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| For the fiscal year ended December 31, 2010. | Commission File Number 0-32637.  |
|----------------------------------------------|---------------------------------------|

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| IOWA                              | 42-1039071                           |
|-----------------------------------|--------------------------------------|
| (State or other jurisdiction      | (I.R.S. Employer Identification No.) |
| of incorporation or organization) |                                 |

| 405 FIFTH STREET, AMES, IOWA             | 50010      |
|------------------------------------------|------------|
| (Address of principal executive offices) | (Zip Code) |
|                                     |       |

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TABLE OF CONTENTS

|     |                                                                                                               |   |
|----------|--------------------------------------------------------------------------------------------------------------------|--------|
| Part I   |                                                                                                               |   |
|     |                                                                                                               |   |
| Item 1.  | Business                                                                                                           | 3      |
| Item 1A. | Risk Factors                                                                                                       | 20     |
| Item 1B. | Unresolved Staff Comments                                                                                          | 25     |
| Item 2.  | Properties                                                                                                         | 25     |
| Item 3.  | Legal Proceedings                                                                                                  | 26     |
| Item 4.  | Reserved                                                                                                           | 26     |
|     |                                                                                                               |   |
| Part II  |                                                                                                               |   |
|     |                                                                                                               |   |
| Item 5.  | Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities | 27     |
| Item 6.  | Selected Financial Data                                                                                            | 28     |
| Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 29     |
| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk                                                         | 64     |
| Item 8.  | Financial Statements and Supplementary Data                                                                        | 67     |
| Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 109    |
| Item 9A. | Controls and Procedures                                                                                            | 109    |
| Item 9B. | Other Information                                                                                                  | 109    |
|     |                                                                                                               |   |
| Part III |                                                                                                               |   |
|     |                                                                                                               |   |
| Item 10. | Directors, Executive Officers and Corporate Governance                                                             | 109    |
| Item 11. | Executive Compensation                                                                                             | 110    |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters                     | 110    |
| Item 13. | Certain Relationships and Related Transactions and Director Independence                                           | 110    |
| Item 14. | Principal Accountant Fees and Services                                                                             | 111    |
|     |                                                                                                               |   |
| Part IV  |                                                                                                               |   |
|     |                                                                                                               |   |
| Item 15. | Exhibits and Financial Statement Schedules                                                                         | 111    |

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ITEM 1.  BUSINESS

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

| ● | Capital Purchase Program (“CPP”).  Pursuant to this program, the US Treasury, on behalf of the US government, will purchase up to $250 billion of preferred stock, along with warrants to purchase common stock, from certain financial institutions, including bank holding companies, savings and loan holding companies and banks or savings associations not controlled by a holding company.  On publically traded financial institutions, the investment will have a dividend rate of 5% per year, until the fifth anniversary of the US Treasury’s investment and a dividend of 9% thereafter.   The Company did not participate in the CCP program. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ● | Temporary Liquidity Guarantee Program (“TLGP”).  This program contains both a debt guarantee component, whereby the FDIC will guarantee until June 30, 2012, the senior unsecured debt issued by eligible financial institutions between October 14, 2008 and June 30, 2009, and an account transaction guarantee component, whereby the FDIC will insure 100% of non-interest bearing deposit transaction accounts held at eligible financial institutions, such as payment processing accounts, payroll accounts and working capital accounts, through June 30, 2010.  The Banks have opted out of the debt guarantee component and opted into the transaction guarantee component of this program.   Importantly, however, the Dodd-Frank Act requires all insured financial institutions, such as the Banks, to provide such products with FDIC insurance from December 31, 2010 until December 31, 2012.  This protection will also apply to interest-bearing NOW accounts or Interest on Lawyers Trust Accounts.  The FDIC has not stated that deposit insurance premiums will increase because of the provision. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name      | Age    | Position with the Company or Bank and Principal Occupation and Employment During the Past Five Years                                                                                                                                                                                   |
|---------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Kathy L. Baker      | 64     | Named President and Director of United Bank on January 1, 2008.  Previously served as a Vice President in the lending department of United Bank.                                                                                                                             |
|                |   |                                                                                                                                                                                                                                                                                   |
| Scott T. Bauer      | 48     | Named President of First National in 2007.  Previously served as Executive Vice President and Senior Vice President of First National.  Director of First National.                                                                                                |
|                |   |                                                                                                                                                                                                                                                                                   |
| Kevin G. Deardorff  | 56     | Vice President & Technology Director of the Company.                                                                                                                                                                                                                               |
|                |   |                                                                                                                                                                                                                                                                                   |
| Stephen C. McGill   | 56     | President of State Bank since 2003.  Previously served as Senior Vice President of State Bank.  Director of State Bank.                                                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                   |
| John P. Nelson      | 44     | Vice President, Secretary and Treasurer of Company. Director and Chairman of Randall-Story Bank.                                                                                                                                                                                       |
|                |   |                                                                                                                                                                                                                                                                                   |
| Thomas H. Pohlman   | 60     | Named President of the Company in 2007.  Previously served as Chief Operating Officer of the Company in 2006 and President of First National from 1999 to 2007. Director of the Company and Director and Chairman of First National, State Bank, Boone Bank and United Bank. |
|                |   |                                                                                                                                                                                                                                                                                   |
| Jeffrey K. Putzier  | 49     | President of Boone Bank since 1999.   Director of Boone Bank.                                                                                                                                                                                                           |
|                |   |                                                                                                                                                                                                                                                                                   |
| Richard J. Schreier | 43     | Named President of Randall-Story in May, 2008.  Director of Randall-Story.   Previously served as Senior Vice President of lending at Randall-Story and State Bank.                                                                                           |
|                |   |                                                                                                                                                                                                                                                                                   |
| Terrill L. Wycoff   | 67     | Executive Vice President of First National since 2000.  Director of First National.                                                                                                                                                                                               |

ITEM 1A. RISK FACTORS

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|   | ● | changes in regulations; |
|--------|---------|-------------------------|

|   | ● | changes in technology and product delivery systems; and |
|--------|---------|---------------------------------------------------------|

|   | ● | the accelerating pace of consolidation among financial services providers. |
|--------|---------|----------------------------------------------------------------------------|

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|   | ● | the payment of dividends to the Company’s shareholders; |
|--------|---------|---------------------------------------------------------------|

|   | ● | the payment of dividends to the Company from the Banks; |
|--------|---------|---------------------------------------------------------|

|   | ● | possible mergers with or acquisitions of or by other institutions; |
|--------|---------|--------------------------------------------------------------------|

|   | ● | investment policies; |
|--------|---------|----------------------|

|   | ● | loans and interest rates on loans; |
|--------|---------|------------------------------------|

|   | ● | interest rates paid on deposits; |
|--------|---------|----------------------------------|

|   | ● | expansion of branch offices; and/or |
|--------|---------|-------------------------------------|

|   | ● | the possibility to provide or expand securities or trust services. |
|--------|---------|--------------------------------------------------------------------|

ITEM 1B. UNRESOLVED STAFF COMMENTS

ITEM 2.  PROPERTIES

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ITEM 3.  LEGAL PROCEEDINGS

ITEM 4.  RESERVED

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ITEM 5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

|    |   | 2010         |   |   |   |   |    |   | 2009         |   |   |   |   |
|---------|--------|--------------|--------|--------|--------|--------|---------|--------|--------------|--------|--------|--------|--------|
|    |   | Market Price |   |   |   |   |    |   | Market Price |   |   |   |   |
| Quarter |   | High         |   |   | Low    |   | Quarter |   | High         |   |   | Low    |   |
| 1st     |   | $            | 21.99  |   |   | $      | 17.00   |   | 1st          |   | $      | 28.79  |   |   | $ | 14.87 |   |
| 2nd     |   | $            | 20.84  |   |   | $      | 17.26   |   | 2nd          |   | $      | 27.00  |   |   | $ | 16.68 |   |
| 3rd     |   | $            | 20.25  |   |   | $      | 16.61   |   | 3rd          |   | $      | 27.00  |   |   | $ | 22.21 |   |
| 4th     |   | $            | 22.84  |   |   | $      | 18.90   |   | 4th          |   | $      | 25.00  |   |   | $ | 18.50 |   |

|    |   | 2010               |   |   | 2009               |   |
|---------|--------|--------------------|--------|--------|--------------------|--------|
|    |   | Cash dividends     |   |   | Cash dividends     |   |
| Quarter |   | declared per share |   |   | declared per share |   |
| 1st     |   | $                  | 0.11   |   |               | $      | 0.10 |   |
| 2nd     |   | $                  | 0.11   |   |               | $      | 0.10 |   |
| 3rd     |   | $                  | 0.11   |   |               | $      | 0.10 |   |
| 4th     |   | $                  | 0.11   |   |               | $      | 0.10 |   |

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ITEM 6.  SELECTED FINANCIAL DATA

| Selected Financial Data                                      |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |
|--------------------------------------------------------------|--------|-------------------------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
|                                                         |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |
|                                                         |   | Year Ended December 31, |      |
|                                                         |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |
| (dollars in thousands, except per share amounts)             |   | 2010                    |      |   | 2009   |   |      | 2008   |   |   | 2007      |   |   | 2006   |      |
|                                                         |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |
| STATEMENT OF INCOME DATA                                     |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |
| Interest income                                              |   | $                       | 37,294    |   |   | $      | 38,891    |   |   | $      | 45,514    |   |   | $      | 47,562    |   |   | $ | 44,296 |   |
| Interest expense                                             |   |                    | 7,775     |   |   |   | 10,226    |   |   |   | 16,402    |   |   |   | 23,537    |   |   |   | 21,306 |   |
|                                                         |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net interest income                                          |   |                    | 29,519    |   |   |   | 28,665    |   |   |   | 29,112    |   |   |   | 24,025    |   |   |   | 22,990 |   |
| Provision (credit) for loan losses                           |   |                    | 664       |   |   |   | 1,558     |   |   |   | 1,313     |   |   |   | (94       | ) |   |   | (183 | ) |
|                                                         |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net interest income after provision (credit) for loan losses |   |                    | 28,855    |   |   |   | 27,107    |   |   |   | 27,799    |   |   |   | 24,119    |   |   |   | 23,173 |   |
| Noninterest income (loss)                                    |   |                    | 6,936     |   |   |   | 6,924     |   |   |   | (3,008    | )      |   |   | 7,208     |   |   |   | 6,674 |   |
| Noninterest expense                                          |   |                    | 18,321    |   |   |   | 22,732    |   |   |   | 17,594    |   |   |   | 16,776    |   |   |   | 15,504 |   |
|                                                         |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Income before provision for income tax                       |   |                    | 17,470    |   |   |   | 11,299    |   |   |   | 7,197     |   |   |   | 14,551    |   |   |   | 14,343 |   |
| Provision for income tax                                     |   |                    | 4,504     |   |   |   | 2,293     |   |   |   | 845       |   |   |   | 3,542     |   |   |   | 3,399 |   |
|                                                         |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net income                                                   |   | $                       | 12,966    |   |   | $      | 9,006     |   |   | $      | 6,352     |   |   | $      | 11,009    |   |   | $ | 10,944 |   |
|                                                         |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| DIVIDENDS AND EARNINGS PER SHARE DATA                        |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |
| Cash dividends declared                                      |   | $                       | 4,150     |   |   | $      | 3,773     |   |   | $      | 10,564    |   |   | $      | 10,183    |   |   | $ | 9,801 |   |
| Cash dividends declared per share                            |   | $                       | 0.44      |   |   | $      | 0.40      |   |   | $      | 1.12      |   |   | $      | 1.08      |   |   | $ | 1.04 |   |
| Basic and diluted earnings per share                         |   | $                       | 1.37      |   |   | $      | 0.95      |   |   | $      | 0.67      |   |   | $      | 1.17      |   |   | $ | 1.16 |   |
| Weighted average shares outstanding                          |   |                    | 9,432,915 |   |   |   | 9,432,915 |   |   |   | 9,431,393 |   |   |   | 9,427,503 |   |   |   | 9,422,402 |   |
|                                                         |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| BALANCE SHEET DATA                                           |   |                    |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total assets                                                 |   | $                       | 962,975   |   |   | $      | 915,570   |   |   | $      | 858,141   |   |   | $      | 861,591   |   |   | $ | 838,853 |   |
| Net loans                                                    |   |                    | 418,094   |   |   |   | 415,434   |   |   |   | 452,880   |   |   |   | 463,651   |   |   |   | 429,123 |   |
| Deposits                                                     |   |                    | 743,862   |   |   |   | 722,164   |   |   |   | 664,795   |   |   |   | 690,119   |   |   |   | 680,356 |   |
| Stockholders’ equity                                   |   |                    | 121,363   |   |   |   | 112,340   |   |   |   | 103,837   |   |   |   | 110,021   |   |   |   | 112,923 |   |
| Equity to assets ratio                                       |   |                    | 12.60     | %      |   |   | 12.27     | %      |   |   | 12.10     | %      |   |   | 12.77     | % |   |   | 13.46 | % |

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|                                                                                                     |   | Year Ended December 31, |    |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                                     |   |                    | 2010    |   |   |   | 2009 |   |   |   | 2008 |   |   |   | 2007 |   |   |   | 2006 |   |
|                                                                                                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FIVE YEAR FINANCIAL PERFORMANCE                                                                          |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                               |   | $                       | 12,966  |   |   | $ | 9,006 |   |   | $ | 6,352 |   |   | $ | 11,009 |   |   | $ | 10,944 |   |
| Average assets                                                                                           |   |                    | 928,610 |   |   |   | 880,057 |   |   |   | 857,705 |   |   |   | 843,788 |   |   |   | 818,450 |   |
| Average stockholders’ equity                                                                       |   |                    | 118,889 |   |   |   | 108,412 |   |   |   | 107,794 |   |   |   | 111,371 |   |   |   | 109,508 |   |
|                                                                                                     |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on assets (net income divided by average assets)                                                  |   |                    | 1.40    | % |   |   | 1.02 | % |   |   | 0.74 | % |   |   | 1.30 | % |   |   | 1.34 | % |
| Return on equity  (net income divided by average equity)                                       |   |                    | 10.91   | % |   |   | 8.31 | % |   |   | 5.89 | % |   |   | 9.89 | % |   |   | 9.99 | % |
| Net interest margin (net interest income divided by average earning assets)                              |   |                    | 3.74    | % |   |   | 3.78 | % |   |   | 3.94 | % |   |   | 3.39 | % |   |   | 3.29 | % |
| Efficiency ratio (noninterest expense divided by  noninterest income plus net interest income) |   |                    | 50.26   | % |   |   | 63.87 | % |   |   | 67.40 | % |   |   | 53.71 | % |   |   | 52.27 | % |
| Dividend payout ratio (dividends per share divided by net income per share)                              |   |                    | 32.12   | % |   |   | 42.11 | % |   |   | 167.16 | % |   |   | 92.31 | % |   |   | 89.66 | % |
| Dividend yield (dividends per share divided by closing year-end market price)                            |   |                    | 2.03    | % |   |   | 1.89 | % |   |   | 4.22 | % |   |   | 5.54 | % |   |   | 4.95 | % |
| Equity to assets ratio (average equity divided by average assets)                                        |   |                    | 12.80   | % |   |   | 12.32 | % |   |   | 12.57 | % |   |   | 13.20 | % |   |   | 13.38 | % |

ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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|   | ● | Challenges |
|--------|---------|------------|

|   | ● | Key Performance Indicators |
|--------|---------|----------------------------|

|   | ● | Industry Results |
|--------|---------|------------------|

|   | ● | Critical Accounting Policies |
|--------|---------|------------------------------|

|   | ● | Income Statement Review |
|--------|---------|-------------------------|

|   | ● | Balance Sheet Review |
|--------|---------|----------------------|

|   | ● | Asset Quality Review and Credit Risk Management |
|--------|---------|-------------------------------------------------|

|   | ● | Liquidity and Capital Resources |
|--------|---------|---------------------------------|

|   | ● | Interest Rate Risk |
|--------|---------|--------------------|

|   | ● | Inflation |
|--------|---------|-----------|

|   | ● | Forward-Looking Statements |
|--------|---------|----------------------------|

|   | ● | Performance Graph |
|--------|---------|-------------------|

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|   | ● | In March of 2009, the Office of Comptroller of the Currency (“OCC”) imposed individual minimum capital ratios requiring First National to maintain, on an ongoing basis, Tier One Leverage Capital of 9% of Adjusted Total Assets and Total Risk Based Capital of 11% of Risk Weighted Assets.  As of December 31, 2010, First National exceeded these capital ratios.  Failure to maintain the individual minimum capital ratios could result in additional regulatory action against First National. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Interest rates are likely to increase as the economy continues its gradual recovery and an increasing interest rate environment may present a challenge to the Company.  Increases in interest rates may negatively impact the Company’s net interest margin if interest expense increases more quickly than interest income.  The Company’s earning assets (primarily its loan and investment portfolio) have longer maturities than its interest bearing liabilities (primarily deposits and other borrowings); therefore, in a rising interest rate environment, interest expense may increase more quickly than interest income as the interest bearing liabilities reprice more quickly than earning assets.  In response to this challenge, the Banks model quarterly the changes in income that would result from various changes in interest rates.  Management believes Bank earning assets have the appropriate maturity and repricing characteristics to optimize earnings and the Banks’ interest rate risk positions. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Company’s market in central Iowa has numerous banks, credit unions, and investment and insurance companies competing for similar business opportunities.  This competitive environment will continue to put downward pressure on the Banks’ net interest margins and thus affect profitability.  Strategic planning efforts at the Company and Banks continue to focus on capitalizing on the Banks’ strengths in local markets while working to identify opportunities for improvement to gain competitive advantages. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Loans amounted to $418.1 million and $415.4 million as of December 31, 2010 and 2009, respectively.  The loan portfolio increased 0.6% during the year ended December 31, 2010.  The increase in the loan portfolio is primarily due to increases in the commercial and agricultural operating and commercial real estate loan portfolios.  A decline in the loan portfolio would have a negative impact on the Company’s earnings for the year. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The economic conditions for commercial real estate developers in the Des Moines metropolitan area deteriorated in 2009 and 2008 and significantly contributed to the Company’s increased level of non-performing loans, other real estate owned and related costs in 2009 and 2008.  In 2010, there were no significant additional impaired loans in the Des Moines market.   During the year ended December 31, 2010, the Company foreclosed on one real estate property (other real estate owned) totaling $402,000 in the Des Moines market.  Presently, the Company has $2.9 million in impaired loans with two Des Moines development companies with specific reserves totaling $223,000.  The Company has additional customer relationships with real estate developers in the Des Moines area that may become impaired in the future if economic conditions do not improve or become worse.  The Company has a limited number of such credits and is actively engaged with the customers to minimize credit risk. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ● | Other real estate owned amounted to $10.5 million as of December 31, 2010 and 2009.  Other real estate owned costs amounted to $195,000, $4,198,000 and $151,000 for the years ended December 31, 2010, 2009 and 2008, respectively.  Management obtains independent appraisals or performs evaluations to determine that these properties are carried at the lower of the new cost basis or fair value less cost to sell.  It is at least reasonably possible that change in fair values will occur in the near term and that such changes could have a negative impact on the Company’s earnings. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The FDIC imposes an assessment against all depository institutions for deposit insurance.  The FDIC has the authority to increase insurance assessments.  FDIC insurance assessments amounted to $1,120,000, $1,675,000 and $243,000 for the years ended December 31, 2010, 2009 and 2008, respectively.   In 2010, 161 banks failed compared to 140 bank failures in 2009 and 25 in 2008.  An increase in FDIC deposit assessments will have a negative impact on the Company’s earnings. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Company operates in a highly regulated environment and is subject to extensive regulation, supervision and examination.  The compliance burden and impact on the Company’s operations and profitability with respect to the Dodd-Frank Act are currently unknown, as the Dodd-Frank Act delegates to various federal agencies the task of implementing its many provisions through regulation. Hundreds of new federal regulations, studies and reports addressing all of the major areas of the new law, including the regulation of financial institutions and their holding companies, will be required, ensuring that federal rules and policies in this area will be further developing for months and years to come. Based on the provisions of the Dodd-Frank Act and anticipated implementing regulations, it is highly likely that financial institutions as well as their holding companies will be subject to significantly increased regulation and compliance obligations that expose them to noncompliance risk and consequences.  The Bureau of Financial Consumer Protection (“BCFP”) has broad rulemaking authority to administer and carry out the purposes and objectives of the new federal consumer protection laws, and to prevent evasions thereof,” with respect to all financial institutions that offer financial products and services to consumers. The BCFP is also authorized to prescribe rules, applicable to any covered person or service provider, identifying and prohibiting acts or practices that are “unfair, deceptive, or abusive” in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service (“UDAP authority”). The full reach and impact of the BCFP’s broad new rulemaking powers and UDAP authority on the operations of financial institutions offering consumer financial products or services is currently unknown. Notwithstanding, insured depository institutions with assets of $10 billion or less will continue to be supervised and examined by their primary federal regulators, rather than the BCFP, with respect to compliance with the federal consumer protection laws.  Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including but not limited to the imposition of restrictions on the operation of an institution, the classification of assets by the institution and the adequacy of an institution’s allowance for loan losses.  Any change in such regulation and oversight, whether in the form of restrictions on activities, regulatory policy, regulations, or legislation, including but not limited to changes in the regulations governing banks, could have a material impact on the Company’s operations.  It is unknown at this time to what extent legislation will be passed into law or regulatory proposals will be adopted, or the effect that such passage or adoption will have on the banking industry or the Company.   Applicable laws and regulations may change, and there is no assurance that such changes will not adversely affect the Company’s business.  |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                |   | Year Ended December 31, |
|---------------------|--------|-------------------------|
|                |   | 2010                    |   |   | 2009 |   |   | 2008 |   |
|                |   | Company                 |   |   | Industry |   |   | Company |   |   | Industry |   |   | Company |   |   | Industry |   |
|                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on assets    |   |                    | 1.40 | % |   |   | 0.66 | % |   |   | 1.02 | % |   |   | 0.09 | % |   |   | 0.74 | % |   |   | 0.12 | % |
|                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on equity    |   |                    | 10.91 | % |   |   | 5.99 | % |   |   | 8.31 | % |   |   | 0.90 | % |   |   | 5.89 | % |   |   | 1.24 | % |
|                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin |   |                    | 3.74 | % |   |   | 3.76 | % |   |   | 3.78 | % |   |   | 3.47 | % |   |   | 3.94 | % |   |   | 3.18 | % |
|                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Efficiency ratio    |   |                    | 50.26 | % |   |   | 57.22 | % |   |   | 63.87 | % |   |   | 55.53 | % |   |   | 67.40 | % |   |   | 59.02 | % |
|                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital ratio       |   |                    | 12.80 | % |   |   | 8.90 | % |   |   | 12.32 | % |   |   | 8.65 | % |   |   | 12.57 | % |   |   | 7.49 | % |

