----

----

|   | (Mark One)                                                                                                                                  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2011 |

|  o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   1ST CONSTITUTION BANCORP |
|---------------------------------|
|                            | (Exact Name of Registrant as Specified in Its Charter) |   |

| New Jersey                                                    |   | 22-3665653                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State of Other Jurisdictionof Incorporation or Organization) |   | (I.R.S. Employer Identification No.) |

| 2650 Route 130, P.O. Box 634, Cranbury, NJ |   | 08512      |
|--------------------------------------------|--------|------------|
| (Address of Principal Executive Offices)   |   | (Zip Code) |

| (609) 655-4500                                         |
|--------------------------------------------------------|
| (Issuer’s Telephone Number, Including Area Code) |

|                                                                               |
|------------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, if changed since last report) |

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

----

----

----

INDEX

|       |                                                              | Page   |
|------------|-------------------------------------------------------------------|--------|
|       |                                                              |   |
| PART I.    | FINANCIAL INFORMATION                                             |   |
|       |                                                              |   |
| Item 1.    | Financial Statements                                              | 1      |
|       |                                                              |   |
|       | Consolidated Balance Sheets                                       |   |
|       | (unaudited) at March 31, 2011                                     |   |
|       | and December 31, 2010                                             | 1      |
|       |                                                              |   |
|       | Consolidated Statements of Income                                 |   |
|       | (unaudited) for the Three Months Ended                            |   |
|       | March 31, 2011 and March 31, 2010                                 | 2      |
|       |                                                              |   |
|       | Consolidated Statements of Changes in Shareholders’ Equity  |   |
|       | (unaudited) for the Three Months Ended                            |   |
|       | March 31, 2011 and March 31, 2010                                 | 3      |
|       |                                                              |   |
|       | Consolidated Statements of Cash Flows                             |   |
|       | (unaudited) for the Three Months Ended                            |   |
|       | March 31, 2011 and March 31, 2010                                 | 4      |
|       |                                                              |   |
|       | Notes to Consolidated Financial Statements (unaudited)            | 5      |
|       |                                                              |   |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition |   |
|       | and Results of Operations                                         | 25     |
|       |                                                              |   |
| Item 3.    | Quantitative and Qualitative Disclosures About Market Risk        | 40     |
|       |                                                              |   |
| Item 4.    | Controls and Procedures                                           | 40     |
|       |                                                              |   |
| PART II.   | OTHER INFORMATION                                                 |   |
|       |                                                              |   |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds       | 41     |
|       |                                                              |   |
| Item 6.    | Exhibits                                                          | 41     |
|       |                                                              |   |
| SIGNATURES | 42                                                                |

----

Table of Contents

Financial 

Balanc

|                                                                                                                                                                                                 |   | March 31, 2011 |        |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
| ASSETS                                                                                                                                                                                               |   |           |        |   |              |   |
| CASH AND DUE FROM BANKS                                                                                                                                                                              |   | $              | 114,047,708 |   |              | $      | 17,699,103 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| FEDERAL FUNDS SOLD / SHORT-TERM INVESTMENTS                                                                                                                                                          |   |           | 11,401      |   |              |   | 11,398 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| Total cash and cash equivalents                                                                                                                                                                      |   |           | 114,059,109 |   |              |   | 17,710,501 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| INVESTMENT SECURITIES:                                                                                                                                                                               |   |           |        |   |              |   |   |   |
| Available for sale, at fair value                                                                                                                                                                    |   |           | 112,658,102 |   |              |   | 85,470,993 |   |
| Held to maturity (fair value of $142,264,108 and $81,712,004 atMarch 31, 2011 and December 31, 2010, respectively)                                                                                   |   |           | 141,271,366 |   |              |   | 81,889,895 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| Total investment securities                                                                                                                                                                          |   |           | 253,929,468 |   |              |   | 167,360,888 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| LOANS HELD FOR SALE                                                                                                                                                                                  |   |           | 4,944,106   |   |              |   | 21,219,230 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| LOANS                                                                                                                                                                                                |   |           | 323,728,977 |   |              |   | 411,987,339 |   |
| Less- Allowance for loan losses                                                                                                                                                                      |   |           | (5,750,043  | )      |              |   | (5,762,712 | ) |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| Net loans                                                                                                                                                                                            |   |           | 317,978,934 |   |              |   | 406,224,627 |   |
| PREMISES AND EQUIPMENT, net                                                                                                                                                                          |   |           | 10,794,590  |   |              |   | 6,148,626 |   |
| ACCRUED INTEREST RECEIVABLE                                                                                                                                                                          |   |           | 2,453,402   |   |              |   | 2,405,741 |   |
| BANK-OWNED LIFE INSURANCE                                                                                                                                                                            |   |           | 11,569,780  |   |              |   | 11,474,643 |   |
| OTHER REAL ESTATE OWNED                                                                                                                                                                              |   |           | 6,358,232   |   |              |   | 4,850,818 |   |
| OTHER ASSETS                                                                                                                                                                                         |   |           | 13,000,050  |   |              |   | 7,000,155 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| Total assets                                                                                                                                                                                         |   | $              | 735,087,671 |   |              | $      | 644,395,229 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                           |   |           |        |   |              |   |   |   |
| LIABILITIES:                                                                                                                                                                                         |   |           |        |   |              |   |   |   |
| Deposits                                                                                                                                                                                             |   |           |        |   |              |   |   |   |
| Non-interest bearing                                                                                                                                                                                 |   | $              | 112,437,456 |   |              | $      | 92,023,123 |   |
| Interest bearing                                                                                                                                                                                     |   |           | 537,582,192 |   |              |   | 451,712,026 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| Total deposits                                                                                                                                                                                       |   |           | 650,019,648 |   |              |   | 543,735,149 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| BORROWINGS                                                                                                                                                                                           |   |           | 10,000,000  |   |              |   | 25,900,000 |   |
| REDEEMABLE SUBORDINATED DEBENTURES                                                                                                                                                                   |   |           | 18,557,000  |   |              |   | 18,557,000 |   |
| ACCRUED INTEREST PAYABLE                                                                                                                                                                             |   |           | 1,312,042   |   |              |   | 1,434,338 |   |
| ACCRUED EXPENSES AND OTHER LIABILITIES                                                                                                                                                               |   |           | 4,678,816   |   |              |   | 5,087,586 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| Total liabilities                                                                                                                                                                                    |   |           | 684,567,506 |   |              |   | 594,714,073 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                        |   |           |        |   |              |   |   |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| SHAREHOLDERS’ EQUITY:                                                                                                                                                                          |   |           |        |   |              |   |   |   |
| Common stock, no par value; 30,000,000 shares authorized; 4,812,344 and 4,812,344 shares issued and 4,803,459 and 4,803,459 shares outstanding at March 31, 2011 and December 31, 2010, respectively |   |           | 38,963,652  |   |              |   | 38,899,855 |   |
| Retained earnings                                                                                                                                                                                    |   |           | 11,531,647  |   |              |   | 10,741,779 |   |
| Treasury Stock, at cost, 8,885 shares and 8,885 sharesat March 31, 2011 and December 31, 2010, respectively                                                                                          |   |           | (62,409     | )      |              |   | (58,652 | ) |
| Accumulated other comprehensive income                                                                                                                                                               |   |           | 87,275      |   |              |   | 98,174 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| Total shareholders’ equity                                                                                                                                                                     |   |           | 50,520,165  |   |              |   | 49,681,156 |   |
|                                                                                                                                                                                                 |   |           |        |   |              |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                                                     |   | $              | 735,087,671 |   |              | $      | 644,395,229 |   |

----

Table of Contents

Income

|                                                |   | Three Months Ended March 31, |      |
|-----------------------------------------------------|--------|------------------------------|-----------|
|                                                |   | 2011                         |      |   | 2010 |   |
| INTEREST INCOME:                                    |   |                         |      |   |   |   |
| Loans, including fees                               |   | $                            | 5,354,207 |   |   | $ | 5,328,865 |   |
| Securities:                                         |   |                         |      |   |   |   |   |   |
| Taxable                                             |   |                         | 1,284,944 |   |   |   | 1,393,886 |   |
| Tax-exempt                                          |   |                         | 285,072   |   |   |   | 107,930 |   |
| Federal funds sold and short-term investments       |   |                         | 9,106     |   |   |   | 19,709 |   |
|                                                |   |
| Total interest income                               |   |                         | 6,933,329 |   |   |   | 6,850,390 |   |
|                                                |   |
| INTEREST EXPENSE:                                   |   |                         |      |   |   |   |   |   |
| Deposits                                            |   |                         | 1,398,130 |   |   |   | 1,880,668 |   |
|    Borrowings                        |   |                         | 106,920   |   |   |   | 266,415 |   |
| Redeemable subordinated debentures                  |   |                         | 264,154   |   |   |   | 264,150 |   |
| Total interest expense                              |   |                         | 1,769,204 |   |   |   | 2,411,233 |   |
| Net interest income                                 |   |                         | 5,164,125 |   |   |   | 4,439,157 |   |
|                                                |   |                         |      |   |   |   |   |   |
| PROVISION FOR LOAN LOSSES                           |   |                         | 399,998   |   |   |   | 300,000 |   |
| Net interest income after provision for loan losses |   |                         | 4,764,127 |   |   |   | 4,139,157 |   |
|                                                |   |
| NON-INTEREST INCOME:                                |   |                         |      |   |   |   |   |   |
| Service charges on deposit accounts                 |   |                         | 175,842   |   |   |   | 176,356 |   |
| Gain on sales of loans                              |   |                         | 436,739   |   |   |   | 320,544 |   |
| Income on Bank-owned life insurance                 |   |                         | 95,137    |   |   |   | 96,639 |   |
| Other income                                        |   |                         | 317,032   |   |   |   | 355,307 |   |
|                                                |   |                         |      |   |   |   |   |   |
| Total non-interest income                           |   |                         | 1,024,750 |   |   |   | 948,846 |   |
|                                                |   |
| NON-INTEREST EXPENSE:                               |   |
| Salaries and employee benefits                      |   |                         | 2,576,664 |   |   |   | 2,376,700 |   |
| Occupancy expense                                   |   |                         | 566,738   |   |   |   | 445,927 |   |
| FDIC insurance expense                              |   |                         | 227,547   |   |   |   | 247,683 |   |
| Data processing expenses                            |   |                         | 303,473   |   |   |   | 258,807 |   |
| Other operating expenses                            |   |                         | 988,410   |   |   |   | 804,829 |   |
| Total non-interest expenses                         |   |                         | 4,662,832 |   |   |   | 4,133,946 |   |
|                                                |   |                         |      |   |   |   |   |   |
| Income before income taxes                          |   |                         | 1,126,045 |   |   |   | 954,057 |   |
| Income taxes                                        |   |                         | 336,177   |   |   |   | 254,799 |   |
| Net income                                          |   |                         | 789,868   |   |   |   | 699,258 |   |
| Dividends on preferred stock and accretion          |   |                         | 0         |   |   |   | 176,984 |   |
| Net income available to common shareholders         |   | $                            | 789,868   |   |   | $ | 522,274 |   |
|                                                |   |
| NET INCOME PER COMMON SHARE:                        |   |
| Basic                                          |   | $                            | 0.16      |   |   | $ | 0.11 |   |
| Diluted                                        |   | $                            | 0.16      |   |   | $ | 0.11 |   |

