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

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

| California                                                     | 68-0450397                              |
|----------------------------------------------------------------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |

| 195 N. First Street, Dixon, California   | 95620      |
|------------------------------------------|------------|
| (Address of principal executive offices) | (Zip Code) |

| Yes  x | No   ̈ |
|------------------|----------------------|

| Yes  r | No  r |
|------------------|-----------------|

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

| Yes   ̈ | No  x |
|-----------------------|-----------------|

----

|   Page                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PART I   – Financial Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|  ITEM I    – Financial Statements (unaudited) ......................................................................................................................................................................................................................................................3 Condensed Consolidated Balance Sheets (unaudited) .............................................................................................................................................................................................................................3 Condensed Consolidated Statements of Income (unaudited) ..................................................................................................................................................................................................................4 Condensed Consolidated Statement of Stockholders' Equity and Comprehensive Income (unaudited) ..........................................................................................................................................5 Condensed Consolidated Statements of Cash Flows (unaudited) ..........................................................................................................................................................................................................6 Notes to Condensed Consolidated Financial Statements .........................................................................................................................................................................................................................7 ITEM 2.   – Management’s Discussion and Analysis of Financial Condition and Results of Operations ..............................................................................................................................................30 ITEM 3.   – Quantitative and Qualitative Disclosures About Market Risk ...................................................................................................................................................................................................45 ITEM 4.   – Controls and Procedures ..................................................................................................................................................................................................................................................................45 PART II   – Other Information ..............................................................................................................................................................................................................................................................................45 ITEM 1. – Legal Proceedings ...............................................................................................................................................................................................................................................................................45 ITEM 1A. – Risk Factors ......................................................................................................................................................................................................................................................................................45 ITEM 6.   – Exhibits ...............................................................................................................................................................................................................................................................................................46 SIGNATURES ........................................................................................................................................................................................................................................................................................................46 |

----

|                                                                                                                                                   |   | March 31,   |    |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|--------------|--------|
| (in thousands, except shares and share amounts)                                                                                                        |   | 2011        |    |   | 2010         |   |
|                                                                                                                                                   |   | (unaudited) |    |   |         |   |
| Assets                                                                                                                                                 |   |        |    |   |         |   |
|                                                                                                                                                   |   |        |    |   |         |   |
| Cash and due from banks                                                                                                                                |   | $           | 152,368 |   |         | $      | 139,707 |   |
| Investment securities – available-for-sale                                                                                                       |   |        | 125,838 |   |         |   | 107,346 |   |
| Loans, net of allowance for loan losses of $11,712 at March 31, 2011                                                                                   |   |        |    |   |         |   |   |   |
|    and $11,039 at December 31, 2010                                                                                                     |   |        | 420,698 |   |         |   | 442,015 |   |
| Loans held-for-sale                                                                                                                                    |   |        | 3,038   |   |         |   | 2,345 |   |
| Stock in Federal Home Loan Bank and other equity securities, at cost                                                                                   |   |        | 2,823   |   |         |   | 2,823 |   |
| Premises and equipment, net                                                                                                                            |   |        | 8,030   |   |         |   | 8,035 |   |
| Other real estate owned                                                                                                                                |   |        | 2,664   |   |         |   | 2,682 |   |
| Interest receivable and other assets                                                                                                                   |   |        | 33,364  |   |         |   | 32,264 |   |
|                                                                                                                                                   |   |        |    |   |         |   |   |   |
|                  Total Assets                                     |   | $           | 748,823 |   |         | $      | 737,217 |   |
|                                                                                                                                                   |   |        |    |   |         |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                                             |   |        |    |   |         |   |   |   |
|                                                                                                                                                   |   |        |    |   |         |   |   |   |
| Liabilities:                                                                                                                                           |   |        |    |   |         |   |   |   |
|                                                                                                                                                   |   |        |    |   |         |   |   |   |
|          Demand deposits                                                                                  |   | $           | 186,422 |   |         | $      | 180,382 |   |
|          Interest-bearing transaction deposits                                                            |   |        | 148,102 |   |         |   | 146,579 |   |
|          Savings and MMDA's                                                                               |   |        | 210,759 |   |         |   | 204,360 |   |
|          Time, under $100,000                                                                             |   |        | 40,120  |   |         |   | 40,083 |   |
|          Time, $100,000 and over                                                                          |   |        | 65,864  |   |         |   | 68,854 |   |
|                  Total deposits                              |   |        | 651,267 |   |         |   | 640,258 |   |
|                                                                                                                                                   |   |        |    |   |         |   |   |   |
|          Federal Home Loan Bank advances and other borrowings                                             |   |        | 10,500  |   |         |   | 10,529 |   |
|          Interest payable and other liabilities                                                           |   |        | 6,831   |   |         |   | 6,834 |   |
|                                                                                                                                                   |   |        |    |   |         |   |   |   |
|                  Total liabilities                                |   |        | 668,598 |   |         |   | 657,621 |   |
|                                                                                                                                                   |   |        |    |   |         |   |   |   |
| Stockholders' Equity:                                                                                                                                  |   |        |    |   |         |   |   |   |
|          Preferred stock, par value $0.01 per share; $1,000 per share liquidation                         |   |        |    |   |         |   |   |   |
| preference, 18,500 shares authorized; 17,390 shares issued and                                                                                         |   |        |    |   |         |   |   |   |
| outstanding at March 31, 2011 and December 31, 2010                                                                                                    |   |        | 16,976  |   |         |   | 16,944 |   |
|         Common stock, no par value; 16,000,000 shares authorized;                                              |   |        |    |   |         |   |   |   |
|             9,116,316 shares issued and outstanding at March 31, 2011 and                  |   |        |    |   |         |   |   |   |
|             9,103,158 shares issued and outstanding at December 31, 2010                   |   |        | 62,909  |   |         |   | 62,869 |   |
|         Additional paid in capital                                                                             |   |        | 977     |   |         |   | 977 |   |
|         Retained earnings (accumulated deficit)                                                                |   |        | 116     |   |         |   | (401 | ) |
|         Accumulated other comprehensive loss, net                                                              |   |        | (753    | )      |         |   | (793 | ) |
|                  Total stockholders’ equity                 |   |        | 80,225  |   |         |   | 79,596 |   |
|                                                                                                                                                   |   |        |    |   |         |   |   |   |
|                  Total Liabilities and Stockholders’ Equity |   | $           | 748,823 |   |         | $      | 737,217 |   |

----

|                                                                                                                                    |   | Three months  |   |   | Three months  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|
|                                                                                                                                    |   | ended         |   |   | ended         |   |
| (in thousands, except per share amounts)                                                                                                |   | March 31,2011 |   |   | March 31,2010 |   |
| Interest and Dividend Income:                                                                                                      |   |          |   |   |          |   |
|      Loans                                                                                                     |   | $             | 6,257  |   |          | $      | 6,798 |   |
|      Due from banks interest bearing accounts                                                                  |   |          | 85     |   |          |   | 94 |   |
|      Investment securities                                                                                |   |          |   |   |          |   |   |   |
|           Taxable                                                                     |   |          | 570    |   |          |   | 375 |   |
|           Non-taxable                                                                 |   |          | 111    |   |          |   | 235 |   |
|                Total interest and dividend income  |   |          | 7,023  |   |          |   | 7,502 |   |
| Interest Expense:                                                                                                                  |   |          |   |   |          |   |   |   |
|      Deposits                                                                                                  |   |          | 571    |   |          |   | 1,004 |   |
|      Other borrowings                                                                                     |   |          | 90     |   |          |   | 107 |   |
|                Total interest expense              |   |          | 661    |   |          |   | 1,111 |   |
| Net interest income                                                                                                           |   |          | 6,362  |   |          |   | 6,391 |   |
| Provision for  loan losses                                                                                               |   |          | 990    |   |          |   | 1,450 |   |
|  Net interest income after provision    for loan losses                          |   |          | 5,372  |   |          |   | 4,941 |   |
| Other operating income:                                                                                                       |   |          |   |   |          |   |   |   |
|      Service charges on deposit accounts                                                   |   |          | 693    |   |          |   | 825 |   |
|      Gains on sales of other real estate owned                                                            |   |          | 196    |   |          |   | 27 |   |
|      Gains on sales of loans held-for-sale                                                 |   |          | 137    |   |          |   | 117 |   |
|      Investment and brokerage services income                                              |   |          | 245    |   |          |   | 244 |   |
|      Mortgage brokerage income                                                                       |   |          | 12     |   |          |   | 8 |   |
|      Loan servicing income                                                                                |   |          | 335    |   |          |   | 272 |   |
|      Fiduciary activities income                                                                               |   |          | 97     |   |          |   | 70 |   |
|      ATM fees                                                                                             |   |          | 101    |   |          |   | 62 |   |
|      Signature based transaction fees                                                                          |   |          | 210    |   |          |   | 173 |   |
|      Other income                                                                                         |   |          | 161    |   |          |   | 205 |   |
|                Total other operating income   |   |          | 2,187  |   |          |   | 2,003 |   |
| Other operating expenses:                                                                                                     |   |          |   |   |          |   |   |   |
|      Salaries and employee benefits                                                             |   |          | 3,773  |   |          |   | 3,768 |   |
|      Occupancy and equipment                                                                         |   |          | 823    |   |          |   | 847 |   |
|      Data processing                                                                                      |   |          | 384    |   |          |   | 448 |   |
|      Stationery and supplies                                                                         |   |          | 75     |   |          |   | 81 |   |
|      Advertising                                                                                               |   |          | 137    |   |          |   | 131 |   |
|      Directors’ fees                                                                                |   |          | 64     |   |          |   | 52 |   |
|      Other real estate owned expense and impairment                                                            |   |          | 206    |   |          |   | 231 |   |
|      Other expense                                                                                        |   |          | 1,222  |   |          |   | 1,315 |   |
|                Total other operating expenses |   |          | 6,684  |   |          |   | 6,873 |   |
|                Income before income tax expense (benefit)    |   |          | 875    |   |          |   | 71 |   |
| Income tax expense (benefit)                                                                                                       |   |          | 109    |   |          |   | (290 | ) |
|                                                                                                                                    |   |          |   |   |          |   |   |   |
|                Net  income                         |   | $             | 766    |   |          | $      | 361 |   |
|                                                                                                                                    |   |          |   |   |          |   |   |   |
| Preferred stock dividends and accretion                                                                                                 |   | $             | (249   | )      |          | $      | (246 | ) |
| Net  income available to common          shareholders                       |   | $             | 517    |   |          | $      | 115 |   |
|                                                                                                                                    |   |          |   |   |          |   |   |   |
| Basic income per share                                                                                                        |   | $             | 0.06   |   |          | $      | 0.01 |   |
| Diluted income per share                                                                                                      |   | $             | 0.06   |   |          | $      | 0.01 |   |