|   | ● | Return on Assets |
|--------|---------|------------------|

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|   | ● | Return on Equity |
|--------|---------|------------------|

|   | ● | Net Interest Margin |
|--------|---------|---------------------|

|   | ● | Efficiency Ratio |
|--------|---------|------------------|

|   | ● | Capital Ratio |
|--------|---------|---------------|

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| ASSETS                                           |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |
|--------------------------------------------------|--------|---------|---------|--------|----------|--------|--------|--------|--------|--------|---------|--------|--------|----------|---------|--------|--------|--------|--------|---------|--------|--------|----------|--------|--------|--------|---------|
|                                             |   | 2010    |    |   | 2009     |   |   | 2008   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |
|                                             |   | Average |    |   | Revenue/ |   |   | Yield/ |   |   | Average |   |   | Revenue/ |    |   | Yield/ |   |   | Average |   |   | Revenue/ |   |   | Yield/ |    |
|                                             |   | balance |    |   | expense  |   |   | rate   |   |   | balance |   |   | expense  |    |   | rate   |   |   | balance |   |   | expense  |   |   | rate   |    |
| (dollars in thousands)                           |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |
| Interest-earning assets                          |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |
| Loans  1                               |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |
| Commercial                                       |   | $       | 68,905  |   |     | $      | 3,869  |   |   |   | 5.61    | %      |   | $        | 68,677  |   |   | $      | 3,535  |    |   |   | 5.15     | %      |   | $      | 82,448  |   |   | $ | 4,915 |   |   |   | 5.96 | % |
| Agricultural                                     |   |    | 41,941  |   |     |   | 2,443  |   |   |   | 5.82    | %      |   |     | 36,351  |   |   |   | 2,196  |    |   |   | 6.04     | %      |   |   | 32,230  |   |   |   | 2,227 |   |   |   | 6.91 | % |
| Real estate                                      |   |    | 284,515 |   |     |   | 16,542 |   |   |   | 5.81    | %      |   |     | 304,362 |   |   |   | 18,074 |    |   |   | 5.94     | %      |   |   | 324,863 |   |   |   | 20,754 |   |   |   | 6.39 | % |
| Consumer and other                               |   |    | 22,327  |   |     |   | 1,207  |   |   |   | 5.41    | %      |   |     | 25,078  |   |   |   | 1,407  |    |   |   | 5.61     | %      |   |   | 24,241  |   |   |   | 1,562 |   |   |   | 6.44 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Total loans (including fees)                     |   | $       | 417,688 |   |     | $      | 24,061 |   |   |   | 5.76    | %      |   | $        | 434,468 |   |   | $      | 25,212 |    |   |   | 5.80     | %      |   | $      | 463,782 |   |   | $ | 29,458 |   |   |   | 6.35 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Investment securities                            |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Taxable                                          |   |    | 239,853 |   |     |   | 6,965  |   |   |   | 2.90    | %      |   |     | 203,735 |   |   |   | 7,967  |    |   |   | 3.91     | %      |   | $      | 196,619 |   |   | $ | 9,813 |   |   |   | 4.99 | % |
| Tax-exempt  2                          |   |    | 183,541 |   |     |   | 8,875  |   |   |   | 4.84    | %      |   |     | 151,340 |   |   |   | 7,991  |    |   |   | 5.28     | %      |   |   | 140,425 |   |   |   | 8,894 |   |   |   | 6.33 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Total investment securities                      |   | $       | 423,394 |   |     | $      | 15,840 |   |   |   | 3.74    | %      |   | $        | 355,075 |   |   | $      | 15,958 |    |   |   | 4.49     | %      |   | $      | 337,044 |   |   | $ | 18,707 |   |   |   | 5.55 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits and federal funds sold |   |    | 32,130  |   |     |   | 489    |   |   |   | 1.52    | %      |   |     | 41,645  |   |   |   | 499    |    |   |   | 1.20     | %      |   |   | 13,971  |   |   |   | 364 |   |   |   | 2.61 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets                    |   | $       | 873,212 |   |     | $      | 40,390 |   |   |   | 4.63    | %      |   | $        | 831,189 |   |   | $      | 41,669 |    |   |   | 5.01     | %      |   | $      | 814,797 |   |   | $ | 48,529 |   |   |   | 5.96 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Noninterest-earning assets                       |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                          |   | $       | 19,544  |   |     |   |   |   |   |   |    |   |   | $        | 20,720  |   |   |   |   |    |   |   |     |   |   | $      | 19,581  |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                      |   |    | 11,718  |   |     |   |   |   |   |   |    |   |   |     | 12,216  |   |   |   |   |    |   |   |     |   |   |   | 13,007  |   |   |   |   |   |   |   |   |   |
| Other, less allowance for loan losses            |   |    | 24,136  |   |     |   |   |   |   |   |    |   |   |     | 15,932  |   |   |   |   |    |   |   |     |   |   |   | 10,320  |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Total noninterest-earning assets                 |   | $       | 55,398  |   |     |   |   |   |   |   |    |   |   | $        | 48,868  |   |   |   |   |    |   |   |     |   |   | $      | 42,908  |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                     |   | $       | 928,610 |   |     |   |   |   |   |   |    |   |   | $        | 880,057 |   |   |   |   |    |   |   |     |   |   | $      | 857,705 |   |   |   |   |   |   |   |   |   |

| 1 Average loan balance includes nonaccrual loans, if any. Interest income collected on nonaccrual loans has been included. |
|---------------------------------------------------------------------------------------------------------------------------------|
| 2 Tax-exempt income has been adjusted to a tax-equivalent basis using an incremental tax rate of 35%.                           |

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| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |
|--------------------------------------------------|--------|---------|---------|--------|----------|--------|--------|--------|--------|--------|---------|--------|--------|----------|---------|--------|--------|--------|--------|---------|--------|--------|
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |
|                                             |   | 2010    |    |   | 2009     |   |   | 2008   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |
|                                             |   | Average |    |   | Revenue/ |   |   | Yield/ |   |   | Average |   |   | Revenue/ |    |   | Yield/ |   |   | Average |   |   | Revenue/ |   |   | Yield/ |   |
|                                             |   | balance |    |   | expense  |   |   | rate   |   |   | balance |   |   | expense  |    |   | rate   |   |   | balance |   |   | expense |   |   | rate |   |
| (dollars in thousands)                           |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |
| Interest-bearing liabilities                     |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |
| Deposits                                         |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |
| Savings, NOW accounts, and money markets         |   | $       | 386,010 |   |     | $      | 1,369  |   |   |   | 0.35    | %      |   | $        | 355,504 |   |   | $      | 1,650  |    |   |   | 0.46 | % |   | $ | 317,346 |   |   | $ | 3,658 |   |   |   | 1.15 | % |
| Time deposits < $100,000                      |   |    | 147,453 |   |     |   | 3,076  |   |   |   | 2.09    | %      |   |     | 157,749 |   |   |   | 4,488  |    |   |   | 2.84 | % |   |   | 170,223 |   |   |   | 6,603 |   |   |   | 3.88 | % |
| Time deposits > $100,000                      |   |    | 89,290  |   |     |   | 1,651  |   |   |   | 1.85    | %      |   |     | 84,786  |   |   |   | 2,290  |    |   |   | 2.70 | % |   |   | 97,193 |   |   |   | 3,947 |   |   |   | 4.06 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total deposits                                   |   | $       | 622,753 |   |     | $      | 6,096  |   |   |   | 0.98    | %      |   | $        | 598,040 |   |   | $      | 8,428  |    |   |   | 1.41 | % |   | $ | 584,762 |   |   | $ | 14,208 |   |   |   | 2.43 | % |
| Other borrowed funds                             |   |    | 87,758  |   |     |   | 1,679  |   |   |   | 1.91    | %      |   |     | 83,841  |   |   |   | 1,798  |    |   |   | 2.14 | % |   |   | 78,764 |   |   |   | 2,194 |   |   |   | 2.79 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities               |   | $       | 710,511 |   |     | $      | 7,775  |   |   |   | 1.09    | %      |   | $        | 681,881 |   |   | $      | 10,226 |    |   |   | 1.50 | % |   | $ | 663,526 |   |   | $ | 16,402 |   |   |   | 2.47 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing liabilities                  |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                  |   |    | 94,286  |   |     |   |   |   |   |   |    |   |   |     | 84,245  |   |   |   |   |    |   |   |   |   |   |   | 78,033 |   |   |   |   |   |   |   |   |   |
| Other liabilities                                |   |    | 4,924   |   |     |   |   |   |   |   |    |   |   |     | 5,519   |   |   |   |   |    |   |   |   |   |   |   | 8,352 |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                       |   |    | 118,889 |   |     |   |   |   |   |   |    |   |   |     | 108,412 |   |   |   |   |    |   |   |   |   |   |   | 107,794 |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |   | $       | 928,610 |   |     |   |   |   |   |   |    |   |   | $        | 880,057 |   |   |   |   |    |   |   |   |   |   | $ | 857,705 |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                              |   |    |    |   |     | $      | 32,615 |   |   |   | 3.74    | %      |   |     |    |   |   | $      | 31,443 |    |   |   | 3.78 | % |   |   |   |   |   | $ | 32,127 |   |   |   | 3.94 | % |
|                                             |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spread Analysis                                  |   |    |    |   |     |   |   |   |   |   |    |   |   |     |    |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income/average assets                   |   |    |    |   |     | $      | 40,390 |   |   |   | 4.35    | %      |   |     |    |   |   | $      | 41,669 |    |   |   | 4.73 | % |   |   |   |   |   | $ | 48,529 |   |   |   | 5.66 | % |
| Interest expense/average assets                  |   |    |    |   |     |   | 7,775  |   |   |   | 0.84    | %      |   |     |    |   |   |   | 10,226 |    |   |   | 1.16 | % |   |   |   |   |   |   | 16,402 |   |   |   | 1.91 | % |
| Net interest income/average assets               |   |    |    |   |     |   | 32,615 |   |   |   | 3.51    | %      |   |     |    |   |   |   | 31,443 |    |   |   | 3.57 | % |   |   |   |   |   |   | 32,127 |   |   |   | 3.75 | % |

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|                                                                                                                                                                                                |   | 2010 Compared to 2009 |   |   | 2009 Compared to 2008 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
| (dollars in thousands)                                                                                                                                                                              |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                |   | Volume                |   |   | Rate                  |   |   | Total 1 |   |   | Volume |   |   | Rate |   |   | Total 1 |   |
| Interest income                                                                                                                                                                                     |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                                                                                                                                               |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                                                                                          |   | $                     | 12     |   |                  | $      | 322 |   |   | $ | 334 |   |   | $ | (761 | ) |   | $ | (618 | ) |   | $ | (1,379 | ) |
| Agricultural                                                                                                                                                                                        |   |                  | 329    |   |                  |   | (82 | ) |   |   | 247 |   |   |   | 267 |   |   |   | (298 | ) |   |   | (31 | ) |
| Real estate                                                                                                                                                                                         |   |                  | (1,147 | )      |                  |   | (385 | ) |   |   | (1,532 | ) |   |   | (1,266 | ) |   |   | (1,414 | ) |   |   | (2,680 | ) |
| Consumer and other                                                                                                                                                                                  |   |                  | (151   | )      |                  |   | (49 | ) |   |   | (200 | ) |   |   | 52 |   |   |   | (207 | ) |   |   | (155 | ) |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans (including fees)                                                                                                                                                                        |   |                  | (957   | )      |                  |   | (194 | ) |   |   | (1,151 | ) |   |   | (1,708 | ) |   |   | (2,537 | ) |   |   | (4,245 | ) |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities                                                                                                                                                                               |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                                                                                                             |   |                  | 1,267  |   |                  |   | (2,269 | ) |   |   | (1,002 | ) |   |   | 344 |   |   |   | (2,190 | ) |   |   | (1,846 | ) |
| Tax-exempt                                                                                                                                                                                          |   |                  | 1,592  |   |                  |   | (708 | ) |   |   | 884 |   |   |   | 653 |   |   |   | (1,556 | ) |   |   | (903 | ) |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total investment securities                                                                                                                                                                         |   |                  | 2,859  |   |                  |   | (2,977 | ) |   |   | (118 | ) |   |   | 997 |   |   |   | (3,746 | ) |   |   | (2,749 | ) |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits and federal funds sold                                                                                                                                               |   |                  | (127   | )      |                  |   | 117 |   |   |   | (10 | ) |   |   | 500 |   |   |   | (365 | ) |   |   | 135 |   |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets                                                                                                                                                                       |   |                  | 1,775  |   |                  |   | (3,054 | ) |   |   | (1,279 | ) |   |   | (211 | ) |   |   | (6,649 | ) |   |   | (6,860 | ) |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities Deposits                                                                                                                                                               |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings, NOW accounts, and money markets                                                                                                                                                       |   |                  | 132    |   |                  |   | (413 | ) |   |   | (281 | ) |   |   | 396 |   |   |   | (2,404 | ) |   |   | (2,008 | ) |
| Time deposits < $100,000                                                                                                                                                                         |   |                  | (279   | )      |                  |   | (1,133 | ) |   |   | (1,412 | ) |   |   | (454 | ) |   |   | (1,661 | ) |   |   | (2,115 | ) |
| Time deposits > $100,000                                                                                                                                                                         |   |                  | 116    |   |                  |   | (755 | ) |   |   | (639 | ) |   |   | (457 | ) |   |   | (1,200 | ) |   |   | (1,657 | ) |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total deposits                                                                                                                                                                                      |   |                  | (31    | )      |                  |   | (2,301 | ) |   |   | (2,332 | ) |   |   | (515 | ) |   |   | (5,265 | ) |   |   | (5,780 | ) |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other borrowed funds                                                                                                                                                                                |   |                  | 81     |   |                  |   | (200 | ) |   |   | (119 | ) |   |   | 136 |   |   |   | (532 | ) |   |   | (396 | ) |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities                                                                                                                                                                  |   |                  | 50     |   |                  |   | (2,501 | ) |   |   | (2,451 | ) |   |   | (379 | ) |   |   | (5,797 | ) |   |   | (6,176 | ) |
|                                                                                                                                                                                                |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income-earning assets                                                                                                                                                                  |   | $                     | 1,725  |   |                  | $      | (553 | ) |   | $ | 1,172 |   |   | $ | 168 |   |   | $ | (852 | ) |   | $ | (684 | ) |
|  1 The change in interest due to both volume and yield/rate has been allocated to change due to volume and change due to yield/rate in proportion to the absolute value of the change in each. |   |

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|                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|----------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                             |   | 2010   |    |   | 2009   |   |    | 2008   |   |   | 2007    |   |   | 2006   |    |
| (dollars in thousands)           |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Real Estate                 |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Construction                     |   | $      | 19,597  |   |   | $      | 22,864  |   |   | $      | 35,326  |   |   | $      | 46,568  |   |   | $ | 30,600 |   |
| 1-4 family residential           |   |   | 88,933  |   |   |   | 91,673  |   |   |   | 95,988  |   |   |   | 104,762 |   |   |   | 103,620 |   |
| Commercial                       |   |   | 139,370 |   |   |   | 141,741 |   |   |   | 153,366 |   |   |   | 147,023 |   |   |   | 139,149 |   |
| Agricultural                     |   |   | 31,931  |   |   |   | 30,788  |   |   |   | 33,547  |   |   |   | 33,684  |   |   |   | 31,092 |   |
| Commercial                       |   |   | 78,173  |   |   |   | 69,031  |   |   |   | 76,653  |   |   |   | 78,616  |   |   |   | 73,760 |   |
| Agricultural                     |   |   | 45,630  |   |   |   | 42,356  |   |   |   | 40,324  |   |   |   | 36,133  |   |   |   | 33,434 |   |
| Consumer and other               |   |   | 22,052  |   |   |   | 24,693  |   |   |   | 24,528  |   |   |   | 22,782  |   |   |   | 24,276 |   |
|                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total loans                      |   |   | 425,686 |   |   |   | 423,146 |   |   |   | 459,732 |   |   |   | 469,568 |   |   |   | 435,931 |   |
| Deferred loan fees, net          |   |   | 71      |   |   |   | 60      |   |   |   | 72      |   |   |   | 137     |   |   |   | 276 |   |
|                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total loans net of deferred fees |   | $      | 425,615 |   |   | $      | 423,086 |   |   | $      | 459,660 |   |   | $      | 469,431 |   |   | $ | 435,655 |   |

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|                                     |   |     |    |   | After one  |       |    |       |       |   |   |   |
|------------------------------------------|--------|----------|---------|--------|------------|------------|---------|------------|------------|--------|--------|--------|
|                                     |   |     |    |   | year but   |       |    |       |       |   |   |   |
|                                     |   | Within   |    |   | within     |       |    | After      |       |   |   |   |
|                                     |   | one year |    |   | five years |       |    | five years |       |   | Total  |   |
| (dollars in thousands)                   |   |     |    |   |       |       |    |       |       |   |   |   |
|                                     |   |     |    |   |       |       |    |       |       |   |   |   |
| Real Estate                              |   |     |    |   |       |       |    |       |       |   |   |   |
|    Construction           |   | $        | 10,006  |   |       | $          | 8,819   |       |       | $      | 772    |   |   | $ | 19,597 |   |
|    1-4 family residential |   |     | 29,227  |   |       |       | 39,295  |       |       |   | 20,411 |   |   |   | 88,933 |   |
|    Commercial             |   |     | 18,914  |   |       |       | 102,176 |       |       |   | 18,280 |   |   |   | 139,370 |   |
|    Agricultural           |   |     | 9,664   |   |       |       | 17,366  |       |       |   | 4,901  |   |   |   | 31,931 |   |
| Commercial                               |   |     | 36,001  |   |       |       | 39,540  |       |       |   | 2,632  |   |   |   | 78,173 |   |
| Agricultural                             |   |     | 30,110  |   |       |       | 14,261  |       |       |   | 1,259  |   |   |   | 45,630 |   |
| Consumer and other                       |   |     | 2,745   |   |       |       | 13,945  |       |       |   | 5,362  |   |   |   | 22,052 |   |
|                                     |   |     |    |   |       |       |    |       |       |   |   |   |   |   |   |   |
| Total loans                              |   | $        | 136,667 |   |       | $          | 235,402 |       |       | $      | 53,617 |   |   | $ | 425,686 |   |
|                                     |   |     |    |   |       |       |    |       |       |   |   |   |   |   |   |   |
|                                     |   |     |    |   |       | After one  |    |       |       |   |   |   |   |   |   |
|                                     |   |     |    |   |       | year but   |    |       |       |   |   |   |   |   |   |
|                                     |   |     |    |   |       | within     |    |       | After      |   |   |   |   |   |
|                                     |   |     |    |   |       | five years |    |       | five years |   |   |   |   |   |
|                                     |   |     |    |   |       |       |    |       |       |   |   |   |   |   |   |   |
| Loan maturities after one year with:     |   |     |    |   |       |       |    |       |       |   |   |   |   |   |   |   |
| Fixed rates                              |   |     |    |   |       | $          | 177,828 |       |       | $      | 41,177 |   |   |   |   |   |
| Variable rates                           |   |     |    |   |       |       | 57,574  |       |       |   | 12,440 |   |   |   |   |   |
|                                     |   |     |    |   |       |       |    |       |       |   |   |   |   |   |   |   |
|                                     |   |     |    |   |       | $          | 235,402 |       |       | $      | 53,617 |   |   |   |   |   |

