<PAGE>
                                                                    EXHIBIT 13.1



                      THE PB FINANCIAL SERVICES CORPORATION


                        CONSOLIDATED FINANCIAL STATEMENTS


                           DECEMBER 31, 2001 AND 2000


                 (WITH INDEPENDENT ACCOUNTANTS' REPORT THEREON)








<PAGE>





               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS





To the Board of Directors and Shareholders
The PB Financial Services Corporation
Duluth, Georgia


We have audited the accompanying consolidated balance sheets of The PB Financial
Services Corporation as of December 31, 2001 and 2000, and the related
consolidated statements of earnings, changes in shareholders' equity,
comprehensive income and cash flows for the years then ended. These financial
statements are the responsibility of management. Our responsibility is to
express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of The PB Financial
Services Corporation as of December 31, 2001 and 2000, and the results of their
operations and their cash flows for the years then ended, in conformity with
accounting principles generally accepted in the United States of America.



Atlanta, Georgia
February 21, 2002





<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

                           CONSOLIDATED BALANCE SHEETS

                           DECEMBER 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                                       2001                2000
                                                                   ------------        -----------
<S>                                                                <C>                 <C>
                                     Assets
Cash and due from banks                                            $  4,622,756          1,878,660
Interest-bearing deposits with banks                                    114,000                 --
Federal funds sold                                                    6,892,000          1,210,000
                                                                   ------------        -----------

           Cash and cash equivalents                                 11,628,756          3,088,660

Investment securities available for sale                             12,174,910         12,397,724
Other investments                                                       185,000            120,100
Loans, net                                                           96,658,337         72,903,262
Premises and equipment, net                                           4,076,973          3,634,545
Accrued interest receivable and other assets                          2,607,153          1,184,570
                                                                   ------------        -----------

                                                                   $127,331,129         93,328,861
                                                                   ============        ===========
                      Liabilities and Shareholders' Equity
Deposits:
  Non-interest demand                                              $ 10,887,833          5,842,902
  Interest-bearing demand                                            30,609,208         24,983,868
  Savings                                                               434,009            347,985
  Time, $100,000 or more                                             41,267,419         31,781,626
  Other time                                                         26,133,943         19,869,391
                                                                   ------------        -----------

            Total deposits                                          109,332,412         82,825,772

Securities sold under repurchase agreements                           3,366,143          2,281,365
Note payable and other borrowings                                     3,980,000             81,715
Accrued interest payable and other liabilities                          570,697            523,151
                                                                   ------------        -----------

            Total liabilities                                       117,249,252         85,712,003
                                                                   ------------        -----------

Commitments

Shareholders' equity:
  Common stock, $5 par value, 10,000,000 shares authorized,
    915,244 and 775,375 shares issued and outstanding                 4,576,220          3,876,875
  Additional paid-in capital                                          5,066,056          3,861,784
  Retained earnings (accumulated deficit)                               319,041           (157,218)
  Accumulated other comprehensive income                                120,560             35,417
                                                                   ------------        -----------

            Total shareholders' equity                               10,081,877          7,616,858
                                                                   ------------        -----------

                                                                   $127,331,129         93,328,861
                                                                   ============        ===========
</TABLE>


See accompanying notes to consolidated financial statements.



                                      -2-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

                       CONSOLIDATED STATEMENTS OF EARNINGS

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000


<TABLE>
<CAPTION>
                                                                           2001                 2000
                                                                       ------------         -----------
<S>                                                                    <C>                  <C>
Interest income:
  Interest and fees on loans                                           $  7,165,882           5,745,786
  Interest on federal funds sold                                            141,193             363,828
  Interest on investment securities
     U.S. Government agencies and mortgage-backed securities                789,427             644,231
     Other                                                                    9,007               9,339
                                                                       ------------         -----------

            Total interest income                                         8,105,509           6,763,184
                                                                       ------------         -----------

Interest expense:
  Interest-bearing demand deposits                                          821,637           1,093,229
  Savings deposits                                                            5,425               5,693
  Time deposits                                                           3,344,849           2,555,011
  Other                                                                     153,375             194,099
                                                                       ------------         -----------

            Total interest expense                                        4,325,286           3,848,032
                                                                       ------------         -----------

            Net interest income                                           3,780,223           2,915,152

Provision for loan losses                                                   240,010             341,638
                                                                       ------------         -----------

            Net interest income after provision for loan losses           3,540,213           2,573,514
                                                                       ------------         -----------

Other income:
  Service charges on deposit accounts                                       212,621             113,105
  Gain (loss) on sale of securities                                          47,500              (7,588)
  Mortgage referral commissions                                             600,971             244,927
  Other                                                                     122,588              81,619
                                                                       ------------         -----------

            Total other income                                              983,680             432,063
                                                                       ------------         -----------

Other expenses:
  Salaries and employee benefits                                          2,186,245           1,197,530
  Occupancy                                                                 438,049             366,341
  Other operating                                                         1,139,095             616,537
                                                                       ------------         -----------

            Total other expenses                                          3,763,389           2,180,408
                                                                       ------------         -----------

            Earnings before income taxes                                    760,504             825,169

Income tax expense (benefit)                                                284,245            (125,019)
                                                                       ------------         -----------

            Net earnings                                               $    476,259             950,188
                                                                       ============         ===========

Basic earnings per share                                               $       0.59                1.23
                                                                       ============         ===========


Diluted earnings per share                                             $       0.57                1.23
                                                                       ============         ===========
</TABLE>


See accompanying notes to consolidated financial statements.


                                      -3-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                                                                    Accumulated
                                               Common  Stock           Additional                      Other
                                          -----------------------       Paid-In        Retained     Comprehensive
                                           Shares        Amount         Capital        Earnings      Income(Loss)        Total
                                          -------      ----------      ----------     ----------   --------------     ----------
<S>                                       <C>          <C>             <C>            <C>          <C>                <C>
Balance, December 31, 1999                775,375      $3,876,875      3,861,784      (1,107,406)      (145,455)       6,485,798

Net earnings                                   --              --             --         950,188             --          950,188

Change in net unrealized gain (loss)
  on investment securities available
  for sale, net of tax                         --              --             --              --        180,872          180,872
                                          -------      ----------      ---------      ----------       --------       ----------

Balance, December 31, 2000                775,375       3,876,875      3,861,784        (157,218)        35,417        7,616,858

Net earnings                                   --              --             --         476,259             --          476,259

Issuance of common stock                  139,869         699,345      1,204,272              --             --        1,903,617

Change in net unrealized gain on
  investment securities available
  for sale, net of tax                         --              --             --              --         85,143           85,143
                                          -------      ----------      ---------      ----------       --------       ----------

Balance, December 31, 2001                915,244      $4,576,220      5,066,056         319,041        120,560       10,081,877
                                          =======      ==========      =========      ==========       ========       ==========
</TABLE>


See accompanying notes to consolidated financial statements.



