.75 | ) |
| Diluted:                                 |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss      from continuing operations     |   | $      | (2.28      | )      |   | $      | (1.98      | )      |   | $ | (0.83 | ) |
| Income      from discontinued operations |   |   | 0.04       |   |   |   | 0.10       |   |   |   | 0.08 |   |
| Loss      before extraordinary net gain  |   |   | (2.24      | )      |   |   | (1.88      | )      |   |   | (0.75 | ) |
| Extraordinary      net gain              |   |   | 2.99       |   |   |   | —    |   |   |   | — |   |
| Net      income (loss)                   |   | $      | 0.75       |   |   | $      | (1.88      | )      |   | $ | (0.75 | ) |
| Weighted      average shares-basic       |   |   | 18,217,608 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |
| Weighted      average shares-diluted     |   |   | 18,313,520 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |

----

|                                                                                                                                                                     |   | Common Stock                                                  |       |   |     |   |    |           |   |   |           |   |   | AccumulatedOther   |    |   | StockReceivablesand             |   |     |          |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|--------|----------|--------|---------|----------------|--------|--------|----------------|--------|--------|--------------------|---------|--------|---------------------------------|--------|----------|---------------|--------|
| `                                                                                                                                                                        |   | Shares                                                             |       |   | ParValue |   |    | PreferredStock |   |   | CapitalSurplus |   |   | AccumulatedDeficit |    |   | ComprehensiveIncome (Loss) |   |     | TreasuryStock |   |   | Total |   |
|                                                                                                                                                                     |   | (Dollars in thousands, except share data) |       |
| Balance,      January 1, 2007                                                                                                                                            |   |                                                               | 18,346,442 |   |     | $      | 18,346  |           |   | $      | —        |   |   | $                  | 158,266 |   |                            | $      | (102,806 | )             |   | $ | (1,880 | ) |   | $ | (313 | ) |   | $ | 71,613 |   |
| Cumulative      effect of adoption of accounting for tax uncertainties                                                                                                   |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | (960     | )             |   |   | — |   |   |   | — |   |   |   | (960 | ) |
| Adjusted      balance at beginning of period                                                                                                                             |   |                                                               | 18,346,442 |   |     | $      | 18,346  |           |   | $      | —        |   |   | $                  | 158,266 |   |                            | $      | (103,766 | )             |   | $ | (1,880 | ) |   | $ | (313 | ) |   | $ | 70,653 |   |
| Comprehensive      loss:                                                                                                                                                 |   |                                                               |       |   |     |   |    |           |   |   |           |   |   |               |    |   |                            |   |     |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                                                                            |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | (13,771  | )             |   |   | — |   |   |   | — |   |   |   | (13,771 | ) |
| Other      comprehensive income:                                                                                                                                         |   |                                                               |       |   |     |   |    |           |   |   |           |   |   |               |    |   |                            |   |     |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      securities holding gains arising during the period, net                                                                                                  |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | —  |          |   |   | 3,262 |   |   |   | — |   |   |   | 3,262 |   |
| Total      comprehensive loss                                                                                                                                            |   |                                                               |       |   |     |   |    |           |   |   |           |   |   |               |    |   |                            |   |     |          |   |   |   |   |   |   |   |   |   |   | (10,509 | ) |
| Stock      option expense                                                                                                                                                |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | 132     |   |                            |   | —  |          |   |   | — |   |   |   | — |   |   |   | 132 |   |
| Reduction      of receivables from sale of stock                                                                                                                         |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | —  |          |   |   | — |   |   |   | 30 |   |   |   | 30 |   |
| Balance,      December 31, 2007                                                                                                                                          |   |                                                               | 18,346,442 |   |     | $      | 18,346  |           |   | $      | —        |   |   | $                  | 158,398 |   |                            | $      | (117,537 | )             |   | $ | 1,382 |   |   | $ | (283 | ) |   | $ | 60,306 |   |
| Comprehensive      loss:                                                                                                                                                 |   |                                                               |       |   |     |   |    |           |   |   |           |   |   |               |    |   |                            |   |     |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                                                                            |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | (34,399  | )             |   |   | — |   |   |   | — |   |   |   | (34,399 | ) |
| Other      comprehensive loss:                                                                                                                                           |   |                                                               |       |   |     |   |    |           |   |   |           |   |   |               |    |   |                            |   |     |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      securities holding losses arising during the period, net                                                                                                 |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | —  |          |   |   | (11,390 | ) |   |   | — |   |   |   | (11,390 | ) |
| Total      comprehensive loss                                                                                                                                            |   |                                                               |       |   |     |   |    |           |   |   |           |   |   |               |    |   |                            |   |     |          |   |   |   |   |   |   |   |   |   |   | (45,789 | ) |
| Stock      option expense                                                                                                                                                |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | 215     |   |                            |   | —  |          |   |   | — |   |   |   | — |   |   |   | 215 |   |
| Reduction      of receivables from sale of stock                                                                                                                         |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | —  |          |   |   | — |   |   |   | 70 |   |   |   | 70 |   |
| Balance,      December 31, 2008                                                                                                                                          |   |                                                               | 18,346,442 |   |     | $      | 18,346  |           |   | $      | —        |   |   | $                  | 158,613 |   |                            | $      | (151,936 | )             |   | $ | (10,008 | ) |   | $ | (213 | ) |   | $ | 14,802 |   |
| Cumulative      effect of adoption of ASC 320-10-65-1                                                                                                                    |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | 1,590    |          |   |   | (1,590 | ) |   |   | — |   |   |   | — |   |
| Adjusted      balance at January 1, 2009                                                                                                                                 |   |                                                               | 18,346,442 |   |     | $      | 18,346  |           |   | $      | —        |   |   | $                  | 158,613 |   |                            | $      | (150,346 | )             |   | $ | (11,598 | ) |   | $ | (213 | ) |   | $ | 14,802 |   |
| Comprehensive      income:                                                                                                                                               |   |                                                               |       |   |     |   |    |           |   |   |           |   |   |               |    |   |                            |   |     |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in unrealized gains/(losses) on securities available for sale for which a      portion of OTTI has been recognized in earnings, net of      reclassification |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | —  |          |   |   | 1,711 |   |   |   | — |   |   |   | 1,711 |   |
| Change      in unrealized gains/(losses) on securities available for sale, net of      reclassification                                                                  |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | —  |          |   |   | 4,255 |   |   |   | — |   |   |   | 4,255 |   |
| Realized      gains on available for sale securities                                                                                                                     |   |                                                               |       |   |     |   |    |           |   |   |           |   |   |               |    |   |                            |   |     |          |   |   | (551 | ) |   |   |   |   |   |   | (551 | ) |
| Net      income                                                                                                                                                          |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | 13,725   |          |   |   | — |   |   |   | — |   |   |   | 13,725 |   |
| Total      comprehensive income                                                                                                                                          |   |                                                               |       |   |     |   |    |           |   |   |           |   |   |               |    |   |                            |   |     |          |   |   |   |   |   |   |   |   |   |   | 19,140 |   |
| Issuance      of preferred stock                                                                                                                                         |   |                                                               | —    |   |     |   | — |           |   |   | 51,000         |   |   |               | — |   |                            |   | —  |          |   |   | — |   |   |   | — |   |   |   | 51,000 |   |
| Stock      option expense                                                                                                                                                |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | 69      |   |                            |   | —  |          |   |   | — |   |   |   | — |   |   |   | 69 |   |
| Purchase      205,836 shares from ESOP                                                                                                                                   |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | —  |          |   |   | — |   |   |   | (367 | ) |   |   | (367 | ) |
| Reduction      of receivables from sale of stock                                                                                                                         |   |                                                               | —    |   |     |   | — |           |   |   | —        |   |   |               | — |   |                            |   | —  |          |   |   | — |   |   |   | 51 |   |   |   | 51 |   |
| Balance,      December 31, 2009                                                                                                                                          |   |                                                               | 18,346,442 |   |     | $      | 18,346  |           |   | $      | 51,000         |   |   | $                  | 158,682 |   |                            | $      | (136,621 | )             |   | $ | (6,183 | ) |   | $ | (529 | ) |   | $ | 84,695 |   |

----

|                                                                                                                           |   | Years Ended December 31, |     |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------|
|                                                                                                                           |   | 2009                                    |     |   | 2008 |   |   | 2007 |   |
|                                                                                                                           |   | (Dollars in thousands)        |     |
| Cash      Flows from Operating Activities                                                                                      |   |                                    |     |   |   |   |   |   |   |
| Net      income (loss)                                                                                                         |   | $                                       | 13,725   |   |   | $ | (34,399 | ) |   | $ | (13,771 | ) |
|                                                                                                                           |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Adjustments      to reconcile net income (loss) to net cash used in operating      activities:                                 |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Deferred      loan fee amortization                                                                                            |   |                                    | (41      | ) |   |   | (398 | ) |   |   | (639 | ) |
| Depreciation      and other amortization                                                                                       |   |                                    | (350     | ) |   |   | 294 |   |   |   | 1,118 |   |
| Provision      for loan losses                                                                                                 |   |                                    | 27,373   |   |   |   | 22,063 |   |   |   | 6,413 |   |
| Originations      of loans held for sale                                                                                       |   |                                    | (15,322  | ) |   |   | (4,764 | ) |   |   | (2,600 | ) |
| Proceeds      from sale of loans held for sale                                                                                 |   |                                    | 15,125   |   |   |   | 4,031 |   |   |   | 2,716 |   |
| Net      gain on sale of assets and deposits                                                                                   |   |                                    | (149     | ) |   |   | (4,184 | ) |   |   | (1,314 | ) |
| Net      gain on sale of securities                                                                                            |   |                                    | (551     | ) |   |   | — |   |   |   | — |   |
| Write      down and losses on assets                                                                                           |   |                                    | 3,381    |   |   |   | 3,547 |   |   |   | 742 |   |
| Impairment      loss on investment securities                                                                                  |   |                                    | 401      |   |   |   | 1,792 |   |   |   | — |   |
| Decrease      in interest receivable and other assets                                                                          |   |                                    | 1,913    |   |   |   | 3,582 |   |   |   | 2,735 |   |
| Increase      in other interest payable and other liabilities                                                                  |   |                                    | 5,216    |   |   |   | 7,010 |   |   |   | 4,037 |   |
| Operating      cash flows of discontinued operations                                                                           |   |                                    | (711     | ) |   |   | (1,192 | ) |   |   | (291 | ) |
| Net      cash provided by (used in) operating activities before extraordinary net      gain                                    |   |                                    | 50,010   |   |   |   | (2,618 | ) |   |   | (854 | ) |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                                    | (54,497  | ) |   |   | — |   |   |   | — |   |
| Net      cash used in operating activities                                                                                     |   |                                    | (4,487   | ) |   |   | (2,618 | ) |   |   | (854 | ) |
| Cash      Flows from Investing Activities                                                                                      |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Maturities      of securities available for sale                                                                               |   |                                    | 28,248   |   |   |   | 70,591 |   |   |   | 107,225 |   |
| Purchase      of securities available for sale                                                                                 |   |                                    | (9,648   | ) |   |   | (56,125 | ) |   |   | (94,476 | ) |
| Proceeds      from sales of securities available for sale                                                                      |   |                                    | 13,308   |   |   |   | — |   |   |   | 33,204 |   |
| Proceeds      from sales of mortgage-backed securities available forsale                                                       |   |                                    | —  |   |   |   | — |   |   |   | 48,037 |   |
| Repayments      of asset and mortgage-backed securities available for sale                                                     |   |                                    | 72,243   |   |   |   | 46,420 |   |   |   | 52,567 |   |
| Purchase      of asset and mortgage-backed securities available for sale                                                       |   |                                    | —  |   |   |   | (36,354 | ) |   |   | (125,567 | ) |
| Net      decrease in Federal Home Loan Bank Stock                                                                              |   |                                    | —  |   |   |   | 185 |   |   |   | 45 |   |
| Net      decrease in other investments                                                                                         |   |                                    | 112      |   |   |   | 61 |   |   |   | 48 |   |
| Net      decrease (increase) in loans                                                                                          |   |                                    | 43,153   |   |   |   | (25,267 | ) |   |   | (79,761 | ) |
| Proceeds      from sale of foreclosed properties                                                                               |   |                                    | 477      |   |   |   | 777 |   |   |   | 10 |   |
| Net      cash received from the sale of branches                                                                               |   |                                    | —  |   |   |   | 41,039 |   |   |   | 2,278 |   |
| Premises      and equipment disposals                                                                                          |   |                                    | 17       |   |   |   | 82 |   |   |   | 1,338 |   |
| Premises      and equipment expenditures                                                                                       |   |                                    | (106     | ) |   |   | (343 | ) |   |   | (1,155 | ) |
| Investing      cash flows of discontinued operations                                                                           |   |                                    | —  |   |   |   | (222 | ) |   |   | (1,435 | ) |
| Net      cash provided by (used in) investing activities                                                                       |   |                                    | 147,804  |   |   |   | 40,844 |   |   |   | (57,642 | ) |
| Cash      Flows from Financing Activities                                                                                      |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Increase      (decrease) in deposits                                                                                           |   |                                    | (105,263 | ) |   |   | 35,678 |   |   |   | 5,574 |   |
| Decrease      in deposits of branches held for sale                                                                            |   |                                    | —  |   |   |   | — |   |   |   | (5,700 | ) |
| Deposits      sold                                                                                                             |   |                                    | —  |   |   |   | (83,704 | ) |   |   | (49,665 | ) |
| Repayments      of long-term borrowings                                                                                        |   |                                    | (9,000   | ) |   |   | — |   |   |   | (2,000 | ) |
| Proceeds      from long-term borrowings                                                                                        |   |                                    | —  |   |   |   | 15,000 |   |   |   | 12,000 |   |
| Net      increase (decrease) in short-term borrowings                                                                          |   |                                    | (50,234  | ) |   |   | (22,810 | ) |   |   | 57,963 |   |
| Purchase      of treasury shares                                                                                               |   |                                    | (367     | ) |   |   | — |   |   |   | — |   |
| Net      decrease in receivables from sale of stock                                                                            |   |                                    | 51       |   |   |   | — |   |   |   | 30 |   |
| Net      cash provided by (used in) financing activities                                                                       |   |                                    | (164,813 | ) |   |   | (55,836 | ) |   |   | 18,202 |   |
| Net      decrease in cash and cash equivalents                                                                                 |   |                                    | (21,496  | ) |   |   | (17,610 | ) |   |   | (40,294 | ) |
| Cash      and cash equivalents, beginning of year                                                                              |   |                                    | 57,231   |   |   |   | 74,841 |   |   |   | 115,135 |   |
| Cash      and cash equivalents, end of year                                                                                    |   | $                                       | 35,735   |   |   | $ | 57,231 |   |   | $ | 74,841 |   |
| Supplemental      Cash Flow Information                                                                                        |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Cash      paid (received) during the year for:                                                                                 |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                                                          |   | $                                       | 18,767   |   |   | $ | 26,347 |   |   | $ | 31,784 |   |
| Income      taxes-discontinued operations                                                                                      |   |                                    | —  |   |   |   | (831 | ) |   |   | — |   |
| Supplemental      Disclosures of Noncash Activities                                                                            |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Transfers      of loans to foreclosed properties                                                                               |   | $                                       | 934      |   |   | $ | 405 |   |   | $ | 1,273 |   |
| Transfers      of loans to loans held for sale                                                                                 |   |                                    | 10,118   |   |   |   | — |   |   |   | — |   |
| Transfer      of loans to assets of branches held for sale                                                                     |   |                                    | —  |   |   |   | 4,010 |   |   |   | — |   |
| Available      for sale equity stock received from sale of subsidiary                                                          |   |                                    | —  |   |   |   | 955 |   |   |   | — |   |
| Cumulative      effect of adoption of ASC 320-10-65-1                                                                          |   |                                    | 1,590    |   |   |   | — |   |   |   | — |   |
| Cumulative      effect of adoption of accounting for tax uncertainties                                                         |   |                                    | —  |   |   |   | — |   |   |   | 960 |   |
| Supplemental      Disclosures of Extraordinary Noncash Activities                                                              |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Extinguishment      of debentures, net                                                                                         |   | $                                       | 106,005  |   |   | $ | — |   |   | $ | — |   |
| Issuance      of preferred stock                                                                                               |   |                                    | 51,000   |   |   |   | — |   |   |   | — |   |