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|                                       |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| (dollars in thousands)                     |   |   |    |   |   |   |    |   |   |
|                                       |   |   |    |   |   |   |    |   |   |
| U.S. treasury securities                   |   | $      | 503     |   |   | $      | 525     |   |   | $ | 546 |   |
| U.S. government agencies                   |   |   | 87,412  |   |   |   | 106,640 |   |   |   | 49,695 |   |
| U.S. government mortgage-backed securities |   |   | 127,349 |   |   |   | 101,590 |   |   |   | 67,516 |   |
| State and political subdivisions           |   |   | 228,373 |   |   |   | 178,052 |   |   |   | 128,741 |   |
| Corporate bonds                            |   |   | 20,372  |   |   |   | 24,300  |   |   |   | 55,237 |   |
| Equity securities                          |   |   | 5,898   |   |   |   | 7,548   |   |   |   | 11,279 |   |
|                                       |   |   |    |   |   |   |    |   |   |   |   |   |
| Total                                      |   | $      | 469,907 |   |   | $      | 418,655 |   |   | $ | 313,014 |   |

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|                                                                                                                 |   |     |   |   | After one  |   |    | After five |   |   |      |   |   |   |    |
|----------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|------------|--------|---------|------------|--------|--------|-----------|--------|--------|--------|---------|
|                                                                                                                 |   |     |   |   | year but   |   |    | years but  |   |   |      |   |   |   |    |
|                                                                                                                 |   | Within   |   |   | within     |   |    | within     |   |   | After     |   |   |   |    |
|                                                                                                                 |   | one year |   |   | five years |   |    | ten years  |   |   | ten years |   |   | Total  |    |
| (dollars in thousands)                                                                                               |   |     |   |   |       |   |    |       |   |   |      |   |   |   |    |
|                                                                                                                 |   |     |   |   |       |   |    |       |   |   |      |   |   |   |    |
| U.S. treasury securities                                                                                             |   | $        | 503    |   |       | $      | — |       |   | $      | —   |   |   | $      | — |   |   | $ | 503 |   |
| U.S. government agencies                                                                                             |   |     | 3,186  |   |       |   | 68,905  |       |   |   | 14,548    |   |   |   | 773     |   |   |   | 87,412 |   |
| U.S. government mortgage-backed securities                                                                           |   |     | 1,043  |   |       |   | 117,561 |       |   |   | 7,966     |   |   |   | 779     |   |   |   | 127,349 |   |
| States and political subdivisions*                                                                                   |   |     | 23,133 |   |       |   | 98,410  |       |   |   | 91,430    |   |   |   | 15,400  |   |   |   | 228,373 |   |
| Corporate bonds                                                                                                      |   |     | 2,911  |   |       |   | 13,440  |       |   |   | 3,663     |   |   |   | 358     |   |   |   | 20,372 |   |
|                                                                                                                 |   |     |   |   |       |   |    |       |   |   |      |   |   |   |    |   |   |   |   |   |
| Total                                                                                                                |   | $        | 30,776 |   |       | $      | 298,316 |       |   | $      | 117,607   |   |   | $      | 17,310  |   |   | $ | 464,009 |   |
|                                                                                                                 |   |     |   |   |       |   |    |       |   |   |      |   |   |   |    |   |   |   |   |   |
| Weighted average yield                                                                                               |   |     |   |   |       |   |    |       |   |   |      |   |   |   |    |   |   |   |   |   |
| U.S. treasury                                                                                                        |   |     | 5.19   | %      |       |   | 0.00    | %          |   |   | 0.00      | %      |   |   | 0.00    | % |   |   | 5.19 | % |
| U.S. government agencies                                                                                             |   |     | 4.58   | %      |       |   | 2.58    | %          |   |   | 2.29      | %      |   |   | 4.50    | % |   |   | 2.62 | % |
| U.S government mortgage-backed securities                                                                            |   |     | 3.05   | %      |       |   | 3.97    | %          |   |   | 4.15      | %      |   |   | 5.41    | % |   |   | 3.52 | % |
| States and political subdivisions*                                                                                   |   |     | 3.98   | %      |       |   | 4.43    | %          |   |   | 5.16      | %      |   |   | 6.01    | % |   |   | 4.83 | % |
| Corporate bonds                                                                                                      |   |     | 5.74   | %      |       |   | 5.00    | %          |   |   | 5.80      | %      |   |   | 0.00    | % |   |   | 5.23 | % |
|                                                                                                                 |   |     |   |   |       |   |    |       |   |   |      |   |   |   |    |   |   |   |   |   |
| Total                                                                                                                |   |     | 4.19   | %      |       |   | 3.85    | %          |   |   | 4.75      | %      |   |   | 5.88    | % |   |   | 4.18 | % |
|                                                                                                                 |   |     |   |   |       |   |    |       |   |   |      |   |   |   |    |   |   |   |   |   |
| *Yields on tax-exempt obligations of states and political subdivisions have been computed on a tax-equivalent basis. |   |     |   |   |       |

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|                                |   | 2010    |    |   | 2009    |   |   | 2008    |   |
|-------------------------------------|--------|---------|---------|--------|---------|--------|--------|---------|--------|
|                                |   | Average |    |   | Average |   |   | Average |   |   | Average |   |   | Average |   |   | Average |   |
|                                |   | Amount  |    |   | Rate    |   |   | Amount  |   |   | Rate |   |   | Amount |   |   | Rate |   |
| (dollars in thousands)              |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
|                                |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Noninterest bearing demand deposits |   | $       | 94,286  |   |    |   | 0.00   | %       |   | $ | 84,245 |   |   |   | 0.00 | % |   | $ | 78,033 |   |   |   | 0.00 | % |
| Interest bearing demand deposits    |   |    | 194,281 |   |    |   | 0.35   | %       |   |   | 174,716 |   |   |   | 0.42 | % |   |   | 155,689 |   |   |   | 0.96 | % |
| Money market deposits               |   |    | 154,264 |   |    |   | 0.37   | %       |   |   | 147,782 |   |   |   | 0.54 | % |   |   | 134,295 |   |   |   | 1.53 | % |
| Savings deposits                    |   |    | 37,465  |   |    |   | 0.32   | %       |   |   | 33,007 |   |   |   | 0.34 | % |   |   | 27,362 |   |   |   | 0.40 | % |
| Time certificates < $100,000     |   |    | 147,453 |   |    |   | 2.09   | %       |   |   | 157,749 |   |   |   | 2.84 | % |   |   | 170,223 |   |   |   | 3.88 | % |
| Time certificates > $100,000     |   |    | 89,290  |   |    |   | 1.85   | %       |   |   | 84,786 |   |   |   | 2.70 | % |   |   | 97,193 |   |   |   | 4.06 | % |
|                                |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   | $       | 717,039 |   |    |   |   |    |   | $ | 682,285 |   |   |   |   |   |   | $ | 662,795 |   |   |   |   |   |

|                      |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (dollars in thousands)    |   |   |   |   |   |   |   |   |   |
| 3 months or less          |   | $      | 17,160 |   |   | $      | 17,814 |   |   | $ | 18,808 |   |
| Over 3 through 12 months  |   |   | 41,180 |   |   |   | 45,007 |   |   |   | 38,589 |   |
| Over 12 through 36 months |   |   | 29,210 |   |   |   | 20,752 |   |   |   | 20,987 |   |
| Over 36 months            |   |   | 7,308  |   |   |   | 3,481  |   |   |   | 2,995 |   |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                     |   | $      | 94,858 |   |   | $      | 87,054 |   |   | $ | 81,379 |   |

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|                                              |   | 2010    |   |   | 2009    |   |   | 2008    |   |
|---------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
|                                              |   |    |   |   | Average |   |   |    |   |   | Average |   |   |   |   |   | Average |   |
|                                              |   | Balance |   |   | Rate    |   |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |
| (dollars in thousands)                            |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Federal funds purchased and repurchase agreements |   | $       | 54,859 |   |    |   | 0.63   | %       |   | $ | 40,490 |   |   |   | 0.64 | % |   | $ | 38,510 |   |   |   | 1.30 | % |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other short-term borrowings                       |   |    | 2,047  |   |    |   | 0.00   | %       |   |   | 139 |   |   |   | 0.00 | % |   |   | 1,064 |   |   |   | 0.00 | % |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                     |   |    | 16,745 |   |    |   | 2.91   | %       |   |   | 16,500 |   |   |   | 3.12 | % |   |   | 23,500 |   |   |   | 2.90 | % |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Term repurchase agreements                        |   |    | 20,000 |   |    |   | 3.36   | %       |   |   | 20,000 |   |   |   | 3.77 | % |   |   | 20,000 |   |   |   | 3.77 | % |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                             |   | $       | 93,651 |   |    |   | 1.61   | %       |   | $ | 77,129 |   |   |   | 1.98 | % |   | $ | 83,074 |   |   |   | 2.33 | % |

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|                                              |   | 2010    |   |   | 2009    |   |   | 2008    |   |
|---------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
|                                              |   | Average |   |   | Average |   |   | Average |   |   | Average |   |   | Average |   |   | Average |   |
|                                              |   | Balance |   |   | Rate    |   |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |
| (dollars in thousands)                            |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Federal funds purchased and repurchase agreements |   | $       | 49,300 |   |    |   | 0.66   | %       |   | $ | 42,795 |   |   |   | 0.92 | % |   | $ | 40,340 |   |   |   | 2.11 | % |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other short-term borrowings                       |   |    | 610    |   |    |   | 0.00   | %       |   |   | 616 |   |   |   | 0.00 | % |   |   | 689 |   |   |   | 1.89 | % |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                     |   |    | 17,848 |   |    |   | 3.28   | %       |   |   | 20,430 |   |   |   | 3.11 | % |   |   | 17,735 |   |   |   | 3.34 | % |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Term repurchase agreements                        |   |    | 20,000 |   |    |   | 3.83   | %       |   |   | 20,000 |   |   |   | 3.85 | % |   |   | 20,000 |   |   |   | 3.69 | % |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                             |   | $       | 87,758 |   |    |   | 1.91   | %       |   | $ | 83,841 |   |   |   | 2.14 | % |   | $ | 78,764 |   |   |   | 2.79 | % |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Maximum Amount Outstanding during the Year        |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal funds purchased and repurchase agreements |   | $       | 76,559 |   |    |   |   |    |   | $ | 50,493 |   |   |   |   |   |   | $ | 48,699 |   |   |   |   |   |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other short-term borrowings                       |   | $       | 3,131  |   |    |   |   |    |   | $ | 3,053 |   |   |   |   |   |   | $ | 1,351 |   |   |   |   |   |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                     |   | $       | 18,500 |   |    |   |   |    |   | $ | 23,500 |   |   |   |   |   |   | $ | 23,500 |   |   |   |   |   |
|                                              |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Term repurchase agreements                        |   | $       | 20,000 |   |    |   |   |    |   | $ | 20,000 |   |   |   |   |   |   | $ | 20,000 |   |   |   |   |   |

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|                                                                       |   |   |    |   | Payments due by period |   |    |   |   |   |    |   |
|----------------------------------------------------------------------------|--------|--------|---------|--------|------------------------|--------|---------|--------|--------|--------|---------|--------|
|                                                                       |   |   |    |   | Less than              |   |    | 1-3    |   |   | 3-5     |   |   | More than |   |
| Contractual Obligations                                                    |   | Total  |    |   | 1 year                 |   |    | years  |   |   | years   |   |   | 5 years |   |
|                                                                       |   |   |    |   |                   |   |    |   |   |   |    |   |   |   |   |   |   |
|                                                                       |   |   |    |   |                   |   |    |   |   |   |    |   |   |   |   |   |   |
| Deposits                                                                   |   | $      | 743,862 |   |                   | $      | 645,427 |   |   | $      | 77,312  |   |   | $ | 21,123 |   |   | $ | — |   |
|                                                                       |   |   |    |   |                   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Federal funds purchased and securities sold under agreements to repurchase |   |   | 54,859  |   |                   |   | 54,859  |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                                       |   |   |    |   |                   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Other short-term borrowings                                                |   |   | 2,047   |   |                   |   | 2,047   |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                                       |   |   |    |   |                   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| FHLB advances and other long-term borrowings (1)                           |   |   | 36,745  |   |                   |   | 2,066   |   |   |   | 2,139   |   |   |   | 7,148 |   |   |   | 25,392 |   |
|                                                                       |   |   |    |   |                   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Operating lease obligation                                                 |   |   | 35      |   |                   |   | 8       |   |   |   | 16      |   |   |   | 11 |   |   |   | — |   |
|                                                                       |   |   |    |   |                   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Purchase obligations (2)                                                   |   |   | 2,416   |   |                   |   | 672     |   |   |   | 1,344   |   |   |   | 400 |   |   |   | — |   |
|                                                                       |   |   |    |   |                   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Total                                                                      |   | $      | 839,964 |   |                   | $      | 705,079 |   |   | $      | 80,811  |   |   | $ | 28,682 |   |   | $ | 25,392 |   |

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|                           |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2007   |   |   | 2006   |    |
|--------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|
| (dollars in thousands)         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |
| Non-performing assets:         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |
| Nonaccrual loans               |   | $      | 6,277  |   |   | $      | 10,187 |   |   | $      | 6,339  |   |   | $      | 3,249   |   |   | $ | 291 |   |
| Loans 90 days or more past due |   |   | 21     |   |   |   | 121    |   |   |   | 469    |   |   |   | 1,300   |   |   |   | 758 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
| Total non-performing loans     |   |   | 6,298  |   |   |   | 10,308 |   |   |   | 6,808  |   |   |   | 4,549   |   |   |   | 1,049 |   |
| Securities available-for-sale  |   |   | 377    |   |   |   | 660    |   |   |   | 358    |   |   |   | — |   |   |   | — |   |
| Other real estate owned        |   |   | 10,539 |   |   |   | 10,480 |   |   |   | 13,334 |   |   |   | 2,846   |   |   |   | 2,808 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
| Total non-performing assets    |   | $      | 17,214 |   |   | $      | 21,448 |   |   | $      | 20,500 |   |   | $      | 7,395   |   |   | $ | 3,857 |   |

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|                                                                    |   | 2010   |    |   | 2009   |   |    | 2008   |   |   | 2007    |   |   | 2006   |    |
|-------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| (dollars in thousands)                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Balance at beginning of period                                          |   | $      | 7,652   |   |   | $      | 6,779   |   |   | $      | 5,781   |   |   | $      | 6,533   |   |   | $ | 6,765 |   |
| Charge-offs:                                                            |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Real estate                                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Construction                                                            |   |   | 22      |   |   |   | 105     |   |   |   | 76      |   |   |   | 402     |   |   |   | — |   |
| 1-4 Family residential                                                  |   |   | 163     |   |   |   | 155     |   |   |   | 89      |   |   |   | 1       |   |   |   | 6 |   |
| Commercial                                                              |   |   | 20      |   |   |   | 415     |   |   |   | 70      |   |   |   | 25      |   |   |   | — |   |
| Agricultural                                                            |   |   | 50      |   |   |   | 15      |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial                                                              |   |   | 391     |   |   |   | 54      |   |   |   | 77      |   |   |   | — |   |   |   | — |   |
| Agricultural                                                            |   |   | 42      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Consumer and other                                                      |   |   | 179     |   |   |   | 122     |   |   |   | 115     |   |   |   | 299     |   |   |   | 99 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total charge-offs                                                       |   |   | 867     |   |   |   | 866     |   |   |   | 427     |   |   |   | 727     |   |   |   | 105 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Recoveries:                                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Real estate                                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Construction                                                            |   |   | — |   |   |   | 6       |   |   |   | — |   |   |   | — |   |   |   | — |   |
| 1-4 Family residential                                                  |   |   | 1       |   |   |   | 27      |   |   |   | 3       |   |   |   | 1       |   |   |   | 1 |   |
| Commercial                                                              |   |   | — |   |   |   | 98      |   |   |   | 1       |   |   |   | — |   |   |   | — |   |
| Agricultural                                                            |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial                                                              |   |   | 5       |   |   |   | 3       |   |   |   | 35      |   |   |   | 21      |   |   |   | 6 |   |
| Agricultural                                                            |   |   | 32      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Consumer and other                                                      |   |   | 34      |   |   |   | 47      |   |   |   | 73      |   |   |   | 47      |   |   |   | 49 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total recoveries                                                        |   |   | 72      |   |   |   | 181     |   |   |   | 112     |   |   |   | 69      |   |   |   | 56 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Net charge-offs                                                         |   |   | 795     |   |   |   | 685     |   |   |   | 315     |   |   |   | 658     |   |   |   | 49 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Provisions charged (credited) to operations                             |   |   | 664     |   |   |   | 1,558   |   |   |   | 1,313   |   |   |   | (94     | ) |   |   | (183 | ) |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Balance at end of period                                                |   | $      | 7,521   |   |   | $      | 7,652   |   |   | $      | 6,779   |   |   | $      | 5,781   |   |   | $ | 6,533 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Average loans outstanding                                               |   | $      | 417,688 |   |   | $      | 434,468 |   |   | $      | 463,782 |   |   | $      | 454,088 |   |   | $ | 438,166 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Ratio of net charge-offs during the period to average loans outstanding |   |   | 0.19    | %      |   |   | 0.16    | %      |   |   | 0.07    | %      |   |   | 0.14    | % |   |   | 0.01 | % |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Ratio of allowance for loan losses to total loans net of deferred fees  |   |   | 1.77    | %      |   |   | 1.81    | %      |   |   | 1.47    | %      |   |   | 1.23    | % |   |   | 1.50 | % |