----

| (in thousands, except share data)                                                                  |   |
|----------------------------------------------------------------------------------------------------|--------|
|                                                                                               |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (Accumulated |   |   | Accumulated |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | Deficit)/ |   |   | Other |   |   |   |   |
|                                                                                               |   | Preferred Stock |   |   | Common Stock |   |   | Comprehensive |   |   | Paid-in |   |   | Retained |   |   | Comprehensive |   |   |   |   |
|                                                                                               |   | Shares |   |   | Amounts |   |   | Shares |   |   | Amounts |   |   | Income |   |   | Capital |   |   | Earnings |   |   | Loss |   |   | Total |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010                                                                       |   |   | 17,390 |   |   | $ | 16,944 |   |   |   | 9,103,158 |   |   | $ | 62,869 |   |   |   |   |   | $ | 977 |   |   | $ | (401 | ) |   | $ | (793 | ) |   | $ | 79,596 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 766 |   |   |   |   |   |   |   | 766 |   |   |   |   |   |   |   | 766 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income,  net of tax:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains on securities arising during the current period, net of tax effect of $26 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 40 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other comprehensive income, net of tax effect of $26                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 40 |   |   |   |   |   |   |   |   |   |   |   | 40 |   |   |   | 40 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 806 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend on preferred stock                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (217 | ) |   |   |   |   |   |   | (217 | ) |
| Discount accretion on preferred stock                                                              |   |   |   |   |   |   | 32 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (32 | ) |   |   |   |   |   |   | — |   |
| Stock-based compensation and related tax benefits                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 40 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 40 |   |
| Common shares issued                                                                               |   |   |   |   |   |   |   |   |   |   | 13,158 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2011                                                                          |   |   | 17,390 |   |   | $ | 16,976 |   |   |   | 9,116,316 |   |   | $ | 62,909 |   |   |   |   |   |   | $ | 977 |   |   | $ | 116 |   |   | $ | (753 | ) |   | $ | 80,225 |   |

----

|                                                                                                                                                                                       |   | (in thousands)                         |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                                                                                                                                       |   | Three months ended March 31, 2011 |    |   | Three months ended March 31, 2010 |   |
| Cash Flows From Operating Activities                                                                                                                                                       |   |                                   |    |   |   |   |
|           Net Income                                                                                                                     |   | $                                      | 766     |   |   | $ | 361 |   |
|           Adjustments to reconcile net income to net cash provided by                            |   |                                   |    |   |   |   |   |   |
|        operating activities:                                                                                                                       |   |                                   |    |   |   |   |   |   |
|  Depreciation and amortization                                                                                                                                                        |   |                                   | 183     |   |   |   | 215 |   |
|  Provision for loan losses                                                                                                                                                            |   |                                   | 990     |   |   |   | 1,450 |   |
|  Stock plan accruals                                                                                                                                                                  |   |                                   | 40      |   |   |   | 67 |   |
|  Gains on sales of other real estate owned                                                                                                                                            |   |                                   | (196    | ) |   |   | (27 | ) |
|  Impairment on other real estate owned                                                                                                                                                |   |                                   | 71      |   |   |   | 144 |   |
|  Gains on sales of loans held-for-sale                                                                                                                                                |   |                                   | (137    | ) |   |   | (117 | ) |
|  Proceeds from sales of loans held-for-sale                                                                                                                                           |   |                                   | 6,259   |   |   |   | 9,614 |   |
|  Originations of loans held-for-sale                                                                                                                                                  |   |                                   | (6,815  | ) |   |   | (9,458 | ) |
|           Changes in assets and liabilities:                                                                                             |   |                                   |    |   |   |   |   |   |
|  (Increase) decrease in interest receivable and other assets                                                                                                                          |   |                                   | (1,127  | ) |   |   | 1,058 |   |
|  Decrease in interest payable and other liabilities                                                                                                                                   |   |                                   | (3      | ) |   |   | (161 | ) |
|                     Net cash provided by operating activities      |   |                                   | 31      |   |   |   | 3,146 |   |
|                                                                                                                                                                                       |   |                                   |    |   |   |   |   |   |
| Cash Flows From Investing Activities                                                                                                                                                  |   |                                   |    |   |   |   |   |   |
|           Net increase in investment securities                                                                           |   |                                   | (18,425 | ) |   |   | (20,464 | ) |
|           Net decrease in loans                                                                                                     |   |                                   | 19,629  |   |   |   | 21,474 |   |
|           Proceeds from the sale of other real estate owned                                                                              |   |                                   | 841     |   |   |   | 12 |   |
|           Purchases of premises and equipment, net                                                                   |   |                                   | (178    | ) |   |   | (32 | ) |
|                     Net cash provided by investing activities                |   |                                   | 1,867   |   |   |   | 990 |   |
|                                                                                                                                                                                       |   |                                   |    |   |   |   |   |   |
| Cash Flows From Financing Activities                                                                                                                                                  |   |                                   |    |   |   |   |   |   |
|           Net increase (decrease) in deposits                                                                                  |   |                                   | 11,009  |   |   |   | (541 | ) |
|           Net (decrease) increase in FHLB advances and other borrowings                                              |   |                                   | (29     | ) |   |   | 16 |   |
|           Cash dividends paid on preferred stock                                                                                         |   |                                   | (217    | ) |   |   | (217 | ) |
|                     Net cash provided by (used) in financing activities |   |                                   | 10,763  |   |   |   | (742 | ) |
|                                                                                                                                                                             |   |                                   |    |   |   |   |   |   |
| Net Increase in Cash and Cash Equivalents                                                                                                                         |   |                                   | 12,661  |   |   |   | 3,394 |   |
| Cash and Cash Equivalents, beginning of period                                                                                                                    |   |                                   | 139,707 |   |   |   | 147,076 |   |
| Cash and Cash Equivalents, end of period                                                                                                                     |   | $                                      | 152,368 |   |   | $ | 150,470 |   |
|                                                                                                                                                                                       |   |                                   |    |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow Information:                                                                                                                |   |                                   |    |   |   |   |   |   |
| Cash paid during the period for:                                                                                                                                  |   |                                   |    |   |   |   |   |   |
|                     Interest                                                           |   | $                                      | 663     |   |   | $ | 1,148 |   |
|                                                                                                                                                                                       |   |                                   |    |   |   |   |   |   |
| Supplemental disclosures of non-cash investing and financing activities:                                                                                |   |                                   |    |   |   |   |   |   |
| Preferred stock dividend payable and accretion                                                                                                                                             |   | $                                      | 143     |   |   | $ | 140 |   |
|    Transfer of loans held-for-investment to other real estate owned                                                                                                         |   | $                                      | 894     |   |   | $ | 888 |   |
|    Unrealized holding gains on available for sale securities, net of taxes                                                                                                  |   | $                                      | 40      |   |   | $ | 320 |   |

----

| 1. | BASIS OF PRESENTATION |
|----|-----------------------|

----

| ($ in thousands)                        |   | March 31,2011 |    |   | December 31,2010 |   |
|-----------------------------------------|--------|---------------|---------|--------|------------------|--------|
|                                    |   |          |    |   |             |   |
| Commercial                              |   | $             | 76,179  |   |             | $      | 82,815 |   |
| Commercial Real Estate                  |   |          | 186,820 |   |             |   | 186,405 |   |
| Agriculture                             |   |          | 41,427  |   |             |   | 53,040 |   |
| Residential Mortgage                    |   |          | 51,420  |   |             |   | 52,347 |   |
| Residential Construction                |   |          | 8,819   |   |             |   | 10,246 |   |
| Consumer                                |   |          | 67,859  |   |             |   | 68,374 |   |
|                                    |   |          |    |   |             |   |   |   |
|                                    |   |          | 432,524 |   |             |   | 453,227 |   |
| Allowance for loan losses               |   |          | (11,712 | )      |             |   | (11,039 | ) |
| Net deferred origination fees and costs |   |          | (114    | )      |             |   | (173 | ) |
|                                    |   |          |    |   |             |   |   |   |
| Loans, net                              |   | $             | 420,698 |   |             | $      | 442,015 |   |

----

----

| ($ in thousands)         |   | March 31,2011 |   |   | December 31,2010 |   |
|--------------------------|--------|---------------|--------|--------|------------------|--------|
|                     |   |          |   |   |             |   |
| Commercial               |   | $             | 1,575  |   |             | $      | 1,817 |   |
| Commercial Real Estate   |   |          | 5,748  |   |             |   | 5,864 |   |
| Agriculture              |   |          | 1,752  |   |             |   | 1,752 |   |
| Residential Mortgage     |   |          | 2,264  |   |             |   | 2,301 |   |
| Residential Construction |   |          | 511    |   |             |   | 272 |   |
| Consumer                 |   |          | 396    |   |             |   | 268 |   |
|                     |   |          |   |   |             |   |   |   |
|                     |   | $             | 12,246 |   |             | $      | 12,274 |   |