----

Table of Contents

Shareholders

|                                                                                                                                                                                                                                                           |   |    PreferredStock |       |   |    CommonStock |   |       |    RetainedEarnings |   |   |    TreasuryStock |   |   | AccumulatedOtherComprehensiveIncome (Loss) |    |   |   TotalShareholders’Equity |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|--------------------------|--------|------------|-------------------------------|--------|--------|----------------------------|--------|--------|--------------------------------------------|---------|--------|---------------------------------------|--------|
|                                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
| BALANCE, January 1, 2010                                                                                                                                                                                                                                       |   | $                           | 11,473,262 |   |                     | $      | 36,774,621 |                          |   | $      | 10,307,331                 |   |   | $                                          | (73,492 | )      |                                  | $      | (1,080,669 | ) |   | $ | 57,401,053 |   |
| Issuance of vested shares under employee     benefit program (10,042 shares)                                                                                                                                                          |   |                        |       |   |                     |   | 56,165     |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   | 56,165 |   |
| Share-based compensation                                                                                                                                                                                                                                       |   |                        |       |   |                     |   | 14,288     |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   | 14,288 |   |
| Dividends on preferred stock                                                                                                                                                                                                                                   |   |                        |       |   |                     |   |       |                          |   |   | (150,000                   | )      |   |                                       |    |   |                                  |   |   |   |   |   | (150,000 | ) |
| Accretion of discount on preferred stock                                                                                                                                                                                                                       |   |                        | 26,984     |   |                     |   |       |                          |   |   | (26,984                    | )      |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
| Comprehensive Income:                                                                                                                                                                                                                                          |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
|     Net Income for the three months   ended March 31, 2010                                                                                                                                                                  |   |                        |       |   |                     |   |       |                          |   |   | 699,258                    |   |   |                                       |    |   |                                  |   |   |   |   |   | 699,258 |   |
|     Minimum pension liability net of tax benefit                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   | 69,230 |   |   |   | 69,230 |   |
|                                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
|     Unrealized gain on securities available for salenet of tax                                                                                                                                                                             |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   | 519,932 |   |   |   | 519,932 |   |
|     Unrealized gain on interest rate swap contract          net of tax                                                                                                                   |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   | 36,039 |   |   |   | 36,039 |   |
|                                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
| Comprehensive Income                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   | 1,324,459 |   |
|                                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
| Balance, March 31, 2010                                                                                                                                                                                                                                        |   | $                           | 11,500,246 |   |                     | $      | 36,845,074 |                          |   | $      | 10,829,605                 |   |   | $                                          | (73,492 | )      |                                  | $      | (455,468 | ) |   | $ | 58,645,965 |   |
|                                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
| Balance, January 1, 2011                                                                                                                                                                                                                                       |   | $                           | 0          |   |                     | $      | 38,899,855 |                          |   | $      | 10,741,779                 |   |   | $                                          | (58,652 | )      |                                  | $      | 98,174 |   |   | $ | 49,681,156 |   |
| Issuance of vested shares under employee            benefit program  and exercise of stock options            (1,651 shares) |   |                        |       |   |                     |   | 46,294     |                          |   |   |                       |   |   |                                       | 11,597  |   |                                  |   |   |   |   |   | 57,891 |   |
| Share-based compensation                                                                                                                                                                                                                                       |   |                        |       |   |                     |   | 17,503     |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   | 17,503 |   |
| Treasury stock purchased (1,651 shares)                                                                                                                                                                                                                        |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       | (15,354 | )      |                                  |   |   |   |   |   | (15,354 | ) |
| Comprehensive Income:                                                                                                                                                                                                                                          |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
|     Net income for the three monthsended March 31, 2011                                                                                                                                                                                    |   |                        |       |   |                     |   |       |                          |   |   | 789,868                    |   |   |                                       |    |   |                                  |   |   |   |   |   | 789,868 |   |
|                                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
|     Minimum pension liability, net of tax benefit                                                                                                                                                                                          |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   | 1,927 |   |   |   | 1,927 |   |
|                                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
|     Unrealized gain on securities available forsale, net of tax benefit                                                                                                                                                                    |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   | (117,197 | ) |   |   | (117,197 | ) |
|     Unrealized gain on interest rate swap contract,net of tax benefit                                                                                                                                                                      |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   | 104,371 |   |   |   | 104,371 |   |
|                                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
| Comprehensive Income                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   | 778,969 |   |
|                                                                                                                                                                                                                                                           |   |                        |       |   |                     |   |       |                          |   |   |                       |   |   |                                       |    |   |                                  |   |   |   |   |   |   |   |
| Balance, March 31, 2011                                                                                                                                                                                                                                        |   | $                           | 0          |   |                     | $      | 38,963,652 |                          |   | $      | 11,531,647                 |   |   | $                                          | (62,409 | )      |                                  | $      | 87,275 |   |   | $ | 50,520,165 |   |

----

Table of Contents

Cash

|                                                                                                                                                              |   | Three Months Ended March 31, |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|
|                                                                                                                                                              |   | 2011                         |        |   | 2010 |   |
| OPERATING ACTIVITIES:                                                                                                                                        |   |                         |        |   |   |   |
|      Net income                                                                                                                               |   | $                            | 789,868     |   |   | $ | 699,258 |   |
|            Adjustments to reconcile net income                                                                                 |   |                         |        |   |   |   |   |   |
|                 to net cash provided by (used in) operating activities-                               |   |                         |        |   |   |   |   |   |
|            Provision for loan losses                                                                                           |   |                         | 399,998     |   |   |   | 300,000 |   |
|            Provision for loss on other real estate owned                                                                            |   |                         | 147,178     |   |   |   | 0 |   |
|            Depreciation and amortization                                                                                       |   |                         | 218,243     |   |   |   | 137,241 |   |
|            Net amortization of premiums and discounts on securities                                                            |   |                         | 447,515     |   |   |   | 192,923 |   |
|            Gains on sales of loans held for sale                                                           |   |                         | (436,739    | ) |   |   | (320,544 | ) |
|            Originations of loans held for sale                                                                                 |   |                         | (25,228,512 | ) |   |   | (26,796,844 | ) |
|            Proceeds from sales of loans held for sale                                                                          |   |                         | 41,940,375  |   |   |   | 32,306,333 |   |
|            Income on Bank – owned life insurance                                                                         |   |                         | (95,137     | ) |   |   | (96,639 | ) |
|            Share-based compensation expense                                                                |   |                         | 90,518      |   |   |   | 49,288 |   |
|           Increase in accrued interest receivable                                                                                   |   |                         | (47,647     | ) |   |   | (179,917 | ) |
|           (Increase) decreasein other assets                                                                                   |   |                         | 745,772     |   |   |   | 169,351 |   |
|           Decrease in accrued interest payable                                                                                 |   |                         | (215,411    | ) |   |   | (220,646 | ) |
|          Decrease in accrued expenses and other liabilities                                                                         |   |                         | (375,625    | ) |   |   | (523,663 | ) |
|                                                                                                                                                              |
| Net cash provided by operating activities                                                                                                                    |   |                         | 16,891,852  |   |   |   | 5,716,141 |   |
| INVESTING ACTIVITIES:                                                                                                                                             |   |                         |        |   |   |   |   |   |
|      Purchases of securities -                                                                                                                |   |                         |        |   |   |   |   |   |
|            Available for sale                                                                                                  |   |                         | (62,763,601 | ) |   |   | (32,936,864 | ) |
|            Held to maturity                                                                                                    |   |                         | (65,546,545 | ) |   |   | 0 |   |
|      Proceeds from maturities and prepayments of securities -                                                                                 |   |                         |        |   |   |   |   |   |
|            Available for sale                                                                                                  |   |                         | 35,216,978  |   |   |   | 42,312,938 |   |
|            Held to maturity                                                                                                    |   |                         | 5,899,501   |   |   |   | 1,471,850 |   |
|      Net decrease in loans                                                                                                                    |   |                         | 85,597,345  |   |   |   | 18,483,261 |   |
|       Purchase of bank owned life insurance                                                                                         |   |                         | 0           |   |   |   | (750,000 | ) |
|      Capital expenditures                                                                                                                     |   |                         | (255,029    | ) |   |   | (564,662 | ) |
|      Additional investment in other real estate owned                                                                                              |   |                         | (139,668    | ) |   |   | (1,650 | ) |
|      Proceeds from sales of other real estate owned                                                                                                |   |                         | 595,363     |   |   |   | 0 |   |
|      Cash consideration received in connection            with acquisition of branches |   |                         | 101,539,588 |   |   |   | 0 |   |
|                                                                                                                                                              |
| Net cash provided by investing activities                                                                                                                    |   |                         | 101,143,932 |   |   |   | 28,014,873 |   |
|                                                                                                                                                              |
| FINANCING ACTIVITIES:                                                                                                                                        |   |                         |        |   |   |   |   |   |
|      Exercise of stock options and issuance of vested shares                                                                                       |   |                         | 57,891      |   |   |   | 56,165 |   |
|      Purchase of Treasury Stock                                                                                                                    |   |                         | (15,354     | ) |   |   | 0 |   |
|      Dividend paid on preferred stock                                                                                                              |   |                         | 0           |   |   |   | (150,000 | ) |
|     Net decrease  in demand, savings and time deposits                                                                                   |   |                         | (5,829,713  | ) |   |   | (38,454,338 | ) |
|      Net decrease in borrowings                                                                                                                    |   |                         | (15,900,000 | ) |   |   | 0 |   |
|                                                                                                                                                              |
| Net cash used in financing activities                                                                                                                        |   |                         | (21,687,176 | ) |   |   | (38,548,173 | ) |
|                                                                                                                                                              |
| Increase (decrease)  in cash and cash equivalents                                                                                                  |   |                         | 96,348,608  |   |   |   | (4,817,159 | ) |
|                                                                                                                                                              |
| CASH AND CASH EQUIVALENTS                                                                                                                                    |   |                         |        |   |   |   |   |   |
|      AT BEGINNING OF PERIOD                                                                                                                        |   |                         | 17,710,501  |   |   |   | 25,854,285 |   |
|                                                                                                                                                              |
| CASH AND CASH EQUIVALENTS                                                                                                                                    |   |                         |        |   |   |   |   |   |
|      AT END OF PERIOD                                                                                                                         |   | $                            | 114,059,109 |   |   | $ | 21,037,126 |   |
|                                                                                                                                                              |
| SUPPLEMENTAL DISCLOSURES                                                                                                                                     |   |                         |        |   |   |   |   |   |
|      OF CASH FLOW INFORMATION:                                                                                                                |   |                         |        |   |   |   |   |   |
|            Cash paid during the period for -                                                                                   |   |                         |        |   |   |   |   |   |
| Interest                                                                                                                                                     |   | $                            | 1,984,615   |   |   | $ | 2,631,879 |   |
| Income taxes                                                                                                                                                 |   |                         | -           |   |   |   | - |   |
| Non-cash investing activities                                                                                                                                     |   |                         |        |   |   |   |   |   |
| Real estate acquired in full satisfaction of loans in foreclosure                                                                                                 |   | $                            | 2,110,287   |   |   | $ | 0 |   |

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Notes 

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Table of Contents

|                                                                                          |   | Three Months Ended March 31, 2011 |    |
|----------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                                               |   |    Income               |    |   | Weighted-averageshares |   |   |   Per shareAmount |   |
| Basic EPS                                                                                          |   |                              |    |   |   |   |   |   |   |
| Net income                                                                                         |   | $                                 | 789,868 |   |   |   |   |   |   |   |
| Preferred stock dividends and accretion                                                            |   |                              | 0       |   |   |   |   |   |   |   |
| Income available to common shareholders                                                            |   |                              | 789,868 |   |   |   | 4,802,615 |   |   | $ | 0.16 |   |
|                                                                                               |   |                              |    |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities                                                                      |   |                              |    |   |   |   |   |   |   |   |   |   |
| Stock options and unvested stock awards                                                            |   |                              |    |   |   |   | 89,453 |   |   |   |   |   |
|                                                                                               |   |                              |    |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                                                                        |   |                              |    |   |   |   |   |   |   |   |   |   |
| Income available to common shareholders      Plus assumed conversion |   | $                                 | 789,868 |   |   |   | 4,892,068 |   |   | $ | 0.16 |   |

|                                                                                                   |   | Three Months Ended March 31, 2010 |     |
|--------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|
|                                                                                                   |   |    Income               |     |   | Weighted-averageshares |   |   |   Per shareAmount |   |
| Basic EPS                                                                                              |   |                              |     |   |   |   |   |   |   |
| Net income                                                                                             |   | $                                 | 699,258  |   |   |   |   |   |   |   |
| Preferred stock dividends and accretion                                                                |   |                              | (176,984 | ) |   |   |   |   |   |   |
| Income available to common shareholders                                                                |   |                              | 522,274  |   |   |   | 4,751,339 |   |   | $ | 0.11 |   |
|                                                                                                   |   |                              |     |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities                                                                          |   |                              |     |   |   |   |   |   |   |   |   |   |
| Stock options and unvested stock awards                                                                |   |                              |     |   |   |   | 5,996 |   |   |   |   |   |
|                                                                                                   |   |                              |     |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                                                                            |   |                              |     |   |   |   |   |   |   |   |   |   |
| Net income available to common shareholders      Plus assumed conversion |   | $                                 | 522,274  |   |   |   | 4,757,335 |   |   | $ | 0.11 |   |

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Table of Contents

|                                                                                         |   |      |        |   | Gross      |   |      | Gross      |   |   |     |   |
|----------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|----------|--------|
|                                                                                         |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Fair     |   |
| March 31, 2011                                                                          |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Value    |   |
|                                                                                         |   |      |        |   |       |   |      |       |   |   |     |   |
| Available for sale-                                                                          |   |      |        |   |       |   |      |       |   |   |     |   |
| U. S. Treasury securities and                                                                |   |      |        |   |       |   |      |       |   |   |     |   |
|     obligations of U.S. Government                                       |   |      |        |   |       |   |      |       |   |   |     |   |
|     sponsored corporations (“GSE”) and agencies              |   | $         | 31,366,918  |   |       | $      | 24,496    |       |   | $      | (58,430  | )      |   | $ | 31,332,984 |   |
| Residential collateralized    mortgage obligations – GSE           |   |      | 16,835,632  |   |       |   | 341,947   |       |   |   | (9,876   | )      |   |   | 17,167,703 |   |
| Residential collateralized     mortgage obligations – non-GSE |   |      | 5,175,527   |   |       |   | 86,160    |       |   |   | (12,222  | )      |   |   | 5,249,465 |   |
| Residential mortgage     backed securities – GSE              |   |      | 48,029,899  |   |       |   | 1,160,174 |       |   |   | (150,921 | )      |   |   | 49,039,152 |   |
| Obligations of State and                                                                     |   |      |        |   |       |   |      |       |   |   |     |   |   |   |   |   |
|     Political subdivisions                                               |   |      | 5,388,857   |   |       |   | 81,729    |       |   |   | (64,682  | )      |   |   | 5,405,904 |   |
| Trust preferred debt securities – single issuer                                        |   |      | 2,461,096   |   |       |   | 0         |       |   |   | (438,609 | )      |   |   | 2,022,487 |   |
| Corporate Debt Securities                                                                    |   |      | 1,482,605   |   |       |   | 8,202     |       |   |   | 0        |   |   |   | 1,490,807 |   |
| Restricted stock                                                                             |   |      | 924,600     |   |       |   | 0         |       |   |   | 0        |   |   |   | 924,600 |   |
| Mutual fund                                                                                  |   |      | 25,000      |   |       |   | 0         |       |   |   | 0        |   |   |   | 25,000 |   |
|                                                                                         |   |      |        |   |       |   |      |       |   |   |     |   |   |   |   |   |
|                                                                                         |   | $         | 111,690,134 |   |       | $      | 1,702,708 |       |   | $      | (734,740 | )      |   | $ | 112,658,102 |   |