----

----

----

----

----

----

----

|                                                  |   | December 31, |    |
|-------------------------------------------------------|--------|-------------------|---------|
|                                                  |   | 2008              |    |   | 2007 |   |
| Dividend      yield                                   |   |              | — |   |   |   | — |   |
| Risk      free interest rate                          |   |              | 3.92    | % |   |   | 3.92 | % |
| Expected      volatility                              |   |              | 39      | % |   |   | 39 | % |
| Weighted      average expected life                   |   | 6.5      years    |    |   | 6.5      years |   |
| Weighted      average per share fair value of options |   | $                 | 0.27    |   |   | $ | 0.43 |   |

----

----

----

----

|                                                           |   | AmortizedCost                    |    |   | GrossUnrealizedGains |   |    | GrossUnrealizedLosses |   |   | FairValue |   |
|----------------------------------------------------------------|--------|----------------------------------|---------|--------|----------------------|--------|---------|-----------------------|--------|--------|-----------|--------|
|                                                           |   | (Dollars in thousands) |    |
| December      31, 2009                                         |   |                             |    |   |                 |   |    |                  |   |   |      |   |
| U.S.      government agencies                                  |   | $                                | 18,588  |   |                 | $      | 911     |                  |   | $      | —   |   |   | $ | 19,499 |   |
| States      and political subdivisions                         |   |                             | 30,126  |   |                 |   | 858     |                  |   |   | 238       |   |   |   | 30,746 |   |
| Trust      preferred collateral debt obligations               |   |                             | 8,535   |   |                 |   | — |                  |   |   | 4,873     |   |   |   | 3,662 |   |
| Other      debt obligation                                     |   |                             | 150     |   |                 |   | — |                  |   |   | —   |   |   |   | 150 |   |
| Residential      mortgage-backed securities (agencies)         |   |                             | 67,697  |   |                 |   | 2,689   |                  |   |   | —   |   |   |   | 70,386 |   |
| Residential      mortgage-backed securities (non-agencies (1)) |   |                             | 63,103  |   |                 |   | 92      |                  |   |   | 5,641     |   |   |   | 57,554 |   |
| Equity      security                                           |   |                             | 955     |   |                 |   | 19      |                  |   |   | —   |   |   |   | 974 |   |
| Total      securities available for sale                       |   | $                                | 189,154 |   |                 | $      | 4,569   |                  |   | $      | 10,752    |   |   | $ | 182,971 |   |
| December      31, 2008                                         |   |                             |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| U.S.      government agencies                                  |   | $                                | 44,835  |   |                 | $      | 2,244   |                  |   | $      | —   |   |   | $ | 47,079 |   |
| Obligations      of states and political subdivisions          |   |                             | 30,236  |   |                 |   | 622     |                  |   |   | 624       |   |   |   | 30,234 |   |
| Other      notes and bonds                                     |   |                             | 9,012   |   |                 |   | — |                  |   |   | 5,409     |   |   |   | 3,603 |   |
| Commercial      paper                                          |   |                             | 4,800   |   |                 |   | — |                  |   |   | —   |   |   |   | 4,800 |   |
| Mortgage-backed      securities (agencies)                     |   |                             | 107,194 |   |                 |   | 1,754   |                  |   |   | 26        |   |   |   | 108,922 |   |
| Mortgage-backed      securities (non-agencies)                 |   |                             | 93,428  |   |                 |   | 71      |                  |   |   | 8,504     |   |   |   | 84,995 |   |
| Equity      security                                           |   |                             | 955     |   |                 |   | — |                  |   |   | 136       |   |   |   | 819 |   |
| Total      securities available for sale                       |   | $                                | 290,460 |   |                 | $      | 4,691   |                  |   | $      | 14,699    |   |   | $ | 280,452 |   |

----

| (1) | Non-agency      mortgage backed securities comprise non-agency mortgage backed securities      and collateralized mortgage obligations secured by residential      mortgages. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                       |   | AmortizedCost                    |    |   | FairValue |   |
|------------------------------------------------------------|--------|----------------------------------|---------|--------|-----------|--------|
|                                                       |   | (Dollars in thousands) |    |
| Due      in one year or less                               |   | $                                | 6,138   |   |      | $      | 6,302 |   |
| Due      after one year through five years                 |   |                             | 18,530  |   |      |   | 19,586 |   |
| Due      after five years through ten years                |   |                             | 12,932  |   |      |   | 13,396 |   |
| Due      after ten years                                   |   |                             | 19,799  |   |      |   | 14,773 |   |
|                                                       |   |                             | 57,399  |   |      |   | 54,057 |   |
| Residential      mortgage-backed securities (agencies)     |   |                             | 67,697  |   |      |   | 70,386 |   |
| Residential      mortgage-backed securities (non-agencies) |   |                             | 63,103  |   |      |   | 57,554 |   |
| Other      equities                                        |   |                             | 955     |   |      |   | 974 |   |
| Total      securities available for sale                   |   | $                                | 189,154 |   |      | $      | 182,971 |   |

----

|                                                       |   | Less than 12 months in anunrealized loss position |    |   | 12 months or longer in anunrealized loss position |   |    | Total           |   |
|------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------------------------|--------|---------|-----------------|--------|
|                                                       |   | Fair Value                                                                      |    |   | UnrealizedLosses                                                                     |   |    | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
|                                                       |   | (Dollars in thousands)                                                     |    |
| December 31, 2009                                          |   |                                                                                 |    |   |                                                                                 |   |    |            |   |   |   |   |   |   |   |   |   |   |
| U.S.      government agencies                              |   | $                                                                                    | — |   |                                                                                 | $      | — |            |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| States      and political subdivisions                     |   |                                                                                 | 6,595   |   |                                                                                 |   | 174     |            |   |   | 899 |   |   |   | 64 |   |   |   | 7,494 |   |   |   | 238 |   |
| Trust      preferred collateralized debt obligations       |   |                                                                                 | — |   |                                                                                 |   | — |            |   |   | 3,662 |   |   |   | 4,873 |   |   |   | 3,662 |   |   |   | 4,873 |   |
| Other      debt obligation                                 |   |                                                                                 | — |   |                                                                                 |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Residential      mortgage-backed securities (agencies)     |   |                                                                                 | — |   |                                                                                 |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Residential      mortgage-backed securities (non-agencies) |   |                                                                                 | 5,902   |   |                                                                                 |   | 17      |            |   |   | 43,591 |   |   |   | 5,624 |   |   |   | 49,493 |   |   |   | 5,641 |   |
| Equity      security                                       |   |                                                                                 | — |   |                                                                                 |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total      securities with unrealized losses               |   | $                                                                                    | 12,497  |   |                                                                                 | $      | 191     |            |   | $ | 48,152 |   |   | $ | 10,561 |   |   | $ | 60,649 |   |   | $ | 10,752 |   |
| Securities      without unrealized losses                  |   |                                                                                 |    |   |                                                                                 |   |    |            |   |   |   |   |   |   |   |   |   |   | 122,322 |   |   |   |   |   |
| Total      securities                                      |   |                                                                                 |    |   |                                                                                 |   |    |            |   |   |   |   |   |   |   |   |   | $ | 182,971 |   |   |   |   |   |
|                                                       |   |                                                                                 |    |   |                                                                                 |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008                                          |   |                                                                                 |    |   |                                                                                 |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      government agencies                              |   | $                                                                                    | — |   |                                                                                 | $      | — |            |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Obligations      of states and political subdivisions      |   |                                                                                 | 8,780   |   |                                                                                 |   | 428     |            |   |   | 2,260 |   |   |   | 196 |   |   |   | 11,040 |   |   |   | 624 |   |
| Other      notes and bonds                                 |   |                                                                                 | 1,220   |   |                                                                                 |   | 1,516   |            |   |   | 2,034 |   |   |   | 3,893 |   |   |   | 3,254 |   |   |   | 5,409 |   |
| Mortgage-backed      securities                            |   |                                                                                 | 83,820  |   |                                                                                 |   | 8,530   |            |   |   | 14 |   |   |   | — |   |   |   | 83,834 |   |   |   | 8,530 |   |
| Equity      security                                       |   |                                                                                 | 819     |   |                                                                                 |   | 136     |            |   |   | — |   |   |   | — |   |   |   | 819 |   |   |   | 136 |   |
| Total      securities with unrealized losses               |   | $                                                                                    | 94,639  |   |                                                                                 | $      | 10,610  |            |   | $ | 4,308 |   |   | $ | 4,089 |   |   | $ | 98,947 |   |   | $ | 14,699 |   |
| Securities      without unrealized losses                  |   |                                                                                 |    |   |                                                                                 |   |    |            |   |   |   |   |   |   |   |   |   |   | 181,505 |   |   |   |   |   |
| Total      securities                                      |   |                                                                                 |    |   |                                                                                 |   |    |            |   |   |   |   |   |   |   |   |   | $ | 280,452 |   |   |   |   |   |

----

----

| Structured Debt Obligations Collateralized Primarily by Pooled Trust Preferred Securities |
|----------------------------------------------------------------------------------------------------------------------------------------|
| Deal                                                                                                                                   |   | Class |   |   | AmortizedCost |   |   | FairValue |   |   | Total credit-related OTTIRecognized inEarnings (2) |   |   | Total OTTIRecognizedin AOCI (2) |   | Moody’s / S&P /Fitch Ratings |   | % of CurrentDeferrals andDefaults to TotalCurrent CollateralBalances/ Break in Yield(3)/Coverage (4) |
| (dollars in thousands)                                                                                                       |
| PreTSL      23                                                                                                                         |   | C-FP(1) |   |   | $ | 747 |   |   | $ | 181 |   |   | $ | 67 |   |   | $ | (566 | ) | C/NR/CCC |   | 19/16/(13) |
| PreTSL      26                                                                                                                         |   | B-1(1) |   |   |   | 3,949 |   |   |   | 945 |   |   |   | — |   |   |   | (3,004 | ) | Ca/NR/CCC |   | 25/21/(17) |
| PreTSL      27                                                                                                                         |   | A-1 |   |   |   | 1,886 |   |   |   | 1,221 |   |   |   | — |   |   |   | — |   | A3/BBB(n)/AA |   | 21/40/26 |
| PreTSL      28                                                                                                                         |   | A-1 |   |   |   | 1,953 |   |   |   | 1,315 |   |   |   | — |   |   |   | — |   | A3/BBB(n)/A |   | 16/41/35 |

----

|   | (1) | CIB      Marine’s security holdings in PreTSL 27 and 28 are the most senior of the      classes in the deal; CIB Marine’s security holdings in PreTSL 23 and 26      are not the most senior of the classes in the deal nor are they the most      deeply subordinated. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Total      OTTI Recognized in Earnings and AOCI are since the acquisition date of the      securities by CIB Marine. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

|   | (3) | The      percent of additional immediate defaults of performing collateral at a 85%      loss severity rate that would cause a Break in Yield, meaning that the      security would not receive all its contractual cash flows through maturity      even though a class could enter a period where payments received are PIK      but later paid in cash in addition to any accrued interest on the PIKs.      Based on a collateral level analysis, PreTSL 23 and 26 projected deferrals      and defaults indicate there would be a break in yield resulting in credit      component OTTI. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The      percentage points by which the class is over or under collateralized with      respect to its collateral ratio thresholds at which cash payments are to      be received from lower classes or directed to higher classes (i.e., if the      Coverage Actual Over (Under) is negative). A current positive (negative)      coverage ratio by itself does not necessarily mean that there will be a      full receipt (shortfall) of contractual cash flows through maturity as      actual results realized with respect to future defaults, default timing,      loss severities, recovery timing, redirections of payments in other      classes and other factors could act to cause (correct) a deficiency at a      future date. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Total Non-Agency Mortgage Backed Securities Credit Ratings |   |
|------------------------------------------------------------------------------------------|--------|
| Credit Rating                                                                       |   | Par |   |   | AmortizedCost |   |   | UnrealizedGain (Loss) |   |
|                                                                                     |   | (Dollars in thousands) |   |
| AAA                                                                                      |   | $ | 22,100 |   |   | $ | 21,669 |   |   | $ | (321 | ) |
| AA                                                                                       |   |   | 4,785 |   |   |   | 4,764 |   |   |   | (207 | ) |
| A                                                                                        |   |   | 5,103 |   |   |   | 5,043 |   |   |   | (94 | ) |
| BBB                                                                                      |   |   | 8,229 |   |   |   | 8,219 |   |   |   | (803 | ) |
| BB      or below (1)                                                                     |   |   | 23,989 |   |   |   | 23,408 |   |   |   | (4,124 | ) |
| Total                                                                                    |   | $ | 64,206 |   |   | $ | 63,103 |   |   | $ | (5,549 | ) |

|   | (1) | BB      and lower credit ratings are considered to be below investment grade. All      the securities were originally ratedAAA. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