----

| ($ in thousands)              |   | 30-59 Days Past Due |    |   | 60-89 Days Past Due |   |    | 90 Days or more Past Due |   |   | Total Past Due |   |   | Current |   |   | Total Loans |   |
|-------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|--------------------------|--------|--------|----------------|--------|--------|---------|--------|--------|-------------|--------|
| March 31, 2011                |   |                |    |   |                |   |    |                     |   |   |           |   |   |    |   |   |        |   |
| Commercial                    |   | $                   | 301     |   |                | $      | — |                     |   | $      | 1,527          |   |   | $       | 1,828  |   |        | $      | 74,351 |   |   | $ | 76,179 |   |
| Commercial Real Estate        |   |                | 1,443   |   |                |   | 201     |                     |   |   | 4,273          |   |   |    | 5,917  |   |        |   | 180,903 |   |   |   | 186,820 |   |
| Agriculture                   |   |                | — |   |                |   | — |                     |   |   | 1,752          |   |   |    | 1,752  |   |        |   | 39,675 |   |   |   | 41,427 |   |
| Residential Mortgage          |   |                | 281     |   |                |   | — |                     |   |   | 1,148          |   |   |    | 1,429  |   |        |   | 49,991 |   |   |   | 51,420 |   |
| Residential Construction      |   |                | — |   |                |   | — |                     |   |   | 63             |   |   |    | 63     |   |        |   | 8,756 |   |   |   | 8,819 |   |
| Consumer                      |   |                | 72      |   |                |   | 2       |                     |   |   | 263            |   |   |    | 337    |   |        |   | 67,522 |   |   |   | 67,859 |   |
|     Total |   | $                   | 2,097   |   |                | $      | 203     |                     |   | $      | 9,026          |   |   | $       | 11,326 |   |        | $      | 421,198 |   |   | $ | 432,524 |   |
|                          |   |                |    |   |                |   |    |                     |   |   |           |   |   |    |   |   |        |   |   |   |   |   |   |   |
| December 31, 2010             |   |                |    |   |                |   |    |                     |   |   |           |   |   |    |   |   |        |   |   |   |   |   |   |   |
| Commercial                    |   | $                   | 1,606   |   |                | $      | 193     |                     |   | $      | 228            |   |   | $       | 2,027  |   |        | $      | 80,788 |   |   | $ | 82,815 |   |
| Commercial Real Estate        |   |                | 1,270   |   |                |   | 1,974   |                     |   |   | 3,767          |   |   |    | 7,011  |   |        |   | 179,394 |   |   |   | 186,405 |   |
| Agriculture                   |   |                | — |   |                |   | — |                     |   |   | 1,751          |   |   |    | 1,751  |   |        |   | 51,289 |   |   |   | 53,040 |   |
| Residential Mortgage          |   |                | 749     |   |                |   | — |                     |   |   | 1,326          |   |   |    | 2,075  |   |        |   | 50,272 |   |   |   | 52,347 |   |
| Residential Construction      |   |                | 462     |   |                |   | — |                     |   |   | 63             |   |   |    | 525    |   |        |   | 9,721 |   |   |   | 10,246 |   |
| Consumer                      |   |                | 421     |   |                |   | 88      |                     |   |   | 242            |   |   |    | 751    |   |        |   | 67,623 |   |   |   | 68,374 |   |
|     Total |   | $                   | 4,508   |   |                | $      | 2,255   |                     |   | $      | 7,377          |   |   | $       | 14,140 |   |        | $      | 439,087 |   |   | $ | 453,227 |   |

----

| ($ in thousands)              |   | Unpaid Contractual Principal Balance |   |   | Recorded Investment with no Allowance |   |   | Recorded Investment with Allowance |   |   | Total Recorded Investment |   |   | Related Allowance |   |
|-------------------------------|--------|--------------------------------------|--------|--------|---------------------------------------|--------|--------|------------------------------------|--------|--------|---------------------------|--------|--------|-------------------|--------|
| March 31, 2011                |   |                                 |   |   |                                  |   |   |                               |   |   |                      |   |   |              |   |
| Commercial                    |   | $                                    | 2,632  |   |                                  | $      | 1,751  |                               |   | $      | 985                       |   |   | $                 | 2,736  |   |   | $ | 60 |   |
| Commercial Real Estate        |   |                                 | 7,304  |   |                                  |   | 5,748  |                               |   |   | 1,223                     |   |   |              | 6,971  |   |   |   | 22 |   |
| Agriculture                   |   |                                 | 2,783  |   |                                  |   | 1,752  |                               |   |   | 381                       |   |   |              | 2,133  |   |   |   | 41 |   |
| Residential Mortgage          |   |                                 | 6,922  |   |                                  |   | 2,264  |                               |   |   | 4,129                     |   |   |              | 6,393  |   |   |   | 622 |   |
| Residential Construction      |   |                                 | 2,426  |   |                                  |   | 511    |                               |   |   | 1,478                     |   |   |              | 1,989  |   |   |   | 604 |   |
| Consumer                      |   |                                 | 521    |   |                                  |   | 262    |                               |   |   | 159                       |   |   |              | 421    |   |   |   | 115 |   |
|     Total |   | $                                    | 22,588 |   |                                  | $      | 12,288 |                               |   | $      | 8,355                     |   |   | $                 | 20,643 |   |   | $ | 1,464 |   |
|                          |   |                                 |   |   |                                  |   |   |                               |   |   |                      |   |   |              |   |   |   |   |   |   |
| December 31, 2010             |   |                                 |   |   |                                  |   |   |                               |   |   |                      |   |   |              |   |   |   |   |   |   |
| Commercial                    |   | $                                    | 3,725  |   |                                  | $      | 1,660  |                               |   | $      | 1,334                     |   |   | $                 | 2,994  |   |   | $ | 89 |   |
| Commercial Real Estate        |   |                                 | 7,414  |   |                                  |   | 5,864  |                               |   |   | 1,224                     |   |   |              | 7,088  |   |   |   | 22 |   |
| Agriculture                   |   |                                 | 2,785  |   |                                  |   | 1,752  |                               |   |   | 383                       |   |   |              | 2,135  |   |   |   | 41 |   |
| Residential Mortgage          |   |                                 | 6,544  |   |                                  |   | 2,123  |                               |   |   | 3,910                     |   |   |              | 6,033  |   |   |   | 543 |   |
| Residential Construction      |   |                                 | 2,058  |   |                                  |   | 272    |                               |   |   | 1,349                     |   |   |              | 1,621  |   |   |   | 575 |   |
| Consumer                      |   |                                 | 312    |   |                                  |   | 258    |                               |   |   | 36                        |   |   |              | 294    |   |   |   | 12 |   |
|     Total |   | $                                    | 22,838 |   |                                  | $      | 11,929 |                               |   | $      | 8,236                     |   |   | $                 | 20,165 |   |   | $ | 1,282 |   |

| ($ in thousands)              |   | Three Months EndedMarch 31, 2011 |   |   | Three Months EndedMarch 31, 2010 |   |
|-------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
|                          |   | Average Recorded Investment      |   |   | Interest Income Recognized       |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |
| Commercial                    |   | $                                | 2,865  |   |                             | $      | 17 |   |   | $ | 4,234 |   |   | $ | 31 |   |
| Commercial Real Estate        |   |                             | 7,030  |   |                             |   | 56 |   |   |   | 8,976 |   |   |   | 80 |   |
| Agriculture                   |   |                             | 2,133  |   |                             |   | 5 |   |   |   | 3,393 |   |   |   | 6 |   |
| Residential Mortgage          |   |                             | 6,213  |   |                             |   | 47 |   |   |   | 5,522 |   |   |   | 51 |   |
| Residential Construction      |   |                             | 1,805  |   |                             |   | 17 |   |   |   | 4,554 |   |   |   | 17 |   |
| Consumer                      |   |                             | 358    |   |                             |   | 3 |   |   |   | 199 |   |   |   | — |   |
|     Total |   | $                                | 20,404 |   |                             | $      | 145 |   |   | $ | 26,878 |   |   | $ | 185 |   |

----

----

| ($ in thousands)              |   | Pass   |    |   | Special Mention |   |   | Substandard |   |   | Doubtful |   |   | Loss   |    |   | Total  |   |
|-------------------------------|--------|--------|---------|--------|-----------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|---------|--------|--------|--------|
| March 31, 2011                |   |   |    |   |            |   |   |        |   |   |     |   |   |   |    |   |   |   |
| Commercial                    |   | $      | 54,057  |   |            | $      | 8,098  |        |   | $      | 12,904   |   |   | $      | 1,043   |   |   | $      | 77 |   |   | $ | 76,179 |   |
| Commercial Real Estate        |   |   | 149,704 |   |            |   | 15,766 |        |   |   | 21,350   |   |   |   | — |   |   |   | — |   |   |   | 186,820 |   |
| Agriculture                   |   |   | 32,620  |   |            |   | 3,347  |        |   |   | 5,460    |   |   |   | — |   |   |   | — |   |   |   | 41,427 |   |
| Residential Mortgage          |   |   | 42,508  |   |            |   | 281    |        |   |   | 8,631    |   |   |   | — |   |   |   | — |   |   |   | 51,420 |   |
| Residential Construction      |   |   | 5,668   |   |            |   | 479    |        |   |   | 2,672    |   |   |   | — |   |   |   | — |   |   |   | 8,819 |   |
| Consumer                      |   |   | 60,519  |   |            |   | 2,936  |        |   |   | 4,404    |   |   |   | — |   |   |   | — |   |   |   | 67,859 |   |
|     Total |   | $      | 345,076 |   |            | $      | 30,907 |        |   | $      | 55,421   |   |   | $      | 1,043   |   |   | $      | 77 |   |   | $ | 432,524 |   |
|                          |   |   |    |   |            |   |   |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| December 31, 2010             |   |   |    |   |            |   |   |        |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Commercial                    |   | $      | 57,966  |   |            | $      | 7,764  |        |   | $      | 15,862   |   |   | $      | 1,146   |   |   | $      | 77 |   |   | $ | 82,815 |   |
| Commercial Real Estate        |   |   | 147,350 |   |            |   | 26,040 |        |   |   | 13,015   |   |   |   | — |   |   |   | — |   |   |   | 186,405 |   |
| Agriculture                   |   |   | 43,384  |   |            |   | 4,991  |        |   |   | 4,665    |   |   |   | — |   |   |   | — |   |   |   | 53,040 |   |
| Residential Mortgage          |   |   | 41,437  |   |            |   | 3,235  |        |   |   | 7,675    |   |   |   | — |   |   |   | — |   |   |   | 52,347 |   |
| Residential Construction      |   |   | 5,890   |   |            |   | 2,315  |        |   |   | 2,041    |   |   |   | — |   |   |   | — |   |   |   | 10,246 |   |
| Consumer                      |   |   | 59,824  |   |            |   | 4,617  |        |   |   | 3,933    |   |   |   | — |   |   |   | — |   |   |   | 68,374 |   |
|     Total |   | $      | 355,851 |   |            | $      | 48,962 |        |   | $      | 47,191   |   |   | $      | 1,146   |   |   | $      | 77 |   |   | $ | 453,227 |   |