| March 31, 2011                                                                                                                                                                                   |   |     Amortized Cost |        |   | Other-Than-Temporary Impairment Recognized InAccumulated Other ComprehensiveIncome |   |     |     CarryingValue |   |   |    GrossUnrealizedGains |   |   |    GrossUnrealizedLosses |      |   |     FairValue |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|-------------|--------|------------------------------------------------------------------------------------|--------|----------|---------------------------------------|--------|--------|----------------------------------------|--------|--------|-----------------------------------------|-----------|--------|-----------------------------------|--------|
| Held to maturity-                                                                                                                                                                                |   |                                   |        |   |                                                                               |   |     |                                  |   |   |                                   |   |   |                                    |      |   |                              |   |
|     U. S. Treasury securities and                                                                                                                                            |   |                                   |        |   |                                                                               |   |     |                                  |   |   |                                   |   |   |                                    |      |   |                              |   |
|          obligations of U.S. Government                                                                                                             |   |                                   |        |   |                                                                               |   |     |                                  |   |   |                                   |   |   |                                    |      |   |                              |   |
|          sponsored corporations (“GSE”) and              agencies |   | $                                      | 19,158,760  |   |                                                                               | $      | 0        |                                  |   | $      | 19,158,760                             |   |   | $                                       | 38,360    |   |                              | $      | (34,465 | ) |   | $ | 19,162,655 |   |
|     Residential collateralized        Mortgage obligations – GSE                                                               |   |                                   | 8,819,534   |   |                                                                               |   | 0        |                                  |   |   | 8,819,534                              |   |   |                                    | 63,059    |   |                              |   | (16,194 | ) |   |   | 8,866,399 |   |
|     Residential mortgage backed        Securities – GSE                                                                        |   |                                   | 39,864,463  |   |                                                                               |   | 0        |                                  |   |   | 39,864,463                             |   |   |                                    | 278,206   |   |                              |   | (44,054 | ) |   |   | 40,098,615 |   |
|     Residential mortgage backed        Securities – non-GSE                                                                    |   |                                   | 15,393,765  |   |                                                                               |   | 0        |                                  |   |   | 15,393,765                             |   |   |                                    | 199,368   |   |                              |   | 0 |   |   |   | 15,593,133 |   |
| Obligations of State and                                                                                                                                                                         |   |                                   |        |   |                                                                               |   |     |                                  |   |   |                                   |   |   |                                    |      |   |                              |   |   |   |   |   |   |   |
|       Political subdivisions                                                                                                                                       |   |                                   | 30,856,207  |   |                                                                               |   | 0        |                                  |   |   | 30,856,207                             |   |   |                                    | 738,297   |   |                              |   | (93,691 | ) |   |   | 31,500,813 |   |
| Trust preferred debt securities – pooled                                                                                                                                                   |   |                                   | 644,495     |   |                                                                               |   | (500,944 | )                                     |   |   | 143,551                                |   |   |                                    | 0         |   |                              |   | (140,938 | ) |   |   | 2,613 |   |
| Corporate debt securities                                                                                                                                                                        |   |                                   | 27,035,086  |   |                                                                               |   | 0        |                                  |   |   | 27,035,086                             |   |   |                                    | 93,839    |   |                              |   | (89,045 | ) |   |   | 27,039,880 |   |
|                                                                                                                                                                                             |   |                                   |        |   |                                                                               |   |     |                                  |   |   |                                   |   |   |                                    |      |   |                              |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   | $                                      | 141,772,310 |   |                                                                               | $      | (500,944 | )                                     |   | $      | 141,271,366                            |   |   | $                                       | 1,411,129 |   |                              | $      | (418,387 | ) |   | $ | 142,264,108 |   |

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Table of Contents

|                                                                                                                                                                                        |   |      |       |   | Gross      |   |      | Gross      |   |   |     |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|------------|--------|-----------|------------|--------|--------|----------|--------|
|                                                                                                                                                                                        |   | Amortized |       |   | Unrealized |   |      | Unrealized |   |   | Fair     |   |
| December 31, 2010                                                                                                                                                                           |   | Cost      |       |   | Gains      |   |      | Losses     |   |   | Value    |   |
|                                                                                                                                                                                        |   |      |       |   |       |   |      |       |   |   |     |   |
| Available for sale-                                                                                                                                                                         |   |      |       |   |       |   |      |       |   |   |
| U. S. Treasury securities and                                                                                                                                                               |   |      |       |   |       |   |      |       |   |   |     |   |
| obligations of U.S. Government                                                                                                                                                              |   |      |       |   |       |   |      |       |   |   |     |   |
| sponsored corporations (“GSE”) and agencies                                                                                                                                     |   | $         | 34,299,374 |   |       | $      | 60,189    |       |   | $      | 0        |   |   | $ | 34,359,563 |   |
|          Residential collateralized mortgage obligations- GSE                                                                                  |   |      | 18,653,850 |   |       |   | 483,908   |       |   |   | 0        |   |   |   | 19,137,758 |   |
|          Residential collateralized mortgage obligations-             non GSE |   |      | 5,677,577  |   |       |   | 113,496   |       |   |   | (29,751  | )      |   |   | 5,761,322 |   |
| Residential mortgage backed securities – GSE                                                                                                                                          |   |      | 16,963,589 |   |       |   | 1,206,146 |       |   |   | 0        |   |   |   | 18,169,735 |   |
| Obligations of State and                                                                                                                                                                    |   |      |       |   |       |   |      |       |   |   |     |   |   |   |   |   |
| Political subdivisions                                                                                                                                                                      |   |      | 3,110,145  |   |       |   | 23,768    |       |   |   | (112,485 | )      |   |   | 3,021,428 |   |
|          Trust preferred debt securities                                                                                                       |   |      | 2,460,380  |   |       |   | 0         |       |   |   | (602,877 | )      |   |   | 1,857,503 |   |
|          Corporate debt securities                                                                                                             |   |      | 1,495,438  |   |       |   | 4,973     |       |   |   | (1,827   | )      |   |   | 1,498,584 |   |
|          Restricted stock                                                                                                                      |   |      | 1,640,100  |   |       |   | 0         |       |   |   | 0        |   |   |   | 1,640,100 |   |
|          Mutual fund                                                                                                                           |   |      | 25,000     |   |       |   | 0         |       |   |   | 0        |   |   |   | 25,000 |   |
|                                                                                                                                                                                        |   |      |       |   |       |   |      |       |   |   |     |   |   |   |   |   |
|                                                                                                                                                                                        |   | $         | 84,325,453 |   |       | $      | 1,892,480 |       |   | $      | (746,940 | )      |   | $ | 85,470,993 |   |
|                                                                                                                                                                                        |   |      |       |   |       |   |      |       |   |   |     |   |   |   |   |   |

| December 31, 2010                                                                                                                                                                                |   |      Amortized Cost |       |   | Other-Than-Temporary Impairment Recognized InAccumulated Other ComprehensiveIncome |   |     |      CarryingValue |   |   |     GrossUnrealizedGains |   |   |     GrossUnrealizedLosses |    |   |      FairValue |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|--------|------------------------------------------------------------------------------------|--------|----------|---------------------------------------------|--------|--------|----------------------------------------------|--------|--------|-----------------------------------------------|---------|--------|-----------------------------------------|--------|
| Held to maturity-                                                                                                                                                                                |   |                                         |       |   |                                                                               |   |     |                                        |   |   |                                         |   |   |                                          |    |   |                                    |   |
|     U. S. Treasury securities and                                                                                                                                            |   |                                         |       |   |                                                                               |   |     |                                        |   |   |                                         |   |   |                                          |    |   |                                    |   |
|          obligations of U.S. Government                                                                                                             |   |                                         |       |   |                                                                               |   |     |                                        |   |   |                                         |   |   |                                          |    |   |                                    |   |
|          sponsored corporations (“GSE”) and              agencies |   | $                                            | 23,170,741 |   |                                                                               | $      | 0        |                                        |   | $      | 23,170,741                                   |   |   | $                                             | 93,600  |   |                                    | $      | (50,721 | ) |   | $ | 23,213,620 |   |
|     Residential collateralized        mortgage obligations – GSE                                                               |   |                                         | 2,520,690  |   |                                                                               |   | 0        |                                        |   |   | 2,520,690                                    |   |   |                                          | 84,253  |   |                                    |   | 0 |   |   |   | 2,604,943 |   |
|     Residential mortgage backed        securities – GSE                                                                        |   |                                         | 9,344,517  |   |                                                                               |   | 0        |                                        |   |   | 9,344,517                                    |   |   |                                          | 131,443 |   |                                    |   | (41,711 | ) |   |   | 9,434,249 |   |
| Obligations of State and                                                                                                                                                                         |   |                                         |       |   |                                                                               |   |     |                                        |   |   |                                         |   |   |                                          |    |   |                                    |   |   |   |   |   |   |   |
|       Political subdivisions                                                                                                                                       |   |                                         | 19,467,404 |   |                                                                               |   | 0        |                                        |   |   | 19,467,404                                   |   |   |                                          | 245,290 |   |                                    |   | (352,534 | ) |   |   | 19,360,160 |   |
| Trust preferred debt securities – pooled                                                                                                                                                   |   |                                         | 642,478    |   |                                                                               |   | (500,944 | )                                           |   |   | 141,534                                      |   |   |                                          | 0       |   |                                    |   | (137,361 | ) |   |   | 4,173 |   |
| Corporate debt securities                                                                                                                                                                        |   |                                         | 27,245,009 |   |                                                                               |   | 0        |                                        |   |   | 27,245,009                                   |   |   |                                          | 67,696  |   |                                    |   | (217,846 | ) |   |   | 27,094,859 |   |
|                                                                                                                                                                                             |   |                                         |       |   |                                                                               |   |     |                                        |   |   |                                         |   |   |                                          |    |   |                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                                             |   | $                                            | 82,390,839 |   |                                                                               | $      | (500,944 | )                                           |   | $      | 81,889,895                                   |   |   | $                                             | 622,282 |   |                                    | $      | (800,173 | ) |   | $ | 81,712,004 |   |

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Table of Contents

|                                                                 |   | AmortizedCost |        |   | FairValue |   |
|----------------------------------------------------------------------|--------|---------------|-------------|--------|-----------|--------|
| Available for sale-                                                  |   |          |        |
|      Due in one year or less                |   | $             | 5,489,353   |   |      | $      | 5,508,907 |   |
|      Due after one year through five years  |   |          | 12,813,219  |   |      |   | 12,841,698 |   |
|      Due after five years through ten years |   |          | 22,866,413  |   |      |   | 23,216,050 |   |
|      Due after ten years                    |   |          | 70,521,149  |   |      |   | 71,091,447 |   |
| Total                                                                |   | $             | 111,690,134 |   |      | $      | 112,658,102 |   |
|                                                                 |   |          |        |   |      |   |   |   |
| Held to maturity-                                                    |   |          |        |   |      |   |   |   |
|      Due in one year or less                |   | $             | 2,839,312   |   |      | $      | 2,841,036 |   |
|      Due after one year through five years  |   |          | 43,619,379  |   |      |   | 43,705,186 |   |
|      Due after five years through ten years |   |          | 21,032,969  |   |      |   | 21,448,137 |   |
|      Due after ten years                    |   |          | 74,280,650  |   |      |   | 74,269,749 |   |
| Total                                                                |   | $             | 141,772,310 |   |      | $      | 142,264,108 |   |

| March 31, 2011                                                                                                                                                                                |   |               |   |   | Less than 12 months |             |   | 12 months or longer |   |     | Total      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|---------------------|------------------|--------|---------------------|--------|----------|------------|--------|
|                                                                                                                                                                                          |   | NumberofSecurities |   |   | Fair Value          |             |   | UnrealizedLosses    |   |     | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
| U.S. Treasury securities and obligations      of U.S. Government sponsored          corporations and agencies |   | 19                 |   |   | $                   | 26,409,895       |   |                | $      | (92,895  | )          |   | $ | 0 |   |   | $ | 0 |   |   | $ | 26,409,895 |   |   | $ | (92,895 | ) |
|                                                                                                                                                                                          |   |               |   |   |                |             |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential collateralized mortgage     obligations - GSE                                                                                                            |   | 6                  |   |   |                | 9,703,759        |   |                |   | (26,070  | )          |   |   | 0 |   |   |   | 0 |   |   |   | 9,703,759 |   |   |   | (26,070 | ) |
|                                                                                                                                                                                          |   |               |   |   |                |             |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential collateralized mortgage       obligations – non-GSE                                                                                      |   | 2                  |   |   |                | 1,860,851        |   |                |   | (10,687  | )          |   |   | 350,719 |   |   |   | (1,535 | ) |   |   | 2,211,570 |   |   |   | (12,222 | ) |
|                                                                                                                                                                                          |   |               |   |   |                |             |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage backed      Securities - GSE                                                                                                               |   | 28                 |   |   |                | 39,251,493       |   |                |   | (194,975 | )          |   |   | 0 |   |   |   | 0 |   |   |   | 39,251,493 |   |   |   | (194,975 | ) |
|                                                                                                                                                                                          |   |               |   |   |                |             |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of State and Political    Subdivisions                                                                                                                        |   | 13                 |   |   |                | 6,448,847        |   |                |   | (109,914 | )          |   |   | 964,634 |   |   |   | (48,459 | ) |   |   | 7,413,481 |   |   |   | (158,373 | ) |
|                                                                                                                                                                                          |   |               |   |   |                |             |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust preferred debt securities –        single issuer                                                                                          |   | 4                  |   |   |                | 0                |   |                |   | 0        |       |   |   | 2,022,487 |   |   |   | (438,609 | ) |   |   | 2,022,487 |   |   |   | (438,609 | ) |
|                                                                                                                                                                                          |   |               |   |   |                |             |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust preferred debt securities –        single issuer - pooled                                                                                 |   | 1                  |   |   |                | 0                |   |                |   | 0        |       |   |   | 2,613 |   |   |   | (641,882 | ) |   |   | 2,613 |   |   |   | (641,882 | ) |
|                                                                                                                                                                                          |   |               |   |   |                |             |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate Debt Securities                                                                                                                                                                     |   | 32                 |   |   |                | 17,192,880  |   |                |   | (89,045  | )     |   |   | 0 |   |   |   | 0 |   |   |   | 17,192,880 |   |   |   | (89,045 | ) |
|                                                                                                                                                                                          |   |               |   |   |                |             |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total temporarily impaired securities                                                                                                                                             |   | 105                |   |   | $                   | 100,867,725      |   |                | $      | (523,586 | )          |   | $ | 3,340,453 |   |   | $ | (1,130,485 | ) |   | $ | 104,208,178 |   |   | $ | (1,654,071 | ) |

