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

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

| Securities registered pursuant to Section 12(b) of the Act: | None                                       |
|-------------------------------------------------------------|--------------------------------------------|
| Securities registered pursuant to Section 12(g) of the Act: | Common Stock, no par value(Title of Class) |

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| PART I                                                      | Page                                                                                                                    |
|-------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|
|                                                        |                                                                                                                    |   |
| Item   1       | Business                                                                                                                |   4 |
|                                                        |                                                                                                                    |   |
| Item   1A                | Risk Factors                                                                                                            | 15 |
|                                                        |                                                                                                                    |   |
| Item   2                                     | Properties                                                                                                              | 23 |
|                                                        |                                                                                                                    |   |
| Item   3            | Legal Proceedings                                                                                                       | 23 |
|                                                        |                                                                                                                    |   |
| PART II                                                     |                                                                                                                    |
|                                                        |                                                                                                                    |   |
| Item   4            | (Removed and Reserved)                                                                                                  | 24 |
|                                                        |                                                                                                                    |   |
| Item   5                                     | Market for Registrant's Common Equity,  Related Stockholder Matters and Issuer Purchases of Equity Securities | 24 |
|                                                        |                                                                                                                    |   |
| Item   6            | Selected Financial Data                                                                                                 | 25 |
|                                                        |                                                                                                                    |   |
| Item   7            | Management's Discussion and Analysis of Financial Condition and Results of Operation                                    | 26 |
|                                                        |                                                                                                                    |   |
| Item   8                 | Financial Statements and Supplementary Data                                                                             | 53 |
|                                                        |                                                                                                                    |   |
| Item   9                      | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                    | 94 |
|                                                        |                                                                                                                    |   |
| Item   9A (T)                      | Controls and Procedures                                                                                                 | 94 |
|                                                        |                                                                                                                    |   |
| Item   9B                          | Other Information                                                                                                       | 94 |
|                                                        |                                                                                                                    |   |
| PART III                                                    |                                                                                                                    |
|                                                        |                                                                                                                    |   |
| Item 10                                      | Directors, Executive Officers and Corporate Governance                                                                  | 95 |
|                                                        |                                                                                                                    |   |
| Item 11                                      | Executive Compensation                                                                                                  | 95 |
|                                                        |                                                                                                                    |   |
| Item 12                                      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                          | 96 |
|                                                        |                                                                                                                    |   |
| Item 13                                      | Certain Relationships and Related Transactions and Director Independence                                                | 96 |
|                                                        |                                                                                                                    |   |
| Item 14                                      | Principal Accountant Fees and Services                                                                                  | 96 |
|                                                        |                                                                                                                    |   |
| PART IV                                                     |                                                                                                                    |
|                                                        |                                                                                                                    |   |
| Item 15                                      | Exhibits and Financial Statement Schedules                                                                              | 97 |
|                                                        |                                                                                                                    |   |
| Signatures                                                  | 100                                                                                                                     |

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

| ·   | 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 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 |
|--------------------|----------------------------------------|

| ·   | We do not expect draws on performance letters of credit |
|--------------------|---------------------------------------------------------|

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

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

| ·   | 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 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 |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | Our deposit base including renewal of time deposits |
|--------------------|-----------------------------------------------------|

| ·   | The Company believes that the Bank’s deposit base does not involve any undue concentration levels from one or a few major depositors |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company does not anticipate any significant increase or decrease in unrecognized tax benefits |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | Our pension and retirement plan costs |
|--------------------|---------------------------------------|

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| ·   | 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 |
|--------------------|--------------------------------------------------------|

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|                   |   | The Company |   |
|------------------------|--------|-------------|--------|
|                   |   |        |   |   | Adequately |   |
|                   |   | Actual      |   |   | Capitalized |   |
|                   |   | Capital     |   |   | Ratio |   |   | Ratio |   |
|                   |   |        |   |   |   |   |   |   |   |
| Leverage               |   | $           | 75,005 |   |   |   | 10.0 | % |   |   | 4.0 | % |
| Tier 1 Risk-Based |   |        | 75,005 |   |   |   | 14.6 | % |   |   | 4.0 | % |
| Total Risk-Based       |   |        | 81,496 |   |   |   | 15.9 | % |   |   | 8.0 | % |

|                   |   | The Bank |   |
|------------------------|--------|----------|--------|
|                   |   |     |   |   | Adequately |   |   | Well |   |
|                   |   | Actual   |   |   | Capitalized |   |   | Capitalized |   |
|                   |   | Capital  |   |   | Ratio |   |   | Ratio |   |   | Ratio |   |
|                   |   |     |   |   |   |   |   |   |   |   |   |   |
| Leverage               |   | $        | 73,453 |   |   |   | 9.8 | % |   |   | 4.0 | % |   |   | 5.0 | % |
| Tier 1 Risk-Based |   |     | 73,453 |   |   |   | 14.3 | % |   |   | 4.0 | % |   |   | 6.0 | % |
| Total Risk-Based       |   |     | 79,944 |   |   |   | 15.6 | % |   |   | 8.0 | % |   |   | 10.0 | % |

| “Well capitalized”Total risk-based capital of 10%; Tier 1 risk-based capital of 6%; andLeverage ratio of 5%. | “Adequately capitalized”Total risk-based capital of 8%;Tier 1 risk-based capital of 4%; andLeverage ratio of 4%. |
|-------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| “Undercapitalized”Total risk-based capital less than 8%;Tier 1 risk-based capital less than 4%; orLeverage ratio less than 4%. | “Significantly undercapitalized”Total risk-based capital less than 6%;Tier 1 risk-based capital less than 3%; or Leverage ratio less than 3%. |
|-------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| “Critically undercapitalized”Tangible equity to total assets less than 2%. |   |
|----------------------------------------------------------------------------------------|--------|

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| QUARTER/YEAR                |   | HIGH*  |   |   | LOW*   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|
|                        |   |   |   |   |   |   |
| 4th Quarter 2009            |   | $      | 6.00   |   |   | $      | 4.75 |   |
| 3rd Quarter 2009            |   | $      | 6.25   |   |   | $      | 4.35 |   |
| 2nd Quarter 2009            |   | $      | 5.76   |   |   | $      | 4.60 |   |
| 1st  Quarter 2009 |   | $      | 6.73   |   |   | $      | 4.00 |   |
|                        |   |   |   |   |   |   |   |   |
| 4th Quarter 2008            |   | $      | 9.62   |   |   | $      | 5.77 |   |
| 3rd Quarter 2008            |   | $      | 11.30  |   |   | $      | 8.65 |   |
| 2nd Quarter 2008            |   | $      | 13.70  |   |   | $      | 9.86 |   |
| 1st  Quarter 2008 |   | $      | 16.06  |   |   | $      | 13.22 |   |

| Shareholder Record Date |   | Dividend Percentage |   | Date Payable   |
|-------------------------|--------|---------------------|--------|----------------|
|                    |   |                |   |           |
| February 27, 2009       |   | 4%                  |   | March 31, 2009 |
| February 29, 2008       |   | 6%                  |   | March 31, 2008 |