----

| ($ in thousands)                            |   | Commercial |   |   | Commercial Real Estate |   |    | Agriculture |   |   | Residential Mortgage |   |   | Residential Construction |    |   | Consumer |   |    | Unallocated |   |   | Total  |   |
|---------------------------------------------|--------|------------|--------|--------|------------------------|--------|---------|-------------|--------|--------|----------------------|--------|--------|--------------------------|---------|--------|----------|--------|---------|-------------|--------|--------|--------|--------|
| March 31, 2011                              |   |       |   |   |                   |   |    |        |   |   |                 |   |   |                     |    |   |     |   |    |        |   |   |   |   |
| Beginning balance                           |   | $          | 3,761  |   |                   | $      | 1,957   |        |   | $      | 2,141                |   |   | $                        | 830     |   |     | $      | 1,719   |        |   | $      | 556    |   |   | $ | 75 |   |   | $ | 11,039 |   |
| Provision for loan losses                   |   |       | (199   | )      |                   |   | 920     |        |   |   | (21                  | )      |   |                     | 217     |   |     |   | (318    | )           |   |   | 267    |   |   |   | 124 |   |   |   | 990 |   |
|                                        |   |       |   |   |                   |   |    |        |   |   |                 |   |   |                     |    |   |     |   |    |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs                                 |   |       | (178   | )      |                   |   | (7      | )           |   |   | —              |   |   |                     | (18     | )      |     |   | — |        |   |   | (220   | )      |   |   | — |   |   |   | (423 | ) |
| Recoveries                                  |   |       | 19     |   |                   |   | — |        |   |   | —              |   |   |                     | 1       |   |     |   | — |        |   |   | 86     |   |   |   | — |   |   |   | 106 |   |
| Net charge-offs                             |   |       | (159   | )      |                   |   | (7      | )           |   |   | —              |   |   |                     | (17     | )      |     |   | — |        |   |   | (134   | )      |   |   | — |   |   |   | (317 | ) |
| Ending Balance                              |   |       | 3,403  |   |                   |   | 2,870   |        |   |   | 2,120                |   |   |                     | 1,030   |   |     |   | 1,401   |        |   |   | 689    |   |   |   | 199 |   |   |   | 11,712 |   |
| Period-end amount allocated to:             |   |       |   |   |                   |   |    |        |   |   |                 |   |   |                     |    |   |     |   |    |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans individually evaluated for impairment |   |       | 60     |   |                   |   | 22      |        |   |   | 41                   |   |   |                     | 622     |   |     |   | 604     |        |   |   | 115    |   |   |   | — |   |   |   | 1,464 |   |
| Loans collectively evaluated for impairment |   |       | 3,343  |   |                   |   | 2,848   |        |   |   | 2,079                |   |   |                     | 408     |   |     |   | 797     |        |   |   | 574    |   |   |   | 199 |   |   |   | 10,248 |   |
| Ending Balance                              |   | $          | 3,403  |   |                   | $      | 2,870   |        |   | $      | 2,120                |   |   | $                        | 1,030   |   |     | $      | 1,401   |        |   | $      | 689    |   |   | $ | 199 |   |   | $ | 11,712 |   |
|                                        |   |       |   |   |                   |   |    |        |   |   |                 |   |   |                     |    |   |     |   |    |        |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2010                              |   |       |   |   |                   |   |    |        |   |   |                 |   |   |                     |    |   |     |   |    |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                           |   | $          | 4,036  |   |                   | $      | 2,706   |        |   | $      | 1,681                |   |   | $                        | 735     |   |     | $      | 1,611   |        |   | $      | 506    |   |   | $ | 641 |   |   | $ | 11,916 |   |
| Provision for loan losses                   |   |       | 637    |   |                   |   | (269    | )           |   |   | 333                  |   |   |                     | 214     |   |     |   | 270     |        |   |   | 328    |   |   |   | (63 | ) |   |   | 1,450 |   |
|                                        |   |       |   |   |                   |   |    |        |   |   |                 |   |   |                     |    |   |     |   |    |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs                                 |   |       | (629   | )      |                   |   | (117    | )           |   |   | (367                 | )      |   |                     | (267    | )      |     |   | (345    | )           |   |   | (391   | )      |   |   | — |   |   |   | (2,116 | ) |
| Recoveries                                  |   |       | 2      |   |                   |   | — |        |   |   | —              |   |   |                     | — |   |     |   | 6       |        |   |   | 53     |   |   |   | — |   |   |   | 61 |   |
| Net charge-offs                             |   |       | (627   | )      |                   |   | (117    | )           |   |   | (367                 | )      |   |                     | (267    | )      |     |   | (339    | )           |   |   | (338   | )      |   |   | — |   |   |   | (2,055 | ) |
| Ending Balance                              |   |       | 4,046  |   |                   |   | 2,320   |        |   |   | 1,647                |   |   |                     | 682     |   |     |   | 1,542   |        |   |   | 496    |   |   |   | 578 |   |   |   | 11,311 |   |
| Period-end amount allocated to:             |   |       |   |   |                   |   |    |        |   |   |                 |   |   |                     |    |   |     |   |    |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans individually evaluated for impairment |   |       | 11     |   |                   |   | 15      |        |   |   | 121                  |   |   |                     | 453     |   |     |   | 395     |        |   |   | 12     |   |   |   | — |   |   |   | 1,007 |   |
| Loans collectively evaluated for impairment |   |       | 4,035  |   |                   |   | 2,305   |        |   |   | 1,526                |   |   |                     | 229     |   |     |   | 1,147   |        |   |   | 484    |   |   |   | 578 |   |   |   | 10,304 |   |
| Ending Balance                              |   | $          | 4,046  |   |                   | $      | 2,320   |        |   | $      | 1,647                |   |   | $                        | 682     |   |     | $      | 1,542   |        |   | $      | 496    |   |   | $ | 578 |   |   | $ | 11,311 |   |

----

| ($ in thousands)                            |   | Commercial |   |   | Commercial Real Estate |   |   | Agriculture |   |   | Residential Mortgage |   |   | Residential Construction |   |   | Consumer |   |   | Unallocated |   |   | Total  |   |
|---------------------------------------------|--------|------------|--------|--------|------------------------|--------|--------|-------------|--------|--------|----------------------|--------|--------|--------------------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------|--------|
| Beginning balance                           |   | $          | 4,036  |   |                   | $      | 2,706  |        |   | $      | 1,681                |   |   | $                        | 735    |   |     | $      | 1,611  |        |   | $      | 506    |   |   | $ | 641 |   |   | $ | 11,916 |   |
| Provision for loan losses                   |   |       | 1,115  |   |                   |   | 741    |        |   |   | 1,118                |   |   |                     | 788    |   |     |   | 932    |        |   |   | 786    |   |   |   | (566 | ) |   |   | 4,914 |   |
|                                        |   |       |   |   |                   |   |   |        |   |   |                 |   |   |                     |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs                                 |   |       | (1,930 | )      |                   |   | (1,491 | )           |   |   | (736                 | )      |   |                     | (715   | )      |     |   | (830   | )           |   |   | (914   | )      |   |   | — |   |   |   | (6,616 | ) |
| Recoveries                                  |   |       | 540    |   |                   |   | 1      |        |   |   | 78                   |   |   |                     | 22     |   |     |   | 6      |        |   |   | 178    |   |   |   | — |   |   |   | 825 |   |
| Net charge-offs                             |   |       | (1,390 | )      |                   |   | (1,490 | )           |   |   | (658                 | )      |   |                     | (693   | )      |     |   | (824   | )           |   |   | (736   | )      |   |   | — |   |   |   | (5,791 | ) |
| Ending Balance                              |   |       | 3,761  |   |                   |   | 1,957  |        |   |   | 2,141                |   |   |                     | 830    |   |     |   | 1,719  |        |   |   | 556    |   |   |   | 75 |   |   |   | 11,039 |   |
| Period-end amount allocated to:             |   |       |   |   |                   |   |   |        |   |   |                 |   |   |                     |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans individually evaluated for impairment |   |       | 89     |   |                   |   | 22     |        |   |   | 41                   |   |   |                     | 543    |   |     |   | 575    |        |   |   | 12     |   |   |   | — |   |   |   | 1,282 |   |
| Loans collectively evaluated for impairment |   |       | 3,672  |   |                   |   | 1,935  |        |   |   | 2,100                |   |   |                     | 287    |   |     |   | 1,144  |        |   |   | 544    |   |   |   | 75 |   |   |   | 9,757 |   |
| Ending Balance                              |   | $          | 3,761  |   |                   | $      | 1,957  |        |   | $      | 2,141                |   |   | $                        | 830    |   |     | $      | 1,719  |        |   | $      | 556    |   |   | $ | 75 |   |   | $ | 11,039 |   |

| ($ in thousands)                            |   | Commercial |   |   | Commercial Real Estate |   |    | Agriculture |   |   | Residential Mortgage |   |   | Residential Construction |   |   | Consumer |   |   | Total  |   |
|---------------------------------------------|--------|------------|--------|--------|------------------------|--------|---------|-------------|--------|--------|----------------------|--------|--------|--------------------------|--------|--------|----------|--------|--------|--------|--------|
| March 31, 2011                              |   |
| Loans individually evaluated for impairment |   | $          | 2,736  |   |                   | $      | 6,971   |        |   | $      | 2,133                |   |   | $                        | 6,393  |   |     | $      | 1,989  |   |   | $ | 421 |   |   | $ | 20,643 |   |
| Loans collectively evaluated for impairment |   |       | 73,443 |   |                   |   | 179,849 |        |   |   | 39,294               |   |   |                     | 45,027 |   |     |   | 6,830  |   |   |   | 67,438 |   |   |   | 411,881 |   |
| Ending Balance                              |   | $          | 76,179 |   |                   | $      | 186,820 |        |   | $      | 41,427               |   |   | $                        | 51,420 |   |     | $      | 8,819  |   |   | $ | 67,859 |   |   | $ | 432,524 |   |
|                                        |   |       |   |   |                   |   |    |        |   |   |                 |   |   |                     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2010                              |   |
| Loans individually evaluated for impairment |   | $          | 3,904  |   |                   | $      | 9,385   |        |   | $      | 3,208                |   |   | $                        | 5,942  |   |     | $      | 3,413  |   |   | $ | 299 |   |   | $ | 26,151 |   |
| Loans collectively evaluated for impairment |   |       | 87,234 |   |                   |   | 182,142 |        |   |   | 43,122               |   |   |                     | 49,350 |   |     |   | 8,553  |   |   |   | 65,568 |   |   |   | 435,969 |   |
| Ending Balance                              |   | $          | 91,138 |   |                   | $      | 191,527 |        |   | $      | 46,330               |   |   | $                        | 55,292 |   |     | $      | 11,966 |   |   | $ | 65,867 |   |   | $ | 462,120 |   |
|                                        |   |       |   |   |                   |   |    |        |   |   |                 |   |   |                     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010                      |   |
| Loans individually evaluated for impairment |   | $          | 2,994  |   |                   | $      | 7,088   |        |   | $      | 2,135                |   |   | $                        | 6,033  |   |     | $      | 1,621  |   |   | $ | 294 |   |   | $ | 20,165 |   |
| Loans collectively evaluated for impairment |   |       | 79,821 |   |                   |   | 179,317 |        |   |   | 50,905               |   |   |                     | 46,314 |   |     |   | 8,625  |   |   |   | 68,080 |   |   |   | 433,062 |   |
| Ending Balance                              |   | $          | 82,815 |   |                   | $      | 186,405 |        |   | $      | 53,040               |   |   | $                        | 52,347 |   |     | $      | 10,246 |   |   | $ | 68,374 |   |   | $ | 453,227 |   |

