| x      | QUARTERLY      REPORT UNDER SECTION 13 OR 15 (D) |
|--------|--------------------------------------------------|
|   | OF      THE SECURITIES EXCHANGE ACT OF 1934      |

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

| MISSISSIPPI                   |   | 64-0862173                                |
|-------------------------------|--------|-------------------------------------------|
| (STATE      OF INCORPORATION) |   | (I.R.S.      EMPLOYER IDENTIFICATION NO.) |
|                          |   |                                      |

| 6480 U.S. HIGHWAY 98 WEST HATTIESBURG,      MISSISSIPPI |   | 39402           |
|---------------------------------------------------------|--------|-----------------|
| (ADDRESS OF PRINCIPAL                                   |   | (ZIP      CODE) |
| EXECUTIVE      OFFICES)                                 |   |            |

| LARGE      ACCELERATED FILER o | ACCELERATED      FILER o | NON-ACCELERATED      FILER x |
|--------------------------------|--------------------------|------------------------------|

----

|                                                                                                                                                                                         |   | (Unaudited)   |    |   |              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                    |   | June      30, |    |   | December      31, |   |
| ($      amounts in thousands)                                                                                                                                                           |   | 2010          |    |   | 2009              |   |
| ASSETS                                                                                                                                                                                  |   |          |    |   |              |   |
| Cash      and due from banks                                                                                                                                                            |   | $             | 14,026  |   |              | $      | 8,120 |   |
| Interest-bearing      deposits with banks                                                                                                                                               |   |          | 1,348   |   |              |   | 296 |   |
| Federal      funds sold                                                                                                                                                                 |   |          | 13,079  |   |              |   | 7,575 |   |
| Total      cash and cash equivalents                                                                                                                                                    |   |          | 28,453  |   |              |   | 15,991 |   |
|                                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| Securities      held-to-maturity, at amortized cost                                                                                                                                     |   |          | 3       |   |              |   | 3 |   |
| Securities      available-for-sale, at fair value                                                                                                                                       |   |          | 105,327 |   |              |   | 112,231 |   |
| Other      securities                                                                                                                                                                   |   |          | 2,365   |   |              |   | 2,384 |   |
| Total      securities                                                                                                                                                                   |   |          | 107,695 |   |              |   | 114,618 |   |
|                                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| Loans      held for sale                                                                                                                                                                |   |          | 4,964   |   |              |   | 3,692 |   |
| Loans                                                                                                                                                                                   |   |          | 326,488 |   |              |   | 315,103 |   |
| Allowance      for loan losses                                                                                                                                                          |   |          | (4,293  | )      |              |   | (4,762 | ) |
| Loans,      net                                                                                                                                                                         |   |          | 327,159 |   |              |   | 314,033 |   |
|                                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| Premises      and equipment                                                                                                                                                             |   |          | 14,480  |   |              |   | 14,279 |   |
| Interest      receivable                                                                                                                                                                |   |          | 2,307   |   |              |   | 2,318 |   |
| Cash      surrender value of life insurance                                                                                                                                             |   |          | 5,985   |   |              |   | 5,857 |   |
| Goodwill                                                                                                                                                                                |   |          | 702     |   |              |   | 702 |   |
| Other      assets                                                                                                                                                                       |   |          | 10,230  |   |              |   | 9,754 |   |
|                                                                                                                                                                                    |   | $             | 497,011 |   |              | $      | 477,552 |   |
|                                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                         |   |          |    |   |              |   |   |   |
|                                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| LIABILITIES:                                                                                                                                                                            |   |          |    |   |              |   |   |   |
| Deposits:                                                                                                                                                                               |   |          |    |   |              |   |   |   |
| Noninterest-bearing                                                                                                                                                                     |   | $             | 46,944  |   |              | $      | 48,527 |   |
| Interest-bearing                                                                                                                                                                        |   |          | 358,235 |   |              |   | 335,227 |   |
| TOTAL      DEPOSITS                                                                                                                                                                     |   |          | 405,179 |   |              |   | 383,754 |   |
|                                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| Interest      payable                                                                                                                                                                   |   |          | 421     |   |              |   | 672 |   |
| Borrowed      funds                                                                                                                                                                     |   |          | 30,906  |   |              |   | 32,037 |   |
| Subordinated      debentures                                                                                                                                                            |   |          | 10,310  |   |              |   | 10,310 |   |
| Other      liabilities                                                                                                                                                                  |   |          | 5,769   |   |              |   | 7,163 |   |
| TOTAL      LIABILITIES                                                                                                                                                                  |   |          | 452,585 |   |              |   | 433,936 |   |
|                                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| STOCKHOLDERS’      EQUITY:                                                                                                                                                        |   |          |    |   |              |   |   |   |
| Preferred      stock, no par value, $1,000 per share liquidation, 10,000,000 shares      authorized; 5,000 shares issued and outstanding at June 30, 2010 and at      December 31, 2009 |   |          | 4,801   |   |              |   | 4,773 |   |
| Common      stock, $1 par value authorized 10,000,000 shares; 3,046,363 shares issued      at June 30, 2010 and at December 31, 2009                                                    |   |          | 3,046   |   |              |   | 3,046 |   |
| Additional      paid-in capital                                                                                                                                                         |   |          | 23,418  |   |              |   | 23,418 |   |
| Retained      earnings                                                                                                                                                                  |   |          | 13,674  |   |              |   | 12,944 |   |
| Accumulated      other comprehensive loss                                                                                                                                               |   |          | (49     | )      |              |   | (101 | ) |
| Treasury      stock, at cost, 26,494 shares at June 30, 2010 and at December 31,      2009                                                                                              |   |          | (464    | )      |              |   | (464 | ) |
| TOTAL      STOCKHOLDERS' EQUITY                                                                                                                                                         |   |          | 44,426  |   |              |   | 43,616 |   |
|                                                                                                                                                                                    |   | $             | 497,011 |   |              | $      | 477,552 |   |