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|                                                                                                       |   | 2009   |      |   | 2008   |   |      | 2007   |   |   | 2006      |   |   | 2005   |      |
|------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
| Interest Income and Loan Fees                                                                              |   | $      | 33,066    |   |   | $      | 38,871    |   |   | $      | 48,594    |   |   | $      | 48,070    |   |   | $ | 40,902 |   |
| Interest Expense                                                                                           |   |   | (4,960    | )      |   |   | (6,375    | )      |   |   | (11,738   | )      |   |   | (9,426    | ) |   |   | (5,729 | ) |
| Net Interest Income                                                                                        |   |   | 28,106    |   |   |   | 32,496    |   |   |   | 36,856    |   |   |   | 38,644    |   |   |   | 35,173 |   |
| Provision for Loan Losses                                                                                  |   |   | (10,489   | )      |   |   | (16,164   | )      |   |   | (4,795    | )      |   |   | (735      | ) |   |   | (600 | ) |
| Net Interest Income after Provision for Loan Losses                                                        |   |   | 17,617    |   |   |   | 16,332    |   |   |   | 32,061    |   |   |   | 37,909    |   |   |   | 34,573 |   |
| Other Operating Income                                                                                     |   |   | 8,553     |   |   |   | 7,796     |   |   |   | 7,160     |   |   |   | 5,289     |   |   |   | 5,720 |   |
| Other Operating Expense                                                                                    |   |   | (30,068   | )      |   |   | (29,137   | )      |   |   | (28,803   | )      |   |   | (29,219   | ) |   |   | (26,813 | ) |
| (Loss) Income before Taxes                                                                                 |   |   | (3,898    | )      |   |   | (5,009    | )      |   |   | 10,418    |   |   |   | 13,979    |   |   |   | 13,480 |   |
| Benefit (Provision) for Taxes                                                                              |   |   | 2,844     |   |   |   | 3,635     |   |   |   | (3,137    | )      |   |   | (5,169    | ) |   |   | (4,792 | ) |
| Net (Loss) Income                                                                                          |   | $      | (1,054    | )      |   | $      | (1,374    | )      |   | $      | 7,281     |   |   | $      | 8,810     |   |   | $ | 8,688 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Preferred Stock Dividend and Accretion                                                                     |   |   | (792      | )      |   |   | —   |   |   |   | —   |   |   |   | —   |   |   |   | — |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net (Loss) Income available to common shareholders                                                         |   | $      | (1,846    | )      |   | $      | (1,374    | )      |   | $      | 7,281     |   |   | $      | 8,810     |   |   | $ | 8,688 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Basic (Loss) Income Per Share                                                                              |   | $      | (0.21     | )      |   | $      | (0.15     | )      |   | $      | 0.79      |   |   | $      | 0.95      |   |   | $ | 0.93 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Diluted (Loss) Income Per Share                                                                            |   | $      | (0.21     | )      |   | $      | (0.15     | )      |   | $      | 0.77      |   |   | $      | 0.90      |   |   | $ | 0.89 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total Assets                                                                                               |   | $      | 747,625   |   |   | $      | 670,802   |   |   | $      | 709,895   |   |   | $      | 685,225   |   |   | $ | 660,647 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total Investments                                                                                          |   | $      | 75,868    |   |   | $      | 42,106    |   |   | $      | 74,849    |   |   | $      | 76,273    |   |   | $ | 48,788 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total Loans, including Loans Held-for-Sale, net                                                            |   | $      | 476,018   |   |   | $      | 519,160   |   |   | $      | 499,314   |   |   | $      | 480,009   |   |   | $ | 460,501 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total Deposits                                                                                             |   | $      | 651,426   |   |   | $      | 584,718   |   |   | $      | 622,671   |   |   | $      | 603,682   |   |   | $ | 581,781 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Total Equity                                                                                               |   | $      | 78,093    |   |   | $      | 62,029    |   |   | $      | 63,975    |   |   | $      | 61,990    |   |   | $ | 56,802 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Weighted Average Shares of Common Stock outstanding used for Basic (Loss) Income Per Share Computation 1   |   |   | 8,973,402 |   |   |   | 8,931,906 |   |   |   | 9,165,198 |   |   |   | 9,300,785 |   |   |   | 9,362,585 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Weighted Average Shares of Common Stock outstanding used for Diluted (Loss) Income Per Share Computation 1 |   |   | 8,973,402 |   |   |   | 8,931,906 |   |   |   | 9,438,217 |   |   |   | 9,757,490 |   |   |   | 9,748,112 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| (Loss) Return on Average Total Assets                                                                      |   |   | (0.15     | %)     |   |   | (0.20     | %)     |   |   | 1.05      | %      |   |   | 1.32      | % |   |   | 1.35 | % |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net (Loss) Income/Average Equity                                                                           |   |   | (1.40     | %)     |   |   | (2.17     | %)     |   |   | 11.59     | %      |   |   | 14.90     | % |   |   | 16.17 | % |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Net (Loss) Income/Average Deposits                                                                         |   |   | (0.17     | %)     |   |   | (0.23     | %)     |   |   | 1.19      | %      |   |   | 1.49      | % |   |   | 1.52 | % |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Average Loans/Average Deposits                                                                             |   |   | 79.48     | %      |   |   | 87.21     | %      |   |   | 79.75     | %      |   |   | 81.20     | % |   |   | 79.44 | % |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Average Equity to Average Total Assets                                                                     |   |   | 10.57     | %      |   |   | 9.39      | %      |   |   | 9.06      | %      |   |   | 8.87      | % |   |   | 8.37 | % |

| 1.  All years have been restated to give retroactive effect for stock dividends issued and stock splits. |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|