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|                                                |   | 2010   |    |   | 2009   |   |   | 2008   |   |   | 2007    |   |   | 2006   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|
| (dollars in thousands)                              |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | Amount |    |   |   | %*     |   |   | Amount |   |    |   | %*     |   |   | Amount |   |   |   | %* |   |   | Amount |   |   |   | %* |   |   | Amount |   |   |   | %* |   |
|                                                |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at end of period applicable to:             |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate                                         |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction                                        |   | $      | 731     |   |   |   | 5      | %      |   | $      | 1,040   |   |   |   | 5      | % |   | $ | 472 |   |   |   | 8 | % |   | $ | 733 |   |   |   | 10 | % |   | $ | 372 |   |   |   | 7 | % |
| 1-4 family residential                              |   |   | 1,404   |   |   |   | 21     | %      |   |   | 1,133   |   |   |   | 22     | % |   |   | 1,001 |   |   |   | 21 | % |   |   | 1,061 |   |   |   | 22 | % |   |   | 1,231 |   |   |   | 24 | % |
| Commercial                                          |   |   | 2,720   |   |   |   | 33     | %      |   |   | 2,683   |   |   |   | 34     | % |   |   | 3,566 |   |   |   | 33 | % |   |   | 1,964 |   |   |   | 31 | % |   |   | 2,396 |   |   |   | 32 | % |
| Agricultural                                        |   |   | 486     |   |   |   | 7      | %      |   |   | 523     |   |   |   | 7      | % |   |   | 395 |   |   |   | 7 | % |   |   | 407 |   |   |   | 7 | % |   |   | 428 |   |   |   | 7 | % |
| Commercial                                          |   |   | 1,152   |   |   |   | 18     | %      |   |   | 1,199   |   |   |   | 16     | % |   |   | 683 |   |   |   | 17 | % |   |   | 943 |   |   |   | 17 | % |   |   | 983 |   |   |   | 17 | % |
| Agricultural                                        |   |   | 735     |   |   |   | 11     | %      |   |   | 642     |   |   |   | 10     | % |   |   | 469 |   |   |   | 9 | % |   |   | 466 |   |   |   | 8 | % |   |   | 499 |   |   |   | 8 | % |
| Consumer and other                                  |   |   | 293     |   |   |   | 5      | %      |   |   | 432     |   |   |   | 6      | % |   |   | 193 |   |   |   | 5 | % |   |   | 207 |   |   |   | 5 | % |   |   | 276 |   |   |   | 5 | % |
| Unallocated                                         |   |   | — |   |   |   |   |   |   |   | — |   |   |   |   |   |   |   | — |   |   |   |   |   |   |   | — |   |   |   |   |   |   |   | 348 |   |   |   |   |   |
|                                                |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | $      | 7,521   |   |   |   | 100    | %      |   | $      | 7,652   |   |   |   | 100    | % |   | $ | 6,779 |   |   |   | 100 | % |   | $ | 5,781 |   |   |   | 100 | % |   | $ | 6,533 |   |   |   | 100 | % |
|                                                |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| * Percent of loans in each category to total loans. |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| ● | Review of the Company’s Current Liquidity Sources |
|---------|---------------------------------------------------------|

| ● | Review of the Consolidated Statements of Cash Flows |
|---------|-----------------------------------------------------|

| ● | Review of Company Only Cash Flows |
|---------|-----------------------------------|

| ● | Review of Commitments for Capital Expenditures, Cash Flow Uncertainties and Known Trends in Liquidity and Cash Flow Needs |
|---------|---------------------------------------------------------------------------------------------------------------------------|

| ● | Capital Resources |
|---------|-------------------|

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|   | ● | Local, regional and national economic conditions and the impact they may have on the Company and its customers, and management’s assessment of that impact on our estimates including, but not limited to, the allowance for loan losses and fair value of other real estate owned.  Of particular relevance are the economic conditions in the concentrated geographic area in central Iowa in which the Banks conduct their operations. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ● | Changes in the level of nonperforming assets and charge-offs. |
|--------|---------|---------------------------------------------------------------|

|   | ● | Changes in the fair value of securities available-for-sale and management’s assessments of other-than-temporary impairment of such securities. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The effects of and changes in trade and monetary and fiscal policies and laws, including the changes in assessment rates established by the Federal Deposit Insurance Corporation for its Deposit Insurance Fund and interest rate policies of the Federal Open Market Committee of the Federal Reserve Board. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Changes in sources and uses of funds, including loans, deposits and borrowings, including the ability of the Banks to maintain unsecured federal funds lines with correspondent banks. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Changes imposed by regulatory agencies to increase capital to a level greater than the level required for well-capitalized financial institutions. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Inflation and interest rate, securities market and monetary fluctuations. |
|--------|---------|---------------------------------------------------------------------------|

|   | ● | Political instability, acts of war or terrorism and natural disasters. |
|--------|---------|------------------------------------------------------------------------|

|   | ● | The timely development and acceptance of new products and services and perceived overall value of these products and services by customers. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Revenues being lower than expected. |
|--------|---------|-------------------------------------|

|   | ● | Changes in consumer spending, borrowings and savings habits. |
|--------|---------|--------------------------------------------------------------|

|   | ● | Changes in the financial performance and/or condition of the Company’s borrowers. |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | ● | Credit quality deterioration, which could cause an increase in the provision for loan losses. |
|--------|---------|-----------------------------------------------------------------------------------------------|

|   | ● | Technological changes. |
|--------|---------|------------------------|

|   | ● | The ability to increase market share and control expenses. |
|--------|---------|------------------------------------------------------------|

|   | ● | Changes in the competitive environment among financial or bank holding companies and other financial service providers. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | ● | The effect of changes in laws and regulations with which the Company and the Banks must comply, including developments and changes related to the implementation of the recently-enacted Dodd-Frank Act. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Changes in the securities markets. |
|--------|---------|------------------------------------|

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|   | ● | The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters, including the International Financial Reporting Standards. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The costs and effects of legal and regulatory developments, including the resolution of regulatory or other governmental inquiries and the results of regulatory examinations or reviews. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Company’s success at managing the risks involved in the foregoing items. |
|--------|---------|------------------------------------------------------------------------------------|

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

|                         |   |     |   |   |     |   |
|------------------------------|--------|----------|--------|--------|----------|--------|
|  (dollars in thousands) |   | $ Change |   |   | % Change |   |
| +300 Basis Points            |   | $        | (3,783 | )      |     |   | -12.13 | % |
| +200 Basis Points            |   |     | (2,180 | )      |     |   | -6.99 | % |
| +100 Basis Points            |   |     | (836   | )      |     |   | -2.68 | % |
| -100 Basis Points            |   |     | (2,027 | )      |     |   | -6.50 | % |
| -200 Basis Points            |   |     | (4,004 | )      |     |   | -12.84 | % |

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|                                                             |   | Less than |     |   | Three     |   |     | One to |   |   | Over    |   |   |       |    |
|------------------------------------------------------------------|--------|-----------|----------|--------|-----------|--------|----------|--------|--------|--------|---------|--------|--------|------------|---------|
|                                                             |   | three     |     |   | months to |   |     | five   |   |   | five    |   |   | Cumulative |    |
|                                                             |   | months    |     |   | one year  |   |     | years  |   |   | years   |   |   | Total      |    |
| (dollars in thousands)                                           |   |      |     |   |      |   |     |   |   |   |    |   |   |       |    |
| Interest - earning assets                                        |   |      |     |   |      |   |     |   |   |   |    |   |   |       |    |
| Interest-bearing deposits and federal funds sold                 |   | $         | 6,370    |   |      | $      | 3,085    |   |   | $      | 12,775  |   |   | $          | — |   |   | $ | 22,230 |   |
| Investments (1)                                                  |   |      | 6,051    |   |      |   | 24,725   |   |   |   | 298,316 |   |   |       | 140,816 |   |   |   | 469,908 |   |
| Loans                                                            |   |      | 63,542   |   |      |   | 73,125   |   |   |   | 235,402 |   |   |       | 53,617  |   |   |   | 425,686 |   |
| Loans held for sale                                              |   |      | 1,993    |   |      |   | —  |   |   |   | — |   |   |       | — |   |   |   | 1,993 |   |
|                                                             |   |      |     |   |      |   |     |   |   |   |    |   |   |       |    |   |   |   |   |   |
| Total interest - earning assets                                  |   | $         | 77,956   |   |      | $      | 100,935  |   |   | $      | 546,493 |   |   | $          | 194,433 |   |   | $ | 919,817 |   |
|                                                             |   |      |     |   |      |   |     |   |   |   |    |   |   |       |    |   |   |   |   |   |
| Interest - bearing liabilities                                   |   |      |     |   |      |   |     |   |   |   |    |   |   |       |    |   |   |   |   |   |
| Interest bearing demand deposits                                 |   | $         | 201,231  |   |      | $      | —  |   |   | $      | — |   |   | $          | — |   |   | $ | 201,231 |   |
| Money market and savings deposits                                |   |      | 199,017  |   |      |   | —  |   |   |   | — |   |   |       | — |   |   |   | 199,017 |   |
| Time certificates < $100,000                                  |   |      | 24,663   |   |      |   | 56,493   |   |   |   | 61,937  |   |   |       | — |   |   |   | 143,093 |   |
| Time certificates > $100,000                                  |   |      | 17,160   |   |      |   | 41,180   |   |   |   | 36,518  |   |   |       | — |   |   |   | 94,858 |   |
| Other borrowed funds (2)                                         |   |      | 3,064    |   |      |   | 1,050    |   |   |   | 9,287   |   |   |       | 25,392  |   |   |   | 38,793 |   |
|                                                             |   |      |     |   |      |   |     |   |   |   |    |   |   |       |    |   |   |   |   |   |
| Total interest - bearing liabilities                             |   | $         | 445,135  |   |      | $      | 98,723   |   |   | $      | 107,742 |   |   | $          | 25,392  |   |   | $ | 676,992 |   |
|                                                             |   |      |     |   |      |   |     |   |   |   |    |   |   |       |    |   |   |   |   |   |
| Interest sensitivity gap                                         |   | $         | (367,179 | )      |      | $      | 2,212    |   |   | $      | 438,751 |   |   | $          | 169,041 |   |   | $ | 242,825 |   |
|                                                             |   |      |     |   |      |   |     |   |   |   |    |   |   |       |    |   |   |   |   |   |
| Cumulative interest sensitivity gap                              |   | $         | (367,179 | )      |      | $      | (364,967 | )      |   | $      | 73,784  |   |   | $          | 242,825 |   |   | $ | 242,825 |   |
|                                                             |   |      |     |   |      |   |     |   |   |   |    |   |   |       |    |   |   |   |   |   |
| Cumulative interest sensitivity gap as a percent of total assets |   |      | -38.13   | %      |      |   | -37.90   | %      |   |   | 7.66    | %      |   |       | 25.22   | % |   |   |   |   |

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ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

|   | /s/ Thomas H. Pohlman         |   |
|--------|-------------------------------|--------|
|   | Thomas H. Pohlman, President  |   |
|   | (Principal Executive Officer) |   |

|   | /s/ John P. Nelson             |   |
|--------|--------------------------------|--------|
|   | John P. Nelson, Vice President |   |
|   | (Principal Financial Officer)  |   |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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| AMES NATIONAL CORPORATION AND SUBSIDIARIES                                                        |   |
|---------------------------------------------------------------------------------------------------|--------|
|                                                                                              |   |   |   |   |   |   |
| CONSOLIDATED BALANCE SHEETS                                                                       |   |
| December 31, 2010 and 2009                                                                        |   |
|                                                                                              |   |   |   |   |   |   |
| ASSETS                                                                                            |   | 2010 |   |   | 2009 |   |
|                                                                                              |   |   |   |   |   |   |
| Cash and due from banks                                                                           |   | $ | 15,478,133 |   |   | $ | 18,796,664 |   |
| Federal funds sold                                                                                |   |   | 3,000,000 |   |   |   | — |   |
| Interest bearing deposits in financial institutions                                               |   |   | 19,229,814 |   |   |   | 24,776,088 |   |
| Securities available-for-sale                                                                     |   |   | 469,907,901 |   |   |   | 418,655,018 |   |
| Loans receivable, net                                                                             |   |   | 418,093,571 |   |   |   | 415,434,236 |   |
| Loans held for sale                                                                               |   |   | 1,993,108 |   |   |   | 1,023,200 |   |
| Bank premises and equipment, net                                                                  |   |   | 11,538,588 |   |   |   | 11,909,404 |   |
| Accrued income receivable                                                                         |   |   | 6,098,535 |   |   |   | 5,710,226 |   |
| Deferred income taxes                                                                             |   |   | 3,305,983 |   |   |   | 3,867,523 |   |
| Other real estate owned                                                                           |   |   | 10,538,883 |   |   |   | 10,480,449 |   |
| Other assets                                                                                      |   |   | 3,790,329 |   |   |   | 4,916,991 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Total assets                                                                                      |   | $ | 962,974,845 |   |   | $ | 915,569,799 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                        |   |   |   |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                                       |   |   |   |   |   |   |   |   |
| Deposits                                                                                          |   |   |   |   |   |   |   |   |
| Demand, noninterest bearing                                                                       |   | $ | 105,513,143 |   |   | $ | 99,918,848 |   |
| NOW accounts                                                                                      |   |   | 201,230,880 |   |   |   | 197,393,459 |   |
| Savings and money market                                                                          |   |   | 199,017,213 |   |   |   | 184,631,343 |   |
| Time, $100,000 and over                                                                           |   |   | 94,858,053 |   |   |   | 87,054,194 |   |
| Other time                                                                                        |   |   | 143,242,355 |   |   |   | 153,166,105 |   |
| Total deposits                                                                                    |   |   | 743,861,644 |   |   |   | 722,163,949 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Federal funds purchased and securities sold under agreements to repurchase                        |   |   | 54,858,701 |   |   |   | 40,489,505 |   |
| Other short-term borrowings                                                                       |   |   | 2,047,175 |   |   |   | 138,874 |   |
| Federal Home Loan Bank advances                                                                   |   |   | 16,745,497 |   |   |   | 16,500,000 |   |
| Other long-term borrowings                                                                        |   |   | 20,000,000 |   |   |   | 20,000,000 |   |
| Dividend payable                                                                                  |   |   | 1,037,621 |   |   |   | 943,292 |   |
| Accrued expenses and other liabilities                                                            |   |   | 3,061,183 |   |   |   | 2,994,291 |   |
| Total liabilities                                                                                 |   |   | 841,611,821 |   |   |   | 803,229,911 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                        |   |   |   |   |   |   |   |   |
| Common stock, $2 par value, authorized 18,000,000 shares; 9,432,915 shares issued and outstanding |   |   | 18,865,830 |   |   |   | 18,865,830 |   |
| Additional paid-in capital                                                                        |   |   | 22,651,222 |   |   |   | 22,651,222 |   |
| Retained earnings                                                                                 |   |   | 76,519,493 |   |   |   | 67,703,701 |   |
| Accumulated other comprehensive income-net unrealized gain on securities available-for-sale       |   |   | 3,326,479 |   |   |   | 3,119,135 |   |
| Total stockholders’ equity                                                                  |   |   | 121,363,024 |   |   |   | 112,339,888 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                                                  |   | $ | 962,974,845 |   |   | $ | 915,569,799 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                                   |   |   |   |   |   |   |   |   |

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| AMES NATIONAL CORPORATION AND SUBSIDIARIES               |   |   |       |   |   |   |       |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|
|                                                     |   |   |       |   |   |   |       |   |   |
| CONSOLIDATED STATEMENTS OF INCOME                        |   |   |       |   |   |   |       |
| Years Ended December 31, 2010, 2009 and 2008             |   |   |       |   |   |   |       |
|                                                     |   |   |       |   |   |   |       |   |   |
|                                                     |   | 2010   |       |   | 2009   |   |       | 2008 |   |
|                                                     |   |   |       |   |   |   |       |   |   |
| Interest and dividend income:                            |   |   |       |   |   |   |       |   |   |
| Loans, including fees                                    |   | $      | 24,061,277 |   |   | $      | 25,212,884 |   |   | $ | 29,458,407 |   |
| Securities:                                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Taxable                                                  |   |   | 6,964,979  |   |   |   | 7,966,594  |   |   |   | 9,812,614 |   |
| Tax-exempt                                               |   |   | 5,778,722  |   |   |   | 5,213,031  |   |   |   | 5,879,215 |   |
| Interest bearing deposits and federal funds sold         |   |   | 488,980    |   |   |   | 498,798    |   |   |   | 363,931 |   |
| Total interest and dividend income                       |   |   | 37,293,958 |   |   |   | 38,891,307 |   |   |   | 45,514,167 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest expense:                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Deposits                                                 |   |   | 6,096,504  |   |   |   | 8,428,163  |   |   |   | 14,207,734 |   |
| Other borrowed funds                                     |   |   | 1,678,587  |   |   |   | 1,798,149  |   |   |   | 2,193,958 |   |
| Total interest expense                                   |   |   | 7,775,091  |   |   |   | 10,226,312 |   |   |   | 16,401,692 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Net interest income                                      |   |   | 29,518,867 |   |   |   | 28,664,995 |   |   |   | 29,112,475 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Provision for loan losses                                |   |   | 663,798    |   |   |   | 1,558,307  |   |   |   | 1,312,785 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Net interest income after provision for loan losses      |   |   | 28,855,069 |   |   |   | 27,106,688 |   |   |   | 27,799,690 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Noninterest income (loss):                               |   |   |       |   |   |   |       |   |   |   |   |   |
| Trust department income                                  |   |   | 1,948,519  |   |   |   | 1,541,831  |   |   |   | 1,597,096 |   |
| Service fees                                             |   |   | 1,626,352  |   |   |   | 1,814,925  |   |   |   | 1,791,713 |   |
| Securities gains, net                                    |   |   | 977,512    |   |   |   | 1,186,912  |   |   |   | 3,515,323 |   |
| Other-than-temporary impairment of investment securities |   |   | (4,500     | )      |   |   | (29,565    | ) |   |   | (12,054,387 | ) |
| Gain on sale of loans held for sale                      |   |   | 942,826    |   |   |   | 1,008,566  |   |   |   | 834,129 |   |
| Merchant and ATM fees                                    |   |   | 724,725    |   |   |   | 621,316    |   |   |   | 616,802 |   |
| Other                                                    |   |   | 720,404    |   |   |   | 780,275    |   |   |   | 690,898 |   |
| Total noninterest income (loss)                          |   |   | 6,935,838  |   |   |   | 6,924,260  |   |   |   | (3,008,426 | ) |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Noninterest expense:                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Salaries and employee benefits                           |   |   | 10,826,307 |   |   |   | 10,757,475 |   |   |   | 10,572,597 |   |
| Data processing                                          |   |   | 1,857,259  |   |   |   | 1,892,123  |   |   |   | 2,246,473 |   |
| Occupancy expenses                                       |   |   | 1,488,100  |   |   |   | 1,436,485  |   |   |   | 1,587,076 |   |
| FDIC insurance assessments                               |   |   | 1,120,058  |   |   |   | 1,675,401  |   |   |   | 242,906 |   |
| Other real estate owned                                  |   |   | 194,645    |   |   |   | 4,198,315  |   |   |   | 151,428 |   |
| Other operating expenses, net                            |   |   | 2,834,212  |   |   |   | 2,772,556  |   |   |   | 2,793,774 |   |
| Total noninterest expense                                |   |   | 18,320,581 |   |   |   | 22,732,355 |   |   |   | 17,594,254 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Income before income taxes                               |   |   | 17,470,326 |   |   |   | 11,298,593 |   |   |   | 7,197,010 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Provision for income taxes                               |   |   | 4,504,052  |   |   |   | 2,292,807  |   |   |   | 845,014 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Net income                                               |   | $      | 12,966,274 |   |   | $      | 9,005,786  |   |   | $ | 6,351,996 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic and diluted earnings per share                     |   | $      | 1.37       |   |   | $      | 0.95       |   |   | $ | 0.67 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.          |   |   |       |   |   |   |       |   |   |   |   |   |

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| AMES NATIONAL CORPORATION AND SUBSIDIARIES                                                                  |   |          |       |   |   |       |       |
|-------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------|------------|------------|
|                                                                                                        |   |          |       |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY                                                       |   |          |       |   |   |       |       |
|                                                                                                        |   |          |       |   |   |       |       |   |   |
| Years Ended December 31, 2010, 2009 and 2008                                                                |   |          |       |   |   |       |       |   |   |
|                                                                                                        |   |          |       |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                        |   |          |       |   |   |       |       |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                                        |   |          |       |   |   |       |       | Additional |   |   |   |   |   | Other |   |   | Total |   |
|                                                                                                        |   | Comprehensive |       |   | Common |       |       | Paid-in |   |   | Retained |   |   | Comprehensive |   |   | Stockholders’ |   |
|                                                                                                        |   | Income        |       |   | Stock  |       |       | Capital |   |   | Earnings |   |   | Income (Loss) |   |   | Equity |   |
|                                                                                                        |   |          |       |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                                                                                  |   |          |       |   | $      | 18,859,160 |       |   | $ | 22,588,691 |   |   | $ | 66,683,016 |   |   | $ | 1,889,656 |   |   | $ | 110,020,523 |   |
| Comprehensive income:                                                                                       |   |          |       |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                  |   | $             | 6,351,996  |   |   |       | —    |   |   |   | — |   |   |   | 6,351,996 |   |   |   | — |   |   |   | 6,351,996 |   |
| Other comprehensive income, unrealized losses on securities, net of reclassification adjustment, net of tax |   |          | (2,040,339 | )      |   |       | —    |   |   |   | — |   |   |   | — |   |   |   | (2,040,339 | ) |   |   | (2,040,339 | ) |
| Total comprehensive income                                                                                  |   | $             | 4,311,657  |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared, $1.12 per share                                                                    |   |          |       |   |   |       | —    |   |   |   | — |   |   |   | (10,563,931 | ) |   |   | — |   |   |   | (10,563,931 | ) |
| Sale of 3,335 shares of common stock                                                                        |   |          |       |   |   |       | 6,670      |   |   |   | 62,531 |   |   |   | — |   |   |   | — |   |   |   | 69,201 |   |
| Balance, December 31, 2008                                                                                  |   |          |       |   |   |       | 18,865,830 |   |   |   | 22,651,222 |   |   |   | 62,471,081 |   |   |   | (150,683 | ) |   |   | 103,837,450 |   |
| Comprehensive income:                                                                                       |   |          |       |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                  |   | $             | 9,005,786  |   |   |       | —    |   |   |   | — |   |   |   | 9,005,786 |   |   |   | — |   |   |   | 9,005,786 |   |
| Other comprehensive income, unrealized gains on securities, net of reclassification adjustment, net of tax  |   |          | 3,269,818  |   |   |       | —    |   |   |   | — |   |   |   | — |   |   |   | 3,269,818 |   |   |   | 3,269,818 |   |
| Total comprehensive income                                                                                  |   | $             | 12,275,604 |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared, $0.40 per share                                                                    |   |          |       |   |   |       | —    |   |   |   | — |   |   |   | (3,773,166 | ) |   |   | — |   |   |   | (3,773,166 | ) |
| Balance, December 31, 2009                                                                                  |   |          |       |   |   |       | 18,865,830 |   |   |   | 22,651,222 |   |   |   | 67,703,701 |   |   |   | 3,119,135 |   |   |   | 112,339,888 |   |
| Comprehensive income:                                                                                       |   |          |       |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                  |   | $             | 12,966,274 |   |   |       | —    |   |   |   | — |   |   |   | 12,966,274 |   |   |   | — |   |   |   | 12,966,274 |   |
| Other comprehensive income, unrealized gains on securities, net of reclassification adjustment, net of tax  |   |          | 207,344    |   |   |       | —    |   |   |   | — |   |   |   | — |   |   |   | 207,344 |   |   |   | 207,344 |   |
| Total comprehensive income                                                                                  |   | $             | 13,173,618 |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared, $0.44 per share                                                                    |   |          |       |   |   |       | —    |   |   |   | — |   |   |   | (4,150,482 | ) |   |   | — |   |   |   | (4,150,482 | ) |
| Balance, December 31, 2010                                                                                  |   |          |       |   |   | $          | 18,865,830 |   |   | $ | 22,651,222 |   |   | $ | 76,519,493 |   |   | $ | 3,326,479 |   |   | $ | 121,363,024 |   |
|                                                                                                        |   |          |       |   |   |       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                                                             |   |          |       |   |   |       |       |   |   |   |   |   |   |