----

|                                                                         |   | (Unaudited)             |   |   | (Unaudited)           |   |
|------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
|                                                                         |   | Three      Months Ended |   |   | Six      Months Ended |   |
|                                                                         |   | June      30,           |   |   | June      30,         |   |
|                                                                         |   | 2010                    |   |   | 2009                  |   |   | 2010 |   |   | 2009 |   |
| INTEREST      INCOME:                                                        |   |                    |   |   |                  |   |   |   |   |   |   |   |
| Interest      and fees on loans                                              |   | $                       | 5,119  |   |                  | $      | 5,165 |   |   | $ | 10,129 |   |   | $ | 10,348 |   |
| Interest      and dividends on                                               |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| securities:                                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Taxable      interest and                                                    |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| dividends                                                                    |   |                    | 518    |   |                  |   | 730 |   |   |   | 1,086 |   |   |   | 1,551 |   |
| Tax      exempt interest                                                     |   |                    | 296    |   |                  |   | 227 |   |   |   | 597 |   |   |   | 441 |   |
| Interest      on federal funds sold                                          |   |                    | 11     |   |                  |   | 34 |   |   |   | 16 |   |   |   | 69 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      INTEREST INCOME                                                   |   |                    | 5,944  |   |                  |   | 6,156 |   |   |   | 11,828 |   |   |   | 12,409 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST      EXPENSE:                                                       |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on deposits                                                    |   |                    | 1,496  |   |                  |   | 2,214 |   |   |   | 3,223 |   |   |   | 4,462 |   |
| Interest      on borrowed funds                                              |   |                    | 369    |   |                  |   | 420 |   |   |   | 736 |   |   |   | 984 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      INTEREST EXPENSE                                                  |   |                    | 1,865  |   |                  |   | 2,634 |   |   |   | 3,959 |   |   |   | 5,446 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| NET      INTEREST INCOME                                                     |   |                    | 4,079  |   |                  |   | 3,522 |   |   |   | 7,869 |   |   |   | 6,963 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION      FOR LOAN LOSSES                                               |   |                    | 217    |   |                  |   | 464 |   |   |   | 382 |   |   |   | 1,092 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| NET      INTEREST INCOME AFTER                                               |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION      FOR LOAN LOSSES                                               |   |                    | 3,862  |   |                  |   | 3,058 |   |   |   | 7,487 |   |   |   | 5,871 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME:                                                           |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Service      charges on deposit accounts                                     |   |                    | 609    |   |                  |   | 612 |   |   |   | 1,186 |   |   |   | 1,205 |   |
| Other      service charges and fees                                          |   |                    | 368    |   |                  |   | 515 |   |   |   | 739 |   |   |   | 1,019 |   |
| Gain      on sale of investment securities                                   |   |                    | 51     |   |                  |   | - |   |   |   | 51 |   |   |   | - |   |
| Impairment      loss on securities:                                          |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Total      other-than-temporary impairment gain (loss)                       |   |                    | (242   | )      |                  |   | (218 | ) |   |   | (283 | ) |   |   | (218 | ) |
| Less:      Portion of (gain)loss recognized in other comprehensive    income |   |                    | 200    |   |                  |   | 147 |   |   |   | 134 |   |   |   | 147 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      impairment loss recognized in earnings                              |   |                    | (42    | )      |                  |   | (71 | ) |   |   | (149 | ) |   |   | (71 | ) |
| TOTAL      OTHER INCOME                                                      |   |                    | 986    |   |                  |   | 1,056 |   |   |   | 1,827 |   |   |   | 2,153 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      EXPENSES:                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits                                          |   |                    | 2,169  |   |                  |   | 2,087 |   |   |   | 4,272 |   |   |   | 4,215 |   |
| Occupancy      and equipment                                                 |   |                    | 549    |   |                  |   | 546 |   |   |   | 1,066 |   |   |   | 1,097 |   |
| Other                                                                        |   |                    | 1,177  |   |                  |   | 1,257 |   |   |   | 2,255 |   |   |   | 2,236 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      OTHER EXPENSES                                                    |   |                    | 3,895  |   |                  |   | 3,890 |   |   |   | 7,593 |   |   |   | 7,548 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| INCOME      BEFORE INCOME TAXES                                              |   |                    | 953    |   |                  |   | 224 |   |   |   | 1,721 |   |   |   | 476 |   |
| INCOME      TAXES                                                            |   |                    | 304    |   |                  |   | 43 |   |   |   | 536 |   |   |   | 104 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME                                                              |   |                    | 649    |   |                  |   | 181 |   |   |   | 1,185 |   |   |   | 372 |   |
| PREFERRED      DIVIDENDS                                                     |   |                    | 63     |   |                  |   | 63 |   |   |   | 125 |   |   |   | 101 |   |
| PREFERRED      STOCK ACCRETION                                               |   |                    | 14     |   |                  |   | 14 |   |   |   | 28 |   |   |   | 28 |   |
|                                                                         |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME APPLICABLE                                                   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| TO      COMMON STOCKHOLDERS                                                  |   | $                       | 572    |   |                  | $      | 104 |   |   | $ | 1,032 |   |   | $ | 243 |   |
| NET      INCOME APPLICABLE TO                                                |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| COMMON      STOCKHOLDERS:                                                    |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                                                                        |   | $                       | .19    |   |                  | $      | .03 |   |   | $ | .34 |   |   | $ | .08 |   |
| DILUTED                                                                      |   |                    | .19    |   |                  |   | .03 |   |   |   | .34 |   |   |   | .08 |   |
| DIVIDENDS      PER SHARE - COMMON                                            |   |                    | .025   |   |                  |   | - |   |   |   | .10 |   |   |   | - |   |