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|                                                                                                                               |   | 2009    |    |   | 2008    |   |   | 2007    |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|---------|--------|--------|---------|--------|
|                                                                                                                               |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   | Average |    |   |    |   |   | Average |   |   |   |   |   | Average |   |   |   |   |
|                                                                                                                               |   | Balance |    |   | Percent |   |   | Balance |   |   | Percent |   |   | Balance |   |   | Percent |   |
| ASSETS                                                                                                                             |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Cash and Due From Banks                                                                                                            |   | $       | 69,655  |   |    |   | 9.77   | %       |   | $ | 37,971 |   |   |   | 5.63 | % |   | $ | 32,518 |   |   |   | 4.69 | % |
| Federal Funds Sold                                                                                                                 |   |    | 45,918  |   |    |   | 6.44   | %       |   |   | 26,808 |   |   |   | 3.97 | % |   |   | 52,359 |   |   |   | 7.55 | % |
| Investment Securities                                                                                                              |   |    | 64,290  |   |    |   | 9.02   | %       |   |   | 57,123 |   |   |   | 8.46 | % |   |   | 86,046 |   |   |   | 12.41 | % |
| Loans  1                                                                                                                 |   |    | 490,856 |   |    |   | 68.85  | %       |   |   | 512,987 |   |   |   | 76.02 | % |   |   | 488,704 |   |   |   | 70.48 | % |
| Stock in Federal Home Loan Bank and                                                                                                |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| other equity securities, at cost                                                                                                   |   |    | 2,443   |   |    |   | 0.34   | %       |   |   | 2,253 |   |   |   | 0.33 | % |   |   | 2,146 |   |   |   | 0.31 | % |
| Other Real Estate Owned                                                                                                            |   |    | 3,820   |   |    |   | 0.54   | %       |   |   | 3,691 |   |   |   | 0.55 | % |   |   | 784 |   |   |   | 0.11 | % |
| Other Assets                                                                                                                       |   |    | 35,894  |   |    |   | 5.04   | %       |   |   | 33,993 |   |   |   | 5.04 | % |   |   | 30,882 |   |   |   | 4.45 | % |
| Total Assets                                                                                                                       |   | $       | 712,876 |   |    |   | 100.00 | %       |   | $ | 674,826 |   |   |   | 100.00 | % |   | $ | 693,439 |   |   |   | 100.00 | % |
|                                                                                                                               |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES &                                                                                                                  |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                               |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                          |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                                                                                                                             |   | $       | 172,925 |   |    |   | 24.26  | %       |   | $ | 173,332 |   |   |   | 25.69 | % |   | $ | 185,563 |   |   |   | 26.77 | % |
| Interest-Bearing Transaction Deposits                                                                                              |   |    | 127,769 |   |    |   | 17.92  | %       |   |   | 128,690 |   |   |   | 19.07 | % |   |   | 130,608 |   |   |   | 18.83 | % |
| Savings & MMDAs                                                                                                                |   |    | 172,610 |   |    |   | 24.21  | %       |   |   | 171,465 |   |   |   | 25.41 | % |   |   | 179,425 |   |   |   | 25.87 | % |
| Time Certificates                                                                                                                  |   |    | 144,251 |   |    |   | 20.24  | %       |   |   | 114,742 |   |   |   | 17.00 | % |   |   | 117,178 |   |   |   | 16.90 | % |
| Borrowed Funds                                                                                                                     |   |    | 13,631  |   |    |   | 1.91   | %       |   |   | 17,095 |   |   |   | 2.53 | % |   |   | 10,504 |   |   |   | 1.51 | % |
| Other Liabilities                                                                                                                  |   |    | 6,315   |   |    |   | 0.89   | %       |   |   | 6,147 |   |   |   | 0.91 | % |   |   | 7,347 |   |   |   | 1.06 | % |
| Stockholders' Equity                                                                                                               |   |    | 75,375  |   |    |   | 10.57  | %       |   |   | 63,355 |   |   |   | 9.39 | % |   |   | 62,814 |   |   |   | 9.06 | % |
| Total Liabilities & Stockholders’ Equity                                                                                 |   | $       | 712,876 |   |    |   | 100.00 | %       |   | $ | 674,826 |   |   |   | 100.00 | % |   | $ | 693,439 |   |   |   | 100.00 | % |
|                                                                                                                               |   |    |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1. Average balances for loans include loans held-for-sale and non-accrual loans and are net of the allowance for loan losses. |   |

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| Net Interest Earnings              |
|------------------------------------|
| Average Balances, Yields and Rates |
| (Dollars in thousands)             |
|                               |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   | Yields |   |   |   |   |   |   |   |   | Yields |   |   |   |   |   |   |   |   | Yields |   |
|                               |   |   |   |   | Interest |   |   | Earned/ |   |   |   |   |   | Interest |   |   | Earned/ |   |   |   |   |   | Interest |   |   | Earned/ |   |
|                               |   | Average |   |   | Income/ |   |   | Rates |   |   | Average |   |   | Income/ |   |   | Rates |   |   | Average |   |   | Income/ |   |   | Rates |   |
| Assets                             |   | Balance |   |   | Expense |   |   | Paid |   |   | Balance |   |   | Expense |   |   | Paid |   |   | Balance |   |   | Expense |   |   | Paid |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans 1                            |   | $ | 490,856 |   |   | $ | 28,899 |   |   |   | 5.89 | % |   | $ | 512,987 |   |   | $ | 33,282 |   |   |   | 6.49 | % |   | $ | 488,704 |   |   | $ | 39,220 |   |   |   | 8.03 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Fees                          |   |   | — |   |   |   | 1,621 |   |   |   | 0.33 | % |   |   | — |   |   |   | 1,795 |   |   |   | 0.35 | % |   |   | — |   |   |   | 2,268 |   |   |   | 0.46 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Loans, Including             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Fees                          |   |   | 490,856 |   |   |   | 30,520 |   |   |   | 6.22 | % |   |   | 512,987 |   |   |   | 35,077 |   |   |   | 6.84 | % |   |   | 488,704 |   |   |   | 41,488 |   |   |   | 8.49 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal Funds Sold                 |   |   | 45,918 |   |   |   | 58 |   |   |   | 0.13 | % |   |   | 26,808 |   |   |   | 519 |   |   |   | 1.94 | % |   |   | 52,359 |   |   |   | 2,660 |   |   |   | 5.08 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due From Banks                     |   |   | 36,302 |   |   |   | 164 |   |   |   | 0.45 | % |   |   | 13,428 |   |   |   | 557 |   |   |   | 4.15 | % |   |   | 5,922 |   |   |   | 273 |   |   |   | 4.61 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment Securities:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                            |   |   | 40,336 |   |   |   | 1,311 |   |   |   | 3.25 | % |   |   | 27,578 |   |   |   | 1,344 |   |   |   | 4.87 | % |   |   | 56,350 |   |   |   | 2,789 |   |   |   | 4.95 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-taxable2                       |   |   | 23,954 |   |   |   | 1,003 |   |   |   | 4.19 | % |   |   | 29,545 |   |   |   | 1,254 |   |   |   | 4.24 | % |   |   | 29,696 |   |   |   | 1,271 |   |   |   | 4.28 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Investment Securities        |   |   | 64,290 |   |   |   | 2,314 |   |   |   | 3.60 | % |   |   | 57,123 |   |   |   | 2,598 |   |   |   | 4.55 | % |   |   | 86,046 |   |   |   | 4,060 |   |   |   | 4.72 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Earning Assets               |   |   | 2,443 |   |   |   | 10 |   |   |   | 0.41 | % |   |   | 2,253 |   |   |   | 120 |   |   |   | 5.33 | % |   |   | 2,146 |   |   |   | 113 |   |   |   | 5.27 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Earning Assets               |   |   | 639,809 |   |   | $ | 33,066 |   |   |   | 5.17 | % |   |   | 612,599 |   |   | $ | 38,871 |   |   |   | 6.35 | % |   |   | 635,177 |   |   | $ | 48,594 |   |   |   | 7.65 | % |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Due from Banks            |   |   | 33,353 |   |   |   |   |   |   |   |   |   |   |   | 24,543 |   |   |   |   |   |   |   |   |   |   |   | 26,596 |   |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Premises and Equipment             |   |   | 7,761 |   |   |   |   |   |   |   |   |   |   |   | 8,355 |   |   |   |   |   |   |   |   |   |   |   | 8,123 |   |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Real Estate Owned            |   |   | 3,820 |   |   |   |   |   |   |   |   |   |   |   | 3,691 |   |   |   |   |   |   |   |   |   |   |   | 784 |   |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Receivable                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and Other Assets                   |   |   | 28,133 |   |   |   |   |   |   |   |   |   |   |   | 25,638 |   |   |   |   |   |   |   |   |   |   |   | 22,759 |   |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                       |   | $ | 712,876 |   |   |   |   |   |   |   |   |   |   | $ | 674,826 |   |   |   |   |   |   |   |   |   |   | $ | 693,439 |   |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 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.           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  Interest income and yields on tax-exempt securities are not presented on a tax equivalent basis.                                                                                                                                               |