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| AMES NATIONAL CORPORATION AND SUBSIDIARIES                                             |   |   |         |   |   |   |         |   |   |
|----------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|
|                                                                                   |   |   |         |   |   |   |         |   |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                  |   |   |         |   |   |   |         |   |   |
| Years Ended December 31, 2010, 2009 and 2008                                           |   |   |         |   |   |   |         |   |   |
|                                                                                   |   |   |         |   |   |   |         |   |   |
|                                                                                   |   | 2010   |         |   | 2009   |   |         | 2008   |   |
|                                                                                   |   |   |         |   |   |   |         |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                   |   |   |         |   |   |   |         |   |   |
| Net income                                                                             |   | $      | 12,966,274   |   |   | $      | 9,005,786    |   |   | $ | 6,351,996 |   |
| Adjustments to reconcile net income to net cash                                        |   |   |         |   |   |   |         |   |   |   |   |   |
| provided by operating activities:                                                      |   |   |         |   |   |   |         |   |   |   |   |   |
| Provision for loan losses                                                              |   |   | 663,798      |   |   |   | 1,558,307    |   |   |   | 1,312,785 |   |
| Provision (credit) for off-balance sheet commitments                                   |   |   | 13,000       |   |   |   | (21,000      | )      |   |   | 15,000 |   |
| Amortization and (accretion), net                                                      |   |   | 3,205,568    |   |   |   | 868,971      |   |   |   | (184,998 | ) |
| Depreciation                                                                           |   |   | 748,008      |   |   |   | 876,792      |   |   |   | 1,096,653 |   |
| Provision (credit) for deferred income taxes                                           |   |   | 439,766      |   |   |   | 50,154       |   |   |   | (3,710,424 | ) |
| Securities gains, net                                                                  |   |   | (977,512     | )      |   |   | (1,186,912   | )      |   |   | (3,515,323 | ) |
| Other-than-temporary impairment of investment securities                               |   |   | 4,500        |   |   |   | 29,565       |   |   |   | 12,054,387 |   |
| Impairment of other real estate owned                                                  |   |   | 14,900       |   |   |   | 3,879,901    |   |   |   | — |   |
| Gain on sale of other real estate owned                                                |   |   | (63,959      | )      |   |   | (92,513      | )      |   |   | (66,219 | ) |
| Loss on disposal of equipment                                                          |   |   | —      |   |   |   | 1,096        |   |   |   | — |   |
| Change in assets and liabilities:                                                      |   |   |         |   |   |   |         |   |   |   |   |   |
| Decrease (increase) in loans held for sale                                             |   |   | (969,908     | )      |   |   | 128,820      |   |   |   | (807,050 | ) |
| Decrease (increase) in accrued income receivable                                       |   |   | (388,309     | )      |   |   | 940,061      |   |   |   | 1,372,613 |   |
| Decrease (increase) in other assets                                                    |   |   | 1,111,984    |   |   |   | (3,860,396   | )      |   |   | (841,693 | ) |
| Increase (decrease) in accrued expenses and other liabilities                          |   |   | 53,892       |   |   |   | (778,849     | )      |   |   | (355,962 | ) |
| Net cash provided by operating activities                                              |   |   | 16,822,002   |   |   |   | 11,399,783   |   |   |   | 12,721,765 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                   |   |   |         |   |   |   |         |   |   |   |   |   |
| Purchase of securities available-for-sale                                              |   |   | (208,372,243 | )      |   |   | (252,088,448 | )      |   |   | (140,744,441 | ) |
| Proceeds from sale of securities available-for-sale                                    |   |   | 22,326,136   |   |   |   | 68,698,126   |   |   |   | 59,489,208 |   |
| Proceeds from maturities and calls of securities available-for-sale                    |   |   | 132,889,786  |   |   |   | 83,228,240   |   |   |   | 96,590,223 |   |
| Net decrease (increase) in interest bearing deposits in financial institutions         |   |   | 5,546,274    |   |   |   | (14,375,327  | )      |   |   | (9,766,148 | ) |
| Net decrease (increase) in federal funds sold                                          |   |   | (3,000,000   | )      |   |   | 16,533,000   |   |   |   | (11,033,000 | ) |
| Net decrease (increase) in loans                                                       |   |   | (4,450,923   | )      |   |   | 33,580,577   |   |   |   | (1,677,154 | ) |
| Net proceeds from the sale of other real estate owned                                  |   |   | 1,132,969    |   |   |   | 1,367,578    |   |   |   | 1,091,152 |   |
| Purchase of bank premises and equipment, net                                           |   |   | (362,514     | )      |   |   | (202,997     | )      |   |   | (220,090 | ) |
| Other changes in other real estate owned                                               |   |   | (14,554      | )      |   |   | 5,378        |   |   |   | (377,539 | ) |
| Net cash used in investing activities                                                  |   |   | (54,305,069  | )      |   |   | (63,253,873  | )      |   |   | (6,647,789 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                   |   |   |         |   |   |   |         |   |   |   |   |   |
| Increase (decrease) in deposits                                                        |   |   | 21,697,695   |   |   |   | 57,369,239   |   |   |   | (25,324,085 | ) |
| Increase in federal funds purchased and securities sold under agreements to repurchase |   |   | 14,369,196   |   |   |   | 1,979,946    |   |   |   | 8,476,238 |   |
| Proceeds (payments) from other short-term borrowings, net                              |   |   | 1,908,301    |   |   |   | (924,932     | )      |   |   | 326,386 |   |
| Proceeds from long-term borrowings                                                     |   |   | 3,750,000    |   |   |   | 2,500,000    |   |   |   | 21,500,000 |   |
| Payments on long-term borrwings                                                        |   |   | (3,504,503   | )      |   |   | (9,500,000   | )      |   |   | (2,000,000 | ) |
| Dividends paid                                                                         |   |   | (4,056,153   | )      |   |   | (5,471,090   | )      |   |   | (10,468,702 | ) |
| Proceeds from issuance of stock                                                        |   |   | —      |   |   |   | —      |   |   |   | 69,201 |   |
| Net cash provided by (used in) financing activities                                    |   |   | 34,164,536   |   |   |   | 45,953,163   |   |   |   | (7,420,962 | ) |
| Net decrease in cash and cash equivalents                                              |   |   | (3,318,531   | )      |   |   | (5,900,927   | )      |   |   | (1,346,986 | ) |
|                                                                                   |   |   |         |   |   |   |         |   |   |   |   |   |
| CASH AND DUE FROM BANKS                                                                |   |   |         |   |   |   |         |   |   |   |   |   |
| Beginning                                                                              |   |   | 18,796,664   |   |   |   | 24,697,591   |   |   |   | 26,044,577 |   |
| Ending                                                                                 |   | $      | 15,478,133   |   |   | $      | 18,796,664   |   |   | $ | 24,697,591 |   |

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| AMES NATIONAL CORPORATION AND SUBSIDIARIES        |   |   |      |   |   |   |       |
|---------------------------------------------------|--------|--------|-----------|--------|--------|--------|------------|
|                                              |   |   |      |   |   |   |       |   |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) |   |   |      |   |   |   |       |
| Years Ended December 31, 2010, 2009 and 2008      |   |   |      |   |   |   |       |   |   |
|                                              |   |   |      |   |   |   |       |   |   |
|                                              |   | 2010   |      |   | 2009   |   |       | 2008 |   |
|                                              |   |   |      |   |   |   |       |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION  |   |   |      |   |   |   |       |   |   |
| Cash payments for:                                |   |   |      |   |   |   |       |   |   |
| Interest                                          |   | $      | 7,996,827 |   |   | $      | 10,712,422 |   |   | $ | 17,225,985 |   |
| Income taxes                                      |   |   | 3,875,900 |   |   |   | 1,588,103  |   |   |   | 5,430,551 |   |
|                                              |   |   |      |   |   |   |       |   |   |   |   |   |
| SUPLEMENTAL DISCLOSURE OF NONCASH                 |   |   |      |   |   |   |       |   |   |   |   |   |
| INVESTING ACTIVITIES                              |   |   |      |   |   |   |       |   |   |   |   |   |
| Transfer of loans to other real estate owned      |   | $      | 1,127,790 |   |   | $      | 2,307,228  |   |   | $ | 11,135,022 |   |
|                                              |   |   |      |   |   |   |       |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.   |   |   |      |   |   |   |       |   |   |   |   |   |

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Notes to Consolidated Financial Statements

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|                                       |   | 2010   |       |   | 2009   |   |      | 2008   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
| Basic earning per share computation:       |   |   |       |   |   |   |      |   |   |
| Net income                                 |   | $      | 12,966,274 |   |   | $      | 9,005,786 |   |   | $ | 6,351,996 |   |
| Weighted average common shares outstanding |   |   | 9,432,915  |   |   |   | 9,432,915 |   |   |   | 9,431,393 |   |
| Basic EPS                                  |   | $      | 1.37       |   |   | $      | 0.95      |   |   | $ | 0.67 |   |

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|                                               |   |      |        |   | Gross      |   |      | Gross      |   |   |       |   |
|----------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                               |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Estimated  |   |
|                                               |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Fair Value |   |
| 2010:                                              |   |      |        |   |       |   |      |       |   |   |       |   |
| U.S. treasury                                      |   | $         | 499,885     |   |       | $      | 3,265     |       |   | $      | —    |   |   | $ | 503,150 |   |
| U.S. government agencies                           |   |      | 86,336,578  |   |       |   | 1,190,768 |       |   |   | (114,727   | )      |   |   | 87,412,619 |   |
| U.S. government mortgage-backed securities         |   |      | 125,740,846 |   |       |   | 2,237,443 |       |   |   | (629,668   | )      |   |   | 127,348,621 |   |
| State and political subdivisions                   |   |      | 226,352,715 |   |       |   | 3,254,157 |       |   |   | (1,234,045 | )      |   |   | 228,372,827 |   |
| Corporate bonds                                    |   |      | 19,220,366  |   |       |   | 1,183,213 |       |   |   | (31,575    | )      |   |   | 20,372,004 |   |
| Equity securities, financial industry common stock |   |      | 3,402,389   |   |       |   | —   |       |   |   | (588,208   | )      |   |   | 2,814,181 |   |
| Equity securities, other                           |   |      | 3,074,999   |   |       |   | 9,500     |       |   |   | —    |   |   |   | 3,084,499 |   |
|                                               |   | $         | 464,627,778 |   |       | $      | 7,878,346 |       |   | $      | (2,598,223 | )      |   | $ | 469,907,901 |   |
|                                               |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                               |   |      |        |   |       | Gross  |      |       | Gross  |   |       |   |   |   |
|                                               |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Estimated  |   |
|                                               |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Fair Value |   |
| 2009:                                              |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| U.S. treasury                                      |   | $         | 498,972     |   |       | $      | 26,219    |       |   | $      | —    |   |   | $ | 525,191 |   |
| U.S. government agencies                           |   |      | 105,903,470 |   |       |   | 969,583   |       |   |   | (233,169   | )      |   |   | 106,639,884 |   |
| U.S. government mortgage-backed securities         |   |      | 100,106,597 |   |       |   | 1,724,922 |       |   |   | (242,033   | )      |   |   | 101,589,486 |   |
| State and political subdivisions                   |   |      | 175,298,674 |   |       |   | 3,109,322 |       |   |   | (355,571   | )      |   |   | 178,052,425 |   |
| Corporate bonds                                    |   |      | 23,094,417  |   |       |   | 1,253,157 |       |   |   | (47,880    | )      |   |   | 24,299,694 |   |
| Equity securities, financial industry common stock |   |      | 3,402,389   |   |       |   | —   |       |   |   | (1,056,088 | )      |   |   | 2,346,301 |   |
| Equity securities, other                           |   |      | 5,399,493   |   |       |   | 58,400    |       |   |   | (255,856   | )      |   |   | 5,202,037 |   |
|                                               |   | $         | 413,704,012 |   |       | $      | 7,141,603 |       |   | $      | (2,190,597 | )      |   | $ | 418,655,018 |   |

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|                                   |   | Amortized |        |   | Estimated  |   |
|----------------------------------------|--------|-----------|-------------|--------|------------|--------|
|                                   |   | Cost      |        |   | Fair Value |   |
|                                   |   |      |        |   |       |   |
| Due in one year or less                |   | $         | 30,472,212  |   |       | $      | 30,776,269 |   |
| Due after one year through five years  |   |      | 293,315,336 |   |       |   | 298,315,898 |   |
| Due after five years through ten years |   |      | 117,031,957 |   |       |   | 117,606,467 |   |
| Due after ten years                    |   |      | 17,330,885  |   |       |   | 17,310,587 |   |
|                                   |   |      | 458,150,390 |   |       |   | 464,009,221 |   |
| Equity securities                      |   |      | 6,477,388   |   |       |   | 5,898,680 |   |
|                                   |   | $         | 464,627,778 |   |       | $      | 469,907,901 |   |

|                                                                      |   | 2010   |      |   | 2009   |   |       | 2008   |   |
|---------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|
| Unrealized holding gains (losses) arising during the period               |   | $      | 1,302,129 |   |   | $      | 6,347,532  |   |   | $ | (11,777,697 | ) |
| Reclassification adjustment for net losses (gains) realized in net income |   |   | (973,012  | )      |   |   | (1,157,347 | )      |   |   | 8,539,064 |   |
|  Net unrealized gains (losses) before tax effect                     |   |   | 329,117   |   |   |   | 5,190,185  |   |   |   | (3,238,633 | ) |
| Tax effect                                                                |   |   | (121,773  | )      |   |   | (1,920,367 | )      |   |   | 1,198,294 |   |
| Other comprehensive income - Net unrealized gains (losses) on securities  |   | $      | 207,344   |   |   | $      | 3,269,818  |   |   | $ | (2,040,339 | ) |

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|                                               |   | Less than 12 Months |        |   | 12 Months or More |   |       | Total  |   |
|----------------------------------------------------|--------|---------------------|-------------|--------|-------------------|--------|------------|--------|--------|
|                                               |   | Fair                |        |   | Unrealized        |   |       | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                               |   | Value               |        |   | Losses            |   |       | Value  |   |   | Losses |   |   | Value |   |   | Losses |   |
| 2010:                                              |   |                |        |   |              |   |       |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                |        |   |              |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale:                     |   |                |        |   |              |   |       |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government agencies                           |   | $                   | 15,321,189  |   |              | $      | (107,139   | )      |   | $ | 372,404 |   |   | $ | (7,588 | ) |   | $ | 15,693,593 |   |   | $ | (114,727 | ) |
| U.S. government mortgage-backed securities         |   |                | 43,327,689  |   |              |   | (629,668   | )      |   |   | — |   |   |   | — |   |   |   | 43,327,689 |   |   |   | (629,668 | ) |
| State and political subsidivisions                 |   |                | 53,299,308  |   |              |   | (1,218,282 | )      |   |   | 497,051 |   |   |   | (15,763 | ) |   |   | 53,796,359 |   |   |   | (1,234,045 | ) |
| Corporate obligations                              |   |                | 2,022,914   |   |              |   | (31,575    | )      |   |   | — |   |   |   | — |   |   |   | 2,022,914 |   |   |   | (31,575 | ) |
| Equity securities, financial industry common stock |   |                | —     |   |              |   | —    |   |   |   | 2,814,181 |   |   |   | (588,208 | ) |   |   | 2,814,181 |   |   |   | (588,208 | ) |
|                                               |   | $                   | 113,971,100 |   |              | $      | (1,986,664 | )      |   | $ | 3,683,636 |   |   | $ | (611,559 | ) |   | $ | 117,654,736 |   |   | $ | (2,598,223 | ) |

|                                               |   | Less than 12 Months |       |   | 12 Months or More |   |     | Total  |   |
|----------------------------------------------------|--------|---------------------|------------|--------|-------------------|--------|----------|--------|--------|
|                                               |   | Fair                |       |   | Unrealized        |   |     | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                               |   | Value               |       |   | Losses            |   |     | Value  |   |   | Losses |   |   | Value |   |   | Losses |   |
| 2009:                                              |   |                |       |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                |       |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale:                     |   |                |       |   |              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government agencies                           |   | $                   | 20,945,895 |   |              | $      | (221,061 | )      |   | $ | 493,118 |   |   | $ | (12,108 | ) |   | $ | 21,439,013 |   |   | $ | (233,169 | ) |
| U.S. government mortgage-backed securities         |   |                | 35,520,408 |   |              |   | (242,033 | )      |   |   | — |   |   |   | — |   |   |   | 35,520,408 |   |   |   | (242,033 | ) |
| State and political subsidivisions                 |   |                | 25,536,025 |   |              |   | (292,017 | )      |   |   | 2,701,961 |   |   |   | (63,554 | ) |   |   | 28,237,986 |   |   |   | (355,571 | ) |
| Corporate obligations                              |   |                | 998,971    |   |              |   | (764     | )      |   |   | 2,687,426 |   |   |   | (47,116 | ) |   |   | 3,686,397 |   |   |   | (47,880 | ) |
| Equity securities, financial industry common stock |   |                | —    |   |              |   | —  |   |   |   | 2,346,301 |   |   |   | (1,056,088 | ) |   |   | 2,346,301 |   |   |   | (1,056,088 | ) |
| Equity securities, other                           |   |                | —    |   |              |   | —  |   |   |   | 1,932,636 |   |   |   | (255,856 | ) |   |   | 1,932,636 |   |   |   | (255,856 | ) |
|                                               |   | $                   | 83,001,299 |   |              | $      | (755,875 | )      |   | $ | 10,161,442 |   |   | $ | (1,434,722 | ) |   | $ | 93,162,741 |   |   | $ | (2,190,597 | ) |

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|                        |   | 2010   |        |   | 2009   |   |
|-----------------------------|--------|--------|-------------|--------|--------|--------|
|                        |   |   |        |   |   |   |
| Commercial and agricultural |   | $      | 123,802,383 |   |   | $      | 111,386,798 |   |
| Real estate - mortgage      |   |   | 260,234,111 |   |   |   | 264,202,119 |   |
| Real estate - construction  |   |   | 19,597,188  |   |   |   | 22,863,630 |   |
| Consumer                    |   |   | 6,622,200   |   |   |   | 7,792,077 |   |
| Other                       |   |   | 15,429,670  |   |   |   | 16,900,983 |   |
|                        |   |   | 425,685,552 |   |   |   | 423,145,607 |   |
| Less:                       |   |   |        |   |   |   |   |   |
| Allowance for loan losses   |   |   | (7,520,665  | )      |   |   | (7,651,510 | ) |
| Deferred loan fees          |   |   | (71,316     | )      |   |   | (59,861 | ) |
|                        |   | $      | 418,093,571 |   |   | $      | 415,434,236 |   |