----

----

| Total Non-Agency Mortgage Backed Securities with OTTIAs of December 31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
| CreditCategory                                                                                                                 |   | AmortizedCost |   |   | FairValue |   |   | Total credit-related OTTIRecognized inEarnings (2) |   |   | Total OTTIRecognizedin AOCI |   |   | Range of Non-PerformingLoans to TotalLoans (3) |   |   | Range ofMeanOriginalLoan toValues (3) |   | Vintages |   | Range ofCurrent Levelsof CreditSupport fromSubordination |   |
| (dollars in thousands)                                                                                               |   |
| Investment      Grade                                                                                                          |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | NA |   |   | NA |   | NA |   | NA |   |
| Below      Investment Grade (1)                                                                                                |   |   | 3,069 |   |   |   | 1,746 |   |   |   | (534 | ) |   |   | (1,323 | ) |   |   | 22 –      33 | % |   |   | 73 -      73 | % | 2006 |   |   | 2.3      – 4.0 | % |
| Total                                                                                                                          |   | $ | 3,069 |   |   | $ | 1,746 |   |   | $ | (534 | ) |   | $ | (1,323 | ) |   |   | 22 –      33 | % |   |   | 73 -      73 | % | 2006 |   |   | 2.3      – 4.0 | % |

----

| (1) | BB      and lower credit ratings are considered to be below investment grade. All      the securities were originally AAA. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (2) | During      2008, $1.6 million of non credit related OTTI was recognized in earnings      as well. This was added back to retained earnings on adoption of ASC      320-10-65 on January 1, 2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Ranges      represent the high and low measures for each security’s respective loan      collateral pool for securities with OTTI recognized. Non-performing loans      here means past due 60 or more days, in foreclosure or held as real estate      owned. The full amount of non-performing loans are not expected to      translate into a dollar for dollar loss to the collateral pool due to      borrower efforts to bring the loans current or sell the mortgage      residential properties or collection activities of the servicing agents      that includes liquidation of collateral and the pursuit of deficiencies      where available from the borrowers. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                   |   | December 31,                |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                   |   | 2009                             |   |   | 2008 |   |
|                                                                                                                                                                                                                                                                                                                   |   | (Dollars in thousands) |   |
| Beginning      of year balance of the amount related to credit losses on debt securities      held by the entity at the beginning of the period for which a portion of      OTTI was recognized in other comprehensive income                                                                                          |   | $                                | 202    |   |   | $ | 0 |   |
| Additions      for the amount related to credit loss for which an OTTI was not previously      recognized                                                                                                                                                                                                              |   |                             | 67     |   |   |   | 202 |   |
| Additional      increase to the amount related to the credit loss for which OTTI was      previously recognized when the entity does not intend to sell the security      and it is not more likely than not that the entity will be required to      sell the security before recovery of its amortized cost    basis |   |                             | 334    |   |   |   | 0 |   |
| Balance      at December 31 of credit losses related to OTTI for which a portion was      recognized in other comprehensive income                                                                                                                                                                                     |   | $                                | 603    |   |   | $ | 202 |   |

|                                           |   | December 31,           |    |
|------------------------------------------------|--------|-----------------------------|---------|
|                                           |   | 2009                        |    |   | 2008 |   |
|                                           |   | Amount                      |    |   | % ofTotal |   |   | Amount |   |   | % ofTotal |   |
|                                           |   | (Dollars      in thousands) |    |
| Commercial                                     |   | $                           | 71,921  |   |   |   | 15.3 | % |   | $ | 75,289 |   |   |   | 13.6 | % |
| Commercial      real estate                    |   |                        | 243,811 |   |   |   | 51.9 |   |   |   | 258,881 |   |   |   | 46.8 |   |
| Commercial      real estate construction       |   |                        | 49,795  |   |   |   | 10.7 |   |   |   | 86,909 |   |   |   | 15.7 |   |
| Residential      real estate                   |   |                        | 19,322  |   |   |   | 4.1 |   |   |   | 26,110 |   |   |   | 4.7 |   |
| Home      equity loans                         |   |                        | 81,832  |   |   |   | 17.4 |   |   |   | 103,253 |   |   |   | 18.7 |   |
| Consumer      loans                            |   |                        | 2,701   |   |   |   | 0.6 |   |   |   | 2,990 |   |   |   | 0.5 |   |
| Receivables      from sale of CIB Marine stock |   |                        | — |   |   |   | — |   |   |   | (51 | ) |   |   | (0.0 | ) |
| Gross      loans                               |   |                        | 469,382 |   |   |   | 100.0 | % |   |   | 553,381 |   |   |   | 100.0 | % |
| Deferred      loan costs                       |   |                        | 1,286   |   |   |   |   |   |   |   | 1,826 |   |   |   |   |   |
| Loans                                          |   |                        | 470,668 |   |   |   |   |   |   |   | 555,207 |   |   |   |   |   |
| Allowance      for loan losses                 |   |                        | (16,240 | ) |   |   |   |   |   |   | (19,242 | ) |   |   |   |   |
| Loans,      net                                |   | $                           | 454,428 |   |   |   |   |   |   | $ | 535,965 |   |   |   |   |   |

----

|                                                                    |   | December 31,                |    |
|-------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                    |   | 2009                             |    |   | 2008 |   |
|                                                                    |   | (Dollars in thousands) |    |
| Nonaccrual-loans                                                        |   | $                                | 50,812  |   |   | $ | 15,072 |   |
| Nonaccrual-loans      held for sale                                     |   |                             | 7,056   |   |   |   | 2,025 |   |
| Restructured      loans                                                 |   |                             | 831     |   |   |   | — |   |
| 90      days or more past due and still accruing-loans                  |   |                             | — |   |   |   | 1,040 |   |
| 90      days or more past due and still accruing-loans held for    sale |   |                             | — |   |   |   | 1,680 |   |

|                                              |   | December 31,                |   |
|---------------------------------------------------|--------|----------------------------------|--------|
|                                              |   | 2009                             |   |   | 2008 |   |
|                                              |   | (Dollars in thousands) |   |
| Impaired      loans without a specific allowance  |   | $                                | 36,205 |   |   | $ | 4,363 |   |
| Impaired      loans with a specific allowance     |   |                             | 15,168 |   |   |   | 9,789 |   |
| Total      impaired loans                         |   | $                                | 51,373 |   |   | $ | 14,152 |   |
| Specific      allowance related to impaired loans |   | $                                | 3,785  |   |   | $ | 3,847 |   |
| Average      balance of impaired loans            |   | $                                | 39,925 |   |   | $ | 17,765 |   |
| Cash      basis interest on impaired loans        |   | $                                | 2,469  |   |   | $ | 669 |   |

----

| INDUSTRY                                 |   | OutstandingBalance              |   |   | % ofLoans |   |   | % ofStockholders’Equity |   |
|------------------------------------------|--------|---------------------------------|--------|--------|----------------|--------|--------|------------------------------------|--------|
|                                     |   | (Dollars in millions) |   |   |           |   |   |                               |   |
| Real      Estate, Rental & Leasing   |   | $                               | 181.3  |   |           |   | 39     | %                                  |   |   | 214 | % |
| Construction                             |   |                            | 63.9   |   |           |   | 14     |                               |   |   | 75 |   |
| Health      Care & Social Assistance |   |                            | 41.1   |   |           |   | 9      |                               |   |   | 47 |   |
| Accommodation      & Food Services   |   |                            | 22.9   |   |           |   | 5      |                               |   |   | 26 |   |

|                                                                                                           |   | For the Years Ended December 31, |    |
|----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|
|                                                                                                           |   | 2009                                                      |    |   | 2008 |   |   | 2007 |   |
|                                                                                                           |   | (Dollars in thousands)                          |    |
| Balance      at beginning of year                                                                              |   | $                                                         | 19,242  |   |   | $ | 20,706 |   |   | $ | 20,906 |   |
| Charge-offs                                                                                                    |   |                                                      | (30,861 | ) |   |   | (25,558 | ) |   |   | (8,192 | ) |
| Recoveries                                                                                                     |   |                                                      | 486     |   |   |   | 1,888 |   |   |   | 1,579 |   |
| Net      loan charge-offs                                                                                      |   |                                                      | (30,375 | ) |   |   | (23,670 | ) |   |   | (6,613 | ) |
| Allowance      on loans sold                                                                                   |   |                                                      | — |   |   |   | (581 | ) |   |   | — |   |
| Transfer      from accrual for unfunded standby letters of credit to funded standby      letters of credit (1) |   |                                                      | — |   |   |   | 510 |   |   |   | — |   |
| Provision      for loan losses                                                                                 |   |                                                      | 27,373  |   |   |   | 22,277 |   |   |   | 6,413 |   |
| Balance      at end of year                                                                                    |   | $                                                         | 16,240  |   |   | $ | 19,242 |   |   | $ | 20,706 |   |
| Allowance      for loan losses as a percentage of loans                                                        |   |                                                      | 3.45    | % |   |   | 3.47 | % |   |   | 3.48 | % |

----

|   | (1) | The      provision for loan losses as presented in the consolidated statement of      operations is net of $0.2 million recovery of accrued unfunded commitments      and standby letters of credit for the year ended December 31,      2008. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | December 31,                |    |
|-------------------------------------|--------|----------------------------------|---------|
|                                |   | 2009                             |    |   | 2008 |   |
|                                |   | (Dollars in thousands) |    |
| Balance      at beginning of year   |   | $                                | 3,331   |   |   | $ | 6,695 |   |
| Loans      included in branch sales |   |                             | — |   |   |   | (3,438 | ) |
| New      loans                      |   |                             | 596     |   |   |   | 1,033 |   |
| Repayments                          |   |                             | (1,958  | ) |   |   | (959 | ) |
| Balance      at end of year         |   | $                                | 1,969   |   |   | $ | 3,331 |   |

----

|                                |   | December 31,                |   |
|-------------------------------------|--------|----------------------------------|--------|
|                                |   | 2009                             |   |   | 2008 |   |
|                                |   | (Dollars in thousands) |   |
| Land                                |   | $                                | 1,146  |   |   | $ | 1,146 |   |
| Buildings                           |   |                             | 3,713  |   |   |   | 3,689 |   |
| Leasehold      improvements         |   |                             | 1,173  |   |   |   | 1,430 |   |
| Furniture      and equipment        |   |                             | 7,911  |   |   |   | 8,233 |   |
|                                |   |                             | 13,943 |   |   |   | 14,498 |   |
| Less:      accumulated depreciation |   |                             | (8,896 | ) |   |   | (8,704 | ) |
|                                |   | $                                | 5,047  |   |   | $ | 5,794 |   |

|       |   | Amount                           |   |
|------------|--------|----------------------------------|--------|
|       |   | (Dollars in thousands) |   |
| 2010       |   | $                                | 874    |   |
| 2011       |   |                             | 600    |   |
| 2012       |   |                             | 532    |   |
| 2013       |   |                             | 217    |   |
| 2014       |   |                             | 105    |   |
| Thereafter |   |                             | 579    |   |
|       |   | $                                | 2,907  |   |

----

|       |   | December 31, 2009      |    |
|------------|--------|----------------------------------|---------|
|       |   | (Dollars in thousands) |    |
| 2010       |   | $                                | 288,197 |   |
| 2011       |   |                             | 55,602  |   |
| 2012       |   |                             | 25,711  |   |
| 2013       |   |                             | 8,529   |   |
| 2014       |   |                             | 8,381   |   |
| Thereafter |   |                             | 366     |   |
|       |   | $                                | 386,786 |   |