----

Table of Contents

| December 31, 2010                                                                                    |   |                |   |   | Less than 12 months |       |   | 12 months or longer |   |     | Total      |   |
|------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|------------|--------|---------------------|--------|----------|------------|--------|
|                                                                                                 |   | Number ofSecurities |   |   | Fair Value          |       |   | Unrealized Losses   |   |     | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
| U.S. Government sponsored     corporations and agencies                     |   | 6                   |   |   | $                   | 5,120,020  |   |                | $      | (50,721  | )          |   | $ | - |   |   | $ | - |   |   | $ | 5,120,020 |   |   | $ | (50,721 | ) |
|                                                                                                 |   |                |   |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential collateralized mortgage     Obligations – Non-GSE         |   | 2                   |   |   |                | 2,035,105  |   |                |   | (21,478  | )          |   |   | 372,747 |   |   |   | (8,273 | ) |   |   | 2,407,852 |   |   |   | (29,751 | ) |
|                                                                                                 |   |                |   |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage backed securities     GSE                              |   | 4                   |   |   |                | 4,393,707  |   |                |   | (41,711  | )          |   |   | - |   |   |   | - |   |   |   | 4,393,707 |   |   |   | (41,711 | ) |
|                                                                                                 |   |                |   |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of State and Political     Subdivisions                         |   | 31                  |   |   |                | 11,124,090 |   |                |   | (378,918 | )          |   |   | 927,538 |   |   |   | (86,101 | ) |   |   | 12,051,628 |   |   |   | (465,019 | ) |
|                                                                                                 |   |                |   |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust preferred debt securities –        Single issuer |   | 4                   |   |   |                | 0          |   |                |   | 0        |       |   |   | 1,857,503 |   |   |   | (602,877 | ) |   |   | 1,857,503 |   |   |   | (602,877 | ) |
|                                                                                                 |   |                |   |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust preferred debt securities –        Pooled        |   | 1                   |   |   |                | 0          |   |                |   | 0        |       |   |   | 4,173 |   |   |   | (638,305 | ) |   |   | 4,173 |   |   |   | (638,305 | ) |
|                                                                                                 |   |                |   |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate debt securities                                                                            |   | 45                  |   |   |                | 24,917,591 |   |                |   | (219,673 | )          |   |   | 0 |   |   |   | 0 |   |   |   | 24,917,591 |   |   |   | (219,673 | ) |
|                                                                                                 |   |                |   |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total temporarily impaired securities                                                    |   | 93                  |   |   | $                   | 47,590,513 |   |                | $      | (712,501 | )          |   | $ | 3,161,961 |   |   | $ | (1,335,556 | ) |   | $ | 50,752,474 |   |   | $ | (2,048,057 | ) |
|                                                                                                 |   |                |   |   |                |       |   |                |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| (in thousands)                 |   | Three months endedMarch 31, 2011 |   |   | Three months endedMarch 31, 2010 |   |
|--------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
| Balance at beginning of period |   | $                                | 364    |   |                             | $      | 364 |   |
| Change during the period       |   |                             | -      |   |                             |   | - |   |
| Balance at end of period       |   | $                                | 364    |   |                             | $      | 364 |   |

----

Table of Contents

|                                                                                      |   | 30-59 Days |      |   | 60-89 Days |   |   | Greater than 90 Days |   |   | Total Past Due |   |   | Current |       |   | TotalLoans Receivable |   |        | Recorded Investment > 90 Days Accruing |   |   | Nonaccrual Loans |   |
|-------------------------------------------------------------------------------------------|--------|------------|-----------|--------|------------|--------|--------|----------------------|--------|--------|----------------|--------|--------|---------|------------|--------|-----------------------|--------|-------------|------------------------------------------------|--------|--------|------------------|--------|
|                                                                                      |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                           |   |   |             |   |
| Commercial                                                                                |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                           |   |   |             |   |
|    Construction                                                            |   | $          | 4,459,663 |   |       | $      | 0      |                 |   | $      | 4,092,421      |   |   | $       | 8,552,084  |   |                  | $      | 56,086,773  |                                           |   | $      | 64,638,857       |   |   | $ | 0 |   |   | $ | 4,092,421 |   |
|    Commercial Business                                                     |   |       | 519,832   |   |       |   | 0      |                 |   |   | 665,132        |   |   |    | 1,184,964  |   |                  |   | 46,741,004  |                                           |   |   | 47,925,968       |   |   |   | 0 |   |   |   | 1,138,045 |   |
|    Commercial Real       Estate         |   |       | 1,185,224 |   |       |   | 0      |                 |   |   | 1,407,644      |   |   |    | 2,592,868  |   |                  |   | 90,975,362  |                                           |   |   | 93,568,230       |   |   |   | 0 |   |   |   | 1,407,545 |   |
|    Mortgage Warehouse        Lines |   |       | 0         |   |       |   | 0      |                 |   |   | 0              |   |   |    | 0          |   |                  |   | 92,947,939  |                                           |   |   | 92,947,939       |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                      |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                           |   |   |             |   |   |   |   |   |   |   |   |   |
|    Residential Real Estate                                                 |   |       | 526,544   |   |       |   | 0      |                 |   |   | 0              |   |   |    | 526,544    |   |                  |   | 10,144,798  |                                           |   |   | 10,671,342       |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                      |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                           |   |   |             |   |   |   |   |   |   |   |   |   |
| Consumer                                                                                  |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                           |   |   |             |   |   |   |   |   |   |   |   |   |
|    Loans to Individuals                                                    |   |       | 0         |   |       |   | 0      |                 |   |   | 77,858         |   |   |    | 77,858     |   |                  |   | 12,952,904  |                                           |   |   | 13,030,762       |   |   |   | 0 |   |   |   | 77,858 |   |
|    Other                                                                   |   |       | 0         |   |       |   | 0      |                 |   |   | 0              |   |   |    | 0          |   |                  |   | 236,274     |                                           |   |   | 236,274          |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                      |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                           |   |   |             |   |   |   |   |   |   |   |   |   |
| Deferred Loan Fees                                                                        |   |       | 0         |   |       |   | 0      |                 |   |   | 0              |   |   |    | 0          |   |                  |   | 709,605     |                                           |   |   | 709,605          |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                      |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                           |   |   |             |   |   |   |   |   |   |   |   |   |
| Total                                                                                     |   | $          | 6,691,263 |   |       | $      | 0      |                 |   | $      | 6,243,055      |   |   | $       | 12,934,318 |   |                  | $      | 310,794,659 |                                           |   | $      | 323,728,977      |   |   | $ | 0 |   |   | $ | 6,715,869 |   |

|                                                                                |   | 30-59 Days |      |   | 60-89 Days |   |   | Greater than 90 Days |   |   | Total Past Due |   |   | Current |       |   | TotalLoans Receivable |   |        | Recorded Investment> 90 Days Accruing |   |   | Nonaccrual Loans |   |
|-------------------------------------------------------------------------------------|--------|------------|-----------|--------|------------|--------|--------|----------------------|--------|--------|----------------|--------|--------|---------|------------|--------|-----------------------|--------|-------------|------------------------------------------|--------|--------|-----------------------|--------|
|                                                                                |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                     |   |   |                  |   |
| Commercial                                                                          |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                     |   |   |                  |   |
|    Construction                                                      |   | $          | 0         |   |       | $      | 0      |                 |   | $      | 6,569,296      |   |   | $       | 6,569,296  |   |                  | $      | 61,321,407  |                                     |   | $      | 67,890,703            |   |   | $ | 0 |   |   | $ | 6,569,296 |   |
|    Commercial Business                                               |   |       | 113,801   |   |       |   | 60,526 |                 |   |   | 605,208        |   |   |    | 779,335    |   |                  |   | 53,953,637  |                                     |   |   | 54,733,172            |   |   |   | 0 |   |   |   | 750,623 |   |
|    Commercial Real Estate                                            |   |       | 3,179,541 |   |       |   | 0      |                 |   |   | 1,411,390      |   |   |    | 4,590,931  |   |                  |   | 90,686,883  |                                     |   |   | 95,277,814            |   |   |   | 0 |   |   |   | 1,411,390 |   |
|    Mortgage Warehouse       Lines |   |       | 0         |   |       |   | 0      |                 |   |   | 0              |   |   |    | 0          |   |                  |   | 169,575,899 |                                     |   |   | 169,575,899           |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                     |   |   |                  |   |   |   |   |   |   |   |   |   |
|    Residential Real Estate                                           |   |       | 173,708   |   |       |   | 0      |                 |   |   | 0              |   |   |    | 173,708    |   |                  |   | 10,261,330  |                                     |   |   | 10,435,038            |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                     |   |   |                  |   |   |   |   |   |   |   |   |   |
| Consumer                                                                            |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                     |   |   |                  |   |   |   |   |   |   |   |   |   |
|    Loans to Individuals                                              |   |       | 0         |   |       |   | 0      |                 |   |   | 77,858         |   |   |    | 77,858     |   |                  |   | 13,271,178  |                                     |   |   | 13,349,036            |   |   |   | 0 |   |   |   | 77,858 |   |
|    Other                                                             |   |       | 0         |   |       |   | 0      |                 |   |   | 0              |   |   |    | 0          |   |                  |   | 181,924     |                                     |   |   | 181,924               |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                     |   |   |                  |   |   |   |   |   |   |   |   |   |
| Deferred Loan Fees                                                                  |   |       | 0         |   |       |   | 0      |                 |   |   | 0              |   |   |    | 0          |   |                  |   | 543,753     |                                     |   |   | 543,753               |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                |   |       |      |   |       |   |   |                 |   |   |           |   |   |    |       |   |                  |   |        |                                     |   |   |                  |   |   |   |   |   |   |   |   |   |
| Total                                                                               |   | $          | 3,467,050 |   |       | $      | 60,526 |                 |   | $      | 8,663,752      |   |   | $       | 12,191,328 |   |                  | $      | 399,796,011 |                                     |   | $      | 411,987,339           |   |   | $ | 0 |   |   | $ | 8,809,167 |   |

----

Table of Contents

|   | · | General economic conditions. |
|--------|--------|------------------------------|

|   | · | Trends in charge-offs. |
|--------|--------|------------------------|

|   | · | Trends and levels of delinquent loans. |
|--------|--------|----------------------------------------|

|   | · | Trends and levels of non-performing loans, including loans over 90 days delinquent. |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Trends in volume and terms of loans. |
|--------|--------|--------------------------------------|

|   | · | Levels of allowance for specific classified loans. |
|--------|--------|----------------------------------------------------|

|   | · | Credit concentrations. |
|--------|--------|------------------------|

----

Table of Contents

|   | · | Consumer credit scores |
|--------|--------|------------------------|

|   | · | Internal credit risk grades |
|--------|--------|-----------------------------|

|   | · | Loan-to-value ratios |
|--------|--------|----------------------|

|   | · | Collateral |
|--------|--------|------------|

|   | · | Collection experience |
|--------|--------|-----------------------|

----

Table of Contents

| Commercial Credit Exposure - By Internally Assigned Grade |   | Construction         |       |   | Commercial Business |   |       | Commercial Real Estate |   |   | Mortgage Warehouse Lines |   |   | Residential Real Estate |       |
|-----------------------------------------------------------|--------|----------------------|------------|--------|---------------------|--------|------------|------------------------|--------|--------|--------------------------|--------|--------|-------------------------|------------|
|                                                      |   |                 |       |   |                |   |       |                   |   |   |                     |   |   |                    |       |
| Grade:                                                    |   |                 |       |   |                |   |       |                   |   |   |                     |   |   |                    |       |
| Pass                                                      |   | $                    | 51,383,732 |   |                | $      | 45,219,025 |                   |   | $      | 83,039,694               |   |   | $                       | 92,947,939 |   |   | $ | 10,151,732 |   |
| Special Mention                                           |   |                 | 4,690,186  |   |                |   | 1,273,473  |                   |   |   | 6,769,612                |   |   |                    | 0          |   |   |   | 0 |   |
| Substandard                                               |   |                 | 8,564,939  |   |                |   | 1,253,733  |                   |   |   | 3,095,174                |   |   |                    | 0          |   |   |   | 519,610 |   |
| Doubtful                                                  |   |                 | 0          |   |                |   | 179,737    |                   |   |   | 663,750                  |   |   |                    | 0          |   |   |   | 0 |   |
| Total                                                     |   | $                    | 64,638,857 |   |                | $      | 47,925,968 |                   |   | $      | 93,568,230               |   |   | $                       | 92,947,939 |   |   | $ | 10,671,342 |   |
|                                                      |   |                 |       |   |                |   |       |                   |   |   |                     |   |   |                    |       |   |   |   |   |   |
| Consumer Credit Exposure -By Payment Activity             |   | Loans To Individuals |       |   | Other               |   |       |                   |   |   |                     |   |   |                    |       |   |   |   |
|                                                      |   |                 |       |   |                |   |       |                   |   |   |                     |   |   |                    |       |   |   |   |   |   |
| Performing                                                |   | $                    | 12,952,904 |   |                | $      | 236,274    |                   |   |   |                     |   |   |                    |       |   |   |   |   |   |
| Nonperforming                                             |   |                 | 77,858     |   |                |   | 0          |                   |   |   |                     |   |   |                    |       |   |   |   |   |   |
| Total                                                     |   | $                    | 13,030,762 |   |                | $      | 236,274    |                   |   |   |                     |   |   |                    |       |   |   |   |   |   |