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|                            |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|---------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                            |   |   |      |   |   |   |      |   |   |
| Balance, beginning              |   | $      | 7,651,510 |   |   | $      | 6,779,215 |   |   | $ | 5,780,678 |   |
| Provision for loan losses       |   |   | 663,798   |   |   |   | 1,558,307 |   |   |   | 1,312,785 |   |
| Recoveries of loans charged-off |   |   | 72,007    |   |   |   | 180,961   |   |   |   | 112,440 |   |
| Loans charged-off               |   |   | (866,650  | )      |   |   | (866,973  | )      |   |   | (426,688 | ) |
| Balance, ending                 |   | $      | 7,520,665 |   |   | $      | 7,651,510 |   |   | $ | 6,779,215 |   |

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|                                                           |   |         |       |   | 1-4 Family  |   |       |        |   |   |         |   |   |       |       |   |         |   |       |      |   |   |       |   |
|----------------------------------------------------------------|--------|--------------|------------|--------|-------------|--------|------------|-------------|--------|--------|--------------|--------|--------|------------|------------|--------|--------------|--------|------------|-----------|--------|--------|------------|--------|
|                                                           |   | Construction |       |   | Residential |   |       | Commercial  |   |   | Agricultural |   |   |       |       |   |         |   |       | Consumer  |   |   |       |   |
|                                                           |   | Real Estate  |       |   | Real Estate |   |       | Real Estate |   |   | Real Estate  |   |   | Commercial |       |   | Agricultural |   |       | and Other |   |   | Total      |   |
| Allowance for loan losses:                                     |   |         |       |   |        |   |       |        |   |   |         |   |   |       |       |   |         |   |       |      |   |   |       |   |
| Balance, beginning                                             |   | $            | 1,040,000  |   |        | $      | 1,133,000  |        |   | $      | 2,683,000    |   |   | $          | 523,000    |   |         | $      | 1,199,000  |      |   | $      | 642,000    |   |   | $ | 432,000 |   |   | $ | 7,652,000 |   |
| Provision (credit) for loan losses                             |   |         | (287,000   | )      |        |   | 433,000    |        |   |   | 57,000       |   |   |       | 13,000     |   |         |   | 339,000    |      |   |   | 103,000    |   |   |   | 6,000 |   |   |   | 664,000 |   |
| Recoveries of loans charged-off                                |   |         | —    |   |        |   | 1,000      |        |   |   | —      |   |   |       | —    |   |         |   | 5,000      |      |   |   | 32,000     |   |   |   | 34,000 |   |   |   | 72,000 |   |
| Loans charged-off                                              |   |         | (22,000    | )      |        |   | (163,000   | )           |   |   | (20,000      | )      |   |       | (50,000    | )      |         |   | (391,000   | )         |   |   | (42,000    | )      |   |   | (179,000 | ) |   |   | (867,000 | ) |
| Balance, ending                                                |   | $            | 731,000    |   |        | $      | 1,404,000  |        |   | $      | 2,720,000    |   |   | $          | 486,000    |   |         | $      | 1,152,000  |      |   | $      | 735,000    |   |   | $ | 293,000 |   |   | $ | 7,521,000 |   |
|                                                           |   |         |       |   |        |   |       |        |   |   |         |   |   |       |       |   |         |   |       |      |   |   |       |   |   |   |   |   |   |   |   |   |
| Ending balance: Individually evaluated for impairment          |   | $            | 223,000    |   |        | $      | 158,000    |        |   | $      | 42,000       |   |   | $          | —    |   |         | $      | —    |      |   | $      | —    |   |   | $ | 22,000 |   |   | $ | 445,000 |   |
| Ending balance: Collectively evaluated for impairment     |   |         | 508,000    |   |        |   | 1,246,000  |        |   |   | 2,678,000    |   |   |       | 486,000    |   |         |   | 1,152,000  |      |   |   | 735,000    |   |   |   | 271,000 |   |   |   | 7,076,000 |   |
| Ending balance                                                 |   | $            | 731,000    |   |        | $      | 1,404,000  |        |   | $      | 2,720,000    |   |   | $          | 486,000    |   |         | $      | 1,152,000  |      |   | $      | 735,000    |   |   | $ | 293,000 |   |   | $ | 7,521,000 |   |
|                                                           |   |         |       |   |        |   |       |        |   |   |         |   |   |       |       |   |         |   |       |      |   |   |       |   |   |   |   |   |   |   |   |   |
| Loans:                                                         |   |         |       |   |        |   |       |        |   |   |         |   |   |       |       |   |         |   |       |      |   |   |       |   |   |   |   |   |   |   |   |   |
| Ending balance: Impaired loans with a valuation allowance |   | $            | 4,156,000  |   |        | $      | 1,395,000  |        |   | $      | 802,000      |   |   | $          | —    |   |         | $      | 45,000     |      |   | $      | —    |   |   | $ | 34,000 |   |   | $ | 6,432,000 |   |
| Ending balance: Collectively evaluated for impairment          |   |         | 15,441,000 |   |        |   | 87,538,000 |        |   |   | 138,568,000  |   |   |       | 31,931,000 |   |         |   | 78,128,000 |      |   |   | 45,630,000 |   |   |   | 22,018,000 |   |   |   | 419,254,000 |   |
|                                                           |   |         |       |   |        |   |       |        |   |   |         |   |   |       |       |   |         |   |       |      |   |   |       |   |   |   |   |   |   |   |   |   |
| Ending balance                                                 |   | $            | 19,597,000 |   |        | $      | 88,933,000 |        |   | $      | 139,370,000  |   |   | $          | 31,931,000 |   |         | $      | 78,173,000 |      |   | $      | 45,630,000 |   |   | $ | 22,052,000 |   |   | $ | 425,686,000 |   |

|   |   |   | Ratings 1, 2 and 3 - These ratings include loans to average to excellent credit quality borrowers. These borrowers generally have significant capital strength, moderate leverage and stable earnings and growth commensurate to their relative risk rating.  These ratings also include performing loans less than $100,000. |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                    |
|   |   |   | Rating 4 - This rating includes loans on management’s “watch list” and is intended to be utilized for pass rated borrowers where credit quality has began to show signs of financial weakness that now requires management’s heightened attention.                                                              |

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|   |   |   | Rating 5 - This rating is for “Special Mention” in accordance with regulatory guidelines. This rating is intended to be temporary and includes loans to borrowers whose credit quality has clearly deteriorated and are at risk of further decline unless active measures are taken to correct the situation.                                                                                                                                                                                 |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |   | Rating 6 - This rating includes “Substandard” loans, in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. By definition under regulatory guidelines, a “Substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |   | Rating 7 - This rating includes “Substandard-Impaired” loans, in accordance with regulatory guidelines, for which the accrual of interest has generally been stopped. This rating includes loans; (i) where interest is more than 90 days past due; (ii) not fully secured; (iii) loans where a specific valuation allowance may be necessary.                                                                                                                                                |

|                 |   | Construction |       |   | Commercial  |   |        | Agricultural |   |   | Commercial |   |   | Agricultural |       |   |   |   |
|----------------------|--------|--------------|------------|--------|-------------|--------|-------------|--------------|--------|--------|------------|--------|--------|--------------|------------|--------|--------|--------|
|                 |   | Real Estate  |       |   | Real Estate |   |        | Real Estate  |   |   | Operating  |   |   | Operating    |       |   | Total  |   |
|                 |   |         |       |   |        |   |        |         |   |   |       |   |   |         |       |   |   |   |
| Pass                 |   | $            | 6,739,000  |   |        | $      | 83,235,000  |         |   | $      | 29,580,000 |   |   | $            | 64,791,000 |   |   | $      | 42,941,000 |   |   | $ | 227,286,000 |   |
| Special Mention      |   |         | 3,694,000  |   |        |   | 42,137,000  |         |   |   | 2,351,000  |   |   |         | 8,922,000  |   |   |   | 1,318,000 |   |   |   | 58,422,000 |   |
| Substandard          |   |         | 5,008,000  |   |        |   | 13,196,000  |         |   |   | —    |   |   |         | 4,415,000  |   |   |   | 1,371,000 |   |   |   | 23,990,000 |   |
| Substandard-Impaired |   |         | 4,156,000  |   |        |   | 802,000     |         |   |   | —    |   |   |         | 45,000     |   |   |   | — |   |   |   | 5,003,000 |   |
|                 |   |         |       |   |        |   |        |         |   |   |       |   |   |         |       |   |   |   |   |   |   |   |   |   |
|                 |   | $            | 19,597,000 |   |        | $      | 139,370,000 |         |   | $      | 31,931,000 |   |   | $            | 78,173,000 |   |   | $      | 45,630,000 |   |   | $ | 314,701,000 |   |

|           |   | 1-4 Family  |       |   |      |   |       |   |   |
|----------------|--------|-------------|------------|--------|-----------|--------|------------|--------|--------|
|           |   | Residential |       |   | Consumer  |   |       |   |   |
|           |   | Real Estate |       |   | and Other |   |       | Total  |   |
|           |   |        |       |   |      |   |       |   |   |
| Performing     |   | $           | 87,538,000 |   |      | $      | 22,018,000 |   |   | $ | 109,556,000 |   |
| Non-performing |   |        | 1,395,000  |   |      |   | 34,000     |   |   |   | 1,429,000 |   |
|           |   |        |       |   |      |   |       |   |   |   |   |   |
|           |   | $           | 88,933,000 |   |      | $      | 22,052,000 |   |   | $ | 110,985,000 |   |

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|                                                        |   | December 31, |      |
|-------------------------------------------------------------|--------|--------------|-----------|
|                                                        |   | 2010         |      |   | 2009 |   |
|                                                        |   |         |      |   |   |   |
| Impaired loans without a valuation allowance                |   | $            | 2,327,000 |   |   | $ | 4,381,000 |   |
| Impaired loans with a valuation allowance                   |   |         | 4,105,000 |   |   |   | 5,806,000 |   |
| Total impaired loans                                        |   | $            | 6,432,000 |   |   | $ | 10,187,000 |   |
|                                                        |   |         |      |   |   |   |   |   |
| Valuation related to impaired loans                         |   | $            | 445,000   |   |   | $ | 999,000 |   |
|                                                        |   |         |      |   |   |   |   |   |
| Total nonaccrual loans                                      |   | $            | 6,277,000 |   |   | $ | 10,187,000 |   |
|                                                        |   |         |      |   |   |   |   |   |
| Total loans past due ninety days or more and still accruing |   | $            | 21,000    |   |   | $ | 121,000 |   |

|                                                              |   | Years Ended December 31, |      |
|-------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                              |   | 2010                     |      |   | 2009 |   |   | 2008 |   |
|                                                              |   |                     |      |   |   |   |   |   |   |
| Average investments in impaired loans                             |   | $                        | 7,095,000 |   |   | $ | 8,498,000 |   |   | $ | 7,590,000 |   |
| Interest income that would have been recognized on impaired loans |   | $                        | 425,000   |   |   | $ | 564,000 |   |   | $ | 478,000 |   |
| Interest income recorded on impaired loans                        |   | $                        | 233,000   |   |   | $ | 32,000 |   |   | $ | 155,000 |   |

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|                                    |   |       |      |   | Unpaid    |   |      |      |   |   | Average    |   |   | Interest   |      |
|-----------------------------------------|--------|------------|-----------|--------|-----------|--------|-----------|-----------|--------|--------|------------|--------|--------|------------|-----------|
|                                    |   | Recorded   |      |   | Principal |   |      | Related   |   |   | Recorded   |   |   | Income     |      |
|                                    |   | Investment |      |   | Balance   |   |      | Allowance |   |   | Investment |   |   | Recognized |      |
|                                    |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |
| With no specific reserve recorded:      |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |
| Real estate - construction              |   | $          | 1,290,000 |   |      | $      | 1,290,000 |      |   | $      | —    |   |   | $          | 1,646,000 |   |   | $ | 99,000 |   |
| Real estate - 1 to 4 family residential |   |       | 846,000   |   |      |   | 846,000   |      |   |   | —    |   |   |       | 715,000   |   |   |   | 22,000 |   |
| Real estate - commercial                |   |       | 136,000   |   |      |   | 136,000   |      |   |   | —    |   |   |       | 102,000   |   |   |   | — |   |
| Real estate - agricultural              |   |       | —   |   |      |   | —   |      |   |   | —    |   |   |       | 135,000   |   |   |   | 12,000 |   |
| Operating - commercial                  |   |       | 45,000    |   |      |   | 45,000    |      |   |   | —    |   |   |       | 384,000   |   |   |   | 97,000 |   |
| Operating - agricultural                |   |       | —   |   |      |   | —   |      |   |   | —    |   |   |       | —   |   |   |   | — |   |
| Consumer and other                      |   |       | 10,000    |   |      |   | 10,000    |      |   |   | —    |   |   |       | 24,000    |   |   |   | 1,000 |   |
| Total loans with no specific reserve:   |   |       | 2,327,000 |   |      |   | 2,327,000 |      |   |   | —    |   |   |       | 3,006,000 |   |   |   | 231,000 |   |
|                                    |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| With an allowance recorded:             |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| Real estate - construction              |   |       | 2,643,000 |   |      |   | 2,866,000 |      |   |   | 223,000    |   |   |       | 2,944,000 |   |   |   | — |   |
| Real estate - 1 to 4 family residential |   |       | 391,000   |   |      |   | 549,000   |      |   |   | 158,000    |   |   |       | 287,000   |   |   |   | 2,000 |   |
| Real estate - commercial                |   |       | 624,000   |   |      |   | 666,000   |      |   |   | 42,000     |   |   |       | 624,000   |   |   |   | — |   |
| Real estate - agricultural              |   |       | —   |   |      |   | —   |      |   |   | —    |   |   |       | 142,000   |   |   |   | — |   |
| Operating - commercial                  |   |       | —   |   |      |   | —   |      |   |   | —    |   |   |       | 85,000    |   |   |   | — |   |
| Operating - agricultural                |   |       | —   |   |      |   | —   |      |   |   | —    |   |   |       | —   |   |   |   | — |   |
| Consumer and other                      |   |       | 2,000     |   |      |   | 24,000    |      |   |   | 22,000     |   |   |       | 7,000     |   |   |   | — |   |
| Total loans with specific reserve:      |   |       | 3,660,000 |   |      |   | 4,105,000 |      |   |   | 445,000    |   |   |       | 4,089,000 |   |   |   | 2,000 |   |
|                                    |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| Total                                   |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| Real estate - construction              |   |       | 3,933,000 |   |      |   | 4,156,000 |      |   |   | 223,000    |   |   |       | 4,590,000 |   |   |   | 99,000 |   |
| Real estate - 1 to 4 family residential |   |       | 1,237,000 |   |      |   | 1,395,000 |      |   |   | 158,000    |   |   |       | 1,002,000 |   |   |   | 24,000 |   |
| Real estate - commercial                |   |       | 760,000   |   |      |   | 802,000   |      |   |   | 42,000     |   |   |       | 726,000   |   |   |   | — |   |
| Real estate - agricultural              |   |       | —   |   |      |   | —   |      |   |   | —    |   |   |       | 277,000   |   |   |   | 12,000 |   |
| Operating - commercial                  |   |       | 45,000    |   |      |   | 45,000    |      |   |   | —    |   |   |       | 469,000   |   |   |   | 97,000 |   |
| Operating - agricultural                |   |       | —   |   |      |   | —   |      |   |   | —    |   |   |       | —   |   |   |   | — |   |
| Consumer and other                      |   |       | 12,000    |   |      |   | 34,000    |      |   |   | 22,000     |   |   |       | 31,000    |   |   |   | 1,000 |   |
|                                    |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
|                                    |   | $          | 5,987,000 |   |      | $      | 6,432,000 |      |   | $      | 445,000    |   |   | $          | 7,095,000 |   |   | $ | 233,000 |   |

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|                                    |   |        |      |   |         |   |    |     |   |   |      |   |   |   |        |   | Greater Than |   |
|-----------------------------------------|--------|-------------|-----------|--------|--------------|--------|---------|----------|--------|--------|-----------|--------|--------|--------|-------------|--------|--------------|--------|
|                                    |   |  30-89 |      |   | Greater Than |   |    | Total    |   |   |      |   |   |   |        |   | 90 Days      |   |
|                                    |   | Past Due    |      |   | 90 Days      |   |    | Past Due |   |   | Current   |   |   | Total  |        |   | Accruing     |   |
|                                    |   |        |      |   |         |   |    |     |   |   |      |   |   |   |        |   |         |   |   |
| Real estate - construction              |   | $           | 135,000   |   |         | $      | — |     |   | $      | 135,000   |   |   | $      | 19,462,000  |   |         | $      | 19,597,000 |   |   | $ | — |   |
| Real estate - 1 to 4 family residential |   |        | 413,000   |   |         |   | 684,000 |     |   |   | 1,097,000 |   |   |   | 87,836,000  |   |         |   | 88,933,000 |   |   |   | 21,000 |   |
| Real estate - commercial                |   |        | 205,000   |   |         |   | 136,000 |     |   |   | 341,000   |   |   |   | 139,029,000 |   |         |   | 139,370,000 |   |   |   | — |   |
| Real estate - agricultural              |   |        | 49,000    |   |         |   | — |     |   |   | 49,000    |   |   |   | 31,883,000  |   |         |   | 31,932,000 |   |   |   | — |   |
| Operating - commercial                  |   |        | 1,399,000 |   |         |   | 45,000  |     |   |   | 1,444,000 |   |   |   | 76,728,000  |   |         |   | 78,172,000 |   |   |   | — |   |
| Operating - agricultural                |   |        | —   |   |         |   | — |     |   |   | —   |   |   |   | 45,630,000  |   |         |   | 45,630,000 |   |   |   | — |   |
| Consumer and other                      |   |        | 131,000   |   |         |   | 10,000  |     |   |   | 141,000   |   |   |   | 21,911,000  |   |         |   | 22,052,000 |   |   |   | — |   |
|                                    |   |        |      |   |         |   |    |     |   |   |      |   |   |   |        |   |         |   |   |   |   |   |   |   |
|                                    |   | $           | 2,332,000 |   |         | $      | 875,000 |     |   | $      | 3,207,000 |   |   | $      | 422,479,000 |   |         | $      | 425,686,000 |   |   | $ | 21,000 |   |

|                       |   | 2010   |        |   | 2009   |   |
|----------------------------|--------|--------|-------------|--------|--------|--------|
|                       |   |   |        |   |   |   |
| Balance, beginning of year |   | $      | 8,218,833   |   |   | $      | 14,191,369 |   |
| New loans                  |   |   | 15,714,078  |   |   |   | 14,162,381 |   |
| Repayments                 |   |   | (14,752,962 | )      |   |   | (16,241,577 | ) |
| Change in status           |   |   | —     |   |   |   | (3,893,340 | ) |
| Balance, end of year       |   | $      | 9,179,949   |   |   | $      | 8,218,833 |   |

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|                          |   | 2010   |       |   | 2009   |   |
|-------------------------------|--------|--------|------------|--------|--------|--------|
|                          |   |   |       |   |   |   |
| Land                          |   | $      | 2,426,383  |   |   | $      | 2,426,383 |   |
| Buildings and improvements    |   |   | 14,688,284 |   |   |   | 14,518,623 |   |
| Furniture and equipment       |   |   | 5,980,587  |   |   |   | 6,026,156 |   |
|                          |   |   | 23,095,254 |   |   |   | 22,971,162 |   |
| Less accumulated depreciation |   |   | 11,556,666 |   |   |   | 11,061,758 |   |
|                          |   | $      | 11,538,588 |   |   | $      | 11,909,404 |   |

|                       |   | 2010   |       |   | 2009   |   |
|----------------------------|--------|--------|------------|--------|--------|--------|
|                       |   |   |       |   |   |   |
| Balance, beginning of year |   | $      | 10,480,449 |   |   | $      | 13,333,565 |   |
| Transfer of loans          |   |   | 1,127,790  |   |   |   | 2,307,228 |   |
| Impairment                 |   |   | (14,900    | )      |   |   | (3,879,901 | ) |
| Net proceeds from sale     |   |   | (1,132,969 | )      |   |   | (1,367,578 | ) |
| Gain on sale               |   |   | 63,959     |   |   |   | 92,513 |   |
| Other changes              |   |   | 14,554     |   |   |   | (5,378 | ) |
| Balance, end of year       |   | $      | 10,538,883 |   |   | $      | 10,480,449 |   |

| 2011           |   | $      | 139,665,781 |   |
|----------------|--------|--------|-------------|--------|
| 2012           |   |   | 54,874,314  |   |
| 2013           |   |   | 22,438,050  |   |
| 2014           |   |   | 10,450,705  |   |
| 2015 and after |   |   | 10,671,558  |   |
|           |   | $      | 238,100,408 |   |