                                      -4-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                                                     2001               2000
                                                                                  ----------         ----------
<S>                                                                               <C>                   <C>
Net earnings                                                                      $  476,259            950,188
                                                                                  ----------         ----------

Other comprehensive income:
     Unrealized gains arising during the period, net of taxes
       of $60,010 and $90,597, respectively                                          116,493            175,864

     Reclassification adjustment for (gains) losses on sales of investment
       securities available for sale included in net earnings, net of
       taxes of $16,150 and $2,580, respectively                                     (31,350)             5,008
                                                                                  ----------         ----------

Other comprehensive income, net of tax                                                85,143            180,872
                                                                                  ----------         ----------

Comprehensive income                                                              $  561,402          1,131,060
                                                                                  ==========         ==========
</TABLE>


See accompanying notes to consolidated financial statements.


                                      -5-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                                             2001                2000
                                                                         ------------         -----------
<S>                                                                      <C>                  <C>
Cash flows from operating activities:
  Net earnings                                                           $    476,259             950,188
  Adjustments to reconcile net earnings to net cash
     provided by operating activities:
      Depreciation, amortization and accretion                                279,594             240,022
      Provision for loan losses                                               240,010             341,638
      Deferred income taxes                                                   (86,101)           (365,781)
      (Gain) loss on sale of investment securities                            (47,500)              7,588
      Change in:
        Net deferred loan fees                                                119,661             123,538
        Cash surrender value life insurance                                   (30,576)                 --
        Accrued interest receivable and other assets                          (72,766)           (460,982)
        Accrued interest payable and other liabilities                         47,546             336,895
                                                                         ------------         -----------
            Net cash provided by operating activities                         926,127           1,173,106
                                                                         ------------         -----------
Cash flows from investing activities:
  Purchase of investment securities available for sale                     (7,512,799)         (7,690,707)
  Proceeds from calls and maturities of investment securities
     available for sale                                                     6,374,727           1,164,864
  Proceeds from sales of investment securities available for sale           1,547,500             992,266
  Purchase of other investments                                               (64,900)                 --
  Purchase of cash value life insurance                                    (1,277,000)                 --
  Net change in loans                                                     (24,114,746)        (33,604,996)
  Purchases of premises and equipment                                        (732,133)            (74,742)
                                                                         ------------         -----------

            Net cash used by investing activities                         (25,779,351)        (39,213,315)
                                                                         ------------         -----------
Cash flows from financing activities:
  Net change in deposits                                                   26,506,640          28,815,880
  Net change in note payable                                                  198,285               8,916
  Net change in securities sold under repurchase agreements                 1,084,778             484,224
  Proceeds from Federal Home Loan Bank borrowings                           3,700,000                  --
  Proceeds from issuance of common stock                                    1,903,617                  --
                                                                         ------------         -----------

            Net cash provided by financing activities                      33,393,320          29,309,020
                                                                         ------------         -----------
Net change in cash and cash equivalents                                     8,540,096          (8,731,189)
Cash and cash equivalents at beginning of year                              3,088,660          11,819,849
                                                                         ------------         -----------

Cash and cash equivalents at end of year                                 $ 11,628,756           3,088,660
                                                                         ============         ===========

Supplemental disclosures of cash flow information:
  Cash paid during the year for:
     Interest                                                            $  4,369,278           3,560,752
     Income taxes                                                        $    415,500             158,000
Noncash investing and financing activities:
  Change in net unrealized gain on investment
     securities available for sale, net of tax                           $     85,143             180,872
</TABLE>


See accompanying notes to consolidated financial statements.



                                      -6-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



(1)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       Organization

       The Peachtree Bank (the "Bank") was organized in January 1998 upon
       receipt of its banking charter from the Department of Banking and Finance
       (the "DBF"). The Bank is primarily regulated by the DBF and the Federal
       Deposit Insurance Corporation and undergoes periodic examinations by
       these regulatory agencies. The Bank, whose main office is in Duluth,
       Georgia, provides a full range of commercial and consumer banking
       services primarily in Fulton County, Georgia and the surrounding
       metropolitan Atlanta area.

       On July 15, 1999, the Bank became a subsidiary of The PB Financial
       Services Corporation (the "Company") as a result of a tax-free
       reorganization in which the shareholders of the Bank exchanged all
       outstanding Bank stock for stock in the Company. The accompanying
       consolidated financial statements reflect the reorganization similar to a
       pooling of interests and are presented as if the reorganization occurred
       at inception.

       Principles of Consolidation

       The consolidated financial statements include the financial statements of
       the Company and its wholly owned subsidiary, the Bank. All significant
       intercompany balances and transactions have been eliminated in
       consolidation.

       Basis of Presentation

       The accounting principles followed by the Company and the Bank, and the
       methods of applying these principles, conform with generally accepted
       accounting principles ("GAAP") and with general practices in the banking
       industry. In preparing the financial statements in conformity with GAAP,
       management is required to make estimates and assumptions that affect the
       reported amounts in the financial statements. Actual results could differ
       significantly from these estimates. Material estimates common to the
       banking industry that are particularly susceptible to significant change
       in the near term include, but are not limited to, the determination of
       the allowance for loan losses.

       Cash and Cash Equivalents

       Cash and cash equivalents include cash on hand, amounts due from banks,
       interest-bearing deposits with banks and federal funds sold.

       Investment Securities

       The Bank classifies its securities in one of three categories: trading,
       available for sale, or held to maturity. Trading securities are bought
       and held principally for sale in the near term. Held to maturity
       securities are those securities for which the Bank has the ability and
       intent to hold the security until maturity. All other securities not
       included in trading or held to maturity are classified as available for
       sale. At December 31, 2001 and 2000, the Bank classified all of its
       investment securities as available for sale.