| Commercial Credit Exposure - By Internally Assigned Grade |   | Construction         |       |   | Commercial Business |   |       | Commercial Real Estate |   |   | Mortgage Warehouse Lines |   |   | Residential Real Estate |        |
|-----------------------------------------------------------|--------|----------------------|------------|--------|---------------------|--------|------------|------------------------|--------|--------|--------------------------|--------|--------|-------------------------|-------------|
|                                                      |   |                 |       |   |                |   |       |                   |   |   |                     |   |   |                    |        |
| Grade:                                                    |   |                 |       |   |                |   |       |                   |   |   |                     |   |   |                    |        |
| Pass                                                      |   | $                    | 52,445,421 |   |                | $      | 52,587,444 |                   |   | $      | 85,122,509               |   |   | $                       | 169,575,899 |   |   | $ | 10,435,038 |   |
| Special Mention                                           |   |                 | 4,482,569  |   |                |   | 433,377    |                   |   |   | 3,668,243                |   |   |                    | 0           |   |   |   | 0 |   |
| Substandard                                               |   |                 | 10,962,713 |   |                |   | 1,499,461  |                   |   |   | 5,823,312                |   |   |                    | 0           |   |   |   | 0 |   |
| Doubtful                                                  |   |                 | 0          |   |                |   | 212,890    |                   |   |   | 663,750                  |   |   |                    | 0           |   |   |   | 0 |   |
| Total                                                     |   | $                    | 67,890,703 |   |                | $      | 54,733,172 |                   |   | $      | 95,277,814               |   |   | $                       | 169,575,899 |   |   | $ | 10,435,038 |   |
|                                                      |   |                 |       |   |                |   |       |                   |   |   |                     |   |   |                    |        |   |   |   |   |   |
| Consumer Credit Exposure -By Payment Activity             |   | Loans To Individuals |       |   | Other               |   |       |                   |   |   |                     |   |   |                    |        |   |   |   |
|                                                      |   |                 |       |   |                |   |       |                   |   |   |                     |   |   |                    |        |   |   |   |   |   |
| Performing                                                |   | $                    | 13,271,178 |   |                | $      | 181,924    |                   |   |   |                     |   |   |                    |        |   |   |   |   |   |
| Nonperforming                                             |   |                 | 77,858     |   |                |   | 0          |                   |   |   |                     |   |   |                    |        |   |   |   |   |   |
| Total                                                     |   | $                    | 13,349,036 |   |                | $      | 181,924    |                   |   |   |                     |   |   |                    |        |   |   |   |   |   |

----

Table of Contents

| Period-End Balances By Impairment Method – March 31, 2011                                  |   |         |       |   |       |   |       |        |   |   |       |   |   |        |       |   |     |   |       |
|--------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|------------|--------|------------|-------------|--------|--------|------------|--------|--------|-------------|------------|--------|----------|--------|------------|
|                                                                                             |   |         |       |   | Commercial |   |       | Commercial  |   |   | Mortgage   |   |   | Residential |       |   |     |   |       |   |   |   |   |   |   | Deferred |   |   | Total |   |
|                                                                                             |   | Construction |       |   | Business   |   |       | Real Estate |   |   | Warehouse  |   |   | Real Estate |       |   | Consumer |   |       | Other |   |   | Unallocated |   |   | Fees |   |   |   |   |
| Allowance for loan losses:                                                                       |   |         |       |   |       |   |       |        |   |   |       |   |   |        |       |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance                                                                                   |   | $            | 2,561,217  |   |       | $      | 870,154    |        |   | $      | 1,405,433  |   |   | $           | 418,266    |   |     | $      | 77,605     |   |   | $ | 190,467 |   |   | $ | 2,481 |   |   | $ | 224,420 |   |   | $ | 0 |   |   | $ | 5,750,043 |   |
|                                                                                             |   |         |       |   |       |   |       |        |   |   |       |   |   |        |       |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance                                                                                   |   |         |       |   |       |   |       |        |   |   |       |   |   |        |       |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Individually evaluated     for impairment                   |   |         | 904,432    |   |       |   | 216,995    |        |   |   | 306,173    |   |   |        | 0          |   |     |   | 11,619     |   |   |   | 77,858 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 1,517,077 |   |
|   Collectively evaluated      for impairment             |   |         | 1,656,785  |   |       |   | 653,159    |        |   |   | 1,099,260  |   |   |        | 418,266    |   |     |   | 65,986     |   |   |   | 112,609 |   |   |   | 2,481 |   |   |   | 224,420 |   |   |   | 0 |   |   |   | 4,232,966 |   |
|                                                                                             |   |         |       |   |       |   |       |        |   |   |       |   |   |        |       |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivables:                                                                               |   |         |       |   |       |   |       |        |   |   |       |   |   |        |       |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance                                                                                   |   | $            | 64,638,857 |   |       | $      | 47,925,968 |        |   | $      | 93,568,230 |   |   | $           | 92,947,939 |   |     | $      | 10,671,342 |   |   | $ | 13,030,762 |   |   | $ | 236,274 |   |   |   | 0 |   |   |   | 709,605 |   |   | $ | 323,728,977 |   |
|   Individually evaluated        for impairment |   |         | 4,092,421  |   |       |   | 1,138,045  |        |   |   | 1,407,545  |   |   |        | 0          |   |     |   | 519,610    |   |   |   | 77,858 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 7,235,479 |   |
|   Collectively evaluated       for impairment       |   |         | 60,546,436 |   |       |   | 46,787,923 |        |   |   | 92,160,685 |   |   |        | 92,947,939 |   |     |   | 10,151,732 |   |   |   | 12,952,904 |   |   |   | 236,274 |   |   |   | 0 |   |   |   | 709,605 |   |   |   | 316,493,498 |   |

| Period-End Balances By Impairment Method – December 31, 2010                               |   |         |       |   |       |   |       |        |   |   |       |   |   |        |        |   |     |   |       |
|--------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|------------|--------|------------|-------------|--------|--------|------------|--------|--------|-------------|-------------|--------|----------|--------|------------|
|                                                                                             |   |         |       |   | Commercial |   |       | Commercial  |   |   | Mortgage   |   |   | Residential |        |   |     |   |       |   |   |   |   |   |   | Deferred |   |   | Total |   |
|                                                                                             |   | Construction |       |   | Business   |   |       | Real Estate |   |   | Warehouse  |   |   | Real Estate |        |   | Consumer |   |       | Other |   |   | Unallocated |   |   | Fees |   |   |   |   |
| Allowance for loan losses:                                                                       |   |         |       |   |       |   |       |        |   |   |       |   |   |        |        |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance                                                                                   |   | $            | 1,744,068  |   |       | $      | 971,994    |        |   | $      | 1,723,865  |   |   | $           | 763,092     |   |     | $      | 67,828     |   |   | $ | 192,457 |   |   | $ | 1,910 |   |   | $ | 297,498 |   |   | $ | 0 |   |   | $ | 5,762,712 |   |
|                                                                                             |   |         |       |   |       |   |       |        |   |   |       |   |   |        |        |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance                                                                                   |   |         |       |   |       |   |       |        |   |   |       |   |   |        |        |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Individually evaluated     for impairment                   |   |         | 45,000     |   |       |   | 180,525    |        |   |   | 271,382    |   |   |        | 0           |   |     |   | 0          |   |   |   | 77,858 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 574,765 |   |
|   Collectively evaluated      for impairment             |   |         | 1,699,068  |   |       |   | 791,469    |        |   |   | 1,452,483  |   |   |        | 763,092     |   |     |   | 67,828     |   |   |   | 114,599 |   |   |   | 1,910 |   |   |   | 297,498 |   |   |   | 0 |   |   |   | 5,187,947 |   |
|                                                                                             |   |         |       |   |       |   |       |        |   |   |       |   |   |        |        |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivables:                                                                               |   |         |       |   |       |   |       |        |   |   |       |   |   |        |        |   |     |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance                                                                                   |   | $            | 67,890,703 |   |       | $      | 54,733,172 |        |   | $      | 95,277,814 |   |   | $           | 169,575,899 |   |     | $      | 10,435,038 |   |   | $ | 13,271,178 |   |   | $ | 181,924 |   |   |   | 0 |   |   |   | 543,753 |   |   | $ | 411,987,339 |   |
|   Individually evaluated        for impairment |   |         | 4,142,137  |   |       |   | 3,177,782  |        |   |   | 1,411,390  |   |   |        | 0           |   |     |   | 0          |   |   |   | 77,858 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 8,809,167 |   |
|   Collectively evaluated       for impairment       |   |         | 63,748,566 |   |       |   | 51,555,390 |        |   |   | 93,866,424 |   |   |        | 169,575,899 |   |     |   | 10,435,038 |   |   |   | 13,271,178 |   |   |   | 181,924 |   |   |   | 0 |   |   |   | 543,753 |   |   |   | 403,178,172 |   |

----

Table of Contents

|                            |   | Construction |      |   | CommercialBusiness |   |    | CommercialReal Estate |   |   | MortgageWarehouse |   |   | ResidentialReal Estate |     |   | Consumer |   |   | Other  |   |   | Unallocated |   |   | Total  |   |
|---------------------------------|--------|--------------|-----------|--------|--------------------|--------|---------|-----------------------|--------|--------|-------------------|--------|--------|------------------------|----------|--------|----------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|
| Balance - December 31, 2010     |   | $            | 1,744,068 |   |               | $      | 971,994 |                  |   | $      | 1,723,865         |   |   | $                      | 763,092  |   |     | $      | 67,828 |   |   | $      | 192,457     |   |   | $      | 1,910  |   |   | $ | 297,498 |   |   | $ | 5,762,712 |   |
| Provision charged to operations |   |         | 1,183,736 |   |               |   | (55,760 | )                     |   |   | (318,432          | )      |   |                   | (344,826 | )      |     |   | 9,777  |   |   |   | (1,990      | )      |   |   | 571    |   |   |   | (73,078 | ) |   |   | 399,998 |   |
| Loans charged off               |   |         | (366,588  | )      |               |   | (46,319 | )                     |   |   | -                 |   |   |                   | -        |   |     |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | - |   |   |   | (412,907 | ) |
| Recoveries of loans charged off |   |         | -         |   |               |   | 239     |                  |   |   | -                 |   |   |                   | -        |   |     |   | -      |   |   |   | -           |   |   |   | -      |   |   |   | - |   |   |   | 239 |   |
| Balance - March 31, 2011        |   | $            | 2,561,217 |   |               | $      | 870,154 |                  |   | $      | 1,405,433         |   |   | $                      | 418,266  |   |     | $      | 77,605 |   |   | $      | 190,467     |   |   | $      | 2,481  |   |   | $ | 224,420 |   |   | $ | 5,750,042 |   |

| Impaired Loans Receivables (By Class) – March 31, 2011 |
|--------------------------------------------------------------|
|                                                         |   | Recorded Investment |   |   |  Unpaid Principal Balance |   |   | Related Allowance |   |   | AverageRecordedInvestment |   |   | InterestIncomeRecognized |   |
| With no related allowance:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Construction                               |   | $ | 170,921 |   |   | $ | 189,921 |   |   | $ | -- |   |   | $ | 2,779,171 |   |   | $ | -- |   |
|    Commercial Business                        |   |   | 478,609 |   |   |   | 490,299 |   |   |   | -- |   |   |   | 443,643 |   |   |   | -- |   |
|    Commercial Real Estate                     |   |   | 359,192 |   |   |   | 359,192 |   |   |   | -- |   |   |   | 424,298 |   |   |   | -- |   |
|    Mortgage Warehouse Lines                   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                         |   |   | 1,008,722 |   |   |   | 1,039,412 |   |   |   | -- |   |   |   | 3,647,112 |   |   |   | - |   |
| Residential Real Estate                                      |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 1,516 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans to Individuals                       |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|    Other                                      |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  With no related allowance:                             |   |   | 1,008,722 |   |   |   | 1,039,412 |   |   |   | - |   |   |   | 3,647,112 |   |   |   | 1,516 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With a related allowance:                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Construction                               |   |   | 3,921,500 |   |   |   | 3,997,000 |   |   |   | 904,432 |   |   |   | 2,931,167 |   |   |   | -- |   |
|    Commercial Business                        |   |   | 659,436 |   |   |   | 659,436 |   |   |   | 216,995 |   |   |   | 463,058 |   |   |   | -- |   |
|    Commercial Real Estate                     |   |   | 1,048,353 |   |   |   | 1,048,353 |   |   |   | 306,173 |   |   |   | 984,370 |   |   |   | -- |   |
|    Mortgage Warehouse Lines                   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                         |   |   | 5,629,289 |   |   |   | 5,704,789 |   |   |   | 1,427,600 |   |   |   | 4,378,595 |   |   |   | -- |   |
| Residential Real Estate                                      |   |   | 519,610 |   |   |   | 519,610 |   |   |   | 11,619 |   |   |   | 346,709 |   |   |   | -- |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans to Individuals                       |   |   | 77,858 |   |   |   | 77,858 |   |   |   | 77,858 |   |   |   | 77,858 |   |   |   | -- |   |
|    Other                                      |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                         |   |   | 77,858 |   |   |   | 77,858 |   |   |   | 77,858 |   |   |   | 77,858 |   |   |   | -- |   |
| With a related allowance:                                    |   |   | 6,226,757 |   |   |   | 6,302,257 |   |   |   | 1,517,077 |   |   |   | 4,803,162 |   |   |   | -- |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                                 |   |   | 6,638,011 |   |   |   | 6,744,201 |   |   |   | 1,427,600 |   |   |   | 8,025,707 |   |   |   | -- |   |
|    Residential Real Estate                    |   |   | 519,610 |   |   |   | 519,610 |   |   |   | 11,619 |   |   |   | 346,709 |   |   |   | 1,516 |   |
|    Consumer                                   |   |   | 77,858 |   |   |   | 77,858 |   |   |   | 77,858 |   |   |   | 77,858 |   |   |   | -- |   |
|                                                         |   | $ | 7,235,479 |   |   | $ | 7,341,669 |   |   | $ | 1,517,077 |   |   | $ | 8,450,274 |   |   | $ | 1,516 |   |