----

|                                 |   |   |   |   |      |   |   |       |   |   |     |   |   | Accumulated   |   |   |     |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|-----------|--------|--------|------------|--------|--------|----------|--------|--------|---------------|--------|--------|----------|--------|--------|--------|--------|
|                                 |   |   |   |   |      |   |   |       |   |   |     |   |   | Other         |   |   |     |   |   |   |   |
|                                 |   |   |   |   |      |   |   | Additional |   |   |     |   |   | Comprehensive |   |   |     |   |   |   |   |
|                                 |   | Common |   |   | Preferred |   |   | Paid-in    |   |   | Retained |   |   | Income        |   |   | Treasury |   |   |   |   |
|                                 |   | Stock  |   |   | Stock     |   |   | Capital    |   |   | Earnings |   |   | (Loss)        |   |   | Stock    |   |   | Total  |   |
| Balance,                             |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |
| January      1, 2009                 |   | $      | 3,017  |   |      | $      | -      |       |   | $      | 22,942   |   |   | $             | 11,482 |   |     | $      | (409   | )      |   | $ | (464 | ) |   | $ | 36,568 |   |
| Net      income                      |   |   | -      |   |      |   | -      |       |   |   | -        |   |   |          | 372    |   |     |   | -      |   |   |   | - |   |   |   | 372 |   |
| Net      change in                   |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| unrealized                           |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| gain      (loss)                     |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| on      available-                   |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| for-sale      securities,            |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| net      of tax                      |   |   | -      |   |      |   | -      |       |   |   | -        |   |   |          | -      |   |     |   | 97     |   |   |   | - |   |   |   | 97 |   |
| Issuance      of                     |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| preferred                            |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| stock      and                       |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| warrant                              |   |   | -      |   |      |   | 4,716  |       |   |   | 284      |   |   |          | -      |   |     |   | -      |   |   |   | - |   |   |   | 5,000 |   |
|  Exercise      of stock options |   |   | 29     |   |      |   | -      |       |   |   | 195      |   |   |          | -      |   |     |   | -      |   |   |   | - |   |   |   | 224 |   |
|  Accretion      of              |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| preferred                            |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| stock discount                       |   |   | -      |   |      |   | 28     |       |   |   | -        |   |   |          | (28    | )      |     |   | -      |   |   |   | - |   |   |   | - |   |
|  Dividends      on              |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| preferred                            |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| stock                                |   |   | -      |   |      |   | -      |       |   |   | -        |   |   |          | (101   | )      |     |   | -      |   |   |   | - |   |   |   | (101 | ) |
| Balance,                             |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|  June      30, 2009             |   | $      | 3,046  |   |      | $      | 4,744  |       |   | $      | 23,421   |   |   | $             | 11,725 |   |     | $      | (312   | )      |   | $ | (464 | ) |   | $ | 42,160 |   |
|                                 |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                             |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| January      1, 2010                 |   | $      | 3,046  |   |      | $      | 4,773  |       |   | $      | 23,418   |   |   | $             | 12,944 |   |     | $      | (101   | )      |   | $ | (464 | ) |   | $ | 43,616 |   |
| Net      income                      |   |   | -      |   |      |   | -      |       |   |   | -        |   |   |          | 1,185  |   |     |   | -      |   |   |   | - |   |   |   | 1,185 |   |
| Net      change in                   |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| unrealized                           |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| gain      (loss)                     |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| on      available-                   |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| for-sale      securities,            |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| net      of tax                      |   |   | -      |   |      |   | -      |       |   |   | -        |   |   |          | -      |   |     |   | 27     |   |   |   | - |   |   |   | 27 |   |
| Net      change in                   |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|  unrealized                     |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| gain      (loss)                     |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| on      derivative,                  |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| net      of tax                      |   |   | -      |   |      |   | -      |       |   |   | -        |   |   |          | -      |   |     |   | 25     |   |   |   | - |   |   |   | 25 |   |
|  Accretion      of              |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| preferred                            |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| stock                                |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| discount                             |   |   | -      |   |      |   | 28     |       |   |   | -        |   |   |          | (28    | )      |     |   | -      |   |   |   | - |   |   |   | - |   |
|  Dividends      on              |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| preferred                            |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| stock                                |   |   | -      |   |      |   | -      |       |   |   | -        |   |   |          | (125   | )      |     |   | -      |   |   |   | - |   |   |   | (125 | ) |
|  Dividends      on              |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| common      stock,                   |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| $.10      per                        |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| share                                |   |   | -      |   |      |   | -      |       |   |   | -        |   |   |          | (302   | )      |     |   | -      |   |   |   | - |   |   |   | (302 | ) |
| Balance,                             |   |   |   |   |      |   |   |       |   |   |     |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| June      30, 2010                   |   | $      | 3,046  |   |      | $      | 4,801  |       |   | $      | 23,418   |   |   | $             | 13,674 |   |     | $      | (49    | )      |   | $ | (464 | ) |   | $ | 44,426 |   |