       Available for sale securities are recorded at fair value. Unrealized
       holding gains and losses, net of the related tax effect, on securities
       available for sale are excluded from earnings and are reported as a
       separate component of shareholders' equity until realized.

       A decline in the market value of any available for sale investment below
       cost that is deemed other than temporary is charged to earnings and
       establishes a new cost basis for the security.

       Premiums and discounts are amortized or accreted over the life of the
       related security as an adjustment to the yield. Realized gains and losses
       for securities classified as available for sale are included in earnings
       and are derived using the specific identification method for determining
       the cost of securities sold.

       Other Investments

       Other investments include equity securities with no readily determinable
       fair value. These investments are carried at cost.


                                      -7-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(1)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

       Loans and Allowance for Loan Losses

       Loans are stated at principal amount outstanding, net of the allowance
       for loan losses and deferred loan fees. Interest on loans is calculated
       by using the simple interest method on daily balances of the principal
       amount outstanding. Loan origination fees, net of direct loan origination
       costs, are deferred and recognized as income over the life of the related
       loan on a level-yield basis.

       A loan is considered impaired when, based on current information and
       events, it is probable that all amounts due according to the contractual
       terms of the loan will not be collected. Impaired loans are measured
       based on the present value of expected future cash flows, discounted at
       the loan's effective interest rate, or at the loan's observable market
       price, or the fair value of the collateral if the loan is collateral
       dependent.

       Accrual of interest is discontinued on a loan when management believes,
       after considering economic conditions and collection efforts, that the
       borrower's financial condition is such that collection of interest is
       doubtful. Interest previously accrued but not collected is reversed
       against current period earnings when such loans are placed on nonaccrual
       status.

       The allowance for loan losses is established through a provision for loan
       losses charged to earnings. Loans are charged against the allowance for
       loan losses when management believes the collectibility of the principal
       is unlikely. The allowance represents an amount which, in management's
       judgment, will be adequate to absorb probable losses on existing loans
       that may become uncollectible.

       Management's judgment in determining the adequacy of the allowance is
       based on evaluations of the collectibility of loans. These evaluations
       take into consideration such factors as changes in the nature and volume
       of the loan portfolio, current economic conditions that may affect the
       borrower's ability to pay, overall portfolio quality, and review of
       specific problem loans.

       Management believes the allowance for loan losses is adequate. While
       management uses available information to recognize losses on loans,
       future additions to the allowance may be necessary based on changes in
       economic conditions. In addition, various regulatory agencies, as an
       integral part of their examination process, periodically review the
       Bank's allowance for loan losses. Such agencies may require the Bank to
       recognize additions to the allowance based on judgments different than
       those of management.

       Premises and Equipment

       Premises and equipment are stated at cost less accumulated depreciation.
       Depreciation is computed using the straight-line method over the
       estimated useful lives of the assets. When assets are retired or
       otherwise disposed, the cost and related accumulated depreciation are
       removed from the accounts, and any gain or loss is reflected in earnings
       for the period. The cost of maintenance and repairs which do not improve
       or extend the useful life of the respective asset is charged to expense
       as incurred, whereas significant renewals and improvements are
       capitalized. The range of estimated useful lives for premises and
       equipment are generally as follows:

<TABLE>
           <S>                                   <C>
           Buildings and improvements            10 - 40 years
           Furniture and equipment                3 - 10 years
</TABLE>

       Securities Sold Under Repurchase Agreements

       Repurchase agreements are treated as financing activities, and are
       carried at the amounts at which the securities will be repurchased as
       specified in the respective agreements.


                                      -8-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(1)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

       Income Taxes

       Deferred tax assets and liabilities are recognized for the future tax
       consequences attributable to differences between the financial statement
       carrying amounts of existing assets and liabilities and their respective
       tax bases. Additionally, the recognition of future tax benefits is
       required to the extent that realization of such benefits is more likely
       than not. Deferred tax assets and liabilities are measured using enacted
       tax rates expected to apply to taxable income in the years in which the
       assets and liabilities are expected to be recovered or settled. The
       effect on deferred tax assets and liabilities of a change in tax rates is
       recognized in income tax expense in the period that includes the
       enactment date.

       In the event the future tax consequences of differences between the
       financial reporting bases and the tax bases of the Bank's assets and
       liabilities results in deferred tax assets, an evaluation of the
       probability of being able to realize the future benefits indicated by
       such asset is required. A valuation allowance is provided for the portion
       of the deferred tax asset when it is more likely than not that some
       portion or all of the deferred tax asset will not be realized. In
       assessing the realizability of the deferred tax assets, management
       considers the scheduled reversals of deferred tax liabilities, projected
       future taxable income, and tax planning strategies.

       Mortgage Referral Commissions

       The Company earns commissions from third party investors who fund
       residential mortgage loans for which the Company performs certain loan
       origination services. Accordingly, the loans are not funded or recorded
       by the Company and the commissions are recorded as they are earned (i.e.,
       when the loan closes) in the accompanying consolidated statements of
       earnings as mortgage referral commissions.

       Net Earnings Per Share

       Basic earnings per share are based on the weighted average number of
       common shares outstanding during the period while the effects of
       potential shares outstanding during the period are included in diluted
       earnings per share. The average market price during the year is used to
       compute equivalent shares.

       For the years ended December 31, 2001 and 2000, basic earnings per share
       is based on the weighted average number of common shares outstanding of
       809,580 and 775,375, respectively. Diluted earnings per share for the
       year ended December 31, 2001 is based on the weighted average number of
       common shares and potential common shares outstanding of 842,673. For the
       year ended December 31, 2000, the inclusion of any potential common
       shares related to stock options would have had an antidilutive effect and
       accordingly, were not included in the calculation of the Company's
       earnings per share.

       Recent Accounting Pronouncements

       On July 20, 2001, the Financial Accounting Standards Board issued
       Statement of Financial Accounting Standards ("SFAS") No. 141, "Business
       Combinations" and SFAS No. 142, "Goodwill and Other Intangible Assets."
       SFAS No. 141 is effective for business combinations initiated after June
       30, 2001 and requires all business combinations completed after its
       adoption to be accounted for under the purchase method of accounting and
       establishes specific criteria for the recognition of intangible assets
       separately from goodwill. SFAS No. 142 will be effective for the Company
       on January 1, 2002 and addresses the accounting for goodwill and
       intangible assets subsequent to their initial recognition. Upon adoption
       of SFAS No. 142, goodwill and some intangible assets will no longer be
       amortized and will be tested for impairment at least annually. The
       adoption of SFAS No. 142 will have no impact on the Company's financial
       position, results of operations or liquidity.