----

|                                                                              |   | At Year end            |    |   | For the Year |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|------------------------|--------|
|                                                                              |   | Balance                          |    |   | Weighted-AverageRate   |   |   | DailyAverageBalances |   |   | Weighted-AverageRate |   |   | HighestBalances atMonth End |   |
|                                                                              |   | (Dollars in thousands) |    |
| December      31, 2009                                                            |   |                             |    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Federal      funds purchased and securities sold under repurchase      agreements |   | $                                | 9,684   |   |                   |   | 0.42 | % |   | $ | 11,180 |   |   |   | 0.76 | % |   | $ | 15,939 |   |
| Federal      Home Loan Bank                                                       |   |                             | — |   |                   |   | — |   |   |   | 8,370 |   |   |   | 0.46 |   |   |   | 40,000 |   |
| Treasury,      tax and loan note                                                  |   |                             | 2,888   |   |                   |   | 0.00 |   |   |   | 342 |   |   |   | 0.00 |   |   |   | 2,888 |   |
| Total      short-term borrowings                                                  |   | $                                | 12,572  |   |                   |   | 0.32 | % |   | $ | 19,892 |   |   |   | 0.62 | % |   |   |   |   |
| December      31, 2008                                                            |   |                             |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      funds purchased and securities sold under repurchase      agreements |   | $                                | 19,908  |   |                   |   | 0.68 | % |   | $ | 29,126 |   |   |   | 1.00 | % |   | $ | 30,764 |   |
| Federal      Home Loan Bank                                                       |   |                             | 40,000  |   |                   |   | 0.55 |   |   |   | 78,312 |   |   |   | 2.29 |   |   |   | 100,150 |   |
| Treasury,      tax and loan note                                                  |   |                             | 2,898   |   |                   |   | 0.00 |   |   |   | 616 |   |   |   | 1.68 |   |   |   | 2,898 |   |
| Total      short-term borrowings                                                  |   | $                                | 62,806  |   |                   |   | 0.57 | % |   | $ | 108,054 |   |   |   | 1.94 | % |   |   |   |   |

|   | December 31,                |   | ScheduledMaturity |    |
|--------|----------------------------------|--------|-------------------|---------|
|   | 2009                             |   |              | 2008    |   |   |   |
|   | Balance                          |   | Rate              |    |   | Balance |   |   | Rate |   |   |   |
|   | (Dollars in thousands) |   |              |    |
| $      | —                          |   |              | — | % |   | $ | 6,000 |   |   |   | 4.52 | % | 04/24/09 |   |
|   | —                          |   |              | — |   |   |   | 3,000 |   |   |   | 4.49 |   | 10/26/09 |   |
|   | 3,000                            |   |              | 4.54    |   |   |   | 3,000 |   |   |   | 4.54 |   | 10/25/10 |   |
|   | 5,000                            |   |              | 3.32    |   |   |   | 5,000 |   |   |   | 3.32 |   | 02/16/10 |   |
|   | 5,000                            |   |              | 3.95    |   |   |   | 5,000 |   |   |   | 3.95 |   | 08/15/11 |   |
|   | 5,000                            |   |              | 4.21    |   |   |   | 5,000 |   |   |   | 4.21 |   | 08/14/12 |   |
| $      | 18,000                           |   |              | 3.95    | % |   | $ | 27,000 |   |   |   | 4.02 | % |   |   |

----

|                                            |   | December 31,                |   |
|-------------------------------------------------|--------|----------------------------------|--------|
|                                            |   | 2009                             |   |   | 2008 |   |
|                                            |   | (Dollars in thousands) |   |
| Accounts      payable                           |   | $                                | 199    |   |   | $ | 179 |   |
| Accrued      real estate taxes                  |   |                             | 155    |   |   |   | 147 |   |
| Accrued      compensation and employee benefits |   |                             | 562    |   |   |   | 681 |   |
| Accrued      professional fees                  |   |                             | 497    |   |   |   | 490 |   |
| Accrued      other expenses                     |   |                             | 946    |   |   |   | 448 |   |
| Other      liabilities                          |   |                             | 406    |   |   |   | 278 |   |
|                                            |   | $                                | 2,765  |   |   | $ | 2,223 |   |

|                          |   | Series      A                                                                                                        |   | Series      B                                                                                                                                                                                           |
|-------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Securities      issued        |   | Stated      value of $47.3 million 55,624 shares issued, par value-$1.00 and      liquidation value-$1,000 per share |   | Stated      value of $3.7 million 4,376 shares issued, par value-$1.00 and liquidation      value-$1,000 per share                                                                                      |
|                          |   |                                                                                                                 |   |                                                                                                                                                                                                    |
| Convertibility      to common |   | None                                                                                                                 |   | Each      share convertible into 4,000 shares of common stock only upon consummation      of a merger transaction where CIB Marine is not the surviving entity and      where holders have votingrights |

----

| Dividends           |   | 7%      fixed rate noncumulative, payable quarterly and subject to regulatory      approval                                    |   | 7%      fixed rate noncumulative payable quarterly and subject to regulatory      approval                                    |
|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                           |   |                                                                                                                          |
| Redemption/maturity |   | No      stated redemption date and holders cannot compelredemption                                                             |   | No      stated redemption date and holders cannot compel  redemption                                                          |
|                |   |                                                                                                                           |   |                                                                                                                          |
| Voting      rights  |   | No      voting rights unless transaction (merger, share exchange or business      combination) would be prejudicial to holders |   | No      voting rights unless transaction (merger, share exchange or business      combination) would be prejudicial toholders |

----

|                                        |   | Actual                           |   |   | For CapitalAdequacy Purposes |   |   | To Be WellCapitalized UnderPromptCorrectiveProvisions |   |
|---------------------------------------------|--------|----------------------------------|--------|--------|----------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                        |   | Amount                           |   |   | Ratio                                  |   |   | Amount                                                               |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                        |   | (Dollars in thousands) |   |
| December      31, 2009                      |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |
| Total      capital to risk weighted assets  |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |
| CIB      Marine Bancshares, Inc.            |   | $                                | 98,461 |   |                                   |   | 16.51  | %                                                                    |   | $ | 47,715 |   |   |   | 8.00 | % |   |   |   |   |   |   |
| CIBM      Bank                              |   |                             | 79,120 |   |                                   |   | 13.59  |                                                                 |   |   | 46,566 |   |   |   | 8.00 |   |   | $ | 58,208 |   |   |   | 10.00 | % |
|                                        |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      1 capital to risk weighted assets |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIB      Marine Bancshares, Inc.            |   | $                                | 90,897 |   |                                   |   | 15.24  | %                                                                    |   | $ | 23,858 |   |   |   | 4.00 | % |   |   |   |   |   |   |   |   |
| CIBM      Bank                              |   |                             | 71,735 |   |                                   |   | 12.32  |                                                                 |   |   | 23,283 |   |   |   | 4.00 |   |   | $ | 34,925 |   |   |   | 6.00 | % |
|                                        |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      1 leverage to average assets      |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIB      Marine Bancshares, Inc.            |   | $                                | 90,897 |   |                                   |   | 12.08  | %                                                                    |   | $ | 30,102 |   |   |   | 4.00 | % |   |   |   |   |   |   |   |   |
| CIBM      Bank (1)                          |   |                             | 71,735 |   |                                   |   | 9.79   |                                                                 |   |   | 29,317 |   |   |   | 4.00 |   |   | $ | 36,646 |   |   |   | 5.00 | % |
|                                        |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2008                      |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      capital to risk weighted assets  |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIB      Marine Bancshares, Inc.            |   | $                                | 65,884 |   |                                   |   | 10.04  | %                                                                    |   | $ | 52,504 |   |   |   | 8.00 | % |   |   |   |   |   |   |   |   |
| Central      Illinois Bank                  |   |                             | 58,451 |   |                                   |   | 17.91  |                                                                 |   |   | 26,104 |   |   |   | 8.00 |   |   | $ | 32,630 |   |   |   | 10.00 | % |
| Marine      Bank                            |   |                             | 40,505 |   |                                   |   | 13.31  |                                                                 |   |   | 24,349 |   |   |   | 8.00 |   |   |   | 30,436 |   |   |   | 10.00 |   |
|                                        |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      1 capital to risk weighted assets |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIB      Marine Bancshares, Inc.            |   | $                                | 32,942 |   |                                   |   | 5.02   | %                                                                    |   | $ | 26,252 |   |   |   | 4.00 | % |   |   |   |   |   |   |   |   |
| Central      Illinois Bank                  |   |                             | 54,340 |   |                                   |   | 16.65  |                                                                 |   |   | 13,052 |   |   |   | 4.00 |   |   | $ | 19,578 |   |   |   | 6.00 | % |
| Marine      Bank                            |   |                             | 36,624 |   |                                   |   | 12.03  |                                                                 |   |   | 12,174 |   |   |   | 4.00 |   |   |   | 18,262 |   |   |   | 6.00 |   |
|                                        |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      1 leverage to average assets      |   |                             |   |   |                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIB      Marine Bancshares, Inc.            |   | $                                | 32,942 |   |                                   |   | 3.58   | %                                                                    |   | $ | 36,821 |   |   |   | 4.00 | % |   |   |   |   |   |   |   |   |
| Central      Illinois Bank                  |   |                             | 54,340 |   |                                   |   | 11.10  |                                                                 |   |   | 19,577 |   |   |   | 4.00 |   |   | $ | 24,471 |   |   |   | 5.00 | % |
| Marine      Bank                            |   |                             | 36,624 |   |                                   |   | 9.00   |                                                                 |   |   | 16,270 |   |   |   | 4.00 |   |   |   | 20,337 |   |   |   | 5.00 |   |

----

|  | (1) | Pursuant      to the C&D, effective April 2009, CIBM Bank is required to maintain a      Tier 1 leverage capital ratio of at least 10% of total assets. At December      31, 2009, CIBM Bank’s Tier 1 leverage capital ratio to total assets at the      end of the period was10.31%. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                            |   | Years Ended December 31, |    |
|---------------------------------|--------|-----------------------------------------|---------|
|                            |   | 2009                                    |    |   | 2008 |   |   | 2007 |   |
|                            |   | (Dollars      in thousands)             |    |
| Correspondent      bank charges |   | $                                       | 277     |   |   | $ | 232 |   |   | $ | 190 |   |
| Advertising/marketing           |   |                                    | 317     |   |   |   | 641 |   |   |   | 781 |   |
| Communications                  |   |                                    | 764     |   |   |   | 857 |   |   |   | 964 |   |
| Supplies      and printing      |   |                                    | 179     |   |   |   | 220 |   |   |   | 284 |   |
| Shipping      and handling      |   |                                    | 324     |   |   |   | 404 |   |   |   | 454 |   |
| Collection      expense         |   |                                    | 544     |   |   |   | 25 |   |   |   | 17 |   |
| Recording      and filing fees  |   |                                    | 207     |   |   |   | 197 |   |   |   | 192 |   |
| Insurance                       |   |                                    | 617     |   |   |   | 452 |   |   |   | 479 |   |
| Loan      servicing fees        |   |                                    | 280     |   |   |   | 350 |   |   |   | 361 |   |
| Foreclosed      property        |   |                                    | 121     |   |   |   | 317 |   |   |   | 17 |   |
| Litigation      reserve         |   |                                    | — |   |   |   | 3,400 |   |   |   | — |   |
| Other      expense              |   |                                    | 826     |   |   |   | 1,481 |   |   |   | 1,617 |   |
| Total      other expense        |   | $                                       | 4,456   |   |   | $ | 8,576 |   |   | $ | 5,356 |   |

|                                                                                                                           |   | For the Years Ended December      31,                        |       |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|------------|
|                                                                                                                           |   | 2009                                                         |       |   | 2008 |   |   | 2007 |   |
|                                                                                                                           |   | (Dollars      in thousands, except share and per share data) |       |
| Loss      from continuing operations                                                                                           |   | $                                                            | (41,483    | ) |   | $ | (36,233 | ) |   | $ | (15,211 | ) |
| Income      from discontinued operations                                                                                       |   |                                                         | 711        |   |   |   | 1,834 |   |   |   | 1,440 |   |
| Loss      before extraordinary net gain                                                                                        |   |                                                         | (40,772    | ) |   |   | (34,399 | ) |   |   | (13,771 | ) |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                                                         | 54,497     |   |   |   | — |   |   |   | — |   |
| Net      income (loss)                                                                                                         |   |                                                         | 13,725     |   |   |   | (34,399 | ) |   |   | (13,771 | ) |
| Preferred      stock dividends                                                                                                 |   |                                                         | —    |   |   | NA |   |   | NA |   |
| Net      income (loss) (attributable) available to common    stockholders                                                      |   | $                                                            | 13,725     |   |   | $ | (34,399 | ) |   | $ | (13,771 | ) |
| Weighted      average shares outstanding:                                                                                      |   |                                                         |       |   |   |   |   |   |   |   |   |   |
| Weighted      average common shares outstanding                                                                                |   |                                                         | 18,217,608 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |
| Effect      of dilutive stock options outstanding                                                                              |   |                                                         | —    |   |   |   | — |   |   |   | — |   |
| Basic                                                                                                                          |   |                                                         | 18,217,608 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |
| Assumed      conversion of Series B preferred to common                                                                        |   |                                                         | 95,912     |   |   | NA |   |   | NA |   |
| Diluted                                                                                                                        |   |                                                         | 18,313,520 |   |   |   | 18,333,779 |   |   |   | 18,333,779 |   |
|                                                                                                                           |   |                                                         |       |   |   |   |   |   |   |   |   |   |
| Earnings      (loss) per share :                                                                                               |   |                                                         |       |   |   |   |   |   |   |   |   |   |
| Basic:                                                                                                                         |   |                                                         |       |   |   |   |   |   |   |   |   |   |
| Loss      from continuing operations                                                                                           |   | $                                                            | (2.28      | ) |   | $ | (1.98 | ) |   | $ | (0.83 | ) |
| Income      from discontinued operations                                                                                       |   |                                                         | 0.04       |   |   |   | 0.10 |   |   |   | 0.08 |   |
| Loss      before extraordinary net gain                                                                                        |   |                                                         | (2.24      | ) |   |   | (1.88 | ) |   |   | (0.75 | ) |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                                                         | 2.99       |   |   |   | — |   |   |   | — |   |
| Net      income (loss)                                                                                                         |   | $                                                            | 0.75       |   |   | $ | (1.88 | ) |   | $ | (0.75 | ) |
| Diluted:                                                                                                                       |   |                                                         |       |   |   |   |   |   |   |   |   |   |
| Loss      from continuing operations                                                                                           |   | $                                                            | (2.28      | ) |   | $ | (1.98 | ) |   | $ | (0.83 | ) |
| Income      from discontinued operations                                                                                       |   |                                                         | 0.04       |   |   |   | 0.10 |   |   |   | 0.08 |   |
| Loss      before extraordinary net gain                                                                                        |   |                                                         | (2.24      | ) |   |   | (1.88 | ) |   |   | (0.75 | ) |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                                                         | 2.99       |   |   |   | — |   |   |   | — |   |
| Net      income (loss)                                                                                                         |   | $                                                            | 0.75       |   |   | $ | (1.88 | ) |   | $ | (0.75 | ) |