----

| 3. | MORTGAGE OPERATIONS |
|----|---------------------|

|                                                  |   | (in thousands)    |   |
|-------------------------------------------------------|--------|-------------------|--------|
|                                                  |   | December 31, 2010 |   |   | Additions |   |   | Reductions |   |   | March 31, 2011 |   |
|                                                  |   |              |   |   |   |   |   |   |   |   |   |   |
| Mortgage servicing rights                             |   | $                 | 1,712  |   |   | $ | 83 |   |   | $ | 91 |   |   | $ | 1,704 |   |
| Valuation allowance                                   |   |              | (345   | ) |   |   | — |   |   |   | (210 | ) |   |   | (135 | ) |
| Mortgage servicing rights, net of valuation allowance |   | $                 | 1,367  |   |   | $ | 83 |   |   | $ | (119 | ) |   | $ | 1,569 |   |
|                                                  |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                |   | Three months ended |      |
|-----------------------------------------------------|--------|--------------------|-----------|
|                                                |   | March 31,          |      |
|                                                |   | 2011               |      |   | 2010 |   |
| Basic earnings per share:                           |   |               |      |   |   |   |
| Net income                                          |   | $                  | 766       |   |   | $ | 361 |   |
| Preferred stock dividend and accretion              |   | $                  | (249      | ) |   | $ | (246 | ) |
| Net income available to common shareholders         |   | $                  | 517       |   |   | $ | 115 |   |
|                                                |   |               |      |   |   |   |   |   |
| Weighted average common shares outstanding          |   |               | 9,057,588 |   |   |   | 9,007,417 |   |
| Basic EPS                                           |   | $                  | 0.06      |   |   | $ | 0.01 |   |
|                                                |   |               |      |   |   |   |   |   |
| Diluted earnings per share:                         |   |               |      |   |   |   |   |   |
| Net income                                          |   | $                  | 766       |   |   | $ | 361 |   |
| Preferred stock dividend and accretion              |   | $                  | (249      | ) |   | $ | (246 | ) |
| Net income available to common shareholders         |   | $                  | 517       |   |   | $ | 115 |   |
|                                                |   |               |      |   |   |   |   |   |
| Weighted average common shares outstanding          |   |               | 9,057,588 |   |   |   | 9,007,417 |   |
|                                                |   |               |      |   |   |   |   |   |
| Effect of dilutive options                          |   |               | 2,334     |   |   |   | 956 |   |
|                                                |   |               |      |   |   |   |   |   |
| Adjusted weighted average common shares outstanding |   |               | 9,059,922 |   |   |   | 9,008,373 |   |
| Diluted EPS                                         |   | $                  | 0.06      |   |   | $ | 0.01 |   |

----

|                                                  |   | Number of Shares |    |   | Weighted Average Exercise Price |   |    | Aggregate Intrinsic Value |   |   | Weighted Average Remaining Contractual Term (in years) |   |
|-------------------------------------------------------|--------|------------------|---------|--------|---------------------------------|--------|---------|---------------------------|--------|--------|-------------------------------------------------------------|--------|
| Options outstanding at Beginning of  Period |   |             | 507,947 |   |                            | $      | 11.07   |                      |   |   |                                                        |   |   |   |
|                                                  |   |             |    |   |                            |   |    |                      |   |   |                                                        |   |   |   |
|    Granted                             |   |             | 13,750  |   |                            | $      | 4.75    |                      |   |   |                                                        |   |   |   |
|                                                  |   |             |    |   |                            |   |    |                      |   |   |                                                        |   |   |   |
|    Expired                             |   |             | (74,730 | )      |                            | $      | 5.13    |                      |   |   |                                                        |   |   |   |
|                                                  |   |             |    |   |                            |   |    |                      |   |   |                                                        |   |   |   |
|    Cancelled / Forfeited               |   |             | — |   |                            |   | — |                      |   |   |                                                        |   |   |   |
|                                                  |   |             |    |   |                            |   |    |                      |   |   |                                                        |   |   |   |
|    Exercised                           |   |             | — |   |                            |   | — |                      |   |   | —                                                     |   |   |   |   |
|                                                  |   |             |    |   |                            |   |    |                      |   |   |                                                        |   |   |   |   |
| Options outstanding at End of Period                  |   |             | 446,967 |   |                            | $      | 11.86   |                      |   | $      | 4,375                                                       |   |   |   | 3.85 |   |
|                                                  |   |             |    |   |                            |   |    |                      |   |   |                                                        |   |   |   |   |   |
| Exercisable (vested) at End of Period                 |   |             | 413,613 |   |                            | $      | 12.40   |                      |   | $      | 1,094                                                       |   |   |   | 3.42 |   |

|                            |   | Three Months Ended |   |
|---------------------------------|--------|--------------------|--------|
|                            |   | March 31, 2011     |   |
|  Risk Free Interest Rate   |   |               | 1.91   | % |
|                            |   |               |   |   |
|  Expected Dividend Yield   |   |               | 0.00   | % |
|                            |   |               |   |   |
|  Expected Life in Years    |   |               | 5      |   |
|                            |   |               |   |   |
|  Expected Price Volatility |   |               | 50.98  | % |

----

|                                                           |   | Number of Shares |    |   | Weighted Average Grant-Date Fair Value |   |    | Aggregate Intrinsic Value |   | Weighted Average Remaining Contractual Term (in years) |
|----------------------------------------------------------------|--------|------------------|---------|--------|----------------------------------------|--------|---------|---------------------------|--------|-------------------------------------------------------------|
| Restricted stock outstanding at Beginning of  Period |   |             | 39,528  |   |                                   | $      | 10.26   |                      |   |                                                        |   |   |
|                                                           |   |             |    |   |                                   |   |    |                      |   |                                                        |   |   |
|    Granted                                      |   |             | 13,158  |   |                                   | $      | 4.75    |                      |   |                                                        |   |   |
|                                                           |   |             |    |   |                                   |   |    |                      |   |                                                        |   |   |
|    Cancelled / Forfeited                        |   |             | — |   |                                   |   | — |                      |   |                                                        |   |   |
|                                                           |   |             |    |   |                                   |   |    |                      |   |                                                        |   |   |
|    Exercised/Released/Vested                    |   |             | (7,116  | )      |                                   | $      | 19.47   |                      |   | $                                                           | 31,666 |   |   |
|                                                           |   |             |    |   |                                   |   |    |                      |   |                                                        |   |   |   |
| Restricted stock outstanding at End of Period                  |   |             | 45,570  |   |                                   | $      | 7.23    |                      |   | $                                                           | 205,065 |   |   8.51 |
|                                                           |   |             |    |   |                                   |   |    |                      |   |                                                        |   |   |   |

----

|                            |   | Three Months Ended |   |
|---------------------------------|--------|--------------------|--------|
|                            |   | March 31, 2011     |   |   |   |
|  Risk Free Interest Rate   |   |               | 0.26   | % |
|                            |   |               |   |   |
|  Expected Dividend Yield   |   |               | 0.00   | % |
|                            |   |               |   |   |
|  Expected Life in Years    |   |               | 1.00   |   |
|                            |   |               |   |   |
|  Expected Price Volatility |   |               | 30.00  | % |

----

|   |             Level 1  |   | Valuation is based upon quoted prices for identical instruments traded in active markets.                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |             Level 2  |   | Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data.                                                                                                                                                                    |
|   |                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |             Level 3       |   | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market.  These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability.  Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques and include management judgment and estimation which may be significant. |

----

|                                           |   | (in thousands) |    |
|------------------------------------------------|--------|----------------|---------|
| March 31, 2011                                 |   | Total          |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| U.S. Treasury securities                       |   | $              | 8,194   |   |   | $ | 8,194 |   |   | $ | — |   |   | $ | — |   |
| Securities of U.S. government                  |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    agencies and corporations    |   |           | 41,538  |   |   |   | 41,538 |   |   |   | — |   |   |   | — |   |
| Obligations of states and                      |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     political subdivisions |   |           | 22,106  |   |   |   | — |   |   |   | 22,106 |   |   |   | — |   |
| Mortgage-backed securities                     |   |           | 54,000  |   |   |   | — |   |   |   | 54,000 |   |   |   | — |   |
|                                           |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total investments at fair value                |   | $              | 125,838 |   |   | $ | 49,732 |   |   | $ | 76,106 |   |   | $ | — |   |
|                                           |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                           |   | (in thousands) |    |
|------------------------------------------------|--------|----------------|---------|
| December 31, 2010                              |   | Total          |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| U.S. Treasury securities                       |   | $              | 4,226   |   |   | $ | 4,226 |   |   | $ | — |   |   | $ | — |   |
| Securities of U.S. government                  |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    agencies and corporations    |   |           | 40,775  |   |   |   | 40,775 |   |   |   | — |   |   |   | — |   |
| Obligations of states and                      |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     political subdivisions |   |           | 20,045  |   |   |   | — |   |   |   | 20,045 |   |   |   | — |   |
| Mortgage-backed securities                     |   |           | 42,300  |   |   |   | — |   |   |   | 42,300 |   |   |   | — |   |
|                                           |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total investments at fair value                |   | $              | 107,346 |   |   | $ | 45,001 |   |   | $ | 62,345 |   |   | $ | — |   |