----

Table of Contents

| Impaired Loans Receivables (By Class) – December 31, 2010 |
|-----------------------------------------------------------------|
|                                                            |   |   |   |   |   |   |   |   |   |
|                                                            |   | RecordedInvestment |   |   | UnpaidPrincipal Balance |   |   | RelatedAllowance |   |
|                                                            |   |   |   |   |   |   |   |   |   |
| With no related allowance:                                      |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |
| Commercial                                                      |   |   |   |   |   |   |   |   |   |
|    Construction                                  |   | $ | 4,409,296 |   |   | $ | 4,453,796 |   |   | $ | -- |   |
|    Commercial Business                           |   |   | 385,370 |   |   |   | 394,654 |   |   |   | -- |   |
|    Commercial Real Estate                        |   |   | 554,986 |   |   |   | 554,986 |   |   |   | -- |   |
|    Mortgage Warehouse Lines                      |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                            |   |   | 5,349,652 |   |   |   | 5,403,436 |   |   |   | -- |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential Real Estate                                         |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans to Individuals                          |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|    Other                                         |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                            |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                            |   |   | 5,349,652 |   |   |   | 5,403,436 |   |   |   | -- |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance:                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|    Construction                                  |   |   | 2,160,000 |   |   |   | 2,160,000 |   |   |   | 45,000 |   |
|    Commercial Business                           |   |   | 365,253 |   |   |   | 365,253 |   |   |   | 180,525 |   |
|    Commercial Real Estate                        |   |   | 856,404 |   |   |   | 856,404 |   |   |   | 271,382 |   |
|    Mortgage Warehouse Lines                      |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                            |   |   | 3,381,657 |   |   |   | 3,381,657 |   |   |   | 496,907 |   |
| Residential Real Estate                                         |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans to Individuals                          |   |   | 77,858 |   |   |   | 77,858 |   |   |   | 77,858 |   |
|    Other                                         |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                            |   |   | 77,858 |   |   |   | 77,858 |   |   |   | 77,858 |   |
|                                                            |   |   | 3,459,515 |   |   |   | 3,459,515 |   |   |   | 574,765 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                                    |   |   | 8,731,309 |   |   |   | 8,785,093 |   |   |   | 496,907 |   |
|    Residential Real Estate                       |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|    Consumer                                      |   |   | 77,858 |   |   |   | 77,858 |   |   |   | 77,858 |   |
|                                                            |   | $ | 8,809,167 |   |   | $ | 8,862,951 |   |   | $ | 574,765 |   |

----

Table of Contents

|                           |   |      |    |   |           |   |   | Weighted     |   |   |      |   |
|--------------------------------|--------|-----------|---------|--------|----------------|--------|--------|--------------|--------|--------|-----------|--------|
|                           |   |      |    |   |           |   |   | Average      |   |   |      |   |
|                           |   |      |    |   | Weighted       |   |   | Remaining    |   |   | Aggregate |   |
|                           |   | Number of |    |   | Average        |   |   | Contractual  |   |   | Intrinsic |   |
| Stock Options                  |   | Shares    |    |   | Exercise Price |   |   | Term (years) |   |   | Value     |   |
| Outstanding at January 1, 2011 |   |      | 156,244 |   |           | $      | 10.74  |         |   |   |      |   |   |   |
| Granted                        |   |      | 27,930  |   |           |   | 8.34   |         |   |   |      |   |   |   |
| Exercised                      |   |      | (1,709  | )      |           |   | 5.85   |         |   |   |      |   |   |   |
| Forfeited                      |   |      | -       |   |           |   | -      |         |   |   |      |   |   |   |
| Expired                        |   |      | -       |   |           |   | -      |         |   |   |      |   |   |   |
| Outstanding at March 31, 2011  |   |      | 182,465 |   |           | $      | 10.42  |         |   |   | 6.0       |   |   | $ | 70,145 |   |
|                           |   |      |    |   |           |   |   |         |   |   |      |   |   |   |   |   |
| Exercisable at March 31, 2011  |   |      | 131,952 |   |           | $      | 11.13  |         |   |   | 4.9       |   |   | $ | 53,671 |   |

| Fair value of options granted |   | $      | 3.24  |   |
|-------------------------------|--------|--------|-------|--------|
| Risk-free rate of return      |   |   | 1.99  | %      |
| Expected option life in years |   |   | 7     |   |
| Expected volatility           |   |   | 33.02 | %      |
| Expected dividends (1)        |   |   | -     |   |

----

Table of Contents

|                          |   |      |    |   | Average    |   |
|-------------------------------|--------|-----------|---------|--------|------------|--------|
|                          |   | Number of |    |   | Grant Date |   |
| Non-vested shares             |   | Shares    |    |   | Fair Value |   |
| Non-vested at January 1, 2011 |   |      | 109,518 |   |       | $      | 7.70 |   |
| Granted                       |   |      | 30,855  |   |       |   | 7.91 |   |
| Vested                        |   |      | (5,895  | )      |       |   | 9.07 |   |
| Forfeited                     |   |      | -       |   |       |   | - |   |
| Non-vested at March 31, 2011  |   |      | 134,478 |   |       | $      | 7.69 |   |
|                          |   |      |    |   |       |   |   |   |

|                             | Three months endedMarch 31, |    |
|----------------------------------|-----------------------------|---------|
|                             | 2011                        |    | 2010 |   |
|                             |                        |    |   |   |
| Service cost                     | $                           | 68,425  |   |   | $ | 56,514 |   |
| Interest cost                    |                        | 57,057  |   |   |   | 48,435 |   |
| Actuarial (gain) loss recognized |                        | (2,062  | )  |   |   | 38,517 |   |
| Prior service cost recognized    |                        | 19,859  |   |   |   | 24,858 |   |
|                             | $                           | 143,279 |   |   | $ | 168,324 |   |

----

Table of Contents

|                                                                                       |   | March 31, |     |   | December 31, |   |
|--------------------------------------------------------------------------------------------|--------|-----------|----------|--------|--------------|--------|
|                                                                                       |   | 2011      |     |   | 2010         |   |
| Unrealized holding gains on                                                                |   |      |     |   |         |   |
| securities available for sale                                                              |   | $         | 967,968  |   |         | $      | 1,145,540 |   |
| Related income tax effect                                                                  |   |      | (329,108 | )      |         |   | (389,483 | ) |
|                                                                                       |   |      | 638,860  |   |         |   | 756,057 |   |
|                                                                                       |   |      |     |   |         |   |   |   |
| Unrealized impairment loss      On held to maturity security |   |      | (500,944 | )      |         |   | (500,944 | ) |
| Related income tax effect                                                                  |   |      | 170,321  |   |         |   | 170,321 |   |
|                                                                                       |   |      | (330,623 | )      |         |   | (330,623 | ) |
|                                                                                       |   |      |     |   |         |   |   |   |
| Unrealized loss on interest rate swap contract                                             |   |      | (179,773 | )      |         |   | (353,552 | ) |
| Related income tax effect                                                                  |   |      | 72,582   |   |         |   | 141,990 |   |
|                                                                                       |   |      | (107,191 | )      |         |   | (211,562 | ) |
|                                                                                       |   |      |     |   |         |   |   |   |
| Pension liability                                                                          |   |      | (188,320 | )      |         |   | (191,539 | ) |
| Related income tax effect                                                                  |   |      | 74,549   |   |         |   | 75,841 |   |
|                                                                                       |   |      | (113,771 | )      |         |   | (115,698 | ) |
|                                                                                       |   |      |     |   |         |   |   |   |
| Accumulated other comprehensive income                                                     |   | $         | 87,275   |   |         | $      | 98,174 |   |

|                        |   | Net Unrealized Gainson Available forSale Securities |     |   | Net Unrealized Impairment Loss On Held toMaturity Security |   |     | Net Change inFair Value ofInterest RateSwap Contract |   |   | Net ChangeRelated to Defined Benefit PensionPlans |   |   | AccumulatedOtherComprehensiveIncome |     |
|-----------------------------|--------|----------------------------------------------------------|----------|--------|----------------------------------------------------------------------|--------|----------|------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-------------------------------------|----------|
| Balances, December 31, 2010 |   | $                                                        | 756,057  |   |                                                                 | $      | (330,623 | )                                                    |   | $      | (211,562                                               | )      |   | $                                   | (115,698 | ) |   | $ | 98,174 |   |
|                        |   |                                                     |     |   |                                                                 |   |     |                                                 |   |   |                                                   |   |   |                                |     |   |   |   |   |   |
| Net change                  |   |                                                     | (117,197 | )      |                                                                 |   | -        |                                                 |   |   | 104,371                                                |   |   |                                | 1,927    |   |   |   | (10,899 | ) |
|                        |   |                                                     |     |   |                                                                 |   |     |                                                 |   |   |                                                   |   |   |                                |     |   |   |   |   |   |
| Balance, March 31, 2011     |   | $                                                        | 638,860  |   |                                                                 | $      | (330,623 | )                                                    |   | $      | (107,191                                               | )      |   | $                                   | (113,771 | ) |   | $ | 87,275 |   |

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| Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

| Level 2: | Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3: | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                        |   | Level 1Inputs |   |   | Level 2Inputs |   |       | Level 3Inputs |   |   | Total FairValue |   |
|---------------------------------------------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|------------|---------------|--------|--------|-----------------|--------|
| March 31, 2011:                                                                             |   |          |   |   |          |   |       |          |   |   |            |   |
|   Securities available for sale:                                                  |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
|   U. S. Treasury securities and                                                   |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
|       obligations of U.S. Government                          |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
|       sponsored corporations (“GSE”) and agencies |   |          | -      |   |          | $      | 31,332,984 |          |   |   | -               |   |   | $ | 31,332,984 |   |
|   Residential collateralized mortgage obligations- GSE                            |   |          | -      |   |          |   | 17,167,703 |          |   |   | -               |   |   |   | 17,167,703 |   |
|   Residential collateralized mortgage obligations - non GSE                       |   |          | -      |   |          |   | 5,249,465  |          |   |   | -               |   |   |   | 5,249,465 |   |
|   Residential mortgage backed securities – GSE                              |   |          | -      |   |          |   | 49,039,152 |          |   |   | -               |   |   |   | 49,039,152 |   |
|   Obligations of State and Political subdivisions                                 |   |          | -      |   |          |   | 5,405,904  |          |   |   | -               |   |   |   | 5,405,904 |   |
|   Trust preferred debt securities – single issuer                           |   |          | -      |   |          |   | 2,022,487  |          |   |   | -               |   |   |   | 2,022,487 |   |
|   Corporate debt securities                                                       |   |          | -      |   |          |   | 1,490,807  |          |   |   | -               |   |   |   | 1,490,807 |   |
|   Restricted stock                                                                |   |          | -      |   |          |   | 924,600    |          |   |   | -               |   |   |   | 924,600 |   |
|   Mutual fund                                                                     |   |          | -      |   |          |   | 25,000     |          |   |   | -               |   |   |   | 25,000 |   |
|                                                                                        |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
|   Derivative liabilities                                                          |   |          | -      |   |          |   | (179,773   | )             |   |   | -               |   |   |   | (179,773 | ) |
|                                                                                        |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
| December 31, 2010:                                                                          |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
|   Securities available for sale:                                                  |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
|   U. S. Treasury securities and                                                   |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
|       obligations of U.S. Government                          |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
|       sponsored corporations (“GSE”) and agencies |   |          | -      |   |          | $      | 34,359,563 |          |   |   | -               |   |   | $ | 34,359,563 |   |
|   Residential collateralized mortgage obligations- GSE                            |   |          | -      |   |          |   | 19,137,758 |          |   |   | -               |   |   |   | 19,137,758 |   |
|   Residential collateralized mortgage obligations - non GSE                       |   |          | -      |   |          |   | 5,761,322  |          |   |   | -               |   |   |   | 5,761,322 |   |
|   Residential mortgage backed securities – GSE                              |   |          | -      |   |          |   | 18,169,735 |          |   |   | -               |   |   |   | 18,169,735 |   |
|   Obligations of State and Political subdivisions                                 |   |          | -      |   |          |   | 3,021,428  |          |   |   | -               |   |   |   | 3,021,428 |   |
|   Trust preferred debt securities – single issuer                           |   |          | -      |   |          |   | 1,857,503  |          |   |   | -               |   |   |   | 1,857,503 |   |
|   Corporate debt securities                                                       |   |          | -      |   |          |   | 1,498,584  |          |   |   | -               |   |   |   | 1,498,584 |   |
|   Restricted stock                                                                |   |          | -      |   |          |   | 1,640,100  |          |   |   | -               |   |   |   | 1,640,100 |   |
|   Mutual fund                                                                     |   |          | -      |   |          |   | 25,000     |          |   |   | -               |   |   |   | 25,000 |   |
|                                                                                        |   |          |   |   |          |   |       |          |   |   |            |   |   |   |   |   |
|   Derivative liabilities                                                          |   |          | -      |   |          |   | (353,552   | )             |   |   | -               |   |   |   | (353,552 | ) |

|                    |   | Level 1Inputs |   |   | Level 2Inputs |   |   | Level 3Inputs |   |   | Total FairValue |   |
|-------------------------|--------|---------------|--------|--------|---------------|--------|--------|---------------|--------|--------|-----------------|--------|
| March 31, 2011:         |   |          |   |   |          |   |   |          |   |   |            |   |
| Impaired loans          |   |          | -      |   |          |   | -      |          |   | $      | 4,709,680       |   |   | $ | 4,709,680 |   |
| Other real estate owned |   |          | -      |   |          |   | -      |          |   |   | 945,020         |   |   |   | 945,020 |   |
|                    |   |          |   |   |          |   |   |          |   |   |            |   |   |   |   |   |
|                    |   |          |   |   |          |   |   |          |   |   |            |   |   |   |   |   |
| December 31, 2010:      |   |          |   |   |          |   |   |          |   |   |            |   |   |   |   |   |
| Impaired loans          |   |          | -      |   |          |   | -      |          |   | $      | 2,884,750       |   |   | $ | 2,884,750 |   |
| Other real estate owned |   |          | -      |   |          |   | -      |          |   |   | 243,023         |   |   |   | 243,023 |   |