----

|                                                     |   | (Unaudited)           |    |
|----------------------------------------------------------|--------|-----------------------|---------|
|                                                     |   | Six      Months Ended |    |
|                                                     |   | June      30,         |    |
|                                                     |   | 2010                  |    |   | 2009 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:               |   |                  |    |   |   |   |
| NET      INCOME                                          |   | $                     | 1,185   |   |   | $ | 372 |   |
| Adjustments      to reconcile net income                 |   |                  |    |   |   |   |   |   |
| to      net cash provided by operating                   |   |                  |    |   |   |   |   |   |
| activities:                                              |   |                  |    |   |   |   |   |   |
| Depreciation,      amortization and accretion            |   |                  | 604     |   |   |   | 614 |   |
| Impairment      loss on securities                       |   |                  | 149     |   |   |   | 71 |   |
| Gain      on sale of securities                          |   |                  | (51     | ) |   |   | - |   |
| Provision      for loan losses                           |   |                  | 382     |   |   |   | 1,092 |   |
| Loss      on sale/writedown of ORE                       |   |                  | 52      |   |   |   | 106 |   |
| Loss      on disposal of premises and equipment          |   |                  | -       |   |   |   | 28 |   |
| Increase      in cash value of life insurance            |   |                  | (128    | ) |   |   | (104 | ) |
| Federal      Home Loan Bank stock dividends              |   |                  | (2      | ) |   |   | (10 | ) |
| Changes      in:                                         |   |                  |    |   |   |   |   |   |
| Interest      receivable                                 |   |                  | 11      |   |   |   | 331 |   |
| Loans      held for sale                                 |   |                  | (1,272  | ) |   |   | (872 | ) |
| Interest      payable                                    |   |                  | (251    | ) |   |   | (138 | ) |
| Other,      net                                          |   |                  | (25     | ) |   |   | 2,136 |   |
|                                                     |   |                  |    |   |   |   |   |   |
| NET      CASH PROVIDED BY                                |   |                  |    |   |   |   |   |   |
| OPERATING      ACTIVITIES                                |   |                  | 654     |   |   |   | 3,626 |   |
|                                                     |   |                  |    |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:               |   |                  |    |   |   |   |   |   |
| Maturities      and calls of securities                  |   |                  |    |   |   |   |   |   |
| available-for-sale                                       |   |                  | 30,067  |   |   |   | 26,709 |   |
| Purchases      of securities available-for-sale          |   |                  | (24,445 | ) |   |   | (39,056 | ) |
| (Increase)decrease      in other securities              |   |                  | 20      |   |   |   | (210 | ) |
| Proceeds      from sale of securities available-for-sale |   |                  | 1,051   |   |   |   | - |   |
| Net      (increase) decrease in loans                    |   |                  | (14,219 | ) |   |   | 1,571 |   |
| Net      (additions)disposals in premises and equipment  |   |                  | (533    | ) |   |   | 278 |   |
|                                                     |   |                  |    |   |   |   |   |   |
| NET      CASH USED IN                                    |   |                  |    |   |   |   |   |   |
| INVESTING      ACTIVITIES                                |   |                  | (8,059  | ) |   |   | (10,708 | ) |
|                                                     |   |                  |    |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:               |   |                  |    |   |   |   |   |   |
| Increase      in deposits                                |   |                  | 21,425  |   |   |   | 13,782 |   |
| Net      decrease in borrowed funds                      |   |                  | (1,131  | ) |   |   | (10,566 | ) |
| Dividends      paid on common stock                      |   |                  | (302    | ) |   |   | - |   |
| Dividends      paid on preferred stock                   |   |                  | (125    | ) |   |   | (101 | ) |
| Proceeds      from issuance of preferred stock           |   |                  |    |   |   |   |   |   |
| and      warrants                                        |   |                  | -       |   |   |   | 5,000 |   |
| Exercise      of stock options                           |   |                  | -       |   |   |   | 223 |   |
|                                                     |   |                  |    |   |   |   |   |   |
|                                                     |   |                  |    |   |   |   |   |   |
| NET      CASH PROVIDED BY                                |   |                  |    |   |   |   |   |   |
| FINANCING      ACTIVITIES                                |   |                  | 19,867  |   |   |   | 8,338 |   |
|                                                     |   |                  |    |   |   |   |   |   |
|                                                     |   |                  |    |   |   |   |   |   |
| NET      INCREASE IN CASH                                |   |                  | 12,462  |   |   |   | 1,256 |   |
|                                                     |   |                  |    |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD    |   |                  | 15,991  |   |   |   | 25,008 |   |
|                                                     |   |                  |    |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT END OF PERIOD          |   | $                     | 28,453  |   |   | $ | 26,264 |   |
|                                                     |   |                  |    |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES:                           |   |                  |    |   |   |   |   |   |
|                                                     |   |                  |    |   |   |   |   |   |
| CASH      PAYMENTS FOR INTEREST                          |   | $                     | 4,210   |   |   |   | 5,584 |   |
| CASH      PAYMENTS FOR INCOME TAXES                      |   |                  | 607     |   |   |   | 544 |   |
| LOANS      TRANSFERRED TO OTHER REAL ESTATE              |   |                  | 1,983   |   |   |   | 415 |   |
|                                                     |   |                  |    |   |   |   |   |   |