                                      -9-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(2)    INVESTMENT SECURITIES

       Investment securities available for sale at December 31, 2001 and 2000
       are as follows:

<TABLE>
<CAPTION>
                                                       December 31, 2001
                                          -------------------------------------------

                                                              Gross           Gross        Estimated
                                           Amortized        Unrealized     Unrealized         Fair
                                             Cost             Gains          Losses           Value
                                          -----------       ----------     ----------      ----------
        <S>                               <C>               <C>            <C>             <C>
        U.S. Government agencies          $ 2,992,034         44,656         40,184         2,996,506
        Municipal securities                3,296,535          1,762         78,230         3,220,067
        Corporate bonds                     2,028,511        132,888             --         2,161,399
        Mortgage-backed securities          3,675,164        121,774             --         3,796,938
                                          -----------        -------        -------        ----------

            Total                         $11,992,244        301,080        118,414        12,174,910
                                          ===========        =======        =======        ==========
</TABLE>



<TABLE>
<CAPTION>
                                                       December 31, 2000
                                          -------------------------------------------

                                                              Gross           Gross        Estimated
                                           Amortized        Unrealized     Unrealized         Fair
                                             Cost             Gains          Losses           Value
                                          -----------       ----------     ----------      ----------
        <S>                               <C>               <C>            <C>             <C>
        U.S. Government agencies          $ 5,474,076         40,216         19,582         5,494,710
        Corporate bonds                     3,041,934         27,369             --         3,069,303
        Mortgage-backed securities          3,828,051         13,084          7,424         3,833,711
                                          -----------        -------        -------        ----------

            Total                         $12,344,061         80,669         27,006        12,397,724
                                          ===========        =======        =======        ==========
</TABLE>

       The amortized cost and estimated fair value of investment securities
       available for sale at December 31, 2001, by contractual maturity, are
       shown below. Expected maturities will differ from contractual maturities
       because borrowers have the right to call or prepay obligations with or
       without call or prepayment penalties.

<TABLE>
<CAPTION>
                                           Amortized          Estimated
                                             Cost            Fair Value
                                          -----------        ----------
        <S>                               <C>                <C>
        Due from one to five years        $ 6,177,650         6,284,141
        Due from five to ten years          1,862,221         1,821,594
        Due after ten years                   277,209           272,237
        Mortgage-backed securities          3,675,164         3,796,938
                                          -----------        ----------

                                          $11,992,244        12,174,910
                                          ===========        ==========
</TABLE>

       For the years ended December 31, 2001 and 2000, the Company sold
       investment securities available for sale for $1,547,500 and $992,266,
       respectively, with the following gross gains and losses recognized:

<TABLE>
<CAPTION>
                                 2001             2000
                               --------         --------
        <S>                    <C>              <C>
        Gross gains            $ 50,000               --
        Gross losses             (2,500)          (7,588)
                               --------         --------

                               $ 47,500           (7,588)
                               ========         ========
</TABLE>

       At December 31, 2001 and 2000 securities with a carrying value of
       approximately $4,355,000 and $2,751,000, respectively, were pledged to
       secure public deposits and for other purposes as required by law.
       Investment securities with a carrying value of approximately $4,858,000
       and $4,444,000 at December 31, 2001 and 2000, respectively, were
       allocated by the Bank for collateral under repurchase agreements.



                                      -10-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(3)    LOANS

       Major classifications of loans at December 31, 2001 and 2000 are
       summarized as follows:

<TABLE>
<CAPTION>
                                                           2001                2000
                                                        -----------        ----------
        <S>                                             <C>                <C>
        Commercial                                      $15,774,748        11,111,471
        Real estate - commercial and residential         48,814,217        31,464,925
        Real estate - construction                       24,707,770        23,461,607
        Real estate - home equity                         3,035,413         2,527,426
        Consumer                                          5,685,713         5,337,686
                                                        -----------        ----------

                                                         98,017,861        73,903,115
        Less:  Allowance for loan losses                    981,639           741,629
               Net deferred loan fees                       377,885           258,224
                                                        -----------        ----------

                                                        $96,658,337        72,903,262
                                                        ===========        ==========
</TABLE>

       The Bank grants loans and extensions of credit to individuals and a
       variety of firms and corporations located primarily in Fulton County,
       Georgia. Although the Bank has a diversified loan portfolio, a
       substantial portion of the loan portfolio is collateralized by improved
       and unimproved real estate and is dependent upon the real estate market.

       Changes in the allowance for loan losses were as follows:

<TABLE>
<CAPTION>
                                                 2001            2000
                                               --------        --------
        <S>                                    <C>             <C>
        Balance at beginning of year           $741,629         399,991
        Amounts charged off                          --              --
        Provision charged to operations         240,010         341,638
                                               --------        --------

        Balance at end of year                 $981,639         741,629
                                               ========        ========
</TABLE>

(4)    PREMISES AND EQUIPMENT

       Major classifications of premises and equipment are summarized as
       follows:

<TABLE>
<CAPTION>
                                                2001                2000
                                             -----------        ----------
        <S>                                  <C>                <C>
        Land                                 $   610,482           610,482
        Buildings and improvements             2,653,506         2,634,999
        Furniture and equipment                1,411,862           939,658
        Leasehold improvements                   241,746                --
        Vehicles                                      --            33,321
                                             -----------        ----------

                                               4,917,596         4,218,460

        Less accumulated depreciation            840,623           583,915
                                             -----------        ----------

                                             $ 4,076,973         3,634,545
                                             ===========        ==========
</TABLE>

       The Bank leases certain office facilities to third parties. During both
       2001 and 2000, this rental income totaled approximately $78,000.

       Depreciation expense was $289,705 and $259,476 for the years ended
       December 31, 2001 and 2000, respectively.



                                      -11-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(5)    DEPOSITS

       At December 31, 2001, the scheduled maturities of time deposits are as
       follows:


<TABLE>
<CAPTION>
                Year Ending December 31,
                ------------------------
                <S>                                         <C>
                         2002                               $ 59,080,924
                         2003                                  6,070,849
                         2004                                    629,180
                         2005                                  1,346,257
                         2006 and thereafter                     274,152
                                                            ------------

                                                            $ 67,401,362
                                                            ============
</TABLE>

(6)    NOTE PAYABLE AND OTHER BORROWINGS

       The Company has $100,000 available under an unsecured line of credit with
       another bank. Interest is payable monthly at the prime rate less 50 basis
       points. The line of credit matures in January 2002. The Company had no
       borrowings outstanding under this line of credit at December 31, 2001. At
       December 31, 2000, the Company had $81,715 outstanding under this line of
       credit.