----

|                       |   | (in thousands) |   |
|----------------------------|--------|----------------|--------|
| March 31, 2011             |   | Total          |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total gains/losses |   |
| Impaired loans             |   | $              | 568    |   |   | $ | — |   |   | $ | — |   |   | $ | 568 |   |   | $ | (106 | ) |
| Other real estate owned    |   |           | 1,178  |   |   |   | — |   |   |   | — |   |   |   | 1,178 |   |   |   | (71 | ) |
| Loan servicing rights      |   |           | 1,569  |   |   |   | — |   |   |   | — |   |   |   | 1,569 |   |   |   | 210 |   |
|                       |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets at fair value |   | $              | 3,315  |   |   | $ | — |   |   | $ | — |   |   | $ | 3,315 |   |   | $ | 33 |   |

|                       |   | (in thousands) |   |
|----------------------------|--------|----------------|--------|
| December 31, 2010          |   | Total          |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total gains/losses |   |
| Impaired loans             |   | $              | 7,807  |   |   | $ | — |   |   | $ | — |   |   | $ | 7,807 |   |   | $ | (2,578 | ) |
| Other real estate owned    |   |           | 1,517  |   |   |   | — |   |   |   | — |   |   |   | 1,517 |   |   |   | (689 | ) |
| Loan servicing rights      |   |           | 1,367  |   |   |   | — |   |   |   | — |   |   |   | 1,367 |   |   |   | (69 | ) |
|                       |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets at fair value |   | $              | 10,691 |   |   | $ | — |   |   | $ | — |   |   | $ | 10,691 |   |   | $ | (3,336 | ) |

----

----

----

|                                                |   | March 31, 2011  |    |   | December 31, 2010 |   |
|-----------------------------------------------------|--------|-----------------|---------|--------|-------------------|--------|
| (in thousands)                                      |   | Carrying amount |    |   | Fairvalue         |   |   | Carrying amount |   |   | Fairvalue |   |
|                                                |   |            |    |   |              |   |   |   |   |   |   |   |
| Financial assets:                                   |   |            |    |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                           |   | $               | 152,368 |   |              | $      | 152,368 |   |   | $ | 139,707 |   |   | $ | 139,707 |   |
| Investment securities                               |   |            | 125,838 |   |              |   | 125,838 |   |   |   | 107,346 |   |   |   | 107,346 |   |
| Other equity securities                             |   |            | 2,823   |   |              |   | 2,823 |   |   |   | 2,823 |   |   |   | 2,823 |   |
| Loans:                                              |   |            |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net loans                                           |   |            | 420,698 |   |              |   | 417,816 |   |   |   | 442,015 |   |   |   | 439,274 |   |
| Loans held-for-sale                                 |   |            | 3,038   |   |              |   | 3,031 |   |   |   | 2,345 |   |   |   | 2,344 |   |
| Interest receivable                                 |   |            | 2,445   |   |              |   | 2,445 |   |   |   | 2,486 |   |   |   | 2,486 |   |
| Financial liabilities:                              |   |            |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                            |   |            | 651,267 |   |              |   | 641,047 |   |   |   | 640,258 |   |   |   | 631,281 |   |
| FHLB advances and other   borrowings |   |            | 10,500  |   |              |   | 10,737 |   |   |   | 10,529 |   |   |   | 10,775 |   |
| Interest payable                                    |   |            | 149     |   |              |   | 149 |   |   |   | 151 |   |   |   | 151 |   |

|                                |   | March 31, 2011  |    |   | December 31, 2010 |   |
|-------------------------------------|--------|-----------------|---------|--------|-------------------|--------|
| (in thousands)                      |   | Contract amount |    |   | Fairvalue         |   |   | Contract amount |   |   | FairValue |   |
|                                |   |            |    |   |              |   |   |   |   |   |   |   |
| Unrecognized financial instruments: |   |            |    |   |              |   |   |   |   |   |   |   |
| Commitments to extend credit        |   | $               | 146,238 |   |              | $      | 1,097 |   |   | $ | 140,408 |   |   | $ | 1,053 |   |
| Standby letters of credit           |   |            | 2,283   |   |              |   | 23 |   |   |   | 3,739 |   |   |   | 37 |   |

----

| (in thousands)                                          |   | Amortized cost |    |   | Unrealized gains |   |   | Unrealized losses |   |   | Estimated fair value |   |
|---------------------------------------------------------|--------|----------------|---------|--------|------------------|--------|--------|-------------------|--------|--------|----------------------|--------|
|                                                    |   |           |    |   |             |   |   |              |   |   |                 |   |
| Investment securities available-for-sale:               |   |           |    |   |             |   |   |              |   |   |                 |   |
| U.S. Treasury securities                                |   | $              | 8,187   |   |             | $      | 20     |              |   | $      | (13                  | )      |   | $ | 8,194 |   |
| Securities of U.S. government agencies and corporations |   |           | 41,955  |   |             |   | 37     |              |   |   | (454                 | )      |   |   | 41,538 |   |
| Obligations of states and political subdivisions        |   |           | 22,457  |   |             |   | 134    |              |   |   | (485                 | )      |   |   | 22,106 |   |
| Mortgage-backed securities                              |   |           | 53,965  |   |             |   | 227    |              |   |   | (192                 | )      |   |   | 54,000 |   |
|                                                    |   |           |    |   |             |   |   |              |   |   |                 |   |   |   |   |   |
| Total debt securities                                   |   | $              | 126,564 |   |             | $      | 418    |              |   | $      | (1,144               | )      |   | $ | 125,838 |   |

| (in thousands)                                          |   | Amortized cost |    |   | Unrealized gains |   |   | Unrealized losses |   |   | Estimated fair value |   |
|---------------------------------------------------------|--------|----------------|---------|--------|------------------|--------|--------|-------------------|--------|--------|----------------------|--------|
|                                                    |   |           |    |   |             |   |   |              |   |   |                 |   |
| Investment securities available-for-sale:               |   |           |    |   |             |   |   |              |   |   |                 |   |
| U.S. Treasury securities                                |   | $              | 4,225   |   |             | $      | 1      |              |   | $      | —              |   |   | $ | 4,226 |   |
| Securities of U.S. government agencies and corporations |   |           | 40,937  |   |             |   | 63     |              |   |   | (225                 | )      |   |   | 40,775 |   |
| Obligations of states and political subdivisions        |   |           | 20,663  |   |             |   | 103    |              |   |   | (721                 | )      |   |   | 20,045 |   |
| Mortgage-backed securities                              |   |           | 42,313  |   |             |   | 177    |              |   |   | (190                 | )      |   |   | 42,300 |   |
|                                                    |   |           |    |   |             |   |   |              |   |   |                 |   |   |   |   |   |
| Total debt securities                                   |   | $              | 108,138 |   |             | $      | 344    |              |   | $      | (1,136               | )      |   | $ | 107,346 |   |

| (in thousands)                         |   | Amortizedcost |    |   | Estimated fair value |   |
|----------------------------------------|--------|---------------|---------|--------|----------------------|--------|
|                                   |   |          |    |   |                 |   |
| Due in one year or less                |   | $             | 11,529  |   |                 | $      | 11,561 |   |
| Due after one year through five years  |   |          | 83,897  |   |                 |   | 83,679 |   |
| Due after five years through ten years |   |          | 16,229  |   |                 |   | 16,009 |   |
| Due after ten years                    |   |          | 14,909  |   |                 |   | 14,589 |   |
|                                   |   |          |    |   |                 |   |   |   |
|                                   |   | $             | 126,564 |   |                 | $      | 125,838 |   |

----

|                                                                                                  |   | Less than 12 months |   |   | 12 months or more |   |   | Total      |   |
|-------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|------------|--------|
| (in thousands)                                                                                        |   | Fair Value          |   |   | Unrealized losses |   |   | Fair Value |   |   | Unrealized losses |   |   | Fair Value |   |   | Unrealized losses |   |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury securities                                                                              |   | $                   | 5,908  |   |              | $      | (13    | )          |   | $ | — |   |   | $ | — |   |   | $ | 5,908 |   |   | $ | (13 | ) |
| Securities of U.S.    government agencies    and corporations |   |                | 29,028 |   |              |   | (454   | )          |   |   | — |   |   |   | — |   |   |   | 29,028 |   |   |   | (454 | ) |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of states and political subdivisions                                                      |   |                | 11,536 |   |              |   | (384   | )          |   |   | 1,084 |   |   |   | (101 | ) |   |   | 12,620 |   |   |   | (485 | ) |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities                                                                            |   |                | 34,964 |   |              |   | (192   | )          |   |   | — |   |   |   | — |   |   |   | 34,964 |   |   |   | (192 | ) |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                 |   | $                   | 81,436 |   |              | $      | (1,043 | )          |   | $ | 1,084 |   |   | $ | (101 | ) |   | $ | 82,520 |   |   | $ | (1,144 | ) |

|                                                                                                  |   | Less than 12 months |   |   | 12 months or more |   |   | Total      |   |
|-------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|------------|--------|
| (in thousands)                                                                                        |   | Fair Value          |   |   | Unrealized losses |   |   | Fair Value |   |   | Unrealized losses |   |   | Fair Value |   |   | Unrealized losses |   |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Securities of U.S.    government agencies    and corporations |   | $                   | 11,847 |   |              | $      | (225   | )          |   | $ | — |   |   | $ | — |   |   | $ | 11,847 |   |   | $ | (225 | ) |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of states and political subdivisions                                                      |   |                | 12,631 |   |              |   | (620   | )          |   |   | 1,084 |   |   |   | (101 | ) |   |   | 13,715 |   |   |   | (721 | ) |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities                                                                            |   |                | 26,186 |   |              |   | (190   | )          |   |   | — |   |   |   | — |   |   |   | 26,186 |   |   |   | (190 | ) |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                 |   | $                   | 50,664 |   |              | $      | (1,035 | )          |   | $ | 1,084 |   |   | $ | (101 | ) |   | $ | 51,748 |   |   | $ | (1,136 | ) |