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Table of Contents

|                     |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|--------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                     |   |   |      |   |   |   |      |   |   |
| NOW accounts             |   | $      | 449,208   |   |   | $      | 469,064   |   |   | $ | 897,544 |   |
| Savings and money market |   |   | 919,754   |   |   |   | 1,181,375 |   |   |   | 2,759,380 |   |
| Time, $100,000 and over  |   |   | 1,651,475 |   |   |   | 2,289,960 |   |   |   | 3,948,039 |   |
| Other time               |   |   | 3,076,067 |   |   |   | 4,487,764 |   |   |   | 6,602,771 |   |
|                     |   | $      | 6,096,504 |   |   | $      | 8,428,163 |   |   | $ | 14,207,734 |   |

|                                      |   |   |             |   | Weighted      |   |       |     |
|-------------------------------------------|--------|--------|------------------|--------|---------------|--------|------------|----------|
|                                      |   |   |             |   | Average       |   |       |     |
|                                      |   | Amount |             |   | Interest Rate |   |       | Features |
|                                      |   |   |             |   |          |   |       |     |
| FHLB advances maturing in:                |   |   |             |   |          |   |       |     |
| 2011                                      |   | $      | 1,500,000        |   |          |   | 4.09       | %        |   |   |
| 2012                                      |   |   | 500,000          |   |          |   | 1.45       | %        |   |   |
| 2013                                      |   |   | 2,000,000        |   |          |   | 2.06       | %        |   |   |
| 2014                                      |   |   | —          |   |          |   | 0.00       | %        |   |   |
| 2015                                      |   |   | —          |   |          |   | 0.00       | %        |   |   |
| After                                     |   |   | 12,745,497       |   |          |   | 2.96       | %        |   |  Includes $4,500,000 callable in February |
|                                      |   |   |             |   |          |   |       |     |   |      2011; $7,000,000 callable in March 2011: |
|                                      |   |   |             |   |          |   |       |     |   |      $1,245,497 15 year amortizing and |
|                                      |   |   |             |   |          |   |       |     |   |      puttable in 2015 |
| Total FHLB advances                       |   | $      | 16,745,497       |   |          |   | 2.91       | %        |   |   |
|                                      |   |   |             |   |          |   |       |     |   |   |
| Term repurchase agreements maturing in:   |   |   |             |   |          |   |       |     |   |   |
| 2014                                      |   |   | 7,000,000        |   |          |   | 2.99       | %        |   |   |
| 2018                                      |   |   | 13,000,000       |   |          |   | 3.56       | %        |   |  Callable in 2011 |
| Total term repurchase agreements          |   | $      | 20,000,000       |   |          |   | 3.36       | %        |   |   |
|                                      |   |   |             |   |          |   |       |     |   |   |
| Total FHLB and other long-term borrowings |   | $      |  36,745,497 |   |          |   |  3.15 | %        |   |   |

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Table of Contents

|               |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|--------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|               |   |   |      |   |   |   |      |   |   |
| Federal:           |   |   |      |   |   |   |      |   |   |
| Current            |   | $      | 3,144,997 |   |   | $      | 1,710,159 |   |   | $ | 3,839,793 |   |
| Deferred           |   |   | 334,114   |   |   |   | 93,120    |   |   |   | (3,370,787 | ) |
|               |   |   | 3,479,111 |   |   |   | 1,803,279 |   |   |   | 469,006 |   |
| State:             |   |   |      |   |   |   |      |   |   |   |   |   |
| Current            |   |   | 919,289   |   |   |   | 532,494   |   |   |   | 715,645 |   |
| Deferred           |   |   | 105,652   |   |   |   | (42,966   | )      |   |   | (339,637 | ) |
|               |   |   | 1,024,941 |   |   |   | 489,528   |   |   |   | 376,008 |   |
|               |   |   |      |   |   |   |      |   |   |   |   |   |
| Income tax expense |   | $      | 4,504,052 |   |   | $      | 2,292,807 |   |   | $ | 845,014 |   |

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Table of Contents

|                                    |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-----------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                    |   |   |       |   |   |   |       |   |   |
| Income taxes at 35% federal tax rate    |   | $      | 6,114,614  |   |   | $      | 3,954,508  |   |   | $ | 2,518,955 |   |
| Increase (decrease) resulting from:     |   |   |       |   |   |   |       |   |   |   |   |   |
| Tax-exempt interest and dividends       |   |   | (2,084,701 | )      |   |   | (1,892,872 | )      |   |   | (1,984,052 | ) |
| State taxes, net of federal tax benefit |   |   | 476,963    |   |   |   | 404,556    |   |   |   | 520,100 |   |
| Other                                   |   |   | (2,824     | )      |   |   | (173,385   | )      |   |   | (209,989 | ) |
| Total income tax expense                |   | $      | 4,504,052  |   |   | $      | 2,292,807  |   |   | $ | 845,014 |   |

|                                                  |   | 2010   |       |   | 2009   |   |
|-------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                  |   |   |       |   |   |   |
| Deferred tax assets:                                  |   |   |       |   |   |   |
| Allowance for loan losses                             |   | $      | 2,411,928  |   |   | $      | 2,392,936 |   |
| Other than temporary impairment                       |   |   | 880,609    |   |   |   | 2,063,918 |   |
| Other real estate owned                               |   |   | 1,457,495  |   |   |   | 1,213,129 |   |
| Other items                                           |   |   | 783,463    |   |   |   | 252,122 |   |
|                                                  |   |   | 5,533,495  |   |   |   | 5,922,105 |   |
| Deferred tax liabilities:                             |   |   |       |   |   |   |   |   |
| Net unrealized gains on securities available for sale |   |   | (1,953,645 | )      |   |   | (1,831,872 | ) |
| Other                                                 |   |   | (273,867   | )      |   |   | (222,710 | ) |
|                                                  |   |   | (2,227,512 | )      |   |   | (2,054,582 | ) |
|                                                  |   |   |       |   |   |   |   |   |
| Net deferred tax assets                               |   | $      | 3,305,983  |   |   | $      | 3,867,523 |   |

----

Table of Contents

|                         |   | 2010   |       |   | 2009   |   |
|------------------------------|--------|--------|------------|--------|--------|--------|
|                         |   |   |       |   |   |   |
| Commitments to extend credit |   | $      | 79,757,000 |   |   | $      | 73,976,000 |   |
| Standby letters of credit    |   |   | 3,139,000  |   |   |   | 1,727,000 |   |
|                         |   | $      | 82,896,000 |   |   | $      | 75,703,000 |   |

----

Table of Contents

----

Table of Contents

|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   | To Be Well        |   |
|----------------------------------------------|--------|--------|---------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   | Capitalized Under |   |
|                                         |   |   |    |   |              |   |   | For Capital       |   |   | Prompt Corrective |   |
|                                         |   | Actual |    |   | Adequacy Purposes |   |   | Action Provisions |   |
|                                         |   | Amount |    |   | Ratio             |   |   | Amount            |   |   | Ratio             |   |   | Amount            |   |   | Ratio |   |
|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |
| As of December 31, 2010:                     |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |
| Total capital (to risk-weighted assets):     |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |
| Consolidated                                 |   | $      | 125,515 |   |              |   | 18.0   | %                 |   | $      | 55,940            |   |   |              | 8.0    | % |   |   | N/A |   |   |   | N/A |   |
| Boone Bank & Trust                       |   |   | 13,183  |   |              |   | 17.4   |              |   |   | 6,054             |   |   |              | 8.0    |   |   | $ | 7,567 |   |   |   | 10.0 | % |
| First National Bank                          |   |   | 53,759  |   |              |   | 14.0   |              |   |   | 42,287            |   |   |              | 11.0   |   |   |   | 42,287 |   |   |   | 11.0 |   |
| Randall-Story State Bank                     |   |   | 9,281   |   |              |   | 14.6   |              |   |   | 5,080             |   |   |              | 8.0    |   |   |   | 6,351 |   |   |   | 10.0 |   |
| State Bank & Trust                       |   |   | 14,976  |   |              |   | 15.3   |              |   |   | 7,811             |   |   |              | 8.0    |   |   |   | 9,764 |   |   |   | 10.0 |   |
| United Bank & Trust                      |   |   | 10,990  |   |              |   | 17.5   |              |   |   | 5,034             |   |   |              | 8.0    |   |   |   | 6,293 |   |   |   | 10.0 |   |
|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital (to risk-weighted assets):    |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                 |   | $      | 117,666 |   |              |   | 16.8   | %                 |   | $      | 27,970            |   |   |              | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
| Boone Bank & Trust                       |   |   | 12,357  |   |              |   | 16.3   |              |   |   | 3,027             |   |   |              | 4.0    |   |   | $ | 4,540 |   |   |   | 6.0 | % |
| First National Bank                          |   |   | 50,389  |   |              |   | 13.1   |              |   |   | 15,377            |   |   |              | 4.0    |   |   |   | 23,065 |   |   |   | 6.0 |   |
| Randall-Story State Bank                     |   |   | 8,521   |   |              |   | 13.4   |              |   |   | 2,540             |   |   |              | 4.0    |   |   |   | 3,810 |   |   |   | 6.0 |   |
| State Bank & Trust                       |   |   | 13,755  |   |              |   | 14.1   |              |   |   | 3,906             |   |   |              | 4.0    |   |   |   | 5,858 |   |   |   | 6.0 |   |
| United Bank & Trust                      |   |   | 10,201  |   |              |   | 16.2   |              |   |   | 2,517             |   |   |              | 4.0    |   |   |   | 3,776 |   |   |   | 6.0 |   |
|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital (to average-weighted assets): |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                 |   | $      | 117,666 |   |              |   | 12.5   | %                 |   | $      | 37,549            |   |   |              | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
| Boone Bank & Trust                       |   |   | 12,357  |   |              |   | 11.7   |              |   |   | 4,238             |   |   |              | 4.0    |   |   | $ | 5,297 |   |   |   | 5.0 | % |
| First National Bank                          |   |   | 50,389  |   |              |   | 10.0   |              |   |   | 45,207            |   |   |              | 9.0    |   |   |   | 45,207 |   |   |   | 9.0 |   |
| Randall-Story State Bank                     |   |   | 8,521   |   |              |   | 10.7   |              |   |   | 3,183             |   |   |              | 4.0    |   |   |   | 3,978 |   |   |   | 5.0 |   |
| State Bank & Trust                       |   |   | 13,755  |   |              |   | 9.9    |              |   |   | 5,547             |   |   |              | 4.0    |   |   |   | 6,933 |   |   |   | 5.0 |   |
| United Bank & Trust                      |   |   | 10,201  |   |              |   | 9.5    |              |   |   | 4,289             |   |   |              | 4.0    |   |   |   | 5,361 |   |   |   | 5.0 |   |

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Table of Contents

|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   | To Be Well        |   |
|----------------------------------------------|--------|--------|---------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   | Capitalized Under |   |
|                                         |   |   |    |   |              |   |   | For Capital       |   |   | Prompt Corrective |   |
|                                         |   | Actual |    |   | Adequacy Purposes |   |   | Action Provisions |   |
|                                         |   | Amount |    |   | Ratio             |   |   | Amount            |   |   | Ratio             |   |   | Amount            |   |   | Ratio |   |
|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |
| As of December 31, 2009:                     |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |
| Total capital (to risk-weighted assets):     |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |
| Consolidated                                 |   | $      | 116,366 |   |              |   | 17.6   | %                 |   | $      | 52,994            |   |   |              | 8.0    | % |   |   | N/A |   |   |   | N/A |   |
| Boone Bank & Trust                       |   |   | 12,845  |   |              |   | 17.3   |              |   |   | 5,925             |   |   |              | 8.0    |   |   | $ | 7,407 |   |   |   | 10.0 | % |
| First National Bank                          |   |   | 47,179  |   |              |   | 13.8   |              |   |   | 37,656            |   |   |              | 11.0   |   |   |   | 37,656 |   |   |   | 11.0 |   |
| Randall-Story State Bank                     |   |   | 8,936   |   |              |   | 14.7   |              |   |   | 4,866             |   |   |              | 8.0    |   |   |   | 6,083 |   |   |   | 10.0 |   |
| State Bank & Trust                       |   |   | 13,740  |   |              |   | 13.8   |              |   |   | 7,981             |   |   |              | 8.0    |   |   |   | 9,976 |   |   |   | 10.0 |   |
| United Bank & Trust                      |   |   | 9,497   |   |              |   | 15.0   |              |   |   | 5,229             |   |   |              | 8.0    |   |   |   | 6,536 |   |   |   | 10.0 |   |
|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital (to risk-weighted assets):    |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                 |   | $      | 108,348 |   |              |   | 16.4   | %                 |   | $      | 26,497            |   |   |              | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
| Boone Bank & Trust                       |   |   | 12,021  |   |              |   | 16.2   |              |   |   | 2,963             |   |   |              | 4.0    |   |   | $ | 4,444 |   |   |   | 6.0 | % |
| First National Bank                          |   |   | 43,974  |   |              |   | 12.9   |              |   |   | 13,693            |   |   |              | 4.0    |   |   |   | 20,539 |   |   |   | 6.0 |   |
| Randall-Story State Bank                     |   |   | 8,179   |   |              |   | 13.5   |              |   |   | 2,433             |   |   |              | 4.0    |   |   |   | 3,650 |   |   |   | 6.0 |   |
| State Bank & Trust                       |   |   | 12,491  |   |              |   | 12.5   |              |   |   | 3,990             |   |   |              | 4.0    |   |   |   | 5,985 |   |   |   | 6.0 |   |
| United Bank & Trust                      |   |   | 8,995   |   |              |   | 13.8   |              |   |   | 2,614             |   |   |              | 4.0    |   |   |   | 3,922 |   |   |   | 6.0 |   |
|                                         |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital (to average-weighted assets): |   |   |    |   |              |   |   |              |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                 |   | $      | 108,348 |   |              |   | 12.0   | %                 |   | $      | 36,187            |   |   |              | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
| Boone Bank & Trust                       |   |   | 12,021  |   |              |   | 11.5   |              |   |   | 4,185             |   |   |              | 4.0    |   |   | $ | 5,232 |   |   |   | 5.0 | % |
| First National Bank                          |   |   | 43,974  |   |              |   | 9.5    |              |   |   | 41,504            |   |   |              | 9.0    |   |   |   | 41,504 |   |   |   | 9.0 |   |
| Randall-Story State Bank                     |   |   | 8,179   |   |              |   | 10.6   |              |   |   | 3,085             |   |   |              | 4.0    |   |   |   | 3,856 |   |   |   | 5.0 |   |
| State Bank & Trust                       |   |   | 12,491  |   |              |   | 9.0    |              |   |   | 5,563             |   |   |              | 4.0    |   |   |   | 6,954 |   |   |   | 5.0 |   |
| United Bank & Trust                      |   |   | 8,995   |   |              |   | 8.3    |              |   |   | 4,347             |   |   |              | 4.0    |   |   |   | 5,433 |   |   |   | 5.0 |   |

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Table of Contents

|                                                                       |   | 2010     |        |   | 2009   |   |
|----------------------------------------------------------------------------|--------|----------|-------------|--------|--------|--------|
|                                                                       |   | Carrying |        |   | Fair   |   |   | Carrying |   |   | Fair |   |
|                                                                       |   | Amount   |        |   | Value  |   |   | Amount |   |   | Value |   |
|                                                                       |   |     |        |   |   |   |   |   |   |   |   |   |
| Financial assets:                                                          |   |     |        |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                                    |   | $        | 15,478,133  |   |   | $      | 15,478,000 |   |   | $ | 18,796,664 |   |   | $ | 18,797,000 |   |
| Federal funds sold                                                         |   |     | 3,000,000   |   |   |   | 3,000,000 |   |   |   | — |   |   |   | — |   |
| Interest bearing deposits                                                  |   |     | 19,229,814  |   |   |   | 19,230,000 |   |   |   | 24,766,088 |   |   |   | 24,766,000 |   |
| Securities available-for-sale                                              |   |     | 469,907,901 |   |   |   | 469,908,000 |   |   |   | 418,655,018 |   |   |   | 418,655,000 |   |
| Loans receivable, net                                                      |   |     | 418,093,571 |   |   |   | 415,833,000 |   |   |   | 415,434,236 |   |   |   | 411,344,000 |   |
| Loans held for sale                                                        |   |     | 1,993,108   |   |   |   | 1,993,000 |   |   |   | 1,023,200 |   |   |   | 1,023,000 |   |
| Accrued income receivable                                                  |   |     | 6,098,535   |   |   |   | 6,099,000 |   |   |   | 5,710,226 |   |   |   | 5,710,000 |   |
| Financial liabilities:                                                     |   |     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                   |   | $        | 743,861,644 |   |   | $      | 746,401,000 |   |   | $ | 722,163,949 |   |   | $ | 725,840,000 |   |
| Federal funds purchased and securities sold under agreements to repurchase |   |     | 54,858,701  |   |   |   | 54,859,000 |   |   |   | 40,489,505 |   |   |   | 40,490,000 |   |
| Other short-term borrowings                                                |   |     | 2,047,175   |   |   |   | 2,047,000 |   |   |   | 138,874 |   |   |   | 139,000 |   |
| FHLB and other long-term borrowings                                        |   |     | 36,745,497  |   |   |   | 39,303,000 |   |   |   | 36,500,000 |   |   |   | 41,504,000 |   |
| Accrued interest payable                                                   |   |     | 870,455     |   |   |   | 870,000 |   |   |   | 1,092,191 |   |   |   | 1,092,000 |   |

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Table of Contents

|   | Level 1: | Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2: | Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| Description                                        |   | Total  |        |   | Quoted Prices in Active markets for Identical Assets(Level 1) |   |      | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|----------------------------------------------------|--------|--------|-------------|--------|---------------------------------------------------------------|--------|-----------|----------------------------------------------|--------|--------|------------------------------------------|--------|
|                                               |   |   |        |   |                                                          |   |      |                                         |   |   |                                     |   |
| 2010                                               |   |   |        |   |                                                          |   |      |                                         |   |   |                                     |   |
|                                               |   |   |        |   |                                                          |   |      |                                         |   |   |                                     |   |
| U.S. treasury                                      |   | $      | 503,000     |   |                                                          | $      | 503,000   |                                         |   | $      | —                                  |   |   | $ | — |   |
| U.S. government agencies                           |   |   | 87,413,000  |   |                                                          |   | —   |                                         |   |   | 87,413,000                               |   |   |   | — |   |
| U.S. government mortgage-backed secuirities        |   |   | 127,349,000 |   |                                                          |   | —   |                                         |   |   | 127,349,000                              |   |   |   | — |   |
| State and political subdivisions                   |   |   | 228,373,000 |   |                                                          |   | —   |                                         |   |   | 228,373,000                              |   |   |   | — |   |
| Corporate bonds                                    |   |   | 20,372,000  |   |                                                          |   | —   |                                         |   |   | 20,372,000                               |   |   |   | — |   |
| Equity securities, financial industry common stock |   |   | 2,814,000   |   |                                                          |   | 2,814,000 |                                         |   |   | —                                  |   |   |   | — |   |
| Equity securities, other                           |   |   | 3,084,000   |   |                                                          |   | 18,000    |                                         |   |   | 3,066,000                                |   |   |   | — |   |
|                                               |   |   |        |   |                                                          |   |      |                                         |   |   |                                     |   |   |   |   |   |
|                                               |   | $      | 469,908,000 |   |                                                          | $      | 3,335,000 |                                         |   | $      | 466,573,000                              |   |   | $ | — |   |
|                                               |   |   |        |   |                                                          |   |      |                                         |   |   |                                     |   |   |   |   |   |
| 2009                                               |   |   |        |   |                                                          |   |      |                                         |   |   |                                     |   |   |   |   |   |
|                                               |   |   |        |   |                                                          |   |      |                                         |   |   |                                     |   |   |   |   |   |
| U.S. treasury                                      |   | $      | 525,000     |   |                                                          | $      | 525,000   |                                         |   | $      | —                                  |   |   | $ | — |   |
| U.S. government agencies                           |   |   | 106,640,000 |   |                                                          |   | —   |                                         |   |   | 106,640,000                              |   |   |   | — |   |
| U.S. government mortgage-backed securities         |   |   | 101,589,000 |   |                                                          |   | —   |                                         |   |   | 101,589,000                              |   |   |   | — |   |
| State and political subdivisions                   |   |   | 178,052,000 |   |                                                          |   | —   |                                         |   |   | 178,052,000                              |   |   |   | — |   |
| Corporate bonds                                    |   |   | 24,300,000  |   |                                                          |   | —   |                                         |   |   | 24,300,000                               |   |   |   | — |   |
| Equity securities, financial industry common stock |   |   | 2,347,000   |   |                                                          |   | 2,347,000 |                                         |   |   | —                                  |   |   |   | — |   |
| Equity securities, other                           |   |   | 5,202,000   |   |                                                          |   | 2,023,000 |                                         |   |   | 3,179,000                                |   |   |   | — |   |
|                                               |   |   |        |   |                                                          |   |      |                                         |   |   |                                     |   |   |   |   |   |
|                                               |   | $      | 418,655,000 |   |                                                          | $      | 4,895,000 |                                         |   | $      | 413,760,000                              |   |   | $ | — |   |