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|                                     |   | March 31, 2011 |         |    | December 31, 2010 |   |
|------------------------------------------|--------|----------------|--------------|---------|-------------------|--------|
|                                     |   | Carrying       |         |    | Estimated         |   |   | Carrying |   |   | Estimated |   |
|                                     |   | Value          |         |    | Fair Value        |   |   | Value |   |   | Fair Value |   |
|                                     |   |           |         |    |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                |   | $              | 114,059,109  |    |              |   | 114,059,109 |   |   | $ | 17,710,501 |   |   | $ | $17,710,501 |   |
| Securities available for sale       |   |           | 112,658,102  |    |              |   | 112,658,102 |   |   |   | 85,470,993 |   |   |   | 85,470,993 |   |
| Securities held to maturity         |   |           | 141,271,366  |    |              |   | 142,264,106 |   |   |   | 81,889,895 |   |   |   | 81,712,003 |   |
| Loans held for sale                 |   |           | 4,944,106    |    |              |   | 4,994,106 |   |   |   | 21,219,230 |   |   |   | 21,219,230 |   |
| Gross loans                         |   |           | 323,728,977  |    |              |   | 322,647,000 |   |   |   | 411,987,339 |   |   |   | 410,144,000 |   |
| Accrued interest receivable              |   |           | 2,453,402    |    |              |   | 2,453,402 |   |   |   | 2,405,741 |   |   |   | 2,405,741 |   |
| Deposits                            |   |           | (650,019,648 | )  |              |   | (651,331,000 | )  |   |   | (543,735,149 | )  |   |   | (545,225,000 | )  |
| Other borrowings                    |   |           | (10,000,000  | )  |              |   | (12,069,000 | )  |   |   | (25,900,000 | )  |   |   | (27,979,000 | )  |
| Redeemable subordinated debentures  |   |           | (18,557,000  | )  |              |   | (18,557,000 | )  |   |   | (18,557,000 | )  |   |   | (18,557,000 | )  |
| Interest rate swap contract         |   |           | (179,773     | )  |              |   | (179,773 | )  |   |   | (353,552 | ) |   |   | (353,552 | ) |
| Accrued interest payable                 |   |           | (1,312,042   | )       |              |   | (1,312,042 | ) |   |   | (1,434,338 | ) |   |   | (1,434,338 | ) |

|  Maturity |  Hedged Liability | NotionalAmounts | Swap FixedInterest Rates | Swap VariableInterest Rates        |
|----------------|------------------------|-----------------|--------------------------|------------------------------------|
|           |                   |            |                     |                               |
| June 15, 2011  | Subordinated Debenture | $18,000,000     | 5.87%                    | 3 month LIBOR plus165 basis points |

Item 2.       Management’s Discussion and Analysis of Financial Condition and Results of Operations

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| Average Balance Sheets with Resultant Interest and Rates |   |
|----------------------------------------------------------|--------|
| (yields on a tax-equivalent basis)                       |   | Three months ended March 31, 2011 |   |   | Three months ended March 31, 2010 |   |
|                                                     |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |
| Assets:                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal Funds Sold/Short-Term Investments                |   | $ | 14,984,566 |   |   | $ | 9,106 |   |   |   | 0.25 | % |   | $ | 33,468,885 |   |   | $ | 19,709 |   |   |   | 0.24 | % |
| Investment Securities:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                  |   |   | 204,398,959 |   |   |   | 1,284,944 |   |   |   | 2.55 | % |   |   | 215,869,321 |   |   |   | 1,393,886 |   |   |   | 2.62 | % |
| Tax-exempt                                               |   |   | 32,125,900 |   |   |   | 421,907 |   |   |   | 5.33 | % |   |   | 11,141,881 |   |   |   | 159,737 |   |   |   | 5.81 | % |
| Total                                                    |   |   | 236,524,859 |   |   |   | 1,706,851 |   |   |   | 2.93 | % |   |   | 227,011,202 |   |   |   | 1,553,623 |   |   |   | 2.78 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Portfolio:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction                                             |   |   | 66,996,941 |   |   |   | 943,097 |   |   |   | 5.71 | % |   |   | 75,945,075 |   |   |   | 1,130,873 |   |   |   | 6.04 | % |
| Residential real estate                                  |   |   | 10,487,786 |   |   |   | 170,146 |   |   |   | 6.58 | % |   |   | 10,993,906 |   |   |   | 150,048 |   |   |   | 5.54 | % |
| Home Equity                                              |   |   | 12,380,893 |   |   |   | 175,411 |   |   |   | 5.75 | % |   |   | 14,279,859 |   |   |   | 207,612 |   |   |   | 5.90 | % |
| Commercial and commercial real estate                    |   |   | 135,025,788 |   |   |   | 2,270,946 |   |   |   | 6.82 | % |   |   | 140,028,435 |   |   |   | 2,314,906 |   |   |   | 6.70 | % |
| Mortgage warehouse lines                                 |   |   | 101,779,484 |   |   |   | 1,178,776 |   |   |   | 4.70 | % |   |   | 86,430,196 |   |   |   | 1,002,820 |   |   |   | 4.71 | % |
| Installment                                              |   |   | 421,663 |   |   |   | 7,450 |   |   |   | 7.17 | % |   |   | 654,263 |   |   |   | 12,058 |   |   |   | 7.47 | % |
| All Other Loans                                          |   |   | 28,432,869 |   |   |   | 608,381 |   |   |   | 8.68 | % |   |   | 33,019,974 |   |   |   | 510,548 |   |   |   | 6.27 | % |
| Total                                                    |   |   | 355,525,424 |   |   |   | 5,354,207 |   |   |   | 6.11 | % |   |   | 361,351,708 |   |   |   | 5,328,865 |   |   |   | 5.98 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Earning Assets                            |   |   | 607,034,849 |   |   |   | 7,070,164 |   |   |   | 4.72 | % |   |   | 621,831,795 |   |   |   | 6,902,197 |   |   |   | 4.50 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses                                |   |   | (6,050,453 | ) |   |   |   |   |   |   |   |   |   |   | (4,681,971 | ) |   |   |   |   |   |   |   |   |
| Cash and Due From Bank                                   |   |   | 17,307,166 |   |   |   |   |   |   |   |   |   |   |   | 10,529,273 |   |   |   |   |   |   |   |   |   |
| Other Assets                                             |   |   | 34,107,247 |   |   |   |   |   |   |   |   |   |   |   | 28,143,654 |   |   |   |   |   |   |   |   |   |
| Total Assets                                             |   | $ | 652,398,809 |   |   |   |   |   |   |   |   |   |   | $ | 655,822,751 |   |   |   |   |   |   |   |   |   |
|  Interest-Bearing Liabilities:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money Market and NOW Accounts                            |   | $ | 136,295,377 |   |   | $ | 373,313 |   |   |   | 1.11 | % |   | $ | 121,295,956 |   |   | $ | 506,120 |   |   |   | 1.69 | % |
| Savings Accounts                                         |   |   | 172,918,852 |   |   |   | 375,488 |   |   |   | 0.88 | % |   |   | 180,685,199 |   |   |   | 547,258 |   |   |   | 1.23 | % |
| Certificates of Deposit                                  |   |   | 153,113,579 |   |   |   | 649,329 |   |   |   | 1.72 | % |   |   | 166,844,079 |   |   |   | 827,290 |   |   |   | 2.01 | % |
| Other Borrowed Funds                                     |   |   | 13,895,000 |   |   |   | 106,920 |   |   |   | 3.12 | % |   |   | 22,552,111 |   |   |   | 266,415 |   |   |   | 4.79 | % |
| Trust Preferred Securities                               |   |   | 18,557,000 |   |   |   | 264,154 |   |   |   | 5.77 | % |   |   | 18,557,000 |   |   |   | 264,150 |   |   |   | 5.77 | % |
| Total Interest-Bearing Liabilities                       |   |   | 494,779,808 |   |   |   | 1,769,204 |   |   |   | 1.45 | % |   |   | 509,934,345 |   |   |   | 2,411,233 |   |   |   | 1.92 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Spread                                      |   |   |   |   |   |   |   |   |   |   | 3.27 | % |   |   |   |   |   |   |   |   |   |   | 2.58 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand Deposits                                          |   |   | 96,658,478 |   |   |   |   |   |   |   |   |   |   |   | 80,196,321 |   |   |   |   |   |   |   |   |   |
| Other Liabilities                                        |   |   | 11,578,464 |   |   |   |   |   |   |   |   |   |   |   | 8,108,614 |   |   |   |   |   |   |   |   |   |
| Total Liabilities                                        |   |   | 603,016,750 |   |   |   |   |   |   |   |   |   |   |   | 598,239,280 |   |   |   |   |   |   |   |   |   |
| Shareholders’ Equity                               |   |   | 49,382,059 |   |   |   |   |   |   |   |   |   |   |   | 57,583,471 |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Shareholders’Equity          |   | $ | 652,398,809 |   |   |   |   |   |   |   |   |   |   | $ | 655,822,751 |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Margin                                      |   |   |   |   |   | $ | 5,300,960 |   |   |   | 3.54 | % |   |   |   |   |   | $ | 4,490,964 |   |   |   | 2.93 | % |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| Non-interest Expenses                   |   |                         |      |   |   |   |
|-----------------------------------------|--------|------------------------------|-----------|--------|--------|--------|
|                                    |   | Three months ended March 31, |      |
|                                    |   | 2011                         |      |   | 2010   |   |
| Salaries and employee benefits          |   | $                            | 2,576,664 |   |   | $      | 2,376,700 |   |
| Occupancy expenses                      |   |                         | 566,738   |   |   |   | 445,927 |   |
| Data processing services                |   |                         | 303,473   |   |   |   | 258,807 |   |
| Equipment expense                       |   |                         | 170,802   |   |   |   | 151,985 |   |
| Marketing                               |   |                         | 27,966    |   |   |   | 23,450 |   |
| Regulatory, professional and other fees |   |                         | 198,152   |   |   |   | 172,584 |   |
| Office expense                          |   |                         | 137,826   |   |   |   | 169,593 |   |
| FDIC insurance expense                  |   |                         | 227,547   |   |   |   | 247,683 |   |
| Directors’ fees                   |   |                         | 27,000    |   |   |   | 26,500 |   |
| Other real estate owned expenses        |   |                         | 236,381   |   |   |   | 17,790 |   |
| All other expenses                      |   |                         | 190,283   |   |   |   | 242,928 |   |
|                                    |   | $                            | 4,662,832 |   |   | $      | 4,133,947 |   |
|                                    |   |                         |      |   |   |   |   |   |

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| Loan Portfolio Composition    |   | March 31, 2011 |        |   | December 31, 2010 |   |
|-------------------------------|--------|----------------|-------------|--------|-------------------|--------|
| Component                     |   | Amount         |        |   | %of total         |   |   | Amount |   |   | %of total |   |
| Construction loans            |   | $              | 64,638,857  |   |              |   | 20% |   |   | $ | 67,890,703 |   |   |   | 16% |   |
| Residential real estate loans |   |           | 10,671,342  |   |              |   | 3% |   |   |   | 10,435,038 |   |   |   | 3% |   |
| Commercial business           |   |           | 47,925,968  |   |              |   | 15% |   |   |   | 54,733,172 |   |   |   | 13% |   |
| Commercial real estate        |   |           | 93,568,230  |   |              |   | 29% |   |   |   | 95,277,814 |   |   |   | 23% |   |
| Mortgage warehouse lines      |   |           | 92,947,939  |   |              |   | 29% |   |   |   | 169,575,899 |   |   |   | 41% |   |
| Loans to individuals          |   |           | 13,030,762  |   |              |   | 4% |   |   |   | 13,349,036 |   |   |   | 3% |   |
| Deferred loan fees and costs  |   |           | 709,605     |   |              |   | 0% |   |   |   | 543,753 |   |   |   | 0% |   |
| All other loans               |   |           | 236,274     |   |              |   | 0% |   |   |   | 181,924 |   |   |   | 0% |   |
|                          |   | $              | 323,728,977 |   |              |   | 100% |   |   | $ | 411,987,339 |   |   |   | 100% |   |