----

|                            |   | 2009    |    |   | 2008     |   |    | 2007    |   |
|---------------------------------|--------|---------|---------|--------|----------|--------|---------|---------|--------|
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |    |    |   |     |   |    | Yields  |   |   |   |   |   |   |   |   | Yields |   |   |   |   |   |   |   |   | Yields |   |
|                            |   |    |    |   | Interest |   |    | Earned/ |   |   |   |   |   | Interest |   |   | Earned/ |   |   |   |   |   | Interest |   |   | Earned/ |   |
| Liabilities and                 |   | Average |    |   | Income/  |   |    | Rates   |   |   | Average |   |   | Income/ |   |   | Rates |   |   | Average |   |   | Income/ |   |   | Rates |   |
| Stockholders' Equity            |   | Balance |    |   | Expense  |   |    | Paid    |   |   | Balance |   |   | Expense |   |   | Paid |   |   | Balance |   |   | Expense |   |   | Paid |   |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Deposits:      |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing                |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transaction Deposits            |   | $       | 127,769 |   |     | $      | 606     |    |   |   | 0.47 | % |   | $ | 128,690 |   |   | $ | 930 |   |   |   | 0.72 | % |   | $ | 130,608 |   |   | $ | 2,840 |   |   |   | 2.17 | % |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings & MMDAs             |   |    | 172,610 |   |     |   | 1,342   |    |   |   | 0.78 | % |   |   | 171,465 |   |   |   | 1,726 |   |   |   | 1.01 | % |   |   | 179,425 |   |   |   | 4,034 |   |   |   | 2.25 | % |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time Certificates               |   |    | 144,251 |   |     |   | 2,513   |    |   |   | 1.74 | % |   |   | 114,742 |   |   |   | 3,147 |   |   |   | 2.74 | % |   |   | 117,178 |   |   |   | 4,551 |   |   |   | 3.88 | % |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Bearing Deposits |   |    | 444,630 |   |     |   | 4,461   |    |   |   | 1.00 | % |   |   | 414,897 |   |   |   | 5,803 |   |   |   | 1.40 | % |   |   | 427,211 |   |   |   | 11,425 |   |   |   | 2.67 | % |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowed Funds                  |   |    | 13,631  |   |     |   | 499     |    |   |   | 3.66 | % |   |   | 17,095 |   |   |   | 572 |   |   |   | 3.35 | % |   |   | 10,504 |   |   |   | 313 |   |   |   | 2.98 | % |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Bearing          |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits and Funds              |   |    | 458,261 |   |     |   | 4,960   |    |   |   | 1.08 | % |   |   | 431,992 |   |   |   | 6,375 |   |   |   | 1.48 | % |   |   | 437,715 |   |   |   | 11,738 |   |   |   | 2.68 | % |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand Deposits                 |   |    | 172,925 |   |     |   | — |    |   |   | — |   |   |   | 173,332 |   |   |   | — |   |   |   | — |   |   |   | 185,563 |   |   |   | — |   |   |   | — |   |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Deposits and              |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowed Funds                  |   |    | 631,186 |   |     | $      | 4,960   |    |   |   | 0.79 | % |   |   | 605,324 |   |   | $ | 6,375 |   |   |   | 1.05 | % |   |   | 623,278 |   |   | $ | 11,738 |   |   |   | 1.88 | % |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accrued Interest and            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Liabilities               |   |    | 6,315   |   |     |   |    |    |   |   |   |   |   |   | 6,147 |   |   |   |   |   |   |   |   |   |   |   | 7,347 |   |   |   |   |   |   |   |   |   |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' Equity            |   |    | 75,375  |   |     |   |    |    |   |   |   |   |   |   | 63,355 |   |   |   |   |   |   |   |   |   |   |   | 62,814 |   |   |   |   |   |   |   |   |   |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and           |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' Equity            |   | $       | 712,876 |   |     |   |    |    |   |   |   |   |   | $ | 674,826 |   |   |   |   |   |   |   |   |   |   | $ | 693,439 |   |   |   |   |   |   |   |   |   |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income and         |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Margin 1           |   |    |    |   |     | $      | 28,106  |    |   |   | 4.39 | % |   |   |   |   |   | $ | 32,496 |   |   |   | 5.30 | % |   |   |   |   |   | $ | 36,856 |   |   |   | 5.80 | % |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Spread 2           |   |    |    |   |     |   |    |    |   |   | 4.09 | % |   |   |   |   |   |   |   |   |   |   | 4.87 | % |   |   |   |   |   |   |   |   |   |   | 4.97 | % |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |    |    |   |     |   |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                             |   | 2009 Over 2008 |   |   | 2008 Over 2007 |   |
|----------------------------------|--------|----------------|--------|--------|----------------|--------|
|                             |   |           |   |   | Interest       |   |   |   |   |   |   |   |   | Interest |   |   |   |   |
|                             |   | Volume         |   |   | Rate           |   |   | Change |   |   | Volume |   |   | Rate |   |   | Change |   |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease in                      |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income:                 |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                            |   | $              | (1,394 | )      |           | $      | (2,989 | ) |   | $ | (4,383 | ) |   | $ | 2,077 |   |   | $ | (8,015 | ) |   | $ | (5,938 | ) |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Fees                        |   |           | (174   | )      |           |   | — |   |   |   | (174 | ) |   |   | (473 | ) |   |   | — |   |   |   | (473 | ) |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal Funds Sold               |   |           | 221    |   |           |   | (682 | ) |   |   | (461 | ) |   |   | (945 | ) |   |   | (1,196 | ) |   |   | (2,141 | ) |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due From Banks                   |   |           | 394    |   |           |   | (787 | ) |   |   | (393 | ) |   |   | 308 |   |   |   | (24 | ) |   |   | 284 |   |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment Securities            |   |           | 301    |   |           |   | (585 | ) |   |   | (284 | ) |   |   | (1,321 | ) |   |   | (141 | ) |   |   | (1,462 | ) |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Assets                     |   |           | 9      |   |           |   | (119 | ) |   |   | (110 | ) |   |   | 6 |   |   |   | 1 |   |   |   | 7 |   |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             |   | $              | (643   | )      |           | $      | (5,162 | ) |   | $ | (5,805 | ) |   | $ | (348 | ) |   | $ | (9,375 | ) |   | $ | (9,723 | ) |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease in                      |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense:                |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                        |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing                 |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Transaction Deposits |   | $              | (7     | )      |           | $      | (317 | ) |   | $ | (324 | ) |   | $ | (41 | ) |   | $ | (1,869 | ) |   | $ | (1,910 | ) |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings & MMDAs              |   |           | 12     |   |           |   | (396 | ) |   |   | (384 | ) |   |   | (172 | ) |   |   | (2,136 | ) |   |   | (2,308 | ) |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time Certificates                |   |           | 687    |   |           |   | (1,321 | ) |   |   | (634 | ) |   |   | (93 | ) |   |   | (1,311 | ) |   |   | (1,404 | ) |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowed Funds                   |   |           | (123   | )      |           |   | 50 |   |   |   | (73 | ) |   |   | 216 |   |   |   | 43 |   |   |   | 259 |   |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             |   | $              | 569    |   |           | $      | (1,984 | ) |   | $ | (1,415 | ) |   | $ | (90 | ) |   | $ | (5,273 | ) |   | $ | (5,363 | ) |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease in                      |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income:             |   | $              | (1,212 | )      |           | $      | (3,178 | ) |   | $ | (4,390 | ) |   | $ | (258 | ) |   | $ | (4,102 | ) |   | $ | (4,360 | ) |