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Table of Contents

| Description             |   | Total  |       |   | Quoted Prices in Active markets for Identical Assets(Level 1) |   |    | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|-------------------------|--------|--------|------------|--------|---------------------------------------------------------------|--------|---------|----------------------------------------------|--------|--------|------------------------------------------|--------|
|                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |
| 2010                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |
|                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |
| Loans                   |   | $      | 3,660,000  |   |                                                          | $      | — |                                         |   | $      | —                                  |   |   | $ | 3,660,000 |   |
|                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |   |   |   |   |
| Other real estate owned |   |   | 10,539,000 |   |                                                          |   | — |                                         |   |   | —                                  |   |   |   | 10,539,000 |   |
|                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |   |   |   |   |
| Total                   |   | $      | 14,199,000 |   |                                                          | $      | — |                                         |   | $      | —                                  |   |   | $ | 14,199,000 |   |
|                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |   |   |   |   |
| 2009                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |   |   |   |   |
|                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |   |   |   |   |
| Loans                   |   | $      | 4,807,000  |   |                                                          | $      | — |                                         |   | $      | —                                  |   |   | $ | 4,807,000 |   |
|                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |   |   |   |   |
| Other real estate owned |   |   | 10,480,000 |   |                                                          |   | — |                                         |   |   | —                                  |   |   |   | 10,480,000 |   |
|                    |   |   |       |   |                                                          |   |    |                                         |   |   |                                     |   |   |   |   |   |
| Total                   |   | $      | 15,287,000 |   |                                                          | $      | — |                                         |   | $      | —                                  |   |   | $ | 15,287,000 |   |

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Table of Contents

| CONDENSED BALANCE SHEETS   |
|----------------------------|
| December 31, 2010 and 2009 |

|                                             |   | 2010   |        |   | 2009   |   |
|--------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                             |   |   |        |   |   |   |
| ASSETS                                           |   |   |        |   |   |   |
|                                             |   |   |        |   |   |   |
| Cash and due from banks                          |   | $      | 50,761      |   |   | $      | 26,797 |   |
| Interest bearing deposits in banks               |   |   | 7,982,501   |   |   |   | 1,513,234 |   |
| Securities available-for-sale                    |   |   | 4,320,665   |   |   |   | 6,336,488 |   |
| Investment in bank subsidiaries                  |   |   | 98,915,881  |   |   |   | 89,613,176 |   |
| Loans receivable, net                            |   |   | 9,724,213   |   |   |   | 13,859,423 |   |
| Premises and equipment, net                      |   |   | 573,580     |   |   |   | 603,571 |   |
| Accrued income receivable                        |   |   | 76,920      |   |   |   | 104,081 |   |
| Deferred income taxes                            |   |   | 810,516     |   |   |   | 976,000 |   |
| Other real estate owned                          |   |   | 78,925      |   |   |   | 197,313 |   |
| Other assets                                     |   |   | 15,000      |   |   |   | 260,955 |   |
|                                             |   |   |        |   |   |   |   |   |
| Total assets                                     |   | $      | 122,548,962 |   |   | $      | 113,491,038 |   |
|                                             |   |   |        |   |   |   |   |   |
| LIABILITIES                                      |   |   |        |   |   |   |   |   |
|                                             |   |   |        |   |   |   |   |   |
|                                             |   |   |        |   |   |   |   |   |
| Dividends payable                                |   | $      | 1,037,621   |   |   | $      | 943,292 |   |
| Accrued expenses and other liabilities           |   |   | 148,317     |   |   |   | 207,858 |   |
|                                             |   |   |        |   |   |   |   |   |
| Total liabilities                                |   |   | 1,185,938   |   |   |   | 1,151,150 |   |
|                                             |   |   |        |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                       |   |   |        |   |   |   |   |   |
|                                             |   |   |        |   |   |   |   |   |
| Common stock                                     |   |   | 18,865,830  |   |   |   | 18,865,830 |   |
| Additional paid-in capital                       |   |   | 22,651,222  |   |   |   | 22,651,222 |   |
| Retained earnings                                |   |   | 76,519,493  |   |   |   | 67,703,701 |   |
| Accumulated other comprehensive income           |   |   | 3,326,479   |   |   |   | 3,119,135 |   |
| Total stockholders’ equity                 |   |   | 121,363,024 |   |   |   | 112,339,888 |   |
|                                             |   |   |        |   |   |   |   |   |
| Total liabilities and stockholders’ equity |   | $      | 122,548,962 |   |   | $      | 113,491,038 |   |

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| CONDENSED STATEMENTS OF INCOME                            |   |
|-----------------------------------------------------------|--------|
| Years Ended December 31, 2010, 2009 and 2008              |   |
|                                                      |   |   |   |   |   |   |   |   |   |
|                                                      |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Operating income:                                         |   |   |   |   |   |   |   |   |   |
| Equity in net income of bank subsidiaries                 |   | $ | 13,418,456 |   |   | $ | 9,519,040 |   |   | $ | 5,125,234 |   |
| Interest                                                  |   |   | 954,867 |   |   |   | 1,087,714 |   |   |   | 759,461 |   |
| Dividends                                                 |   |   | 96,094 |   |   |   | 181,137 |   |   |   | 673,506 |   |
| Rents                                                     |   |   | 114,372 |   |   |   | 96,765 |   |   |   | 88,624 |   |
| Other                                                     |   |   | 30,568 |   |   |   | 76,005 |   |   |   | — |   |
| Securities gains (losses), net                            |   |   | (12,152 | ) |   |   | (17,163 | ) |   |   | 3,171,215 |   |
| Other-than-temporary impairment of investment securities  |   |   | — |   |   |   | — |   |   |   | (903,600 | ) |
|                                                      |   |   | 14,602,205 |   |   |   | 10,943,498 |   |   |   | 8,914,440 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision (credit) for loan losses                        |   |   | (50,000 | ) |   |   | 300,000 |   |   |   | 327,558 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income after provision (credit) for loan losses |   |   | 14,652,205 |   |   |   | 10,643,498 |   |   |   | 8,586,882 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                        |   |   | 1,992,131 |   |   |   | 2,099,212 |   |   |   | 1,934,886 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                |   |   | 12,660,074 |   |   |   | 8,544,286 |   |   |   | 6,651,996 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense (benefit)                              |   |   | (306,200 | ) |   |   | (461,500 | ) |   |   | 300,000 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                |   | $ | 12,966,274 |   |   | $ | 9,005,786 |   |   | $ | 6,351,996 |   |

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| CONDENSED STATEMENTS OF CASH FLOWS                                                     |   |
|----------------------------------------------------------------------------------------|--------|
| Years Ended December 31, 2010, 2009 and 2008                                           |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                   |   |   |   |   |   |   |   |   |   |
| Net income                                                                             |   | $ | 12,966,274 |   |   | $ | 9,005,786 |   |   | $ | 6,351,996 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                           |   |   | 39,136 |   |   |   | 46,522 |   |   |   | 54,970 |   |
| Provision (credit) for loan losses                                                     |   |   | (50,000 | ) |   |   | 300,000 |   |   |   | 327,558 |   |
| Amortization and accretion, net                                                        |   |   | (1,091 | ) |   |   | (713 | ) |   |   | (18,734 | ) |
| Provision for deferred income taxes                                                    |   |   | (83,000 | ) |   |   | (164,919 | ) |   |   | (123,005 | ) |
| Securities losses (gains), net                                                         |   |   | 12,152 |   |   |   | 17,163 |   |   |   | (3,171,215 | ) |
| Other-than-temporary impairment of investment securities                               |   |   | — |   |   |   | — |   |   |   | 903,600 |   |
| Gain on sale of other real estate owned                                                |   |   | (30,568 | ) |   |   | (47,146 | ) |   |   | — |   |
| Equity in net income of bank subsidiaries                                              |   |   | (13,418,456 | ) |   |   | (9,519,040 | ) |   |   | (5,125,234 | ) |
| Dividends received from bank subsidiaries                                              |   |   | 3,900,000 |   |   |   | 3,560,000 |   |   |   | 8,864,000 |   |
| Decrease in accrued income receivable                                                  |   |   | 27,161 |   |   |   | 75,330 |   |   |   | 29,768 |   |
| Decrease (increase) in other assets                                                    |   |   | 245,955 |   |   |   | (17,294 | ) |   |   | (176,535 | ) |
| Decrease in accrued expense payable and other liabilities                              |   |   | (59,541 | ) |   |   | (3,723 | ) |   |   | (131,592 | ) |
| Net cash provided by operating activities                                              |   |   | 3,548,022 |   |   |   | 3,251,966 |   |   |   | 7,785,577 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of securities available-for-sale                                              |   |   | — |   |   |   | — |   |   |   | (9,303,034 | ) |
| Proceeds from sale of securities available-for-sale                                    |   |   | 2,176,341 |   |   |   | 4,211,087 |   |   |   | 13,159,215 |   |
| Proceeds from maturities and calls of securities available-for-sale                    |   |   | 500,000 |   |   |   | 150,000 |   |   |   | 3,385,000 |   |
| Decrease (increase) in interest bearing deposits in banks                              |   |   | (6,469,267 | ) |   |   | (1,411,257 | ) |   |   | 9,885,910 |   |
| Decrease (increase) in loans                                                           |   |   | 4,185,210 |   |   |   | 3,986,345 |   |   |   | (18,746,876 | ) |
| Proceeds from the sale of other real estate owned                                      |   |   | 148,956 |   |   |   | 323,383 |   |   |   | — |   |
| Purchase of bank premises and equipment                                                |   |   | (9,145 | ) |   |   | (4,984 | ) |   |   | (3,267 | ) |
| Investment in bank subsidiaries                                                        |   |   | — |   |   |   | (850,000 | ) |   |   | — |   |
| Net cash provided by (used in) investing activities                                    |   |   | 532,095 |   |   |   | 6,404,574 |   |   |   | (1,623,052 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from other borrowings, net                                                    |   |   | — |   |   |   | — |   |   |   | 4,160,000 |   |
| Payments of other borrowings, net                                                      |   |   | — |   |   |   | (4,160,000 | ) |   |   | — |   |
| Dividends paid                                                                         |   |   | (4,056,153 | ) |   |   | (5,471,090 | ) |   |   | (10,468,702 | ) |
| Proceeds from issuance of stock                                                        |   |   | — |   |   |   | — |   |   |   | 69,201 |   |
| Net cash used in financing activities                                                  |   |   | (4,056,153 | ) |   |   | (9,631,090 | ) |   |   | (6,239,501 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                   |   |   | 23,964 |   |   |   | 25,450 |   |   |   | (76,976 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND DUE FROM BANKS                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning                                                                              |   |   | 26,797 |   |   |   | 1,347 |   |   |   | 78,323 |   |
| Ending                                                                                 |   | $ | 50,761 |   |   | $ | 26,797 |   |   | $ | 1,347 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash payments for interest                                                             |   | $ | — |   |   | $ | 59,432 |   |   | $ | 29,460 |   |
| Cash payments (receipts) for income taxes                                              |   |   | (393,829 | ) |   |   | (276,531 | ) |   |   | 793,080 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer of loans to other real estate owned                                           |   | $ | — |   |   | $ | 473,550 |   |   | $ | — |   |

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|                                        |   | 2010     |      |
|---------------------------------------------|--------|----------|-----------|
|                                        |   | March 31 |      |   | June 30 |   |   | September 30 |   |   | December 31 |   |
|                                        |   |     |      |   |   |   |   |   |   |   |   |   |
| Total interest income                       |   | $        | 9,422,695 |   |   | $ | 9,353,203 |   |   | $ | 9,421,463 |   |   | $ | 9,096,597 |   |
| Total interest expense                      |   |     | 2,065,512 |   |   |   | 1,965,914 |   |   |   | 1,907,511 |   |   |   | 1,836,154 |   |
| Net interest income                         |   |     | 7,357,183 |   |   |   | 7,387,289 |   |   |   | 7,513,952 |   |   |   | 7,260,443 |   |
| Provision for loan losses                   |   |     | 323,798   |   |   |   | 170,416 |   |   |   | 74,197 |   |   |   | 95,387 |   |
| Net income                                  |   |     | 3,269,600 |   |   |   | 3,126,006 |   |   |   | 3,551,311 |   |   |   | 3,019,357 |   |
| Basic and diluted earnings per common share |   |     | 0.35      |   |   |   | 0.33 |   |   |   | 0.38 |   |   |   | 0.32 |   |

|                                        |   | 2009     |       |
|---------------------------------------------|--------|----------|------------|
|                                        |   | March 31 |       |   | June 30 |   |   | September 30 |   |   | December 31 |   |
|                                        |   |     |       |   |   |   |   |   |   |   |   |   |
| Total interest income                       |   | $        | 10,117,472 |   |   | $ | 9,826,268 |   |   | $ | 9,522,916 |   |   | $ | 9,424,651 |   |
| Total interest expense                      |   |     | 2,909,914  |   |   |   | 2,659,648 |   |   |   | 2,419,581 |   |   |   | 2,237,169 |   |
| Net interest income                         |   |     | 7,207,558  |   |   |   | 7,166,620 |   |   |   | 7,103,335 |   |   |   | 7,187,482 |   |
| Provision for loan losses                   |   |     | 229,654    |   |   |   | 326,670 |   |   |   | 635,171 |   |   |   | 366,812 |   |
| Net income                                  |   |     | 2,441,140  |   |   |   | 2,408,905 |   |   |   | 2,573,567 |   |   |   | 1,582,174 |   |
| Basic and diluted earnings per common share |   |     | 0.26       |   |   |   | 0.26 |   |   |   | 0.27 |   |   |   | 0.17 |   |

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ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9A.  CONTROLS AND PROCEDURES

ITEM 9B.  OTHER INFORMATION

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERANCE

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ITEM 11.  EXECUTIVE COMPENSATION

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS

ITEM 13. CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

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ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

|   |                                                                                                                                                                                  |   |                                                                                                                                                                            |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (a)    | List of Financial Statements and Schedules.                                                                                                                                           |   |
|   |                                                                                                                                                                                  |   |                                                                                                                                                                            |   |
|   | 1. Financial Statements                                                                                                                                                               |   |
|   |                                                                                                                                                                                  |   |                                                                                                                                                                            |   |
|   | Reports of Clifton Gunderson LLP, Independent Registered Public Accounting Firm                                                                                                       | 68     |
|   | Consolidated Balance Sheets, December 31, 2010 and 2009                                                                                                                               | 71     |
|   | Consolidated Statements of Income for the Years ended December 31, 2010, 2009 and 2008                                                                                                | 72     |
|   | Consolidated Statements of Stockholders’ Equity for the Years ended December 31, 2010, 2009 and 2008                                                                            | 73     |
|   | Consolidated Statements of Cash Flows for the Years ended December 31, 2010, 2009 and 2008                                                                                            | 74     |
|   | Notes to Consolidated Financial Statements                                                                                                                                            | 76     |
|   |                                                                                                                                                                                  |   |                                                                                                                                                                            |   |
|   | 2. Financial Statement Schedules                                                                                                                                                      |   |
|   |                                                                                                                                                                                  |   |                                                                                                                                                                            |   |
|   | All schedules are omitted because they are not applicable or not required, or because the required information is included in the consolidated financial statements or notes thereto. |   |
|   |                                                                                                                                                                                  |   |                                                                                                                                                                            |   |
| (b)    | List of Exhibits.                                                                                                                                                                     |   |
|   |                                                                                                                                                                                  |   |                                                                                                                                                                            |   |
|   | 3.1                                                                                                                                                                                   | -      | Restated Articles of Incorporation of the Company, as amended (incorporated by reference to Exhibit 3.1 to Form 8-K as filed June 16, 2005)                                     |   |
|   | 3.2                                                                                                                                                                                   | -      | Bylaws of the Company, as amended (incorporated by reference to Exhibit 3.2 to Form 8-K as filed February 19, 2008)                                                             |   |
|   | 10.1                                                                                                                                                                                  | -      | Management Incentive Compensation Plan (incorporated by reference to Exhibit 10 filed with the Company’s Annual Report on Form 10K for the year ended December 31, 2002)* |   |
|   | 21                                                                                                                                                                                    | -      | Subsidiaries of the Registrant                                                                                                                                                  |   |
|   | 23                                                                                                                                                                                    | -      | Consent of Independent Registered Public Accounting Firm                                                                                                                        |   |
|   | 31.1                                                                                                                                                                                  | -      | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                          |   |
|   | 31.2                                                                                                                                                                                  | -      | Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                          |   |
|   | 32.1                                                                                                                                                                                  | -      | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350                                                                                                 |   |
|   | 32.2                                                                                                                                                                                  | -      | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350                                                                                                 |   |
|   |                                                                                                                                                                                  | *      | Indicates a management compensatory plan or arrangement.                                                                                                                        |   |

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|           | AMES NATIONAL CORPORATION |                         |
|----------------|---------------------------|------------------------------|
|           |                      |                         |   |
| March 10, 2011 | By:                       | /s/ Thomas H. Pohlman        |   |
|           |                      | Thomas H. Pohlman, President |   |

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|   |   |                                         |   |
|--------|--------|----------------------------------------------|--------|
|   |   | /s/ Thomas H. Pohlman                        |   |
|   |   | Thomas H. Pohlman, President                 |   |
|   |   | (Principal Executive Officer)                |   |
|   |   |                                         |   |
|   |   | /s/ John P. Nelson                           |   |
|   |   | John P. Nelson, Vice President               |   |
|   |   | (Principal Financial and Accounting Officer) |   |
|   |   |                                         |   |
|   |   | /s/ Betty A. Baudler Horras                  |   |
|   |   | Betty A. Baudler Horras, Director            |   |
|   |   |                                         |   |
|   |   | /s/ Robert L. Cramer                         |   |
|   |   | Robert L. Cramer, Director                   |   |
|   |   |                                         |   |
|   |   | /s/ Douglas C. Gustafson                     |   |
|   |   | Douglas C. Gustafson, Director               |   |
|   |   |                                         |   |
|   |   | /s/ Charles D. Jons                          |   |
|   |   | Charles D. Jons, Director                    |   |
|   |   |                                         |   |
|   |   | /s/ Steven D. Forth                          |   |
|   |   | Steven D. Forth, Director                    |   |
|   |   |                                         |   |
|   |   | /s/ James R. Larson II                       |   |
|   |   | James R. Larson II, Director                 |   |
|   |   |                                         |   |
|   |   | /s/ Warren R. Madden                         |   |
|   |   | Warren R. Madden, Director                   |   |
|   |   |                                         |   |
|   |   | /s/ Larry A. Raymon                          |   |
|   |   | Larry A. Raymon, Director                    |   |
|   |   |                                         |   |
|   |   | /s/ Fred C. Samuelson                        |   |
|   |   | Fred C. Samuelson, Director                  |   |
|   |   |                                         |   |
|   |   | /s/ Marvin J. Walter                         |   |
|   |   | Marvin J. Walter, Director                   |   |

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| Exhibit No.      |   |  Description                                                                                       |   |
|------------------|--------|---------------------------------------------------------------------------------------------------------|--------|
|             |   |                                                                                                    |
|   21   |   | -Subsidiaries of the Registrant                                                                         |
|   23   |   | -Consent of Independent Registered Public Accounting Firm.                                              |
|   31.1 |   | -Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 |
|   31.2 |   | -Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 |
|   32.1 |   | -Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350                        |
|   32.2 |   | -Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350                        |

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