----

|                              |   | 2009                        |   |   | 2008   |   |
|-----------------------------------|--------|-----------------------------|--------|--------|--------|--------|
|                              |   | (Dollars      in thousands) |   |
| Commitments      to extend credit |   | $                           | 37,948 |   |   | $      | 110,951 |   |
| Standby      letters of credit    |   |                        | 2,142  |   |   |   | 3,913 |   |
| Mortgage      related derivatives |   |                        | 2,055  |   |   |   | 3,463 |   |

----

----

|                                                              |   | Number ofShares |      |   | Range ofOption Pricesper Share |   |       | WeightedAverageExercise Price |   |   | Weighted AverageGrant Date FairValue Per Share |   |
|-------------------------------------------------------------------|--------|----------------------|-----------|--------|-----------------------------------------------|--------|------------|------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|
| Shares      under option at January 1, 2007                       |   |                 | 1,172,321 |   |                                          | $      | 4.10-22.89 |                               |   | $      | 8.47                                                                    |   |   |   |   |
| Granted                                                           |   |                 | 325,500   |   |                                          | $      | 3.70-4.10  |                               |   | $      | 3.79                                                                    |   |   | $ | 0.43 |   |
| Lapsed      or surrendered                                        |   |                 | (199,794  | )      |                                          |   | 4.10-22.89 |                               |   |   | 11.20                                                                   |   |   |   |   |   |
| Exercised                                                         |   |                 | —   |   |                                          |   | —    |                               |   |   | —                                                                 |   |   |   |   |   |
| Shares      under option at December 31, 2007                     |   |                 | 1,298,027 |   |                                          | $      | 3.70-22.89 |                               |   | $      | 6.87                                                                    |   |   |   |   |   |
| Granted                                                           |   |                 | 5,000     |   |                                          | $      | 2.17       |                               |   | $      | 2.17                                                                    |   |   | $ | 0.80 |   |
| Lapsed      or surrendered                                        |   |                 | (201,410  | )      |                                          |   | 3.70-22.89 |                               |   |   | 10.67                                                                   |   |   |   |   |   |
| Exercised                                                         |   |                 | —   |   |                                          |   | —    |                               |   |   | —                                                                 |   |   |   |   |   |
| Shares      under option at December 31, 2008                     |   |                 | 1,101,617 |   |                                          | $      | 2.17-22.89 |                               |   | $      | 6.16                                                                    |   |   |   |   |   |
| Granted                                                           |   |                 | —   |   |                                          | $      | —    |                               |   | $      | —                                                                 |   |   | $ | — |   |
| Lapsed      or surrendered                                        |   |                 | (267,297  | )      |                                          |   | 3.70-22.89 |                               |   |   | 9.01                                                                    |   |   |   |   |   |
| Exercised                                                         |   |                 | —   |   |                                          |   | —    |                               |   |   | —                                                                 |   |   |   |   |   |
| Shares      under option at December 31, 2009                     |   |                 | 834,320   |   |                                          | $      | 2.17-22.89 |                               |   | $      | 5.24                                                                    |   |   |   |   |   |
| Shares      exercisable and expected to vest at December 31, 2009 |   |                 | 556,620   |   |                                          | $      | 2.17-22.89 |                               |   | $      | 5.91                                                                    |   |   |   |   |   |

| Nonvested      stock options at January 1, 2007   |   |   | 703,550  |   |
|---------------------------------------------------|--------|--------|----------|--------|
| Granted                                           |   |   | 325,500  |   |
| Vested                                            |   |   | (146,950 | )      |
| Forfeited                                         |   |   | (69,350  | )      |
| Nonvested      stock options at December 31, 2007 |   |   | 812,750  |   |
| Granted                                           |   |   | 5,000    |   |
| Vested                                            |   |   | (230,550 | )      |
| Forfeited                                         |   |   | (59,200  | )      |
| Nonvested      stock options at December 31, 2008 |   |   | 528,000  |   |
| Granted                                           |   |   | —  |   |
| Vested                                            |   |   | (151,800 | )      |
| Forfeited                                         |   |   | (98,500  | )      |
| Nonvested      stock options at December 31, 2009 |   |   | 277,700  |   |

|                     |   | Options Outstanding |    |   | Options Exercisable |   |   |     |   |   |
|--------------------------|--------|--------------------------|---------|--------|--------------------------|--------|--------|----------|--------|--------|
|                     |   |                     |    |   | Weighted                 |   |   |     |   |   |   |   |   | Exercisable |   |   |
|                     |   |                     |    |   | Average                  |   |   |     |   |   |   |   |   | Weighted |   |   |
|                     |   | Number of           |    |   | Remaining                |   |   | Average  |   |   | Weighted |   |   | Average |   | Weighted |
| Range      of Option     |   | Shares                   |    |   | Contractual              |   |   | Exercise |   |   | Shares |   |   | Exercise |   | Average |
| Prices                   |   | Outstanding              |    |   | Life (Years)             |   |   | Price    |   |   | Exercisable |   |   | Prices |   | Contractual Term |
| $      0.00 — 2.17 |   |                     | 5,000   |   |                     |   | 8.50   |     |   | $      | 2.17 |   |   |   | 1,000 |   |   | $ | 2.17 |   |   |
| 2.18      — 4.10   |   |                     | 765,500 |   |                     |   | 6.00   |     |   |   | 3.99 |   |   |   | 491,800 |   |   |   | 4.03 |   |   |
| 16.90      — 19.89 |   |                     | 34,184  |   |                     |   | 0.56   |     |   |   | 18.40 |   |   |   | 34,184 |   |   |   | 18.40 |   |   |
| 19.90 — 22.89      |   |                     | 29,636  |   |                     |   | 1.84   |     |   |   | 22.89 |   |   |   | 29,636 |   |   |   | 22.89 |   |   |
| $ 2.17 — 22.89     |   |                     | 834,320 |   |                     |   | 5.64   |     |   | $      | 5.24 |   |   |   | 556,620 |   |   | $ | 5.91 |   | 5.95 |

----

|                                  |   | For the Years Ended December      31, |    |
|---------------------------------------|--------|---------------------------------------|---------|
|                                  |   | 2009                                  |    |   | 2008 |   |   | 2007 |   |
|                                  |   | (Dollars      in thousands)           |    |
| Current      tax provision (benefit): |   |                                  |    |   |   |   |   |   |   |
| Federal                               |   | $                                     | (1      | ) |   | $ | (499 | ) |   | $ | 53 |   |
| State                                 |   |                                  | 100     |   |   |   | 819 | ) |   |   | (50 | ) |
| Deferred      tax (benefit)           |   |                                  | — |   |   |   | — |   |   |   | — |   |
|                                  |   | $                                     | 99      |   |   | $ | 320 |   |   | $ | 3 |   |

|                                                      |   | For the Year Ended December    31, |   |
|-----------------------------------------------------------|--------|------------------------------------|--------|
|                                                      |   | 2009                               |   |   | 2008 |   |   | 2007 |   |
|                                                      |   | Amount                             |   |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |
|                                                      |   | (Dollars      in thousands)        |   |
| Income      tax (benefit) at statutory tax rate           |   | $                                  | 4,590  |   |   |   | 35.0 | % |   | $ | (12,570 | ) |   |   | (35.0 | )% |   | $ | (5,323 | ) |   |   | (35.0 | )% |
| Increase      (reduction) in tax rate resulting from:     |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State      income taxes, net of federal income tax effect |   |                               | 65     |   |   |   | 0.5 |   |   |   | 530 |   |   |   | 1.5 |   |   |   | 178 |   |   |   | 1.2 |   |
| Tax-exempt      interest                                  |   |                               | (25    | ) |   |   | (0.2 | ) |   |   | (41 | ) |   |   | (0.1 | ) |   |   | (202 | ) |   |   | (1.3 | ) |
| Affordable      housing credits                           |   |                               | (360   | ) |   |   | (2.7 | ) |   |   | (360 | ) |   |   | (1.0 | ) |   |   | (360 | ) |   |   | (2.4 | ) |
| Valuation      allowance                                  |   |                               | (4,207 | ) |   |   | (32.1 | ) |   |   | 13,018 |   |   |   | 36.2 |   |   |   | 5,666 |   |   |   | 37.2 |   |
| Other,      net                                           |   |                               | 36     |   |   |   | 0.3 |   |   |   | (257 | ) |   |   | (0.7 | ) |   |   | 44 |   |   |   | 0.3 |   |
|                                                      |   | $                                  | 99     |   |   |   | 0.8 | % |   | $ | 320 |   |   |   | 0.9 | % |   | $ | 3 |   |   |   | (0.0 | )% |

----

|                                                      |   | December 31,                |    |
|-----------------------------------------------------------|--------|-----------------------------|---------|
|                                                      |   | 2009                        |    |   | 2008 |   |   | 2007 |   |
|                                                      |   | (Dollars      in thousands) |    |
| Deferred      tax assets:                                 |   |                        |    |   |   |   |   |   |   |
| Loss      carryforwards (1)                               |   | $                           | 51,660  |   |   | $ | 81,510 |   |   | $ | 66,176 |   |
| Tax      credit carryforwards                             |   |                        | 3,284   |   |   |   | 2,928 |   |   |   | 2,537 |   |
| Allowance      for loan losses                            |   |                        | 6,486   |   |   |   | 7,798 |   |   |   | 8,279 |   |
| Net      unrealized loss in securities available for sale |   |                        | 2,473   |   |   |   | 4,082 |   |   |   | — |   |
| Other                                                     |   |                        | 1,045   |   |   |   | 2,309 |   |   |   | 1,919 |   |
| Deferred      tax assets before valuation allowance       |   |                        | 64,948  |   |   |   | 98,627 |   |   |   | 78,911 |   |
| Valuation      allowance                                  |   |                        | (64,209 | ) |   |   | (97,571 | ) |   |   | (76,868 | ) |
| Net      deferred tax assets                              |   |                        | 739     |   |   |   | 1,056 |   |   |   | 2,043 |   |
| Deferred      tax liabilities:                            |   |                        |    |   |   |   |   |   |   |   |   |   |
| Fixed      assets                                         |   | $                           | 255     |   |   | $ | 298 |   |   | $ | 275 |   |
| Net      unrealized loss in securities available for sale |   |                        | — |   |   |   | — |   |   |   | 515 |   |
| Other                                                     |   |                        | 484     |   |   |   | 758 |   |   |   | 1,253 |   |
| Total      deferred tax liabilities                       |   |                        | 739     |   |   |   | 1,056 |   |   |   | 2,043 |   |
| Net      deferred tax assets                              |   | $                           | — |   |   | $ | — |   |   | $ | — |   |

----

|  | (1) | Includes      U.S. federal and state net operating, capital loss and charitable      contribution carryforwards. |
|--|-----|------------------------------------------------------------------------------------------------------------------|

----

| Balance      at January 1, 2008                                    |   | $      | 3,897  |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|
| Additions      for positions taken during the current year         |   |   | 48     |   |
| Additions      for positions taken in prior years                  |   |   | 92     |   |
| Reductions      resulting from settlements with taxing authorities |   |   | (3,677 | )      |
| Reductions      resulting from expiration of statutes              |   |   | (209   | )      |
| Balance      at December 31, 2008                                  |   |   | 151    |   |
|                                                               |   |   |   |   |
| Additions      for positions taken in prior years                  |   |   | 30     |   |
| Balance      at December 31, 2009                                  |   | $      | 181    |   |

|                                                            |   |                        |    |   | Fair Value for Measurements Made on a Recurring Basis |   |
|-----------------------------------------------------------------|--------|-----------------------------|---------|--------|-----------------------------------------------------------------------------------------------|--------|
| Description                                                     |   | December 31, 2009 |    |   | Quoted Prices inActive Markets forIdentical Assets(Level 1)     |   |   | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservableInputs (Level 3) |   |
|                                                            |   | (Dollars      in thousands) |    |
| Assets                                                          |   |                        |    |   |                                                                                          |   |   |   |   |   |   |   |
| U.S.      government agencies                                   |   | $                           | 19,499  |   |                                                                                          | $      | — |   |   | $ | 19,499 |   |   | $ | — |   |
| States      and political subdivisions                          |   |                        | 30,746  |   |                                                                                          |   | — |   |   |   | 30,746 |   |   |   | — |   |
| Trust      preferred securities collateralized debt obligations |   |                        | 3,662   |   |                                                                                          |   | — |   |   |   | — |   |   |   | 3,662 |   |
| Other      debt obligations                                     |   |                        | 150     |   |                                                                                          |   | — |   |   |   | 150 |   |   |   | — |   |
| Residential      mortgage-backed securities (agencies)          |   |                        | 70,386  |   |                                                                                          |   | — |   |   |   | 70,386 |   |   |   | — |   |
| Residential      mortgage-backed securities (non-agencies)      |   |                        | 57,554  |   |                                                                                          |   | — |   |   |   | 57,554 |   |   |   | — |   |
| Equity      security                                            |   |                        | 974     |   |                                                                                          |   | — |   |   |   | 974 |   |   |   | — |   |
| Mortgage      forward sale agreement                            |   |                        | 5       |   |                                                                                          |   | — |   |   |   | 5 |   |   |   | — |   |
| Mortgage      written options                                   |   |                        | 17      |   |                                                                                          |   | — |   |   |   | 17 |   |   |   | — |   |
| Total                                                           |   | $                           | 182,993 |   |                                                                                          | $      | — |   |   | $ | 179,331 |   |   | $ | 3,662 |   |
|                                                            |   |                        |    |   |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                                     |   |                        |    |   |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage      interest rate lock commitments                    |   | $                           | 17      |   |                                                                                          | $      | — |   |   | $ | 17 |   |   | $ | — |   |
| Total                                                           |   | $                           | 17      |   |                                                                                          | $      | — |   |   | $ | 17 |   |   | $ | — |   |

|                                |   |                        |    |   | Fair Value for Measurements Made on a Recurring Basis |   |
|-------------------------------------|--------|-----------------------------|---------|--------|-----------------------------------------------------------------------------------------------|--------|
| Description                         |   | December 31, 2008 |    |   | Quoted Prices inActive Markets forIdentical Assets(Level 1)     |   |   | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservableInputs (Level 3) |   |
|                                |   | (Dollars      in thousands) |    |
| Assets                              |   |                        |    |   |                                                                                          |   |   |   |   |   |   |   |
| Available      for sale securities  |   | $                           | 280,452 |   |                                                                                          | $      | — |   |   | $ | 277,198 |   |   | $ | 3,254 | (1) |
| Interest      rate lock commitments |   |                        | 3       |   |                                                                                          |   | — |   |   |   | 3 |   |   |   | — |   |
| Total                               |   | $                           | 280,455 |   |                                                                                          | $      | — |   |   | $ | 277,201 |   |   | $ | 3,254 | (1) |