----

| ·   | Our business objectives, strategies and initiatives, our organizational structure, the growth of our business and our competitive position |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Credit quality and provision for credit losses |
|--------------------|------------------------------------------------|

| ·   | Our allowances for credit losses, including the conditions we consider in determining the unallocated allowance and our portfolio credit quality, underwriting standards, and risk grade |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our assessment of significant factors and developments that have affected or may affect our results |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | Pending and recent legal and regulatory actions, and future legislative and regulatory developments, including the effects of legislation and governmental measures enacted or introduced in response to the financial crises affecting the banking system, financial markets and the U.S. economy |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Regulatory controls and processes and their impact on our business |
|--------------------|--------------------------------------------------------------------|

| ·   | The costs and effects of legal actions |
|--------------------|----------------------------------------|

| ·   | Our regulatory capital requirements |
|--------------------|-------------------------------------|

| ·   | We do not anticipate paying a cash dividend in the foreseeable future |
|--------------------|-----------------------------------------------------------------------|

| ·   | Our assessment of economic conditions and trends and credit cycles and their impact on our business |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | The impact of changes in interest rates and our strategy to manage our interest rate risk profile |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | Loan portfolio composition and risk grade trends, expected charge offs, delinquency rates and our underwriting standards |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

----

| ·   | The Company believes that the Bank’s deposit base does not involve any undue concentration levels from one person or industry |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our intent to sell, and the likelihood that we would be required to sell, various investment securities |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | Our liquidity position |
|--------------------|------------------------|

| ·   | Critical accounting policies and estimates, the impact or anticipated impact of recent accounting pronouncements or change in accounting principles |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Expected rates of return, yields and projected results |
|--------------------|--------------------------------------------------------|

----

----

|                                                            |   | Three months ended March 31, 2011 |   |   | Three months ended March 31, 2010 |   |
|-----------------------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|
|                                                            |   |                              |   |   |                              |   |
| (in thousands except for per share amounts)                     |   |                              |   |   |
| For the Period:                                                 |   |                              |   |   |                              |   |
|      Net Income                        |   | $                                 | 766    |   |                              | $      | 361 |   |
|                                                            |   |                              |   |   |                              |   |   |   |
|      Basic Earnings Per Common Share   |   | $                                 | 0.06   |   |                              | $      | 0.01 |   |
|                                                            |   |                              |   |   |                              |   |   |   |
|      Diluted Earnings Per Common Share |   | $                                 | 0.06   |   |                              | $      | 0.01 |   |

|                                                                                 |   | March 31, 2011 |    |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                                                                                 |   |                |    |   |                   |   |
| (in thousands except for ratios)                                                     |   |                |    |   |
| At Period End:                                                                       |   |                |    |   |                   |   |
|       Total Assets                                     |   | $                   | 748,823 |   |                   | $      | 737,217 |   |
|                                                                                 |   |                |    |   |                   |   |   |   |
|       Total Loans, Net (including loans held-for-sale) |   | $                   | 423,736 |   |                   | $      | 444,360 |   |
|                                                                                 |   |                |    |   |                   |   |   |   |
|      Total Investment Securities                            |   | $                   | 125,838 |   |                   | $      | 107,346 |   |
|                                                                                 |   |                |    |   |                   |   |   |   |
|      Total Deposits                                         |   | $                   | 651,267 |   |                   | $      | 640,258 |   |
|                                                                                 |   |                |    |   |                   |   |   |   |
|       Loan-To-Deposit Ratio                            |   |                | 65.1    | %      |                   |   | 69.4 | % |

----

|                                                                                                                                                                                                                                                                                                                                   |   | Three months ended |    |   | Three months ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                   |   | March 31, 2011     |    |   | March 31, 2010     |   |
|                                                                                                                                                                                                                                                                                                                                   |   | Average            |    |   |               |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |
|                                                                                                                                                                                                                                                                                                                                   |   | Balance            |    |   | Interest           |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| Assets                                                                                                                                                                                                                                                                                                                                 |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                                                                                                                                                                                                                                                                                               |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)                                                                                                                                                                                                                                                                                                                              |   | $                  | 431,210 |   |               | $      | 6,257 |   |   |   | 5.88 | % |   | $ | 461,956 |   |   | $ | 6,798 |   |   |   | 5.97 | % |
| Interest bearing due from banks                                                                                                                                                                                                                                                                                                        |   |               | 146,049 |   |               |   | 85 |   |   |   | 0.24 | % |   |   | 144,621 |   |   |   | 94 |   |   |   | 0.26 | % |
| Investment securities, taxable                                                                                                                                                                                                                                                                                                         |   |               | 103,939 |   |               |   | 570 |   |   |   | 2.22 | % |   |   | 60,456 |   |   |   | 375 |   |   |   | 2.52 | % |
| Investment securities, non-taxable  (2)                                                                                                                                                                                                                                                                                      |   |               | 10,406  |   |               |   | 111 |   |   |   | 4.33 | % |   |   | 22,626 |   |   |   | 235 |   |   |   | 4.21 | % |
| Other interest earning assets                                                                                                                                                                                                                                                                                                          |   |               | 2,823   |   |               |   | — |   |   |   | 0.00 | % |   |   | 2,506 |   |   |   | — |   |   |   | — |   |
| Total average interest-earning assets                                                                                                                                                                                                                                                                                                  |   |               | 694,427 |   |               |   | 7,023 |   |   |   | 4.10 | % |   |   | 692,165 |   |   |   | 7,502 |   |   |   | 4.40 | % |
| Non-interest-earning assets:                                                                                                                                                                                                                                                                                                           |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                                                                                                                                                                                                                |   |               | 15,778  |   |               |   |   |   |   |   |   |   |   |   | 14,277 |   |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                                                                                                                                                                                                                                                                                            |   |               | 8,016   |   |               |   |   |   |   |   |   |   |   |   | 7,340 |   |   |   |   |   |   |   |   |   |
| Other real estate owned                                                                                                                                                                                                                                                                                                                |   |               | 3,269   |   |               |   |   |   |   |   |   |   |   |   | 3,654 |   |   |   |   |   |   |   |   |   |
| Interest receivable and other assets                                                                                                                                                                                                                                                                                                   |   |               | 32,631  |   |               |   |   |   |   |   |   |   |   |   | 34,208 |   |   |   |   |   |   |   |   |   |
| Total average assets                                                                                                                                                                                                                                                                                                                   |   |               | 754,121 |   |               |   |   |   |   |   |   |   |   |   | 751,644 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                   |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders’ Equity:                                                                                                                                                                                                                                                                                            |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                                                                                                                                                                                                                          |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing transaction deposits                                                                                                                                                                                                                                                                                                  |   |               | 147,803 |   |               |   | 85 |   |   |   | 0.23 | % |   |   | 135,981 |   |   |   | 114 |   |   |   | 0.34 | % |
| Savings and MMDA’s                                                                                                                                                                                                                                                                                                               |   |               | 211,762 |   |               |   | 242 |   |   |   | 0.46 | % |   |   | 194,044 |   |   |   | 344 |   |   |   | 0.72 | % |
| Time, under $100,000                                                                                                                                                                                                                                                                                                                   |   |               | 39,813  |   |               |   | 64 |   |   |   | 0.65 | % |   |   | 53,212 |   |   |   | 159 |   |   |   | 1.21 | % |
| Time, $100,000 and over                                                                                                                                                                                                                                                                                                                |   |               | 67,567  |   |               |   | 180 |   |   |   | 1.08 | % |   |   | 95,091 |   |   |   | 387 |   |   |   | 1.65 | % |
| FHLB advances and other borrowings                                                                                                                                                                                                                                                                                                     |   |               | 10,137  |   |               |   | 90 |   |   |   | 3.60 | % |   |   | 11,798 |   |   |   | 107 |   |   |   | 3.68 | % |
| Total average interest-bearing liabilities                                                                                                                                                                                                                                                                                             |   |               | 477,082 |   |               |   | 661 |   |   |   | 0.56 | % |   |   | 490,126 |   |   |   | 1,111 |   |   |   | 0.92 | % |
| Non-interest-bearing liabilities:                                                                                                                                                                                                                                                                                                      |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing demand deposits                                                                                                                                                                                                                                                                                                   |   |               | 191,623 |   |               |   |   |   |   |   |   |   |   |   | 178,124 |   |   |   |   |   |   |   |   |   |
| Interest payable and other liabilities                                                                                                                                                                                                                                                                                                 |   |               | 6,245   |   |               |   |   |   |   |   |   |   |   |   | 6,136 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                      |   |               | 674,950 |   |               |   |   |   |   |   |   |   |   |   | 674,386 |   |   |   |   |   |   |   |   |   |
| Total average stockholders’ equity                                                                                                                                                                                                                                                                                               |   |               | 79,171  |   |               |   |   |   |   |   |   |   |   |   | 77,258 |   |   |   |   |   |   |   |   |   |
| Total average liabilities and stockholders’ equity                                                                                                                                                                                                                                                                               |   | $                  | 754,121 |   |               |   |   |   |   |   |   |   |   | $ | 751,644 |   |   |   |   |   |   |   |   |   |
| Net interest income and net interest margin (3)                                                                                                                                                                                                                                                                                        |   |               |    |   |               | $      | 6,362 |   |   |   | 3.72 | % |   |   |   |   |   | $ | 6,391 |   |   |   | 3.74 | % |
|                                                                                                                                                                                                                                                                                                                                   |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1. Average balances for loans include loans held-for-sale and non-accrual loans and are net of the allowance for loan losses, but non-accrued interest thereon is excluded.  Loan interest income income includes loan fees of approximately $190 and $223 for the three months ended March 31, 2011 and 2010, respectively. |   |
| 2. Interest income and yields on tax-exempt securities are not presented on a taxable equivalent basis.                                                                                                                                                                                                                           |   |
| 3. Net interest margin is computed by dividing net interest income by total average interest-earning assets.                                                                                                                                                                                                                      |   |