----

|                                      |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Investment securities available-for-sale: |   |   |   |   |   |   |   |   |   |
|                                      |   |   |   |   |   |   |   |   |   |
| U.S. Treasury Securities                  |   | $      | 253    |   |   | $      | 274    |   |   | $ | 263 |   |
| Securities of U.S. Government             |   |   |   |   |   |   |   |   |   |   |   |   |
| Agencies and Corporations                 |   |   | 4,335  |   |   |   | 2,039  |   |   |   | 20,139 |   |
| Obligations of State &                |   |   |   |   |   |   |   |   |   |   |   |   |
| Political Subdivisions                    |   |   | 23,416 |   |   |   | 26,231 |   |   |   | 37,057 |   |
| Mortgage-Backed Securities                |   |   | 47,864 |   |   |   | 13,562 |   |   |   | 17,390 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Investments                         |   | $      | 75,868 |   |   | $      | 42,106 |   |   | $ | 74,849 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |

|                                  |   | Within One Year |   |   | After One But Within Five Years |   |   | After Five But Within Ten Years |   |
|---------------------------------------|--------|-----------------|--------|--------|---------------------------------|--------|--------|---------------------------------|--------|
| Security                              |   | Amount          |   |   | Yield                           |   |   | Amount                          |   |   | Yield |   |   | Amount |   |   | Yield |   |
|                                  |   |            |   |   |                            |   |   |                            |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury Securities              |   | $               | 253    |   |                            |   | 0.46   | %                               |   | $ | — |   |   |   | — |   |   | $ | — |   |   |   | — |   |
| Securities of U.S. Government         |   |            |   |   |                            |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Agencies and Corporations |   |            | 1,003  |   |                            |   | 1.30   | %                               |   |   | 3,332 |   |   |   | 1.37 | % |   |   | — |   |   |   | — |   |
| Obligations of State &            |   |            |   |   |                            |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Political Subdivisions    |   |            | 1,469  |   |                            |   | 8.14   | %                               |   |   | 1,804 |   |   |   | 7.14 | % |   |   | 2,183 |   |   |   | 7.25 | % |
| Mortgage-Backed Securities            |   |            | 100    |   |                            |   | 5.92   | %                               |   |   | 46,229 |   |   |   | 3.31 | % |   |   | 1,535 |   |   |   | 3.80 | % |
|                                  |   |            |   |   |                            |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL                                 |   | $               | 2,825  |   |                            |   | 4.96   | %                               |   | $ | 51,365 |   |   |   | 3.32 | % |   | $ | 3,718 |   |   |   | 5.84 | % |

|                                             |   | After Ten Years |    |   | Total  |   |
|--------------------------------------------------|--------|-----------------|---------|--------|--------|--------|
| Security                                         |   | Amount          |    |   | Yield  |   |   | Amount |   |   | Yield |   |
|                                             |   |            |    |   |   |   |   |   |   |   |   |   |
| U.S. Treasury Securities                         |   | $               | — |   |   |   | — |   |   | $ | 253 |   |   |   | — |   |
| Securities of U.S. Government                    |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Agencies  and Corporations |   |            | — |   |   |   | — |   |   |   | 4,335 |   |   |   | 1.35 | % |
| Obligations of State &                       |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Political Subdivisions               |   |            | 17,960  |   |   |   | 6.45 | % |   |   | 23,416 |   |   |   | 6.68 | % |
| Mortgage-Backed Securities                       |   |            | — |   |   |   | — |   |   |   | 47,864 |   |   |   | 3.33 | % |
|                                             |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL                                            |   | $               | 17,960  |   |   |   | 6.45 | % |   | $ | 75,868 |   |   |   | 4.24 | % |

----

|                     |   | December 31, |    |
|--------------------------|--------|--------------|---------|
|                     |   | 2009         |    |   | 2008 |   |   | 2007 |   |
|                     |   |         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Balance      |    |   | Percent |   |   | Balance |   |   | Percent |   |   | Balance |   |   | Percent |   |
|                     |   |         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial               |   | $            | 91,123  |   |   |   | 19.2 | % |   | $ | 111,485 |   |   |   | 21.6 | % |   | $ | 112,295 |   |   |   | 22.6 | % |
| Agriculture              |   |         | 33,141  |   |   |   | 7.0 | % |   |   | 38,314 |   |   |   | 7.4 | % |   |   | 36,772 |   |   |   | 7.4 | % |
| Real Estate Mortgage     |   |         | 304,666 |   |   |   | 64.2 | % |   |   | 294,980 |   |   |   | 57.0 | % |   |   | 251,672 |   |   |   | 50.5 | % |
| Real Estate Construction |   |         | 41,123  |   |   |   | 8.7 | % |   |   | 67,225 |   |   |   | 13.0 | % |   |   | 91,901 |   |   |   | 18.4 | % |
| Installment              |   |         | 4,325   |   |   |   | 0.9 | % |   |   | 4,964 |   |   |   | 1.0 | % |   |   | 5,331 |   |   |   | 1.1 | % |
|                     |   |         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL                    |   | $            | 474,378 |   |   |   | 100.0 | % |   | $ | 516,968 |   |   |   | 100.0 | % |   | $ | 497,971 |   |   |   | 100.0 | % |