       During 2001, the Company obtained a $1,700,000 line of credit with
       another financial institution. The debt is unsecured, with a negative
       pledge on the stock of the Bank, and calls for interest to be paid
       quarterly at the prime rate less 110 basis points. The line of credit
       matures in May 2003. The loan agreement contains covenants relating to
       the level of the allowance for loan losses, regulatory capital adequacy
       and return on average assets. At December 31, 2001, the Company was in
       compliance with all loan covenants. The Company had $280,000 outstanding
       under this line of credit at December 31, 2001.

       During 2001 the Bank entered into a credit facility with the Federal Home
       Loan Bank ("FHLB") of Atlanta, whereby the FHLB provides credit to the
       Bank under varying terms. Amounts advanced by the FHLB are collateralized
       by a blanket lien on all 1-4 family first mortgage loans and selected
       commercial loans. The total amount available under the facility is
       approximately $9,562,000. At December 31, 2001, the Bank had one advance
       outstanding in the amount of $3,700,000, which matures in December, 2002,
       and calls for interest to be paid monthly at a fixed rate of 2.45%.

       Additionally, the Bank has $4,000,000 available for the purchase of
       overnight federal funds from three correspondent financial institutions.

(7)    INCOME TAXES

       The components of the income tax expense (benefit) are as follows:

<TABLE>
<CAPTION>
                                               2001               2000
                                             ---------         ---------
        <S>                                  <C>               <C>
        Current                              $ 370,346           240,762
        Deferred                               (86,101)           96,300
        Change in valuation allowance               --          (462,081)
                                             ---------         ---------

                                             $ 284,245          (125,019)
                                             =========         =========
</TABLE>



                                      -12-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(7)    INCOME TAXES, CONTINUED

       The differences between the income tax expense (benefit) and the amount
       computed by applying the statutory federal income tax rate to earnings
       before income taxes are as follows:

<TABLE>
<CAPTION>
                                                                        2001              2000
                                                                     ---------         ---------
        <S>                                                          <C>               <C>
        Pre-tax income at statutory rates                            $ 258,571           280,557
        Differences:
          Nondeductible meals and entertainment                          8,167             4,111
          State taxes, net of federal benefit                          (12,526)           (9,394)
          Tax exempt interest                                          (22,724)               --
          Increase in cash surrender value of life insurance           (10,396)               --
          Other                                                         63,153            61,788
          Change in the beginning of year valuation allowance
               for deferred tax assets                                      --          (462,081)
                                                                     ---------         ---------

                                                                     $ 284,245          (125,019)
                                                                     =========         =========
</TABLE>

       The following summarizes the tax effects of temporary differences that
       give rise to significant portions of the deferred tax assets and deferred
       tax liabilities. The net deferred tax asset is included as a component of
       other assets at December 31, 2001 and 2000.

<TABLE>
<CAPTION>
                                                                                 2001               2000
                                                                               ---------         ---------
        <S>                                                                    <C>               <C>
        Deferred tax assets:
            Allowance for loan losses                                          $ 351,628           260,521
            Deferred loan fees                                                   143,445            98,022
            Deferred organizational costs                                         56,243            85,449
            Other                                                                 12,691                --
                                                                               ---------         ---------

                        Total gross deferred tax assets                          564,007           443,992
                                                                               ---------         ---------

        Deferred tax liabilities:
            Unrealized gain on investment securities available for sale          (62,107)          (18,246)
            Accumulated depreciation                                            (112,125)          (78,211)
                                                                               ---------         ---------

                        Total gross deferred tax liabilities                    (174,232)          (96,457)
                                                                               ---------         ---------

                        Net deferred asset                                     $ 389,775           347,535
                                                                               =========         =========
</TABLE>

 (8)   RELATED PARTY TRANSACTIONS

       The Bank conducts transactions with directors and executive officers,
       including companies in which they have beneficial interests, in the
       normal course of business. It is the policy of the Bank that loan
       transactions with directors and officers be made on substantially the
       same terms as those prevailing at the time made for comparable loans to
       other customers. The following is a summary of activity for related party
       loans for 2001:

<TABLE>
                <S>                            <C>
                 Beginning balance             $ 3,708,000
                 New loans                       6,447,000
                 Repayments                     (6,681,000)
                                               -----------

                 Ending balance                $ 3,474,000
                                               ===========
</TABLE>



                                      -13-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


(8)    RELATED PARTY TRANSACTIONS, CONTINUED

       At December 31, 2001 and 2000, the Bank had deposit relationships with
       related parties of approximately $3,142,000 and $3,113,000, respectively.

       During 1999, the Bank executed a lease agreement with one of its
       directors for office space located in the Bank's building. Although the
       lease expired December 31, 2001, the Bank continues to lease the space on
       a month-to-month basis and requires monthly lease payments of $1,069 per
       month plus certain executory costs.

(9)    COMMITMENTS

       The Bank leases various banking facilities and equipment under operating
       lease arrangements. Future minimum lease payments required for all
       operating leases having a remaining term in excess of one year at
       December 31, 2001 are as follows:

<TABLE>
<CAPTION>
               Year Ending December 31,                                Amount
               ------------------------                                ------
               <S>                                                   <C>
                         2002                                        $  63,045
                         2003                                           56,743
                         2004                                           54,647
                         2005                                           52,596
                         2006                                           54,174
                         Thereafter                                    276,083
                                                                     ---------

                         Total minimum obligation                    $ 557,288
                                                                     =========
</TABLE>

       The total rent expense was approximately $52,000 and $3,700 for 2001 and
       2000, respectively.

       The Bank is a party to financial instruments with off-balance-sheet risk
       in the normal course of business to meet the financing needs of its
       customers. These financial instruments include commitments to extend
       credit and standby letters of credit. Those instruments involve, to
       varying degrees, elements of credit risk in excess of the amount
       recognized in the balance sheet. The contract amounts of those
       instruments reflect the extent of involvement the Bank has in particular
       classes of financial instruments.