----

----

|                   |   | For      theThree Months Ended |    |
|------------------------|--------|--------------------------------|---------|
|                   |   | June      30, 2010             |    |
|                   |   | Net      Income                |    |   | Shares |   | Per      Share |   |
|                   |   | (Numerator)                    |    |   | (Denominator) |   | Data |   |
| Basic      per share   |   | $                              | 572,000 |   |   |   | 3,019,869 |   |   | $ | .19 |   |
|                   |   |                           |    |   |   |   |   |   |   |   |   |   |
| Diluted      per share |   | $                              | 572,000 |   |   |   | 3,019,869 |   |   | $ | .19 |   |

|                   |   | For      theSix Months Ended |      |
|------------------------|--------|------------------------------|-----------|
|                   |   | June      30, 2010           |      |
|                   |   | Net      Income              |      |   | Shares |   | Per      Share |   |
|                   |   | (Numerator)                  |      |   | (Denominator) |   | Data |   |
| Basic      per share   |   | $                            | 1,032,000 |   |   |   | 3,019,869 |   |   | $ | .34 |   |
|                   |   |                         |      |   |   |   |   |   |   |   |   |   |
| Diluted      per share |   | $                            | 1,032,000 |   |   |   | 3,019,869 |   |   | $ | .34 |   |

|                   |   | For      theThree Months Ended |    |
|------------------------|--------|--------------------------------|---------|
|                   |   | June      30, 2009             |    |
|                   |   | Net      Income                |    |   | Shares |   | Per      Share |   |
|                   |   | (Numerator)                    |    |   | (Denominator) |   | Data |   |
| Basic      per share   |   | $                              | 104,000 |   |   |   | 3,015,496 |   |   | $ | .03 |   |
|                   |   |                           |    |   |   |   |   |   |   |   |   |   |
| Diluted      per share |   | $                              | 104,000 |   |   |   | 3,015,496 |   |   | $ | .03 |   |

|                   |   | For      theSix Months Ended |               |
|------------------------|--------|------------------------------|--------------------|
|                   |   |                         | June      30, 2009 |   |
|                   |   | Net      Income              |               |   | Shares |   | Per      Share |   |
|                   |   | (Numerator)                  |               |   | (Denominator) |   | Data |   |
| Basic      per share   |   | $                            | 243,000            |   |   |   | 3,002,991 |   |   | $ | .08 |   |
|                   |   |                         |               |   |   |   |   |   |   |   |   |   |
| Diluted      per share |   | $                            | 243,000            |   |   |   | 3,002,991 |   |   | $ | .08 |   |

----

|                                                                                            |   | Quarter |          |   | Six      Months |          |
|-------------------------------------------------------------------------------------------------|--------|---------|---------------|--------|-----------------|---------------|
|                                                                                            |   |    | Ended         |   |            | Ended         |   |
|                                                                                            |   |    | June      30, |   |            | June      30, |   |
|                                                                                            |   |    | 2010          |   |            | 2009          |   |   | 2010 |   |   | 2009 |   |
| Net      Income                                                                                 |   | $       | 649           |   |            |          |   |   |   |   |   |   |   |
|                                                                                            |   |    |          |   |            |          | 181 |   |   | $ | 1,185      $ |   |   |   | 372 |   |
| Other      Comprehensive Income, net of tax:                                                    |   |    |          |   |            |          |   |   |   |   |   |   |   |   |   |   |
| Unrealized      holding gains (losses)on                                                        |   |    |          |   |            |          |   |   |   |   |   |   |   |   |   |   |
| available-for-sale      securities during                                                       |   |    |          |   |            |          |   |   |   |   |   |   |   |   |   |   |
| the      period                                                                                 |   |    | (434          | )      |            |          | (398 | ) |   |   | 27 |   |   |   | 97 |   |
|                                                                                                 |   |    |          |   |            |          |   |   |   |   |   |   |   |   |   |   |
| Unrealized      gain on derivative carried      at fair value during the period                 |   |    | 24            |   |            |          | - |   |   |   | 25 |   |   |   | - |   |
|                                                                                            |   |    |          |   |            |          |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      Income (Loss)                                                                |   | $       | 239           |   |            | $             | (217 | ) |   | $ | 1,237 |   |   | $ | 469 |   |
| Unrealized      holding gains (losses) on available- for-sale securities during the      period |   | $       | (434          | )      |            | $             | (398 | ) |   | $ | 27 |   |   | $ | 97 |   |
|                                                                                            |   |    |          |   |            |          |   |   |   |   |   |   |   |   |   |   |
| Unrealized      gain on derivative carried at fair value during the period                      |   |    | 24            |   |            |          | - |   |   |   | 25 |   |   |   | - |   |
|                                                                                            |   |    |          |   |            |          |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |    |          |   |            |          |   |   |   |   |   |   |   |   |   |   |
| Accumulated      Other Comprehensive Income (Loss),beginning of      period                     |   |    | 361           |   |            |          | 86 |   |   |   | (101 | ) |   |   | (409 | ) |
|                                                                                            |   |    |          |   |            |          |   |   |   |   |   |   |   |   |   |   |
| Accumulated      Other Comprehensive Income, (Loss),      end of period                         |   | $       | (49           | )      |            | $             | (312 | ) |   | $ | (49 | ) |   | $ | (312 | ) |