----

|                          |   |                        |   |   | Fair Value for Measurements Made on a Nonrecurring Basis |   |
|-------------------------------|--------|-----------------------------|--------|--------|--------------------------------------------------------------------------------------------------|--------|
| Description                   |   | December 31, 2009 |   |   | Quoted Prices inActive Marketsfor IdenticalAssets (Level 1)        |   |   | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservableInputs (Level 3) |   |   | Total Gains(Losses) inPeriod |   |
|                          |   | (Dollars      in thousands) |   |
| Assets                        |   |                        |   |   |                                                                                             |   |   |   |   |   |   |   |   |   |   |
| Loans      held for sale      |   | $                           | 13,451 |   |                                                                                             | $      | — |   |   | $ | 300 |   |   | $ | 13,151 |   |   | $ | (1,775 | ) |
| Impaired      loans (1)       |   |                        | 34,735 |   |                                                                                             |   | — |   |   |   | 34,735 |   |   |   | — |   |   |   | (5,055 | ) |
| Foreclosed      properties    |   |                        | 830    |   |                                                                                             |   | — |   |   |   | 830 |   |   |   | — |   |   |   | (196 | ) |
| Other      equity investments |   |                        | 65     |   |                                                                                             |   | — |   |   |   | — |   |   |   | 65 |   |   |   | — |   |
| Total                         |   | $                           | 49,081 |   |                                                                                             | $      | — |   |   | $ | 35,865 |   |   | $ | 13,216 |   |   | $ | (7,026 | ) |

----

|  | (1) | Impaired      loans gains (losses) in period include only those attributable to the      loans represented in the fair value measurements for December 31, 2009.      Total impaired loans at December 31, 2009 were $51.4    million. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fair Values Measured on a Recurring Basis with      Significant Unobservable Inputs (Level 3)                                                                                                                                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                          |   | December 31, 2009 |   |
|                                                                                                                                                                                                                          |   | (dollars      in thousands) |   |
| Available for Sale Securities      (1)                                                                                                                                                                                        |   |   |   |
| Beginning      of period balance                                                                                                                                                                                              |   | $ | 3,254 |   |
| Total      gains or losses (realized/unrealized)                                                                                                                                                                              |   |   |   |   |
| Included      in earnings (or changes in net assets)                                                                                                                                                                          |   |   | (67 | ) |
| Included      in other comprehensive income                                                                                                                                                                                   |   |   | 512 |   |
| Purchases,      issuances and settlements                                                                                                                                                                                     |   |   | (37 | ) |
| Transfers      in and/or out of Level 3                                                                                                                                                                                       |   |   | — |   |
| Balance      at December 31, 2009                                                                                                                                                                                             |   | $ | 3,662 |   |
| The      amount of total gains or losses for the period included in earnings (or      changes in net assets) attributable to the change in unrealized gains or      losses relating to assets still held at December 31, 2009 |   | $ | 445 |   |

----

|  | (1) | Structured      debt obligations collateralized by pooled TruPS in Other Notes and      Bonds. |
|--|-----|------------------------------------------------------------------------------------------------|

|                                                                                           |   | Other Revenues              |   |
|------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                           |   | (Dollars      in thousands) |   |
| Total      gains or losses in earnings (or changes in net assets) for the period      (above)  |   | $                           | (67    | ) |
| Change      in unrealized gains or losses relating to assets still held at reporting      date |   | $                           | 512    |   |

----

|                                |   | December 31, 2009 |    |   | December 31, 2008 |   |
|-------------------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|
|                                |   | CarryingAmount              |    |   | EstimatedFair Value    |   |   | CarryingAmount |   |   | EstimatedFair Value |   |
|                                |   | (Dollars      in thousands) |    |
| Financial      assets:              |   |                        |    |   |                        |   |   |   |   |   |   |   |
| Cash      and cash equivalents      |   | $                           | 35,735  |   |                        | $      | 35,735 |   |   | $ | 57,231 |   |   | $ | 57,231 |   |
| Loans      held for sale            |   |                        | 13,451  |   |                        |   | 13,451 |   |   |   | 4,777 |   |   |   | 4,777 |   |
| Securities                          |   |                        | 182,971 |   |                        |   | 182,971 |   |   |   | 280,452 |   |   |   | 280,452 |   |
| Loans,      net                     |   |                        | 454,428 |   |                        |   | 449,584 |   |   |   | 535,965 |   |   |   | 533,914 |   |
| Accrued      interest receivable    |   |                        | 2,847   |   |                        |   | 2,847 |   |   |   | 4,289 |   |   |   | 4,289 |   |
| Financial      liabilities:         |   |                        |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                            |   |                        | 589,450 |   |                        |   | 595,001 |   |   |   | 694,632 |   |   |   | 702,548 |   |
| Short-term      borrowings          |   |                        | 12,572  |   |                        |   | 12,572 |   |   |   | 62,806 |   |   |   | 62,806 |   |
| Long-term      borrowings           |   |                        | 18,000  |   |                        |   | 18,696 |   |   |   | 27,000 |   |   |   | 27,985 |   |
| Junior      subordinated debentures |   |                        | — |   |                        |   | — |   |   |   | 61,857 |   |   |   |    | (1) |
| Accrued      interest payable       |   |                        | 1,204   |   |                        |   | 1,204 |   |   |   | 41,377 |   |   |   | 41,377 |   |

----

|                              |   | December 31, 2009       |   |   | December 31, 2008 |   |
|-----------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|
|                              |   | Contractualor NotionalAmount |   |   | CarryingAmount              |   |   | EstimatedFair Value |   |   | Contractualor NotionalAmount |   |   | CarryingAmount |   |   | EstimatedFair Value |   |
|                              |   | (Dollars      in thousands)       |   |
| Off-balance      sheet items:     |   |                              |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments      to extend credit |   | $                                 | 37,948 |   |                        | $      | (17 | ) |   | $ | (17 | ) |   | $ | 110,951 |   |   | $ | — |   |   | $ | — |   |
| Standby      letters of credit    |   |                              | 2,142  |   |                        |   | (6 | ) |   |   | (6 | ) |   |   | 3,913 |   |   |   | (24 | ) |   |   | (24 | ) |
| Mortgage      related derivatives |   |                              | 2,055  |   |                        |   | (21 | ) |   |   | (21 | ) |   |   | 3,463 |   |   |   | — |   |   |   | — |   |

----

|   | (1) | See      Junior Subordinated Debentures below for estimated fair value      information. |
|--------|-----|------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                                                                                                             |   | December 31,           |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|
|                                                                                                                                                                                                                             |   | 2009                   |     |   | 2008 |   |
|                                                                                                                                                                                                                             |   | (Dollars in thousands) |     |
| Assets                                                                                                                                                                                                                           |   |                   |     |   |   |   |
| Cash      and due from affiliated banks                                                                                                                                                                                          |   | $                      | 4,063    |   |   | $ | 13,237 |   |
| Investments      in subsidiaries                                                                                                                                                                                                 |   |                   | 79,533   |   |   |   | 99,894 |   |
| Loans      to subsidiaries                                                                                                                                                                                                       |   |                   | —  |   |   |   | 604 |   |
| Premises      and equipment, net                                                                                                                                                                                                 |   |                   | 388      |   |   |   | 512 |   |
| Investment      in subsidiary held for disposal                                                                                                                                                                                  |   |                   | 24       |   |   |   | (687 | ) |
| Other      investments                                                                                                                                                                                                           |   |                   | 1,038    |   |   |   | 885 |   |
| Income      tax receivable                                                                                                                                                                                                       |   |                   | 239      |   |   |   | 789 |   |
| Other      assets                                                                                                                                                                                                                |   |                   | 302      |   |   |   | 1,871 |   |
| Total      assets                                                                                                                                                                                                                |   | $                      | 85,587   |   |   | $ | 117,105 |   |
| Liabilities                                                                                                                                                                                                                      |   |                   |     |   |   |   |   |   |
| Loans      to subsidiaries-subscribed stock                                                                                                                                                                                      |   | $                      | —  |   |   | $ | 51 |   |
| Accrued      interest payable                                                                                                                                                                                                    |   |                   | —  |   |   |   | 39,090 |   |
| Junior      subordinated debentures                                                                                                                                                                                              |   |                   | —  |   |   |   | 61,857 |   |
| Other      liabilities                                                                                                                                                                                                           |   |                   | 892      |   |   |   | 1,305 |   |
| Total      liabilities                                                                                                                                                                                                           |   |                   | 892      |   |   |   | 102,303 |   |
| Stockholders’      Equity                                                                                                                                                                                                  |   |                   |     |   |   |   |   |   |
| Preferred      stock, $1 par value; 5,000,000 authorized shares; 7% fixed noncumulative      perpetual issued-55,624 shares of Series A and 4,376 shares of Series B      convertible; aggregate liquidation preference-$60,000, |   |                   | 51,000   |   |   |   | — |   |
| Common      stock, $1 par value; 50,000,000 authorized shares;18,346,442 issued      shares, 18,135,395 at December 31, 2009 and 18,341,231 at December 31,      2008 outstanding shares                                         |   |                   | 18,346   |   |   |   | 18,346 |   |
| Capital      surplus                                                                                                                                                                                                             |   |                   | 158,682  |   |   |   | 158,613 |   |
| Accumulated      deficit                                                                                                                                                                                                         |   |                   | (136,621 | ) |   |   | (151,936 | ) |
| Accumulated      other comprehensive loss related to available for sale      securities                                                                                                                                          |   |                   | (1,290   | ) |   |   | (10,008 | ) |
| Accumulated      other comprehensive loss related to non-credit other-than-temporary      impairments                                                                                                                            |   |                   | (4,893   | ) |   |   | — |   |
| Accumulated      other comprehensive loss, net                                                                                                                                                                                   |   |                   | (6,183   | ) |   |   | (10,008 | ) |
| Receivables      from sale of stock                                                                                                                                                                                              |   |                   | —  |   |   |   | (51 | ) |
| Treasury      stock shares at cost; 218,499 at December 31, 2009 and 12,663 at December      31, 2008                                                                                                                            |   |                   | (529     | ) |   |   | (162 | ) |
| Total      stockholders’ equity                                                                                                                                                                                            |   |                   | 84,695   |   |   |   | 14,802 |   |
| Total      liabilities and stockholders’ equity                                                                                                                                                                            |   | $                      | 85,587   |   |   | $ | 117,105 |   |

----

|                                                                                                                           |   | Years Ended December 31,    |    |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                                           |   | 2009                        |    |   | 2008 |   |   | 2007 |   |
|                                                                                                                           |   | (Dollars      in thousands) |    |
| Interest      and Dividend Income                                                                                              |   |                        |    |   |   |   |   |   |   |
| Dividends      from subsidiaries                                                                                               |   | $                           | — |   |   | $ | — |   |   | $ | — |   |
| Loan      and other interest from subsidiaries                                                                                 |   |                        | 28      |   |   |   | 319 |   |   |   | 1,216 |   |
| Total      interest and dividend income                                                                                        |   |                        | 28      |   |   |   | 319 |   |   |   | 1,216 |   |
| Interest      Expense                                                                                                          |   |                        |    |   |   |   |   |   |   |   |   |   |
| Junior      subordinated debentures                                                                                            |   |                        | 6,284   |   |   |   | 8,887 |   |   |   | 8,556 |   |
| Total      interest expense                                                                                                    |   |                        | 6,284   |   |   |   | 8,887 |   |   |   | 8,556 |   |
| Net      interest loss                                                                                                         |   |                        | (6,256  | ) |   |   | (8,568 | ) |   |   | (7,340 | ) |
| Noninterest      income                                                                                                        |   |                        |    |   |   |   |   |   |   |   |   |   |
| Equity      in undistributed loss of subsidiaries                                                                              |   |                        | (28,607 | ) |   |   | (13,537 | ) |   |   | (695 | ) |
| Fees      from subsidiaries                                                                                                    |   |                        | 1,541   |   |   |   | 5,111 |   |   |   | 5,894 |   |
| Gain      on sale of assets, net                                                                                               |   |                        | — |   |   |   | — |   |   |   | 191 |   |
| Other      income                                                                                                              |   |                        | 2       |   |   |   | 503 |   |   |   | 223 |   |
| Total      noninterest loss                                                                                                    |   |                        | (27,064 | ) |   |   | (7,923 | ) |   |   | 5,613 |   |
| Noninterest      expense                                                                                                       |   |                        |    |   |   |   |   |   |   |   |   |   |
| Compensation      and employee benefits                                                                                        |   |                        | 2,850   |   |   |   | 6,842 |   |   |   | 7,134 |   |
| Equipment                                                                                                                      |   |                        | 303     |   |   |   | 475 |   |   |   | 716 |   |
| Occupancy      and premises                                                                                                    |   |                        | 215     |   |   |   | 576 |   |   |   | 742 |   |
| Professional      services                                                                                                     |   |                        | 2,599   |   |   |   | 2,986 |   |   |   | 2,083 |   |
| Write      down and losses on assets                                                                                           |   |                        | 825     |   |   |   | 3,232 |   |   |   | 21 |   |
| Other                                                                                                                          |   |                        | 914     |   |   |   | 4,653 |   |   |   | 1,593 |   |
| Total      noninterest expense                                                                                                 |   |                        | 7,706   |   |   |   | 18,764 |   |   |   | 12,289 |   |
| Loss      before income taxes and extraordinary net gain                                                                       |   |                        | (41,026 | ) |   |   | (35,255 | ) |   |   | (14,016 | ) |
| Income      tax benefit                                                                                                        |   |                        | (254    | ) |   |   | (856 | ) |   |   | (245 | ) |
| Loss      before extraordinary net gain                                                                                        |   |                        | (40,772 | ) |   |   | (34,399 | ) |   |   | (13,771 | ) |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                        | 54,497  |   |   |   | — |   |   |   | — |   |
| Net      income (loss)                                                                                                         |   |                        | 13,725  |   |   |   | (34,399 | ) |   |   | (13,771 | ) |
| Preferred      stock dividends                                                                                                 |   |                        | — |   |   |   | — |   |   |   | — |   |
| Net      income (loss) (attributable) available to common    stockholders                                                      |   | $                           | 13,725  |   |   | $ | (34,399 | ) |   | $ | (13,771 | ) |