|                     |   | 2006    |    |   | 2005    |   |
|--------------------------|--------|---------|---------|--------|---------|--------|
|                     |   |    |    |   |    |   |   |   |   |   |   |   |
|                     |   | Balance |    |   | Percent |   |   | Balance |   |   | Percent |   |
|                     |   |    |    |   |    |   |   |   |   |   |   |   |
| Commercial               |   | $       | 97,268  |   |    |   | 20.5 | % |   | $ | 87,091 |   |   |   | 19.1 | % |
| Agriculture              |   |    | 38,607  |   |    |   | 8.1 | % |   |   | 32,808 |   |   |   | 7.2 | % |
| Real Estate Mortgage     |   |    | 227,552 |   |    |   | 47.9 | % |   |   | 228,524 |   |   |   | 50.1 | % |
| Real Estate Construction |   |    | 106,752 |   |    |   | 22.4 | % |   |   | 103,422 |   |   |   | 22.7 | % |
| Installment              |   |    | 5,370   |   |    |   | 1.1 | % |   |   | 4,216 |   |   |   | 0.9 | % |
|                     |   |    |    |   |    |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL                    |   | $       | 475,549 |   |    |   | 100.0 | % |   | $ | 456,061 |   |   |   | 100.0 | % |

----

| Maturing                          |   | Fixed Rate |    |   | Variable Rate |   |    | Total  |   |
|-----------------------------------|--------|------------|---------|--------|---------------|--------|---------|--------|--------|
|                              |   |       |    |   |          |   |    |   |   |
| Within one year                   |   | $          | 18,426  |   |          | $      | 135,119 |   |   | $ | 153,545 |   |
| After one year through five years |   |       | 59,254  |   |          |   | 109,038 |   |   |   | 168,292 |   |
| After five years                  |   |       | 27,677  |   |          |   | 124,864 |   |   |   | 152,541 |   |
|                              |   |       |    |   |          |   |    |   |   |   |   |   |
| Total                             |   | $          | 105,357 |   |          | $      | 369,021 |   |   | $ | 474,378 |   |

|                     |   | At December 31, 2009 |    |   | At December 31, 2008 |   |
|--------------------------|--------|----------------------|---------|--------|----------------------|--------|
|                     |   | Gross                |    |   | Guaranteed           |   |   | Net |   |   | Gross |   |   | Guaranteed |   |   | Net |   |
|                     |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage     |   | $                    | 1,370   |   |                 | $      | — |   |   | $ | 1,370 |   |   | $ | 334 |   |   | $ | — |   |   | $ | 334 |   |
| Residential construction |   |                 | 3,413   |   |                 |   | — |   |   |   | 3,413 |   |   |   | 6,309 |   |   |   | — |   |   |   | 6,309 |   |
| Commercial real estate   |   |                 | 5,669   |   |                 |   | — |   |   |   | 5,669 |   |   |   | 5,233 |   |   |   | — |   |   |   | 5,233 |   |
| Agriculture              |   |                 | 3,188   |   |                 |   | — |   |   |   | 3,188 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial               |   |                 | 3,875   |   |                 |   | 408 |   |   |   | 3,467 |   |   |   | 1,570 |   |   |   | 109 |   |   |   | 1,461 |   |
| Consumer                 |   |                 | 99      |   |                 |   | — |   |   |   | 99 |   |   |   | 99 |   |   |   | — |   |   |   | 99 |   |
| Total non-accrual loans  |   | $                    | 17,614  |   |                 | $      | 408 |   |   | $ | 17,206 |   |   | $ | 13,545 |   |   | $ | 109 |   |   | $ | 13,436 |   |
|                     |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | At December 31, 2007 |    |   |                 |   |
|                     |   | Gross                |    |   | Guaranteed           |   |   | Net |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage     |   | $                    | — |   |                 | $      | — |   |   | $ | — |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential construction |   |                 | 9,335   |   |                 |   | — |   |   |   | 9,335 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate   |   |                 | 3,816   |   |                 |   | — |   |   |   | 3,816 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agriculture              |   |                 | 1,504   |   |                 |   | — |   |   |   | 1,504 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial               |   |                 | 511     |   |                 |   | — |   |   |   | 511 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                 |   |                 | 7       |   |                 |   | — |   |   |   | 7 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-accrual loans  |   | $                    | 15,173  |   |                 | $      | — |   |   | $ | 15,173 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                                         |   | At December 31, 2009 |    |   | At December 31, 2008 |   |
|------------------------------------------------------------------------------|--------|----------------------|---------|--------|----------------------|--------|
|                                                                         |   | Gross                |    |   | Guaranteed           |   |   | Net |   |   | Gross |   |   | Guaranteed |   |   | Net |   |
| (dollars in thousands)                                                       |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-accrual loans                                                            |   | $                    | 17,614  |   |                 | $      | 408 |   |   | $ | 17,206 |   |   | $ | 13,545 |   |   | $ | 109 |   |   | $ | 13,436 |   |
| Loans 90 days past due and still accruing                                    |   |                 | — |   |                 |   | — |   |   |   | — |   |   |   | 713 |   |   |   | — |   |   |   | 713 |   |
| Total non-performing loans                                                   |   |                 | 17,614  |   |                 |   | 408 |   |   |   | 17,206 |   |   |   | 14,258 |   |   |   | 109 |   |   |   | 14,149 |   |
| Other real estate owned                                                      |   |                 | 3,518   |   |                 |   | — |   |   |   | 3,518 |   |   |   | 4,368 |   |   |   | — |   |   |   | 4,368 |   |
| Total non-performing assets                                                  |   |                 | 21,132  |   |                 |   | 408 |   |   |   | 20,724 |   |   |   | 18,626 |   |   |   | 109 |   |   |   | 18,517 |   |
| Non-performing loans to total loans                                          |   |                 |    |   |                 |   |   |   |   |   | 3.6 | % |   |   |   |   |   |   |   |   |   |   | 2.7 | % |
| Non-performing assets to total assets                                        |   |                 |    |   |                 |   |   |   |   |   | 2.8 | % |   |   |   |   |   |   |   |   |   |   | 2.8 | % |
| Allowance for loan and lease losses to   non-performing loans |   |                 |    |   |                 |   |   |   |   |   | 69.3 | % |   |   |   |   |   |   |   |   |   |   | 102.0 | % |

|                                                        |   | At December 31, 2007 |   |
|-------------------------------------------------------------|--------|----------------------|--------|
|                                                        |   | Gross                |   |   | Guaranteed |   |   | Net |   |
| (dollars in thousands)                                      |   |                 |   |   |   |   |   |   |   |
| Non-accrual loans                                           |   | $                    | 15,173 |   |   | $ | — |   |   | $ | 15,173 |   |
| Loans 90 days past due and still accruing                   |   |                 | 263    |   |   |   | — |   |   |   | 263 |   |
| Total non-performing loans                                  |   |                 | 15,436 |   |   |   | — |   |   |   | 15,436 |   |
| Other real estate owned                                     |   |                 | 879    |   |   |   | — |   |   |   | 879 |   |
| Total non-performing assets                                 |   |                 | 16,315 |   |   |   | — |   |   |   | 16,315 |   |
| Non-performing loans to total loans                         |   |                 |   |   |   |   |   |   |   |   | 3.1 | % |
| Non-performing assets to total assets                       |   |                 |   |   |   |   |   |   |   |   | 2.3 | % |
| Allowance for loan and lease losses to non-performing loans |   |                 |   |   |   |   |   |   |   |   | 70.5 | % |