----

| Level      1: | Valuations      for assets and liabilities traded in active exchange markets, such as the      New York Stock Exchange. Valuations are obtained from readily available      pricing sources for market transactions involving identical assets or      liabilities.                                                                                                                                                                                                                                                                                     |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Level      2: | Valuations      for assets and liabilities traded in less active dealer or broker markets.      Valuations are obtained from third party pricing services for identical or      comparable assets or liabilities which use observable inputs other than      Level 1 prices, such as quoted prices for similar assets or liabilities;      quoted prices in markets that are not active; or other inputs that are      observable or can be corroborated by observable market data for      substantially the full term of the assets and  liabilities. |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Level      3: | Unobservable      inputs that are supported by little or no market activity and that are      significant to the fair value of the assets or  liabilities.                                                                                                                                                                                                                                                                                                                                                                                              |

|                               |            |   |                                                                    | Fair      Value Measurements Using |                                           |
|------------------------------------|-----------------|--------|-------------------------------------------------------------------------|------------------------------------|------------------------------------------------|
|                               | Fair      Value |   | QuotedPrices      inActiveMarkets      forIdenticalAssets(Level      1) |                               | SignificantOtherObservableInputs(Level      2) |   | SignificantUnobservableInputs(Level      3) |   |
| Available-for-sale      securities |            | $      | 105,327                                                                 |                               |                                           | $ | 907 |   |   | $ | 101,375 |   |   | $ | 3,045 |   |

----

|                               |            |   |                                                               | Fair      Value Measurements Using |                                           |
|------------------------------------|-----------------|--------|--------------------------------------------------------------------|------------------------------------|------------------------------------------------|
|                               | Fair      Value |   | QuotedPrices      inActiveMarkets forIdenticalAssets(Level      1) |                               | SignificantOtherObservableInputs(Level      2) |   | SignificantUnobservableInputs(Level      3) |   |
| Available-for-sale      securities |            | $      | 112,231                                                            |                               |                                           | $ | 958 |   |   | $ | 108,040 |   |   | $ | 3,233 |   |

| (Dollars in      thousands)                                             |   | Bank-IssuedTrust      PreferredSecurities |   |
|-------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                    |   | 2010                                      |   |   | 2009 |   |
| Balance,      January 1                                                 |   | $                                         | 3,233  |   |   | $ | - |   |
| Transfers      into Level 3                                             |   |                                      | -      |   |   |   | 5,338 |   |
| Transfers      out of Level 3                                           |   |                                      | -      |   |   |   | - |   |
| Other-than-temporary      impairment loss included                      |   |                                      |   |   |   |   |   |   |
|      in      earnings                          |   |                                      | (84    | ) |   |   | (111 | ) |
|    Unrealized      loss included in comprehensive income |   |                                      | (104   | ) |   |   | (1,994 | ) |
| Balance      at June 30, 2010 and December 31, 2009                     |   | $                                         | 3,045  |   |   | $ | 3,233 |   |

----

|                         |   |   |      |   |   |   | Fair      Value Measurements Using                            |   |
|------------------------------|--------|--------|-----------|--------|--------|--------|--------------------------------------------------------------------|--------|
|                         |   |   | FairValue |   |   |   | QuotedPrices      inActiveMarkets forIdenticalAssets(Level      1) |   |   |   | SignificantOtherObservableInputs(Level      2) |   |   |   | SignificantUnobservableInputs(Level      3) |   |
| Impaired      loans          |   | $      | 5,242     |   |   | $      | -                                                                  |   |   | $ | 5,242 |   |   | $ | - |   |
| Other      real estate owned |   | $      | 3,822     |   |   | $      | -                                                                  |   |   | $ | 3,822 |   |   | $ | - |   |

----

|                         |   |      |   |   | Fair      Value Measurements Using                                 |   |
|------------------------------|--------|-----------|--------|--------|--------------------------------------------------------------------|--------|
|                         |   | FairValue |   |   | QuotedPrices      inActiveMarkets forIdenticalAssets(Level      1) |   |   | SignificantOtherObservableInputs(Level      2) |   |   |  SignificantUnobservableInputs(Level      3) |   |
| Impaired      loans          |   | $         | 20,609 |   |                                                               | $      | - |   |   | $ | 20,609 |   |   | $ | - |   |
| Other      real estate owned |   | $         | 2,903  |   |                                                               | $      | - |   |   | $ | 2,903 |   |   | $ | - |   |