       The exposure to credit loss in the event of nonperformance by the other
       party to the financial instrument for commitments to extend credit and
       standby letters of credit is represented by the contractual amount of
       those instruments. The Bank uses the same credit policies in making
       commitments and conditional obligations as it does for on-balance-sheet
       instruments.

       In most cases, the Bank does require collateral or other security to
       support financial instruments with credit risk.

<TABLE>
<CAPTION>
                                                                                         Contractual Amount
                                                                                        --------------------
                                                                                        2001            2000
                                                                                        ----            ----
          <S>                                                                       <C>              <C>
          Financial instruments whose contract amounts represent credit risk:
               Commitments to extend credit                                         $40,704,000      26,970,000
               Standby letters of credit                                            $ 5,639,000       2,412,000
</TABLE>

       Commitments to extend credit are agreements to lend to a customer as long
       as there is no violation of any condition established in the contract.
       Commitments generally have fixed expiration dates or other termination
       clauses and may require payment of a fee. Since many of the commitments
       may expire without being drawn upon, the total commitment amounts do not
       necessarily represent future cash requirements. The Bank evaluates each
       customer's creditworthiness on a case-by-case basis. The amount of
       collateral obtained, if deemed necessary by the Bank, upon extension of
       credit is based on management's credit evaluation. Collateral held varies
       but may include unimproved and improved real estate, certificates of
       deposit, or personal property.


                                      -14-
<PAGE>


                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(9)    COMMITMENTS, CONTINUED

       Standby letters of credit are conditional commitments issued by the Bank
       to guarantee the performance of a customer to a third party. Those
       guarantees are primarily issued to businesses in the Bank's delineated
       trade area. The credit risk involved in issuing letters of credit is
       essentially the same as that involved in extending loan facilities to
       customers. The Bank holds real estate, equipment, automobiles and
       customer deposits as collateral supporting those commitments for which
       collateral is deemed necessary.

 (10)  BENEFIT PLANS

       The Bank has a 401(k) plan for the benefit of employees with eligibility
       subject to certain minimum age and service requirements. Under this plan,
       employees may contribute from two to fifteen percent of their salaries,
       up to the legal contribution limit. At its discretion, the Bank may match
       a portion of participants' contributions. The Bank may also make an
       annual discretionary profit sharing contribution to the plan. The Bank
       contributed approximately $14,600 to the plan in 2001 and did not make
       any contributions to the plan in 2000.

       During 2001, the Company adopted a post-retirement benefit plan to
       provide retirement benefits to certain of the Company's executive
       officers and its board of directors and to provide death benefits for the
       designated beneficiaries. Under this plan, single-premium, split-dollar,
       whole-life insurance contracts were purchased on the lives of certain
       executive officers and members of the board of directors. The increase in
       the cash surrender value of the contracts, less the Bank's cost of funds,
       constitutes the Company's contribution to the plan each year. In the
       event the insurance contracts fail to produce positive returns, the
       Company has no obligation to contribute to the plan. At December 31,
       2001, the cash surrender value of the insurance contracts was $1,307,576,
       and is included in the consolidated balance sheet as a component of other
       assets. For the year ended December 31, 2001, the Company recorded
       income, representing the increase in the cash surrender value of the
       contracts, of approximately $31,000 and incurred expenses of
       approximately $8,600.

       The Company has an employee stock option plan and a director stock option
       plan. The plans were adopted for the benefit of directors and key
       officers and employees in order that they may purchase Company stock at a
       price equal to the fair market value on the date of grant. A total of
       100,000 shares were reserved for possible issuance under the employee
       stock option plan. A total of 157,612 shares were reserved for possible
       issuance under the director stock option plan. The options vest over
       periods of time as specified in the option agreements and expire after
       ten years.

       No compensation expense has been recognized related to these plans. Had
       compensation cost been determined based upon the fair value of the
       options at the grant dates, the Company's net earnings and net earnings
       per share would have been reduced to the proforma amounts indicated
       below.

<TABLE>
<CAPTION>
                                                                       2001          2000
                                                                       ----          ----
       <S>                                     <C>                   <C>            <C>
       Net earnings                            As reported           $476,259       950,188
                                               Proforma              $329,344       813,279

       Basic earnings per share                As reported           $   0.59          1.23
                                               Proforma              $   0.41          1.05

       Diluted earnings per share              As reported           $   0.57          1.23
                                               Proforma              $   0.39          1.05
</TABLE>

       The weighted average grant-date fair value of options granted in 2001 and
       2000 was $6.96 and $3.79, respectively. The fair value of each option is
       estimated on the date of grant using the Minimum Value options-pricing
       model with the following weighted average assumptions used for grants in
       2001 and 2000: dividend yield of 0%, risk free interest rate of 5.0% and
       an expected life of ten years. The options have a weighted average
       remaining contractual life of approximately seven years.



                                      -15-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(10)   BENEFIT PLANS, CONTINUED

       A summary of activity in these stock option plans is presented below:

<TABLE>
<CAPTION>
                                                                 2001                              2000
                                                     --------------------------       ---------------------------
                                                                    Weighted                         Weighted
                                                      Option     Average Option       Option      Averaged Option
                                                      Shares    Price Per Share       Shares      Price Per Share
                                                     -------    ---------------       ------      ---------------
        <S>                                          <C>        <C>                   <C>         <C>
        Outstanding, beginning of year               213,198        $ 10.00           196,698         $ 10.00
        Granted during the year                       15,500        $ 10.58            20,000         $ 10.00
        Cancelled during the year                         --             --            (3,500)        $ 10.00
                                                     -------                          -------

        Outstanding, end of year                     228,698        $ 10.04           213,198         $ 10.00
                                                     =======                          =======

        Number of shares exercisable                 193,899        $ 10.00           135,166         $ 10.00
                                                     =======                          =======
</TABLE>

(11)   REGULATORY MATTERS

       The Company and the Bank are subject to various regulatory capital
       requirements administered by the federal banking agencies. Failure to
       meet minimum capital requirements can initiate certain mandatory and
       possibly additional discretionary actions by regulators that, if
       undertaken, could have a direct material effect on the financial
       statements. Under capital adequacy guidelines and the regulatory
       framework for prompt corrective action, the Company and the Bank must
       meet specific capital guidelines that involve quantitative measures of
       the assets, liabilities and certain off-balance-sheet items as calculated
       under regulatory accounting practices. The capital amounts and
       classification are also subject to qualitative judgments by the
       regulators about components, risk-weightings, and other factors.