----

----

----

----

|                                    |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Balance at Beginning of Year            |   | $      | 14,435  |   |   | $      | 10,876  |   |   | $      | 8,361   |   |   | $      | 7,917   |   |   | $ | 7,445 |   |
| Provision for Loan Losses               |   |   | 10,489  |   |   |   | 16,164  |   |   |   | 4,795   |   |   |   | 735     |   |   |   | 600 |   |
| Loans Charged-Off:                      |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial                              |   |   | (5,894  | )      |   |   | (2,224  | )      |   |   | (1,428  | )      |   |   | (572    | ) |   |   | (670 | ) |
| Agriculture                             |   |   | (5,043  | )      |   |   | (88     | )      |   |   | (82     | )      |   |   | (57     | ) |   |   | — |   |
| Real Estate Mortgage                    |   |   | (272    | )      |   |   | (299    | )      |   |   | (249    | )      |   |   | — |   |   |   | — |   |
| Real Estate Construction                |   |   | (2,742  | )      |   |   | (10,265 | )      |   |   | (537    | )      |   |   | — |   |   |   | — |   |
| Installment Loans to Individuals        |   |   | (342    | )      |   |   | (448    | )      |   |   | (764    | )      |   |   | (431    | ) |   |   | (185 | ) |
|                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total Charged-Off                       |   |   | (14,293 | )      |   |   | (13,324 | )      |   |   | (3,060  | )      |   |   | (1,060  | ) |   |   | (855 | ) |
|                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Recoveries:                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial                              |   |   | 322     |   |   |   | 153     |   |   |   | 256     |   |   |   | 561     |   |   |   | 64 |   |
| Agriculture                             |   |   | 5       |   |   |   | 56      |   |   |   | 200     |   |   |   | — |   |   |   | 663 |   |
| Real Estate Mortgage                    |   |   | 2       |   |   |   | 32      |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Real Estate Construction                |   |   | 725     |   |   |   | 159     |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Installment Loans to Individuals        |   |   | 231     |   |   |   | 319     |   |   |   | 324     |   |   |   | 208     |   |   |   | — |   |
|                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total Recoveries                        |   |   | 1,285   |   |   |   | 719     |   |   |   | 780     |   |   |   | 769     |   |   |   | 727 |   |
|                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Net  (Charge-Offs) Recoveries |   |   | (13,008 | )      |   |   | (12,605 | )      |   |   | (2,280  | )      |   |   | (291    | ) |   |   | (128 | ) |
|                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Balance at End of Year                  |   | $      | 11,916  |   |   | $      | 14,435  |   |   | $      | 10,876  |   |   | $      | 8,361   |   |   | $ | 7,917 |   |
|                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Ratio of Net (Charge-Offs) Recoveries   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| During the Year to Average Loans        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Outstanding During the Year             |   |   | (2.65   | %)     |   |   | (2.46   | %)     |   |   | (0.47   | %)     |   |   | (0.06   | %) |   |   | (0.03 | %) |

----

|                                            |   | December 31, 2009                               |   |   | December 31, 2008                |   |   | December 31, 2007                               |   |
|-------------------------------------------------|--------|-------------------------------------------------|--------|--------|----------------------------------|--------|--------|-------------------------------------------------|--------|
|                                            |   |                                            |   |   |                             |   |   |                                            |   |
|                                            |   | Allocation of Allowance for Loan Losses Balance |   |   | Loans as a % of Total Loans |   |   | Allocation of Allowance for Loan Losses Balance |   |   | Loans as a % of Total Loans |   |   | Allocation of Allowance for Loan Losses Balance |   |   | Loans as a % of Total Loans |   |
| Loan Type:                                      |   |                                            |   |   |                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |
|                                            |   |                                            |   |   |                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |
| Commercial                                      |   | $                                               | 4,037  |   |                             |   | 19.2   | %                                               |   | $ | 4,909 |   |   |   | 21.6 | % |   | $ | 2,884 |   |   |   | 22.5 | % |
|                                            |   |                                            |   |   |                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agriculture                                     |   |                                            | 1,681  |   |                             |   | 7.0    | %                                               |   |   | 643 |   |   |   | 7.4 | % |   |   | 865 |   |   |   | 7.4 | % |
|                                            |   |                                            |   |   |                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate Mortgage                            |   |                                            | 4,081  |   |                             |   | 64.2   | %                                               |   |   | 4,491 |   |   |   | 57.0 | % |   |   | 3,470 |   |   |   | 50.5 | % |
|                                            |   |                                            |   |   |                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate    Construction |   |                                            | 1,611  |   |                             |   | 8.7    | %                                               |   |   | 3,113 |   |   |   | 13.0 | % |   |   | 2,947 |   |   |   | 18.5 | % |
|                                            |   |                                            |   |   |                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Installment                                     |   |                                            | 506    |   |                             |   | 0.9    | %                                               |   |   | 1,279 |   |   |   | 1.0 | % |   |   | 710 |   |   |   | 1.1 | % |
|                                            |   |                                            |   |   |                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                           |   | $                                               | 11,916 |   |                             |   | 100.0  | %                                               |   | $ | 14,435 |   |   |   | 100.0 | % |   | $ | 10,876 |   |   |   | 100.0 | % |
|                                            |   |                                            |   |   |                             |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                     |   | December 31, 2006                               |   |   | December 31, 2005                |   |
|--------------------------|--------|-------------------------------------------------|--------|--------|----------------------------------|--------|
|                     |   |                                            |   |   |                             |   |
|                     |   | Allocation of Allowance for Loan Losses Balance |   |   | Loans as a % of Total Loans |   |   | Allocation of Allowance for Loan Losses Balance |   |   | Loans as a % of Total Loans |   |
| Loan Type:               |   |                                            |   |   |                             |   |   |   |   |   |   |   |
|                     |   |                                            |   |   |                             |   |   |   |   |   |   |   |
| Commercial               |   | $                                               | 2,037  |   |                             |   | 20.5 | % |   | $ | 1,779 |   |   |   | 19.1 | % |
|                     |   |                                            |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Agriculture              |   |                                            | 1,133  |   |                             |   | 8.1 | % |   |   | 1,518 |   |   |   | 7.2 | % |
|                     |   |                                            |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate Mortgage     |   |                                            | 3,016  |   |                             |   | 47.9 | % |   |   | 3,003 |   |   |   | 50.1 | % |
|                     |   |                                            |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate Construction |   |                                            | 1,535  |   |                             |   | 22.4 | % |   |   | 1,001 |   |   |   | 22.7 | % |
|                     |   |                                            |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Installment              |   |                                            | 640    |   |                             |   | 1.1 | % |   |   | 616 |   |   |   | 0.9 | % |
|                     |   |                                            |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Total                    |   | $                                               | 8,361  |   |                             |   | 100.0 | % |   | $ | 7,917 |   |   |   | 100.0 | % |