----

|                                                                                                                           |   | Years Ended December 31,    |    |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                                           |   | 2009                        |    |   | 2008 |   |   | 2007 |   |
|                                                                                                                           |   | (Dollars      in thousands) |    |
| Cash      Flows from Operating Activities:                                                                                     |   |                        |    |   |   |   |   |   |   |
| Net      income (loss)                                                                                                         |   | $                           | 13,725  |   |   | $ | (34,399 | ) |   | $ | (13,771 | ) |
| Adjustments      to reconcile net income (loss) to net cash used in operating      activities:                                 |   |                        |    |   |   |   |   |   |   |   |   |   |
| Equity      in undistributed loss of subsidiaries                                                                              |   |                        | 28,507  |   |   |   | 13,537 |   |   |   | 695 |   |
| Depreciation      and amortization                                                                                             |   |                        | 181     |   |   |   | 289 |   |   |   | 427 |   |
| Write      down and losses on assets                                                                                           |   |                        | 825     |   |   |   | 3,232 |   |   |   | 21 |   |
| Deferred      tax benefit                                                                                                      |   |                        | — |   |   |   | (3,297 | ) |   |   | — |   |
| Gain      on sale of assets                                                                                                    |   |                        | — |   |   |   | — |   |   |   | (191 | ) |
| Decrease      (increase) in interest receivable and other assets                                                               |   |                        | (2,031  | ) |   |   | (2,220 | ) |   |   | 1,875 |   |
| Increase      in interest payable junior subordinated debentures                                                               |   |                        | 6,242   |   |   |   | 8,832 |   |   |   | 8,501 |   |
| Increase      (decrease) in other interest payable and other liabilities                                                       |   |                        | (921    | ) |   |   | 3,776 |   |   |   | (624 | ) |
| Net      cash used in operating activities before extraordinary net      gain                                                  |   |                        | 46,528  |   |   |   | (10,250 | ) |   |   | (3,067 | ) |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                        | (54,497 | ) |   |   | — |   |   |   | — |   |
| Net      cash used in operating activities                                                                                     |   |                        | (7,969  | ) |   |   | (10,250 | ) |   |   | (3,067 | ) |
| Cash      Flows from Investing Activities:                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |
| Net      (increase) decrease in loans                                                                                          |   |                        | (51     | ) |   |   | 4 |   |   |   | (537 | ) |
| Capital      (expenditures) sales                                                                                              |   |                        | (127    | ) |   |   | 18 |   |   |   | (101 | ) |
| Decrease      in investment in subsidiaries held for disposal                                                                  |   |                        | (711    | ) |   |   | (2,282 | ) |   |   | (1,226 | ) |
| Net      cash used in investing activities                                                                                     |   |                        | (889    | ) |   |   | (2,260 | ) |   |   | (1,864 | ) |
| Cash      Flows from Financing Activities:                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |
| Purchase      of treasury stock                                                                                                |   |                        | (367    | ) |   |   | — |   |   |   | — |   |
| Reduction      in receivable from the sale of stock                                                                            |   |                        | 51      |   |   |   | — |   |   |   | 30 |   |
| Net      cash (used in) provided by financing activities                                                                       |   |                        | (316    | ) |   |   | — |   |   |   | 30 |   |
| Net      decrease in cash and cash equivalents                                                                                 |   |                        | (9,174  | ) |   |   | (12,510 | ) |   |   | (4,901 | ) |
| Cash      and cash equivalents, beginning of year                                                                              |   |                        | 13,237  |   |   |   | 25,747 |   |   |   | 30,648 |   |
| Cash      and cash equivalents, end of year                                                                                    |   | $                           | 4,063   |   |   | $ | 13,237 |   |   | $ | 25,747 |   |
| Supplemental      Disclosures of Extraordinary Noncash Activities                                                              |   |                        |    |   |   |   |   |   |   |   |   |   |
| Extinguishment      debentures, net                                                                                            |   |                        | 106,005 |   |   |   | — |   |   |   | — |   |
| Issuance      of preferred stock                                                                                               |   |                        | 51,000  |   |   |   | — |   |   |   | — |   |

----

|                                                                                                                           |   | FirstQuarter                                   |    |   | SecondQuarter |   |    | ThirdQuarter |   |   | FourthQuarter |    |   | TOTAL  |    |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|--------|---------------|--------|---------|--------------|--------|--------|---------------|---------|--------|--------|---------|
|                                                                                                                           |   | (Dollars      in thousands, except share data) |    |
| 2009                                                                                                                           |   |                                           |    |   |          |   |    |         |   |   |          |    |   |   |    |
| Total      interest income                                                                                                     |   | $                                              | 11,041  |   |          | $      | 10,136  |         |   | $      | 9,416         |    |   | $      | 8,816   |   |   | $ | 39,409 |   |
| Total      interest expense                                                                                                    |   |                                           | 7,359   |   |          |   | 7,017   |         |   |   | 6,194         |    |   |   | 3,356   |   |   |   | 23,926 |   |
| Net      interest income                                                                                                       |   |                                           | 3,682   |   |          |   | 3,119   |         |   |   | 3,222         |    |   |   | 5,460   |   |   |   | 15,483 |   |
| Provision      for loan losses                                                                                                 |   |                                           | 3,043   |   |          |   | 6,158   |         |   |   | 10,029        |    |   |   | 8,143   |   |   |   | 27,373 |   |
| Net      interest income (loss) after provision for loan losses                                                                |   |                                           | 639     |   |          |   | (3,039  | )            |   |   | (6,807        | )       |   |   | (2,683  | ) |   |   | (11,890 | ) |
| Gain      on sale of securities                                                                                                |   |                                           | 551     |   |          |   | — |         |   |   | —       |    |   |   | — |   |   |   | 551 |   |
| Other      noninterest income (loss)                                                                                           |   |                                           | 306     |   |          |   | 385     |         |   |   | 348           |    |   |   | (90     | ) |   |   | 949 |   |
| Other      noninterest expense                                                                                                 |   |                                           | 7,284   |   |          |   | 7,594   |         |   |   | 8,166         |    |   |   | 7,950   |   |   |   | 30,994 |   |
| Loss      from continuing operations before income taxes                                                                       |   |                                           | (5,788  | )      |          |   | (10,248 | )            |   |   | (14,625       | )       |   |   | (10,723 | ) |   |   | (41,384 | ) |
| Income      tax expense (benefit)                                                                                              |   |                                           | — |   |          |   | 100     |         |   |   | (1            | )       |   |   | — |   |   |   | 99 |   |
| Loss      from continuing operations                                                                                           |   |                                           | (5,788  | )      |          |   | (10,348 | )            |   |   | (14,624       | )       |   |   | (10,723 | ) |   |   | (41,483 | ) |
| Discontinued      operations:                                                                                                  |   |                                           |    |   |          |   |    |         |   |   |          |    |   |   |    |   |   |   |   |   |
| Pretax      income from discontinued operations                                                                                |   |                                           | — |   |          |   | — |         |   |   | 711           |    |   |   | — |   |   |   | 711 |   |
| Tax      effect for discontinued operations                                                                                    |   |                                           | — |   |          |   | — |         |   |   | —       |    |   |   | — |   |   |   | — |   |
| Net      income from discontinued operations                                                                                   |   |                                           | — |   |          |   | — |         |   |   | 711           |    |   |   | — |   |   |   | 711 |   |
| Loss      before extraordinary net gain                                                                                        |   |                                           | (5,788  | )      |          |   | (10,348 | )            |   |   | (13,913       | )       |   |   | (10,723 | ) |   |   | (40,772 | ) |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                                           | — |   |          |   | — |         |   |   | —       |    |   |   | 54,497  |   |   |   | 54,497 |   |
| Net      income (loss)                                                                                                         |   |                                           | (5,788  | )      |          |   | (10,348 | )            |   |   | (13,913       | )       |   |   | 43,774  |   |   |   | 13,725 |   |
| Preferred      stock dividends                                                                                                 |   | NA                                             |    |   | NA            |   |    | NA           |   |   |          | — |   |   |    | — |   |
| Net      income (loss) (attributable) available to common    stockholders                                                      |   | $                                              | (5,788  | )      |          | $      | (10,348 | )            |   | $      | (13,913       | )       |   | $      | 43,774  |   |   | $ | 13,725 |   |
| Earnings      (loss) per share:                                                                                                |   |                                           |    |   |          |   |    |         |   |   |          |    |   |   |    |   |   |   |   |   |
| Basic                                                                                                                          |   |                                           |    |   |          |   |    |         |   |   |          |    |   |   |    |   |   |   |   |   |
| Continuing      operations                                                                                                     |   | $                                              | (0.32   | )      |          | $      | (0.57   | )            |   | $      | (0.81         | )       |   | $      | (0.59   | ) |   |   |   |   |
| Discontinued      operations                                                                                                   |   |                                           | 0.00    |   |          |   | 0.00    |         |   |   | 0.04          |    |   |   | 0.00    |   |   |   |   |   |
| Loss      before extraordinary net gain                                                                                        |   |                                           | (0.32   | )      |          |   | (0.57   | )            |   |   | (0.77         | )       |   |   | (0.59   | ) |   |   |   |   |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                                           | — |   |          |   | — |         |   |   | —       |    |   |   | 3.00    |   |   |   |   |   |
| Net      income (loss)                                                                                                         |   | $                                              | (0.32   | )      |          | $      | (0.57   | )            |   | $      | (0.77         | )       |   | $      | 2.41    |   |   |   |   |   |
| Diluted                                                                                                                        |   |                                           |    |   |          |   |    |         |   |   |          |    |   |   |    |   |   |   |   |   |
| Continuing      operations                                                                                                     |   | $                                              | (0.32   | )      |          | $      | (0.57   | )            |   | $      | (0.81         | )       |   | $      | (0.59   | ) |   |   |   |   |
| Discontinued      operations                                                                                                   |   |                                           | 0.00    |   |          |   | 0.00    |         |   |   | 0.04          |    |   |   | 0.00    |   |   |   |   |   |
| Loss      before extraordinary net gain                                                                                        |   |                                           | (0.32   | )      |          |   | (0.57   | )            |   |   | (0.77         | )       |   |   | (0.59   | ) |   |   |   |   |
| Extraordinary      gain on extinguishment of junior subordinated debentures, net of      amortization and reorganization costs |   |                                           | — |   |          |   | — |         |   |   | —       |    |   |   | 2.94    |   |   |   |   |   |
| Net      income (loss)                                                                                                         |   | $                                              | (0.32   | )      |          | $      | (0.57   | )            |   | $      | (0.77         | )       |   | $      | 2.35    |   |   |   |   |   |

----

| 2008                                                            |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|
| Total      interest income                                      |   | $      | 15,801 |   |   | $      | 14,071  |   |   | $      | 13,548  |   |   | $      | 12,721 |   |   | $ | 56,141 |   |
| Total      interest expense                                     |   |   | 9,780  |   |   |   | 8,712   |   |   |   | 8,219   |   |   |   | 7,790  |   |   |   | 34,501 |   |
| Net      interest income                                        |   |   | 6,021  |   |   |   | 5,359   |   |   |   | 5,329   |   |   |   | 4,931  |   |   |   | 21,640 |   |
| Provision      for loan losses                                  |   |   | 808    |   |   |   | 8,525   |   |   |   | 10,141  |   |   |   | 2,589  |   |   |   | 22,063 |   |
| Net      interest income (loss) after provision for loan losses |   |   | 5,213  |   |   |   | (3,166  | )      |   |   | (4,812  | )      |   |   | 2,342  |   |   |   | (423 | ) |
| Other      noninterest income                                   |   |   | 433    |   |   |   | 457     |   |   |   | 4,661   |   |   |   | 607    |   |   |   | 6,158 |   |
| Other      noninterest expense                                  |   |   | 8,357  |   |   |   | 11,259  |   |   |   | 9,879   |   |   |   | 12,153 |   |   |   | 41,648 |   |
| Loss      from continuing operations before income taxes        |   |   | (2,711 | )      |   |   | (13,968 | )      |   |   | (10,030 | )      |   |   | (9,204 | ) |   |   | (35,913 | ) |
| Income      tax expense                                         |   |   | 44     |   |   |   | 2       |   |   |   | 88      |   |   |   | 186    |   |   |   | 320 |   |
| Loss      from continuing operations                            |   |   | (2,755 | )      |   |   | (13,970 | )      |   |   | (10,118 | )      |   |   | (9,390 | ) |   |   | (36,233 | ) |
| Discontinued      operations:                                   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Pretax      income (loss) from discontinued operations          |   |   | 8      |   |   |   | (36     | )      |   |   | 493     |   |   |   | 28     |   |   |   | 493 |   |
| Tax      effect for discontinued operations (1)                 |   |   | 7      |   |   |   | 28      |   |   |   | 1,571   |   |   |   | (2,947 | ) |   |   | (1,341 | ) |
| Net      income (loss) from discontinued operations             |   |   | 1      |   |   |   | (64     | )      |   |   | (1,078  | )      |   |   | 2,975  |   |   |   | 1,834 |   |
| Net      loss                                                   |   | $      | (2,754 | )      |   | $      | (14,034 | )      |   | $      | (11,196 | )      |   | $      | (6,415 | ) |   | $ | (34,399 | ) |
| Earnings      (loss) per share:                                 |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Basic                                                           |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                      |   | $      | (0.15  | )      |   | $      | (0.76   | )      |   | $      | (0.55   | )      |   | $      | (0.52  | ) |   |   |   |   |
| Discontinued      operations                                    |   |   | 0.00   |   |   |   | (0.01   | )      |   |   | (0.06   | )      |   |   | 0.17   |   |   |   |   |   |
| Net      Loss                                                   |   | $      | (0.15  | )      |   | $      | (0.77   | )      |   | $      | (0.61   | )      |   | $      | (0.35  | ) |   |   |   |   |
| Diluted                                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                      |   | $      | (0.15  | )      |   | $      | (0.76   | )      |   | $      | (0.55   | )      |   | $      | (0.52  | ) |   |   |   |   |
| Discontinued      operations                                    |   |   | 0.00   |   |   |   | (0.01   | )      |   |   | (0.06   | )      |   |   | 0.17   |   |   |   |   |   |
| Net      loss                                                   |   | $      | (0.15  | )      |   | $      | (0.77   | )      |   | $      | (0.61   | )      |   | $      | (0.35  | ) |   |   |   |   |