----

|                               |   | As      ofJune 30, 2010 |    |   | As      ofDecember 31, 2009 |   |
|------------------------------------|--------|-------------------------|---------|--------|-----------------------------|--------|
|                               |   | CarryingAmount          |    |   | EstimatedFair      Value    |   |   | CarryingAmount |   |   | EstimatedFairValue |   |
|                               |   | (In      thousands)     |    |
| Financial      Instruments:        |   |                    |    |   |                        |   |   |   |   |   |   |   |
| Assets:                            |   |                    |    |   |                        |   |   |   |   |   |   |   |
| Cash      and cash equivalents     |   | $                       | 28,453  |   |                        | $      | 28,453 |   |   | $ | 15,991 |   |   | $ | 15,991 |   |
| Securities      available-for-sale |   |                    | 105,327 |   |                        |   | 105,327 |   |   |   | 112,231 |   |   |   | 112,231 |   |
| Securities      held-to-maturity   |   |                    | 3       |   |                        |   | 3 |   |   |   | 3 |   |   |   | 3 |   |
| Other      securities              |   |                    | 2,365   |   |                        |   | 2,365 |   |   |   | 2,384 |   |   |   | 2,384 |   |
| Loans,      net                    |   |                    | 327,159 |   |                        |   | 339,443 |   |   |   | 314,033 |   |   |   | 326,271 |   |
| Liabilities:                       |   |                    |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing                |   |                    |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| deposits                           |   | $                       | 46,944  |   |                        | $      | 46,944 |   |   | $ | 48,527 |   |   | $ | 48,527 |   |
| Interest-bearing      deposits     |   |                    | 358,235 |   |                        |   | 359,489 |   |   |   | 335,227 |   |   |   | 337,238 |   |
| Subordinated      debentures       |   |                    | 10,310  |   |                        |   | 10,310 |   |   |   | 10,310 |   |   |   | 10,310 |   |
| FHLB      and other borrowings     |   |                    | 30,906  |   |                        |   | 30,906 |   |   |   | 32,037 |   |   |   | 32,037 |   |

----

|                                             |   | Composition      of Loan Portfolio |                                   |
|--------------------------------------------------|--------|------------------------------------|----------------------------------------|
|                                             |   | June      30,2010                  |                                   |   |  Percent      of |   |   | December      31,2009 |   |   |  Percent      of |   |
|                                             |   | Amount                             |                                   |   |  Total |   |   | Amount |   |   | Total |   |
|                                             |   | (Dollars      in thousands)        |                                   |
| Mortgage      loans held for sale...             |   | $                                  | 4,964                                  |   |   |   | 1.5 | % |   | $ | 3,692 |   |   |   | 1.2 | % |
| Commercial, financial      and agricultural |   |                               |        50,432 |   |   |   |  15.2 |   |   |   |        43,229 |   |   |   |  13.6 |   |
| Real      Estate:                                |   |                               |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-commercial                              |   |                               | 101,230                                |   |   |   | 30.5 |   |   |   |  87,492 |   |   |   | 27.4 |   |
| Mortgage-residential                             |   |                               | 103,092                                |   |   |   | 31.1 |   |   |   | 102,738 |   |   |   | 32.2 |   |
| Construction                                     |   |                               |  61,383                           |   |   |   | 18.5 |   |   |   |  68,695 |   |   |   | 21.5 |   |
| Consumer      and other                          |   |                               |  10,351                           |   |   |   | 3.2 |   |   |   |  12,949 |   |   |   | 4.1 |   |
| Total      loans                                 |   |                               | 331,452                                |   |   |   | 100 |   |   |   | 318,795 |   |   |   | 100 |   |
| Allowance      for loan losses                   |   |                               | (4,293                                 | ) |   |   |   |   |   |   | (4,762 | ) |   |   |   |   |
| Net      loans                                   |   | $                                  | 327,159                                |   |   |   |   |   |   | $ | 314,033 |   |   |   |   |   |

----

|                                                  |   | June      30, 2010          |   |
|-------------------------------------------------------|--------|-----------------------------|--------|
|                                                  |   | (Dollars      in thousands) |   |
|                                                  |   | Amount                      |   |   | %      of loansin      eachcategory tototal      loans |   |
| Commercial      Non Real Estate                       |   | $                           | 570    |   |   |   | 15.7 | % |
| Commercial      Real Estate                           |   |                        | 2,802  |   |   |   | 61.9 |   |
| Consumer      Real Estate                             |   |                        | 633    |   |   |   | 17.4 |   |
| Consumer                                              |   |                        | 153    |   |   |   | 2.9 |   |
| Unallocated                                           |   |                        | 135    |   |   |   | 2.1 |   |
|         Total |   | $                           | 4,293  |   |   |   | 100 | % |

|                                                  |   | December      31, 2009      |   |
|-------------------------------------------------------|--------|-----------------------------|--------|
|                                                  |   | (Dollars      in thousands) |   |
|                                                  |   | Amount                      |   |   | %      of loansin      eachcategory tototal      loans |   |
| Commercial      Non Real Estate                       |   | $                           | 1,015  |   |   |   | 13.9 | % |
| Commercial      Real Estate                           |   |                        | 2,564  |   |   |   | 62.2 |   |
| Consumer      Real Estate                             |   |                        | 687    |   |   |   | 17.8 |   |
| Consumer                                              |   |                        | 317    |   |   |   | 3.9 |   |
| Unallocated                                           |   |                        | 179    |   |   |   | 2.2 |   |
|         Total |   | $                           | 4,762  |   |   |   | 100 | % |