----

----

----

----

----

|                                         |   | (in thousands) |   |
|----------------------------------------------|--------|----------------|--------|
|                                         |   |           |   |   |   |   |
|                                         |   | Three          |   |   | Three |   |
|                                         |   | months         |   |   | months |   |
|                                         |   | ended          |   |   | ended |   |
|                                         |   | March 31,      |   |   | March 31, |   |
|                                         |   | 2011           |   |   | 2010 |   |
| Other miscellaneous operating expenses       |   |           |   |   |   |   |
| FDIC assessments                             |   | $              | 288    |   |   | $ | 285 |   |
| Contributions                                |   |           | 16     |   |   |   | 25 |   |
| Legal fees                                   |   |           | 46     |   |   |   | 54 |   |
| Accounting and audit fees                    |   |           | 99     |   |   |   | 62 |   |
| Consulting fees                              |   |           | 69     |   |   |   | 53 |   |
| Postage expense                              |   |           | 97     |   |   |   | 86 |   |
| Telephone expense                            |   |           | 52     |   |   |   | 62 |   |
| Public relations                             |   |           | 33     |   |   |   | 37 |   |
| Training expense                             |   |           | 23     |   |   |   | 22 |   |
| Loan origination expense                     |   |           | 3      |   |   |   | 93 |   |
| Computer software depreciation               |   |           | 38     |   |   |   | 44 |   |
| Sundry losses                                |   |           | 43     |   |   |   | 46 |   |
| Loan collection expense                      |   |           | 54     |   |   |   | 133 |   |
| Other miscellaneous expense                  |   |           | 361    |   |   |   | 313 |   |
|                                         |   |           |   |   |   |   |   |   |
| Total other miscellaneous operating expenses |   | $              | 1,222  |   |   | $ | 1,315 |   |
|                                         |   |           |   |   |   |   |   |   |

----

|                         | (in thousands) |           |
|------------------------------|----------------|----------------|
|                         |           |           |   |   |   |   |
|                         |           | March 31, 2011 |   |   | December 31, 2010 |   |
|                         |           |           |   |   |   |   |
| Undisbursed loan commitments |           | $              | 146,238 |   |   | $ | 140,408 |   |
| Standby letters of credit    |           |           | 2,283 |   |   |   | 3,739 |   |
| Commitments to sell loans    |           |           | 1,136 |   |   |   | 1,826 |   |
|                         |           | $              | 149,657 |   |   | $ | 145,973 |   |

----

|                     |   | At March 31, 2011 |   |   | At December 31, 2010 |   |
|--------------------------|--------|-------------------|--------|--------|----------------------|--------|
|                     |   | Gross             |   |   | Guaranteed           |   |   | Net |   |   | Gross |   |   | Guaranteed |   |   | Net |   |
| (dollars in thousands)   |   |              |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |              |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |              |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage     |   | $                 | 2,264  |   |                 | $      | — |   |   | $ | 2,264 |   |   | $ | 2,301 |   |   | $ | — |   |   | $ | 2,301 |   |
| Residential construction |   |              | 511    |   |                 |   | — |   |   |   | 511 |   |   |   | 272 |   |   |   | — |   |   |   | 272 |   |
| Commercial real estate   |   |              | 5,748  |   |                 |   | — |   |   |   | 5,748 |   |   |   | 5,864 |   |   |   | — |   |   |   | 5,864 |   |
| Agriculture              |   |              | 1,752  |   |                 |   | — |   |   |   | 1,752 |   |   |   | 1,752 |   |   |   | — |   |   |   | 1,752 |   |
| Commercial               |   |              | 1,575  |   |                 |   | 77 |   |   |   | 1,498 |   |   |   | 1,817 |   |   |   | 77 |   |   |   | 1,740 |   |
| Consumer                 |   |              | 396    |   |                 |   | — |   |   |   | 396 |   |   |   | 268 |   |   |   | — |   |   |   | 268 |   |
| Total non-accrual loans  |   | $                 | 12,246 |   |                 | $      | 77 |   |   | $ | 12,169 |   |   | $ | 12,274 |   |   | $ | 77 |   |   | $ | 12,197 |   |
|                     |   |              |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                        |   | At March 31, 2011 |    |   | At December 31, 2010 |   |
|-------------------------------------------------------------|--------|-------------------|---------|--------|----------------------|--------|
|                                                        |   | Gross             |    |   | Guaranteed           |   |   | Net |   |   | Gross |   |   | Guaranteed |   |   | Net |   |
| (dollars in thousands)                                      |   |              |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |              |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-accrual loans                                           |   | $                 | 12,246  |   |                 | $      | 77 |   |   | $ | 12,169 |   |   | $ | 12,274 |   |   | $ | 77 |   |   | $ | 12,197 |   |
| Loans 90 days past due and still accruing                   |   |              | — |   |                 |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                        |   |              |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-performing loans                                  |   |              | 12,246  |   |                 |   | 77 |   |   |   | 12,169 |   |   |   | 12,274 |   |   |   | 77 |   |   |   | 12,197 |   |
| Other real estate owned                                     |   |              | 2,664   |   |                 |   | — |   |   |   | 2,664 |   |   |   | 2,682 |   |   |   | — |   |   |   | 2,682 |   |
| Total non-performing assets                                 |   |              | 14,910  |   |                 |   | 77 |   |   |   | 14,833 |   |   |   | 14,956 |   |   |   | 77 |   |   |   | 14,879 |   |
|                                                        |   |              |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing loans to total loans                         |   |              |    |   |                 |   |   |   |   |   | 2.81 | % |   |   |   |   |   |   |   |   |   |   | 2.69 | % |
| Non-performing assets to total assets                       |   |              |    |   |                 |   |   |   |   |   | 1.98 | % |   |   |   |   |   |   |   |   |   |   | 2.02 | % |
| Allowance for loan and lease losses to non-performing loans |   |              |    |   |                 |   |   |   |   |   | 96.24 | % |   |   |   |   |   |   |   |   |   |   | 90.51 | % |
|                                                        |   |              |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Analysis of the Allowance for Loan Losses         |   |
|---------------------------------------------------|--------|
| (Amounts in thousands, except percentage amounts) |   |
|                                              |   |   |   |   |   |   |
|                                              |   | Three months endedMarch 31, |   |   | Year endedDecember 31, |   |
|                                              |   | 2011 |   |   | 2010 |   |   | 2010 |   |
|                                              |   |   |   |   |   |   |   |   |   |
| Balance at beginning of period                    |   | $ | 11,039 |   |   | $ | 11,916 |   |   | $ | 11,916 |   |
| Provision for loan losses                         |   |   | 990 |   |   |   | 1,450 |   |   |   | 4,914 |   |
| Loans charged-off:                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                        |   |   | (178 | ) |   |   | (629 | ) |   |   | (1,930 | ) |
| Commercial Real Estate                            |   |   | (7 | ) |   |   | (117 | ) |   |   | (1,491 | ) |
| Agriculture                                       |   |   | — |   |   |   | (367 | ) |   |   | (736 | ) |
| Residential mortgage                              |   |   | (18 | ) |   |   | (267 | ) |   |   | (715 | ) |
| Residential construction                          |   |   | — |   |   |   | (345 | ) |   |   | (830 | ) |
| Consumer loans to individuals                     |   |   | (220 | ) |   |   | (391 | ) |   |   | (914 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total charged-off                                 |   |   | (423 | ) |   |   | (2,116 | ) |   |   | (6,616 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                        |   |   | 19 |   |   |   | 2 |   |   |   | 540 |   |
| Commercial Real Estate                            |   |   | — |   |   |   | — |   |   |   | 1 |   |
| Agriculture                                       |   |   | — |   |   |   | — |   |   |   | 78 |   |
| Residential mortgage                              |   |   | 1 |   |   |   | — |   |   |   | 22 |   |
| Residential construction                          |   |   | — |   |   |   | 6 |   |   |   | 6 |   |
| Consumer loans to individuals                     |   |   | 86 |   |   |   | 53 |   |   |   | 178 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total recoveries                                  |   |   | 106 |   |   |   | 61 |   |   |   | 825 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs                                   |   |   | (317 | ) |   |   | (2,055 | ) |   |   | (5,791 | ) |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at end of period                          |   | $ | 11,712 |   |   | $ | 11,311 |   |   | $ | 11,039 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of net charge-offs                          |   |   |   |   |   |   |   |   |   |   |   |   |
| To average loans outstanding during the period    |   |   | (0.07 | %) |   |   | (0.43 | %) |   |   | (1.27 | %) |
| Allowance for loan losses                         |   |   |   |   |   |   |   |   |   |   |   |   |
| To total loans at the end of the period           |   |   | 2.71 | % |   |   | 2.45 | % |   |   | 2.44 | % |
| To non-performing loans at the end of the period  |   |   | 95.64 | % |   |   | 61.08 | % |   |   | 89.94 | % |

----

|                        |   | (in thousands) |   |
|-----------------------------|--------|----------------|--------|
|                        |   | March 31, 2011 |   |   | December 31, 2010 |   |
| Three months or less        |   | $              | 17,529 |   |   | $ | 22,357 |   |
| Over three to twelve months |   |           | 40,335 |   |   |   | 33,632 |   |
| Over twelve months          |   |           | 8,000  |   |   |   | 12,865 |   |
| Total                       |   | $              | 65,864 |   |   | $ | 68,854 |   |

|              |   | (amounts in thousands except percentage amounts) |   |
|-------------------|--------|--------------------------------------------------|--------|
|              |   | Actual                                           |   |   | Well Capitalized |   |
|              |   |                                             |   |   |   |   |   | Ratio |   |
|              |   | Capital                                          |   |   | Ratio |   |   | Requirement |   |
| Leverage          |   | $                                                | 72,807 |   |   |   | 9.75 | % |   |   | 5.0 | % |
| Tier 1 Risk-Based |   | $                                                | 72,807 |   |   |   | 15.93 | % |   |   | 6.0 | % |
| Total Risk-Based  |   | $                                                | 78,602 |   |   |   | 17.20 | % |   |   | 10.0 | % |

----

----

| ExhibitNumber | Exhibit                                                                                                                                              |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                 |
| 31.1          | Certification of the Company’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                               |
| 31.2          | Certification of the Company’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                               |
| 32.1          | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuantto Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2          | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuantto Section 906 of the Sarbanes-Oxley Act of 2002 |

|   |         |   | FIRST NORTHERN COMMUNITY BANCORP                                      |
|--------|--------------|--------|-----------------------------------------------------------------------|
|   |         |   |                                                                  |
| Date:  | May 12, 2011 | By:    | /s/  Jeremiah Z. Smith                                      |
|   |         |   |                                                                  |
|   |         |   | Jeremiah Z. Smith, Executive Vice President / Chief Financial Officer |
|   |         |   | (Principal Financial Officer and Duly Authorized Officer)             |