----

|  | (1) | At      September 30, 2008, CIB Marine had a $3.5 million tax exposure liability      related to its investment in a REIT. In December 2008, CIB Marine reached      a settlement agreement whereby it agreed to pay $0.5 million for full      settlement of this liability. As a result of this agreement, in the fourth      quarter of 2008, CIB Marine reversed the remaining $3.0 million tax      liability related to the REIT through a credit to discontinued operations      tax expense. See Note 20-Income Taxes for further    discussion. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

ITEM 11. EXECUTIVECOMPENSATION

Incorporated herein byreference to CIB Marine’s definitive proxy statement for the Annual Meeting ofShareholders to be held on May 27, 2010.

| Equity Compensation Plan Information(1)          |   |
|-----------------------------------------------------------------|--------|
| Plan category                                              |   | Number ofsecurities to beissued uponexercise ofoutstandingoptions, warrantsand rights |   |   | Weighted-average exerciseprice ofoutstandingoptions,warrants andrights |   |   | Number of securitiesremaining available forfuture issuance underequity compensationplans (excludingsecurities reflected incolumn (a)) |   |
|                                                            |   | (a) |   |   | (b) |   |   | (c) |   |
| Equity      compensation plans approved by security holders     |   |   | 834,320 |   |   | $ | 5.24 |   |   |   | 780,826 |   |
| Equity      compensation plans not approved by security holders |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                                           |   |   | 834,320 |   |   | $ | 5.24 |   |   |   | 780,826 |   |

----

|   | (1) | See      Item 8, Note 2-Summary of Significant Accounting Policies-Stock-Based      Compensation and Note 19-Stock-Based Compensation in Part II of this Form      10-K for additional information regarding CIB Marine’s stock-based      compensation plans. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Report      of Independent Registered Public Accounting  Firm. |
|--------|---------|----------------------------------------------------------------|

|   | • | Consolidated      Balance Sheets as of December 31, 2009 and2008. |
|--------|---------|-------------------------------------------------------------------|

|   | • | Consolidated      Statements of Operations for the Years Ended December 31, 2009, 2008, and      2007. |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | • | Consolidated      Statements of Stockholders’ Equity for the Years Ended December 31, 2009,      2008 and 2007. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------|

|   | • | Consolidated      Statements of Cash Flows for the Years Ended December 31, 2009, 2008 and      2007. |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | • | Notes      to Consolidated FinancialStatements. |
|--------|---------|-------------------------------------------------|

| Exhibit No. |   | Exhibit |
|-------------|--------|---------|
| 2.1         |   |    | Prepackaged      Plan of Reorganization dated July 16, 2009 of CIB Marine Bancshares, Inc.      filed under Chapter 11 of United States Bankruptcy Code in United States      Bankruptcy Court for the Eastern District of Wisconsin (incorporated by      reference to Exhibit 2.1 to CIB Marine’s Form 8-K filed with the      Securities and Exchange Commission on November 5,2009). |
|        |   |    |   |
| 2.2         |   |    | Findings      of Fact, Conclusions of Law and Order Confirming Plan of Reorganization by      the United States Bankruptcy Court for the Eastern District of      Wisconsin. |
|        |   |    |   |
| 2.3         |   |    | Notice      of Occurrence of Effective Date of Debtors’ Prepackaged Plan of      Reorganization by the United States Bankruptcy Court for the Eastern      District of Wisconsin. |
|        |   |    |   |
| 3.1         |   |    | Amended      and Restated Articles of Incorporation of CIB Marine Bancshares, Inc.      (incorporated by reference to Exhibit 3.1 to CIB Marine’s Form 8-K filed      with the Securities and Exchange Commission on November 5,      2009). |
|        |   |    |   |
| 3.2         |   |    | Bylaws      of CIB Marine Bancshares, Inc. (incorporated by reference to Exhibit 3.2      to CIB Marine’s Form 10-K filed with the Securities and Exchange      Commission on October 31, 2005). |
|        |   |    |   |
| 10.1        |   |    | Purchase      and Assumption Agreement by and Among Citrus Bank, National Associations,      CIB Marine Bancshares, Inc. and 1st      United Bank (incorporated by reference to Exhibit 99.1 of CIB Marine’s      Form 8-K filed with the Securities and Exchange Commission on April 4,      2008, and amended on Exhibit 99.1 on Form 8-K dated May 14,      2008). |
|        |   |    |   |
| *10.2       |   |    | CIB      Marine Bancshares, Inc. 1999 Stock Option and Incentive Plan, as amended      (incorporated by reference to Exhibit 10.1 to CIB Marine’s Form 10-K filed      with the Securities and Exchange Commission on March 31,      2003). |
|        |   |    |   |
| *10.3       |   |    | First      Amendment to the CIB Marine Bancshares, Inc. 1999 Stock Option and      Incentive Plan (incorporated by reference to Exhibit 10.2 to CIB Marine’s      Form 10-K filed with the Securities and Exchange Commission on October 31,      2005). |
|        |   |    |   |
| *10.4       |   |    | CIB      Marine Bancshares, Inc. 1999 Stock Option and Incentive Plan Key Employee      Non-Qualified Stock Option Agreement (incorporated by reference to Exhibit      99.1 of CIB Marine’s Form 8-K filed with the Securities and Exchange      Commission on September 23,2005). |

----

| Exhibit No. |   | Exhibit |
|-------------|--------|---------|
| *10.5       |   |    | CIB      Marine Bancshares, Inc. 1999 Stock Option and Incentive Plan Key Employee      Non-Qualified Stock Option Agreement (accelerated vesting upon sale of      subsidiary bank) (incorporated by reference to Exhibit 99.2 of CIB      Marine’s Form 8-K filed with the Securities and Exchange Commission on      September 23, 2005). |
|        |   |    |   |
| *10.6       |   |    | CIB      Marine Bancshares, Inc. 1999 Stock Option and Incentive Plan Key Employee      Non-Qualified Stock Option Agreement (accelerated vesting upon sale of      subsidiary bank) (incorporated by reference to Exhibit 99.1 of CIB      Marine’s Form 8-K filed with the Securities and Exchange Commission on      November 16, 2006). |
|        |   |    |   |
| *10.7       |   |    | CIB      Marine Bancshares, Inc. Severance Pay Plan (incorporated by reference to      Exhibit 10.1 of CIB Marine’s Form 8-K filed with the Securities and      Exchange Commission on April 18, 2005). |
|        |   |    |   |
| *10.8       |   |    | Employment      Agreement between John P. Hickey, Jr. and CIB Marine Bancshares, Inc.      (incorporated by reference to Exhibit 99.1 to CIB Marine’s Form 8-K filed      with the Securities and Exchange Commission on October 23,      2007). |
|        |   |    |   |
| 10.9        |   |    | Written      Agreement between CIB Marine and the Federal Reserve Bank of Chicago      (incorporated by reference to Exhibit 99.5 of CIB Marine’s Form 8-K filed      with the Securities and Exchange Commission on June 1,    2004). |
|        |   |    |   |
| *10.10      |   |    | Agreement      between Edwin J. Depenbrok and CIB Marine Bancshares, Inc. (incorporated      by reference to Exhibit 99.2 to CIB Marine’s Form 8-K filed with the      Securities and Exchange Commission on January 7, 2008). |
|        |   |    |   |
| *10.11      |   |    | Amendment      to Agreement between Edwin J. Depenbrok and CIB Marine Bancshares, Inc.      (incorporated by reference to Exhibit 99.1 to CIB Marine’s Form 8-K filed      with the Securities and Exchange Commission on October 6,      2008). |
|        |   |    |   |
| *10.12      |   |    | Agreement      between Edwin J. Depenbrok and CIB Marine Bancshares, Inc. (incorporated      by reference to Exhibit 99.1 to CIB Marine’s Form 8-K filed with the      Securities and Exchange Commission on August 14, 2009). |
|        |   |    |   |
| *10.13      |   |    | Agreement      between Daniel Rasmussen and CIB Marine Bancshares, Inc. (incorporated by      reference to Exhibit 99.1 to CIB Marine’s Form 8-K filed with the      Securities and Exchange Commission on January 8, 2010). |
|        |   |    |   |
| 21          |   |    | Subsidiaries      of CIB Marine Bancshares, Inc. |
|        |   |    |   |
| 23.1        |   |    | Consent      of Crowe Horwath LLP |
|        |   |    |   |
| 23.1        |   |    | Consent      of KPMG LLP |
|        |   |    |   |
| 31.1        |   |    | Certification      of John P. Hickey, Jr., Chief Executive Officer, under Rule      13a-14(a)/15d-14(a). |
|        |   |    |   |
| 31.2        |   |    | Certification      of Edwin J. Depenbrok, Chief Financial Officer, under Rule      13a-14(a)/15d-14(a). |
|        |   |    |   |
| 32.1        |   |    | Certification      of John P. Hickey, Jr., Chief Executive Officer, pursuant to 18 U.S.C.      Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of      2002. |
|        |   |    |   |
| 32.2        |   |    | Certification      of Edwin J. Depenbrok, Chief Financial Officer, pursuant to 18 U.S.C.      Section 1350, as adopted pursuant to Section 906 of Sarbanes- Oxley Act of      2002. |

----

| *  | Indicates      management contracts and compensatory arrangements required to be filed      pursuant to Item 15(b) of this AnnualReport. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           | CIB      MARINE BANCSHARES, INC.          |
|--------------------------------|-------------------------------------------|
|                           | (registrant)                              |
|                           |                                      |
|       | By:      /s/ JOHN P. HICKEY, Jr.          |
| Date:      March 25, 2010      | John      P. Hickey, Jr.                  |
|                           | Chairman      of the Board of Directors   |
|                           | President      and Chief ExecutiveOfficer |

| Signature                |   | Title                                      |   | Date                |
|--------------------------|--------|--------------------------------------------|--------|---------------------|
| /s/ JOHN P. HICKEY, Jr.  |   | Chairman      of the Board of Directors    |   | March      25, 2010 |
| John      P. Hickey, Jr. |   | President      and Chief Executive         |   |                |
|                     |   | Officer      (Principal Executive Officer) |   |                |
|                     |   |                                       |   |                |
| /s/ EDWIN J. DEPENBROK   |   | Chief      Financial Officer (Principal    |   | March      25, 2010 |
| Edwin      J. Depenbrok  |   | Financial      and Accounting Officer)     |   |                |
|                     |   |                                       |   |                |
| /s/ CHARLES E. BAKER     |   | Director                                   |   | March      25, 2010 |
| Charles      E. Baker    |   |                                       |   |                |
|                     |   |                                       |   |                |
| /s/ STANLEY J. CALDERON  |   | Director                                   |   | March      25, 2010 |
| Stanley      J. Calderon |   |                                       |   |                |
|                     |   |                                       |   |                |
| /s/ GARY L. LONGMAN      |   | Director                                   |   | March      25, 2010 |
| Gary      Longman        |   |                                       |   |                |
|                     |   |                                       |   |                |
| /s/ DONALD M. TRILLING   |   | Director                                   |   | March      25, 2010 |
| Donald      M. Trilling  |   |                                       |   |                |
|                     |   |                                       |   |                |
| /s/ HOWARD E. ZIMMERMAN  |   | Director                                   |   | March      25, 2010 |
| Howard      E. Zimmerman |   |                                       |   |                |

----

| 2.2    |   | Findings      of Fact, Conclusions of Law and Order Confirming Plan of Reorganization by      the United States Bankruptcy Court for the Eastern District of      Wisconsin.            |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                    |
| 2.3    |   | Notice      of Occurrence of Effective Date of Debtors’ Prepackaged Plan of      Reorganization by the United States Bankruptcy Court for the Eastern      District of Wisconsin. |
|   |   |                                                                                                                                                                                    |
| 21     |   | Subsidiaries      of CIB Marine                                                                                                                                                         |
|   |   |                                                                                                                                                                                    |
| 23.1   |   | Consent      of Crowe Horwath LLP                                                                                                                                                       |
|   |   |                                                                                                                                                                                    |
| 23.1   |   | Consent      of KPMG LLP                                                                                                                                                                |
|   |   |                                                                                                                                                                                    |
| 31.1   |   | Certification      of John P. Hickey, Jr., Chief Executive Officer, under Rule      13a-14(a)/15d-14(a).                                                                                |
|   |   |                                                                                                                                                                                    |
| 31.2   |   | Certification      of Edwin J. Depenbrok, Chief Financial Officer, under Rule      13a-14(a)/15d-14(a).                                                                                 |
|   |   |                                                                                                                                                                                    |
| 32.1   |   | Certification      of John P. Hickey, Jr., Chief Executive Officer, pursuant to 18 U.S.C.      Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of      2002.     |
|   |   |                                                                                                                                                                                    |
| 32.2   |   | Certification      of Edwin J. Depenbrok, Chief Financial Officer, pursuant to 18 U.S.C.      Section 1350, as adopted pursuant to Section 906 of Sarbanes- Oxley Act of      2002.     |

----