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|                                         |   |      |       |   |         |   |
|---------------------------------------------------|--------|-----------|------------|--------|--------------|--------|
| Non-Performing Assets and Loans                   |   | March 31, |       |   | December 31, |   |
|                                              |   | 2011      |       |   | 2010         |   |
| Non-Performing loans:                             |   |      |       |   |         |   |
| Loans 90 days or more past due and still accruing |   | $         | 0          |   |         | $      | 0 |   |
| Non-accrual loans                                 |   |      | 6,715,869  |   |         |   | 8,809,167 |   |
| Total non-performing loans                        |   |      | 6,715,869  |   |         |   | 8,809,167 |   |
| Other real estate owned                           |   |      | 6,358,232  |   |         |   | 4,850,818 |   |
| Total non-performing assets                       |   | $         | 13,074,101 |   |         | $      | 13,659,985 |   |
|                                              |   |      |       |   |         |   |   |   |
| Non-performing loans to total loans               |   |      | 2.04       | %      |         |   | 2.14 | % |
| Non-performing assets to total assets             |   |      | 1.78       | %      |         |   | 2.12 | % |

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|   | · | General economic conditions. |
|--------|--------|------------------------------|

|   | · | Trends in charge-offs. |
|--------|--------|------------------------|

|   | · | Trends and levels of delinquent loans. |
|--------|--------|----------------------------------------|

|   | · | Trends and levels of non-performing loans, including loans over 90 days delinquent. |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Trends in volume and terms of loans. |
|--------|--------|--------------------------------------|

|   | · | Levels of allowance for specific classified loans. |
|--------|--------|----------------------------------------------------|

|   | · | Credit concentrations. |
|--------|--------|------------------------|

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| Allowance for Loan Losses                                                                                                        |   |      |        |   |         |   |        |      |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|--------------|--------|-------------|-----------|--------|
|                                                                                                                             |   | March 31, |        |   | December 31, |   |        | March 31, |   |
|                                                                                                                             |   | 2011      |        |   | 2010         |   |        | 2010      |   |
| Balance, beginning of period                                                                                                     |   | $         | 5,762,712   |   |         | $      | 4,505,387   |      |   | $ | 4,505,387 |   |
|                                                                                                                             |   |      |        |   |         |   |        |      |   |   |   |   |
| Provision charged to operating expenses                                                                                          |   |      | 399,998     |   |         |   | 2,325,000   |      |   |   | 300,000 |   |
|                                                                                                                             |   |      |        |   |         |   |        |      |   |   |   |   |
| Loans charged off :                                                                                                              |   |      |        |   |         |   |        |      |   |   |   |   |
|    Construction loans                                                                                             |   |      | (366,588    | )      |         |   | (450,000    | )         |   |   | - |   |
|    Residential real estate loans                                                                                  |   |      | -           |   |         |   | -           |      |   |   | - |   |
|    Commercial and commercial real estate                                                                          |   |      | (46,319     | )      |         |   | (609,468    | )         |   |   | - |   |
|    Loans to individuals                                                                                           |   |      | 0           |   |         |   | (22,087     | )         |   |   | (16,988 | ) |
|    Lease financing                                                                                                |   |      | 0           |   |         |   | -           |      |   |   | (365 | ) |
|    All other loans                                                                                                |   |      | -           |   |         |   | -           |      |   |   | - |   |
|                                                                                                                             |   |      | (412,907    | )      |         |   | (1,081,555  | )         |   |   | (17,354 | ) |
| Recoveries                                                                                                                       |   |      |        |   |         |   |        |      |   |   |   |   |
|    Construction loans                                                                                             |   |      | -           |   |         |   | -           |      |   |   | - |   |
|    Residential real estate loans                                                                                  |   |      | -           |   |         |   | -           |      |   |   | - |   |
|    Commercial and commercial real estate                                                                          |   |      | 239         |   |         |   | 13,880      |      |   |   | 3,264 |   |
|    Loans to individuals                                                                                           |   |      | -           |   |         |   | -           |      |   |   | - |   |
|    Lease financing                                                                                                |   |      | -           |   |         |   | -           |      |   |   | - |   |
|    All other loans                                                                                                |   |      | -           |   |         |   | -           |      |   |   | - |   |
|                                                                                                                             |   |      | 239         |   |         |   | 13,880      |      |   |   | 3,264 |   |
|                                                                                                                             |   |      |        |   |         |   |        |      |   |   |   |   |
| Net (charge offs) / recoveries                                                                                                   |   |      | (412,668    | )      |         |   | (1,067,675  | )         |   |   | (14,090 | ) |
|                                                                                                                             |   |      |        |   |         |   |        |      |   |   |   |   |
| Balance, end of period                                                                                                           |   | $         | 5,750,042   |   |         | $      | 5,762,712   |      |   | $ | 4,791,297 |   |
|                                                                                                                             |   |      |        |   |         |   |        |      |   |   |   |   |
| Loans :                                                                                                                          |   |      |        |   |         |   |        |      |   |   |   |   |
|    At period end                                                                                                  |   | $         | 323,728,977 |   |         | $      | 411,987,339 |      |   | $ | 361,448,384 |   |
|    Average during the period                                                                                      |   |      | 338,835,413 |   |         |   | 387,575,677 |      |   |   | 340,637,863 |   |
|    Net charge offs to average loans outstanding         (annualized) |   |      | (0.12       | %)     |         |   | (0.28       | %)        |   |   | 0.00 | % |
|                                                                                                                             |   |      |        |   |         |   |        |      |   |   |   |   |
| Allowance for loan losses to :                                                                                                   |   |      |        |   |         |   |        |      |   |   |   |   |
|    Total loans at period end                                                                                      |   |      | 1.78        | %      |         |   | 1.40        | %         |   |   | 1.33 | % |
|    Non-performing loans                                                                                           |   |      | 85.62       | %      |         |   | 65.78       | %         |   |   | 56.15 | % |
|                                                                                                                             |   |      |        |   |         |   |        |      |   |   |   |   |

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|                                         |   | March 31, 2011 |        |   | December 31, 2010 |   |
|----------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
| Demand                                       |   |           |        |   |              |   |
|     Non-interest bearing |   | $              | 112,437,456 |   |              | $      | 92,023,123 |   |
|     Interest bearing     |   |           | 182,758,572 |   |              |   | 129,869,045 |   |
| Savings                                      |   |           | 190,201,772 |   |              |   | 165,388,564 |   |
| Time                                         |   |           | 164,621,848 |   |              |   | 156,454,417 |   |
|                                         |   | $              | 650,019,648 |   |              | $      | 548,735,149 |   |
|                                         |   |           |        |   |              |   |   |   |

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|                                   |   | Actual |       |   | For CapitalAdequacy Purposes |   |   | To Be Well CapitalizedUnder PromptCorrective ActionProvision |   |
|----------------------------------------|--------|--------|------------|--------|------------------------------|--------|--------|--------------------------------------------------------------|--------|
|                                   |   | Amount |       |   | Ratio                        |   |   | Amount                                                       |   |   |   | Ratio |   |   | Amount |   |   |   | Ratio |   |
| As of March 31, 2011                   |   |   |       |   |                         |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                                |   |   |       |   |                         |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   | $      | 67,880,407 |   |                         |   | 15.96% |                                                         |   | $ | 34,033,424 |   |   |   | >8% |   |   |   | N/A |   |   |   | N/A |   |
| Tier 1 Capital to Risk Weighted Assets |   |   | 61,376,559 |   |                         |   | 14.43% |                                                         |   |   | 17,016,712 |   |   |   | >4% |   |   |   | N/A |   |   |   | N/A |   |
| Tier 1 Capital to Average Assets       |   |   | 61,376,559 |   |                         |   | 9.49%  |                                                         |   |   | 25,861,933 |   |   |   | >4% |   |   |   | N/A |   |   |   | N/A |   |
| Bank                                   |   |   |       |   |                         |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   | $      | 65,129,998 |   |                         |   | 15.34% |                                                         |   | $ | 33,976,080 |   |   |   | >8% |   |   | $ | 42,470,100 |   |   |   | >10% |   |
| Tier 1 Capital to Risk Weighted Assets |   |   | 59,831,998 |   |                         |   | 14.09% |                                                         |   |   | 16,988,040 |   |   |   | >4% |   |   |   | 25,482,060 |   |   |   | >6% |   |
| Tier 1 Capital to Average Assets       |   |   | 59,831,998 |   |                         |   | 9.29%  |                                                         |   |   | 25,767,859 |   |   |   | >4% |   |   |   | 32,209,824 |   |   |   | >5% |   |

|  As of December 31, 2010          |   |   |       |   |   |   |              |   |   |   |       |   |   |   |   |   |   |   |       |   |
|----------------------------------------|--------|--------|------------|--------|--------|--------|-------------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
| Company                                |   |   |       |   |   |   |              |   |   |   |       |   |   |   |   |   |   |   |       |   |
| Total Capital to Risk Weighted Assets  |   | $      | 72,736,033 |   |   |   | 14.43%            |   |   | $      | 40,335,354 |   |   |   | >8% |   |   |   | N/A        |   |   |   | N/A |   |
| Tier 1 Capital to Risk Weighted Assets |   |   | 65,484,454 |   |   |   | 12.99%            |   |   |   | 20,167,677 |   |   |   | >4% |   |   |   | N/A        |   |   |   | N/A |   |
| Tier 1 Capital to Average Assets       |   |   | 65,484,454 |   |   |   |   9.63% |   |   |   | 27,196,758 |   |   |   | >4% |   |   |   | N/A        |   |   |   | N/A |   |
| Bank                                   |   |   |       |   |   |   |              |   |   |   |       |   |   |   |   |   |   |   |       |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   | $      | 70,084,660 |   |   |   | 13.92%            |   |   | $      | 40,272,800 |   |   |   | >8% |   |   | $      | 50,341,000 |   |   |   | >10% |   |
| Tier 1 Capital to Risk Weighted Assets |   |   | 64,321,948 |   |   |   | 12.78%            |   |   |   | 20,136,400 |   |   |   | >4% |   |   |   | 30,204,600 |   |   |   | >6% |   |
| Tier 1 Capital to Average Assets       |   |   | 64,321,948 |   |   |   | 9.51%             |   |   |   | 27,054,854 |   |   |   | >4% |   |   |   | 33,818,567 |   |   |   | >5% |   |
|                                   |   |   |       |   |   |   |              |   |   |   |       |   |   |   |   |   |   |   |       |   |   |   |   |   |

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Quantitative 

Controls

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Table of Contents

Unregistered 

|      Period |              |    TotalNumberof SharesPurchased |   |   |     AveragePrice PaidPer Share |   |   |   Total Number ofShares Purchased AsPart of PubliclyAnnounced Plan orProgram |   |   | Maximum Number ofShares That May Yetbe Purchased Underthe Plan or Program |   |
|--------------------------------------|-------------------|--------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------|--------|
|  Beginning                      |  Ending      |                                       |   |   |                                          |   |   |                                                                              |   |   |                                                                      |   |   |
| January 1, 2011                      | January 31, 2011  |                                       |   | -      |                                          |   |   | -                                                                                 |   |   |                                                                      | -      |   |   |   | 170,222 |   |
| February 1, 2011                     | February 28, 2011 |                                       |   | -      |                                          |   |   | -                                                                                 |   |   |                                                                      | -      |   |   |   | 170,222 |   |
| March 1, 2011                        | March 31, 2011    |                                       |   | -      |                                          |   |   | -                                                                                 |   |   |                                                                      | -      |   |   |   | 170,222 |   |
|  Total                          |              |                                       | -      |   |                                          |   | -      |                                                                              |   |   | -                                                                         |   |   |   | 170,222 |   |

| (1) | The Company’s common stock repurchase program covers a maximum of 195,076 shares of common stock of the Company, representing 5% of the outstanding common stock of the Company on July 21, 2005, as adjusted for the subsequent common stock dividends. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 6. | Exhibits. |
|---------|-----------|

| 31.1   | *      | Certification of Robert F. Mangano, principal executive officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)                                                                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                |
| 31.2   | *      | Certification of Joseph M. Reardon, principal financial officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                |
| 32     | *      | Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by Robert F. Mangano, principal executive officer of the Company, and Joseph M. Reardon, principal financial officer of the Company |
|   |   |              *           Filed herewith.                                                                                                    |

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|                                                                     | 1ST CONSTITUTION BANCORP |                                         |
|--------------------------------------------------------------------------|--------------------------|----------------------------------------------|
|                                                                     |                     |                                         |   |
|                                                                     |                     |                                         |   |
| Date: May 16, 2011          | By:                      | /s/ ROBERT F. MANGANO                   |   |
|                                                                     |                     | Robert F. Mangano                            |   |
|                                                                     |                     | President and Chief Executive Officer        |   |
|                                                                     |                     | (Principal Executive Officer)                |   |
|                                                                     |                     |                                         |   |
|                                                                     |                     |                                         |   |
| Date: May 16, 2011                                   | By:                      | /s/ JOSEPH M. REARDON                   |   |
|                                                                     |                     | Joseph M. Reardon                            |   |
|                                                                     |                     | Senior Vice President and Treasurer          |   |
|                                                                     |                     | (Principal Financial and Accounting Officer) |   |

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