|                                                                                                                                   |   | June      30,2010   |       |   | December      31,2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|--------|-----------------------|--------|
|                                                                                                                                   |   | (In      thousands) |       |
| Impaired      Loans:                                                                                                                   |   |                |       |   |                  |   |
|     Impaired      loans without a valuation allowance                                                              |   | $                   | 3,459      |   |                  | $      | 12,295 |   |
|     Impaired      loans with a valuation allowance                                                                 |   |                | 1,783      |   |                  |   | 8,314 |   |
| Total      impaired loans                                                                                                              |   | $                   | 5,242      |   |                  | $      | 20,609 |   |
| Allowance      for loan losses on impaired loans at period end                                                                    |   | $                   | 665        |   |                  | $      | 2,004 |   |
|                                                                                                                                   |   |                |       |   |                  |   |   |   |
| Total      nonaccrual loans                                                                                                            |   |                | 5,144      |   |                  |   | 4,367 |   |
|                                                                                                                                   |   |                |       |   |                  |   |   |   |
| Past      due 90 days or more and still accruing                                                                                       |   |                | 288        |   |                  |   | 1,447 |   |
|                                                                                                                                   |   |                |       |   |                  |   |   |   |
| Average      investment in impaired loans                                                                                              |   |                | 12,926     |   |                  |   | 19,114 |   |
|                                                                                                                                   |   |                |       |   |                  |   |   |   |
| Interest      paid on impaired loans for the six month period      ended June 30, 2010 and year ended December      31, 2009 |   |                |   451 |   |                  |   |   1,297 |   |

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|                                                                                             |   |  June 30, 2010 |                 |
|--------------------------------------------------------------------------------------------------|--------|---------------------|----------------------|
|                                                                                             |   |                |                 |   | Gross |   |   | Gross |   |   |   |   |
|                                                                                             |   | Amortized           |                 |   | Unrealized |   |   | Unrealized |   |   | Estimated |   |
|                                                                                             |   | Cost                |                 |   | Gains |   |   | Losses |   |   | Fair Value |   |
| Available-for-sale      securities:                                                              |   |                |                 |   |   |   |   |   |   |   |   |   |
| Obligations      of U.S. Government      Agencies                                           |   | $                   | 25,409               |   |   | $ | 221 |   |   | $ | 1 |   |   | $ | 25,629 |   |
| Tax-exempt      and taxable obligations      of states and      municipal subdivisions |   |                |     46,383 |   |   |   |     1,152 |   |   |   |     38 |   |   |   |     47,497 |   |
| Mortgage-backed securities                                                                  |   |                | 22,293               |   |   |   | 924 |   |   |   | 67 |   |   |   | 23,150 |   |
| Corporate      obligations                                                                       |   |                | 10,146               |   |   |   | 13 |   |   |   | 2,015 |   |   |   | 8,144 |   |
| Other                                                                                            |   |                | 1,190                |   |   |   | - |   |   |   | 283 |   |   |   | 907 |   |
| Total                                                                                            |   | $                   | 105,421              |   |   | $ | 2,310 |   |   | $ | 2,404 |   |   | $ | 105,327 |   |
| Held-to-maturity      securities:                                                                |   |                |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed      securities                                                                  |   | $                   | 3                    |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 3 |   |

----

----

|                                             |   | ($      In Thousands) |   |
|--------------------------------------------------|--------|-----------------------|--------|
| Past      due 30 through 89 days                 |   | $                     | 4,202  |   |
| Past      due 90 days or more and still accruing |   |                  | 288    |   |

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| Tier      1 leverage   |   |   | 10.67 | % |
|------------------------|--------|--------|-------|---|
| Tier      1 risk-based |   |   | 14.88 | % |
| Total      risk-based  |   |   | 16.09 | % |

----

----

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| Exhibit      No. |   |                                                                                                                                                                    |
|------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1             |   | Certification      of principal executive officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                       |
|             |   |                                                                                                                                                                    |
| 31.2             |   | Certification      of principal financial officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                       |
|             |   |                                                                                                                                                                    |
| 32.1             |   | Certification      of principal executive officer pursuant to 18 U. S. C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |
|             |   |                                                                                                                                                                    |
| 32.2             |   | Certification      of principal financial officer pursuant to 18 U. S. C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |

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|           |   | THE      FIRST BANCSHARES, INC.(Registrant) |   |
|----------------|--------|---------------------------------------------|--------|
|           |   |                                        |   |
| August 13,2010 |        | /s/      M. RAY (HOPPY)COLE, JR.            |   |
| (Date)         |   | M.      Ray (Hoppy) Cole, Jr.               |   |
|           |   | Chief      Executive Officer                |   |

|                 |   |                                                 |   |
|----------------------|--------|------------------------------------------------------|--------|
| August      13, 2010 |        | /s/      DEEDEE LOWERY                               |   |
| (Date)               |   | DeeDee      Lowery, Executive                        |   |
|                 |   | Vice      President and Chief Financial Officer |   |