       Quantitative measures established by regulation to ensure capital
       adequacy require the Company and the Bank to maintain minimum amounts and
       ratios (set forth in the table below) of total and Tier 1 capital to
       risk-weighted assets, and of Tier 1 capital to average assets (all as
       defined). Management believes, as of December 31, 2001, that the Bank
       meets all capital adequacy requirements to which it is subject.

       As of December 31, 2001 the most recent notification from the FDIC
       categorized the Bank as well capitalized under the regulatory framework
       for prompt corrective action. To be categorized as well capitalized the
       Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1
       leverage ratios as set forth in the table. There are no conditions or
       events since that notification that management believes have changed the
       Bank's category.

       The Company's and the Bank's actual capital amounts and ratios are
       presented below. Only the Bank's capital amounts and ratios are presented
       as of December 31, 2000, as the consolidated ratios were the same as the
       Bank's ratios.

<TABLE>
<CAPTION>
                                                                                                                To Be Well
                                                                                                             Capitalized Under
                                                                                        For Capital          Prompt Corrective
                                                                   Actual            Adequacy Purposes:      Action Provisions
                                                            --------------------     -----------------      -------------------
                                                            Amount         Ratio     Amount      Ratio      Amount        Ratio
                                                            ------         -----     ------      -----      ------        -----
                                                                                  (dollars in thousands)
<S>                                                        <C>             <C>       <C>         <C>        <C>           <C>
  AS OF DECEMBER 31, 2001:
   Total Capital (to Risk-Weighted Assets)
      Consolidated                                         $ 10,943         9.8%      8,900       8.0%         N/A         N/A
      Bank                                                 $ 11,118        10.0%      8,897       8.0%      11,121        10.0%
   Tier 1 Capital (to Risk-Weighted Assets)
      Consolidated                                         $  9,961         9.0%      4,450       4.0%         N/A         N/A
      Bank                                                 $ 10,136         9.1%      4,449       4.0%       6,673         6.0%
   Tier 1 Capital (to Average Assets)
      Consolidated                                         $  9,961         9.0%      4,413       4.0%         N/A         N/A
      Bank                                                 $ 10,136         9.2%      4,411       4.0%       5,514         5.0%
</TABLE>



                                      -16-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(11)   REGULATORY MATTERS, CONTINUED

<TABLE>
<CAPTION>
                                                                                                                To Be Well
                                                                                                             Capitalized Under
                                                                                        For Capital          Prompt Corrective
                                                                   Actual            Adequacy Purposes:      Action Provisions
                                                            --------------------     -----------------      -------------------
                                                            Amount         Ratio     Amount      Ratio      Amount        Ratio
                                                            ------         -----     ------      -----      ------        -----
                                                                                  (dollars in thousands)
<S>                                                        <C>             <C>       <C>         <C>        <C>           <C>
AS OF DECEMBER 31, 2000
      Total Capital (to Risk-Weighted Assets)               $ 8,380        10.1%      6,667       8.0%       8,334        10.0%
      Tier 1 Capital (to Risk-Weighted Assets)              $ 7,638         9.2%      3,333       4.0%       5,000         6.0%
      Tier 1 Capital (to Average Assets)                    $ 7,638         9.7%      3,137       4.0%       3,921         5.0%
</TABLE>

(12)   SHAREHOLDERS' EQUITY

       Dividends paid by the Bank are the primary source of funds available to
       the Company. Banking regulations limit the amount of dividends that may
       be paid without prior approval of the regulatory authorities. These
       restrictions for the Bank are based on the level of regulatory classified
       assets, prior year's earnings, and the ratio of equity capital to total
       assets. At December 31, 2001 and 2000, total stockholders' equity of the
       Bank was $10,257,423 and $7,673,573, respectively. The amount of
       dividends that the Bank could pay in 2002 without obtaining prior
       regulatory approval is approximately $250,000.

       During 2001, the Company sold 139,869 shares of common stock through a
       private placement at a price of $13.61 per share. The private placement
       resulted in the sale of a total of 166,201 shares of common stock (total
       proceeds of $2,261,996) and was completed on February 28, 2002. The
       proceeds of this offering were used to increase the Bank's regulatory
       capital ratios and for general corporate purposes.

(13)   OTHER OPERATING EXPENSE

       Other operating expense for the years ended December 31, 2001 and 2000
       included the following items that exceeded one percent of total revenues:

<TABLE>
<CAPTION>
                                                      2001           2000
                                                      ----           ----
             <S>                                   <C>              <C>
             Data processing                       $ 135,147        96,386
             Directors fees                           92,200            --
</TABLE>

(14)   FAIR VALUE OF FINANCIAL INSTRUMENTS

       The Company is required to disclose fair value information about
       financial instruments, whether or not recognized on the face of the
       balance sheet, for which it is practicable to estimate that value. The
       assumptions used in the estimation of the fair value of the Company's
       financial instruments are detailed below. Where quoted prices are not
       available, fair values are based on estimates using discounted cash flows
       and other valuation techniques. The use of discounted cash flows can be
       significantly affected by the assumptions used, including the discount
       rate and estimates of future cash flows. The following disclosures should
       not be considered a surrogate of the liquidation value of the Company,
       but rather a good faith estimate of the increase or decrease in value of
       financial instruments held by the Company since purchase, origination, or
       issuance.

       Cash and Cash Equivalents

       For cash, due from banks, interest-bearing deposits with banks and
       federal funds sold, the carrying amount is a reasonable estimate of fair
       value.

       Investment Securities

       Fair values for investment securities are based on quoted market prices.

       Other Investments

       The carrying amount of other investments approximates fair value.



                                      -17-
<PAGE>


                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


(14)   FAIR VALUE OF FINANCIAL INSTRUMENTS, CONTINUED

       Loans

       The fair value of fixed rate loans is estimated by discounting the future
       cash flows using the current rates at which similar loans would be made
       to borrowers with similar credit ratings. For variable rate loans, the
       carrying amount is a reasonable estimate of fair value.

       Cash Surrender Value of Life Insurance

       Cash values of life insurance policies are carried at the value for which
       such policies may be redeemed for cash.

       Deposits

       The fair value of demand deposits, interest-bearing demand deposits, and
       savings is the amount payable on demand at the reporting date. The fair
       value of fixed maturity certificates of deposit is estimated by
       discounting the future cash flows using the rates currently offered for
       deposits of similar remaining maturities.

       Securities Sold Under Repurchase Agreements

       The carrying value of securities sold under repurchase agreements
       approximates fair value.

       FHLB advances

       The fair value of FHLB advances is estimated based upon discounted future
       cash flows using a discount rate comparable to the current market rate
       for such borrowings.

       Note Payable

       The carrying amount of the note payable approximates fair value.

       Commitments to Extend Credit and Standby Letters of Credit

       Because commitments to extend credit and standby letters of credit are
       made using variable rates, the contract value is a reasonable estimate of
       fair value.

       Limitations

       Fair value estimates are made at a specific point in time, based on
       relevant market information and information about the financial
       instrument. These estimates do not reflect any premium or discount that
       could result from offering for sale at one time the Company's entire
       holdings of a particular financial instrument. Because no market exists
       for a significant portion of the Company's financial instruments, fair
       value estimates are based on many judgments. These estimates are
       subjective in nature and involve uncertainties and matters of significant
       judgment and therefore cannot be determined with precision. Changes in
       assumptions could significantly affect the estimates.

       Fair value estimates are based on existing on and off-balance-sheet
       financial instruments without attempting to estimate the value of
       anticipated future business and the value of assets and liabilities that
       are not considered financial instruments. Significant assets and
       liabilities that are not considered financial instruments include
       deferred income taxes and premises and equipment. In addition, the tax
       ramifications related to the realization of the unrealized gains and
       losses can have a significant effect on fair value estimates and have not
       been considered in the estimates.


                                      -18-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


(14)   FAIR VALUE OF FINANCIAL INSTRUMENTS, CONTINUED

       The carrying amount and estimated fair values of the Company's financial
       instruments at December 31, 2001 and 2000 are as follows:

<TABLE>
<CAPTION>
                                                                             2001                                2000
                                                              -------------------------------        ----------------------------
                                                               Carrying            Estimated          Carrying          Estimated
                                                                 Amount            Fair Value          Amount          Fair Value
                                                              ------------        -----------        ----------        ----------
        <S>                                                   <C>                 <C>                <C>               <C>
        Assets:
            Cash and cash equivalents                         $ 11,628,756         11,628,756         3,088,660         3,088,660
            Investment securities available for sale          $ 12,174,910         12,174,910        12,397,724        12,397,724
            Other investments                                 $    185,000            185,000           120,100           120,100
            Loans                                             $ 96,658,337         96,373,428        72,903,262        72,327,142
            Cash surrender value of life insurance            $  1,307,576          1,307,576                --                --

        Liabilities:
            Deposits                                          $109,332,412        110,286,508        82,825,772        83,000,257
            Securities sold under repurchase agreement        $  3,366,143          3,366,143         2,281,365         2,281,365
            Federal Home Loan Bank Advances                   $  3,700,000          3,695,572                --                --
            Note payable                                      $    280,000            280,000            81,715            81,715

        Unrecognized financial instruments:
            Commitments to extend credit                      $ 40,704,000         40,704,000        26,970,000        26,970,000
            Standby letters of credit                         $  5,639,000          5,639,000         2,412,000         2,412,000
</TABLE>



(15)   THE PB FINANCIAL SERVICES CORPORATION (PARENT COMPANY ONLY) FINANCIAL
       INFORMATION


                                 BALANCE SHEETS

                           DECEMBER 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                                         2001              2000
                                                                     -----------        ---------
        <S>                                                          <C>                <C>
                                     Assets
        Cash                                                         $    64,708               --
        Investment in bank subsidiary                                 10,257,423        7,673,573
        Other assets                                                      39,746           25,000
                                                                     -----------        ---------

                                                                     $10,361,877        7,698,573
                                                                     ===========        =========

                         Liabilities and Shareholders' Equity
        Note payable                                                 $   280,000           81,715
        Shareholders' equity                                          10,081,877        7,616,858
                                                                     -----------        ---------

                                                                     $10,361,877        7,698,573
                                                                     ===========        =========
</TABLE>



                                      -19-
<PAGE>

                      THE PB FINANCIAL SERVICES CORPORATION

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(15)   THE PB FINANCIAL SERVICES CORPORATION (PARENT COMPANY ONLY) FINANCIAL
       INFORMATION, CONTINUED


                             STATEMENTS OF EARNINGS

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                                       2001                 2000
                                                                   ------------        -----------
<S>                                                                <C>                 <C>
Interest expense                                                   $    (20,057)            (6,916)
Other operating expenses                                                (18,764)            (2,000)
                                                                   ------------        -----------

Loss before income tax benefit and equity in
     undistributed earnings of Bank                                     (38,821)            (8,916)

Income tax benefit                                                       14,753             25,000
                                                                   ------------        -----------

Earnings (loss) before equity in undistributed
     earnings of Bank                                                   (24,068)            16,084

Equity in undistributed earnings of Bank                                500,327            934,104
                                                                   ------------        -----------

Net earnings                                                       $    476,259            950,188
                                                                   ============        ===========
</TABLE>

                            STATEMENTS OF CASH FLOWS

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                                        2001                2000
                                                                   ------------         -----------
<S>                                                                <C>                  <C>
Cash flows from operating activities:
  Net earnings                                                     $    476,259             950,188
  Adjustments to reconcile net earnings to net cash used by
     operating activities:
        Equity in undistributed earnings of Bank                       (500,327)           (934,104)
        Deferred income taxes                                            11,183             (25,000)
        Change in other assets                                          (25,929)                 --
                                                                   ------------         -----------

            Net cash used by operating activities                       (38,814)             (8,916)
                                                                   ------------         -----------

Cash flows used in investing activities, consisting of a
          capital infusion in subsidiary                             (1,998,380)                 --
                                                                   ------------         -----------

Cash flows from financing activities:
        Proceeds from note payable                                      198,285               8,916
         Issuance of common stock                                     1,903,617                  --
                                                                   ------------         -----------

            Net cash provided by financing activities                 2,101,902               8,916
                                                                   ------------         -----------

            Net change in cash                                           64,708                  --

Cash at beginning of year                                                    --                  --
                                                                   ------------         -----------

Cash at end of year                                                $     64,708                  --
                                                                   ============         ===========
</TABLE>


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