----

|                                      |   | 2009           |    |   | 2008         |   |    | 2007           |   |
|-------------------------------------------|--------|----------------|---------|--------|--------------|--------|---------|----------------|--------|
|                                      |   | Average Amount |    |   | Average Rate |   |    | Average Amount |   |   | Average Rate |   |   | Average Amount |   |   | Average Rate |   |
|                                      |   |           |    |   |         |   |    |           |   |   |   |   |   |   |   |   |   |   |
| Deposit Type:                             |   |           |    |   |         |   |    |           |   |   |   |   |   |   |   |   |   |   |
|                                      |   |           |    |   |         |   |    |           |   |   |   |   |   |   |   |   |   |   |
| Non-interest-Bearing Demand               |   | $              | 172,925 |   |         |   | — |           |   | $ | 173,332 |   |   |   | — |   |   | $ | 185,563 |   |   |   | — |   |
|                                      |   |           |    |   |         |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest-Bearing Demand (NOW) |   | $              | 127,769 |   |         |   | 0.47    | %              |   | $ | 128,690 |   |   |   | 0.72 | % |   | $ | 130,608 |   |   |   | 2.17 | % |
|                                      |   |           |    |   |         |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Savings and MMDAs             |   | $              | 172,610 |   |         |   | 0.78    | %              |   | $ | 171,465 |   |   |   | 1.01 | % |   | $ | 179,425 |   |   |   | 2.25 | % |
|                                      |   |           |    |   |         |   |    |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time                                      |   | $              | 144,251 |   |         |   | 1.74    | %              |   | $ | 114,742 |   |   |   | 2.74 | % |   | $ | 117,178 |   |   |   | 3.88 | % |

|                                    |   |   |   |
|-----------------------------------------|--------|--------|--------|
| Three months or less                    |   | $      | 35,722 |   |
|                                    |   |   |   |   |
| Over three months through twelve months |   |   | 47,616 |   |
|                                    |   |   |   |   |
| Over twelve months                      |   |   | 13,711 |   |
|                                    |   |   |   |   |
| Total                                   |   | $      | 97,049 |   |

----

----

----

|                          |   | 2009            |    |   | 2008    |   |   | 2007            |   |
|-------------------------------|--------|-----------------|---------|--------|---------|--------|--------|-----------------|--------|
|                          |   |            |    |   |    |   |   |            |   |   |   |   |   |   |   |   |   |   |
|                          |   | Average Balance |    |   | Percent |   |   | Average Balance |   |   | Percent |   |   | Average Balance |   |   | Percent |   |
|                          |   |            |    |   |    |   |   |            |   |   |   |   |   |   |   |   |   |   |
| Non-interest-Bearing Demand   |   | $               | 172,925 |   |    |   | 28.0   | %               |   | $ | 173,332 |   |   |   | 29.5 | % |   | $ | 185,563 |   |   |   | 30.3 | % |
|                          |   |            |    |   |    |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Demand (NOW) |   |            | 127,769 |   |    |   | 20.7   | %               |   |   | 128,690 |   |   |   | 21.9 | % |   |   | 130,608 |   |   |   | 21.3 | % |
|                          |   |            |    |   |    |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings and MMDAs             |   |            | 172,610 |   |    |   | 28.0   | %               |   |   | 171,465 |   |   |   | 29.1 | % |   |   | 179,425 |   |   |   | 29.3 | % |
|                          |   |            |    |   |    |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time                          |   |            | 144,251 |   |    |   | 23.3   | %               |   |   | 114,742 |   |   |   | 19.5 | % |   |   | 117,178 |   |   |   | 19.1 | % |
|                          |   |            |    |   |    |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                         |   | $               | 617,555 |   |    |   | 100.0  | %               |   | $ | 588,229 |   |   |   | 100.0 | % |   | $ | 612,774 |   |   |   | 100.0 | % |

----

|                           |   | 2009 over 2008 |   |   | 2008 over 2007 |   |
|--------------------------------|--------|----------------|--------|--------|----------------|--------|
|                           |   |           |   |   |           |   |   |   |   |   |   |   |
|                           |   | Amount         |   |   | Percent        |   |   | Amount |   |   | Percent |   |
|                           |   |           |   |   |           |   |   |   |   |   |   |   |
| Salaries and Employee Benefits |   | $              | (90    | )      |           |   | (0.6 | %) |   | $ | (771 | ) |   |   | (4.7 | %) |
| Occupancy and Equipment        |   |           | 107    |   |           |   | 2.9 | % |   |   | 28 |   |   |   | 0.8 | % |
| Data Processing                |   |           | 41     |   |           |   | 2.4 | % |   |   | 87 |   |   |   | 5.3 | % |
| Stationery and Supplies        |   |           | (62    | )      |           |   | (13.2 | %) |   |   | (89 | ) |   |   | (15.9 | %) |
| Advertising                    |   |           | (5     | )      |           |   | (0.7 | %) |   |   | (168 | ) |   |   | (19.0 | %) |
| Directors Fees                 |   |           | 4      |   |           |   | 1.9 | % |   |   | (9 | ) |   |   | (4.1 | %) |
| OREO Expense and Write-downs   |   |           | (44    | )      |           |   | (2.8 | %) |   |   | 1,549 |   |   |   | 3,520.5 | % |
| Other Expense                  |   |           | 980    |   |           |   | 18.6 | % |   |   | (293 | ) |   |   | (5.3 | %) |
|                           |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Total                          |   | $              | 931    |   |           |   | 3.2 | % |   | $ | 334 |   |   |   | 1.2 | % |

----

----

|                                   |   | Payments due by period |    |
|----------------------------------------|--------|------------------------|---------|
| Contractual Obligations                |   | Total                  |    |   | Less than 1 year |   |   | 1-3 years |   |   | 3-5 years |   |   | More than 5 years |   |
|                                   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits without a stated maturity (a) |   | $                      | 499,364 |   |   | $ | 499,364 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Certificates of Deposit (a)            |   |                   | 152,062 |   |   |   | 133,958 |   |   |   | 16,928 |   |   |   | 1,176 |   |   |   | — |   |
| Short-Term Borrowings (a)              |   |                   | 813     |   |   |   | 813 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Long-Term Borrowings (b)               |   |                   | 12,300  |   |   |   | 434 |   |   |   | 2,399 |   |   |   | 9,467 |   |   |   | — |   |
| Operating Leases                       |   |                   | 5,572   |   |   |   | 1,221 |   |   |   | 1,976 |   |   |   | 1,589 |   |   |   | 786 |   |
| Purchase Obligations                   |   |                   | 1,556   |   |   |   | 1,556 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                  |   | $                      | 671,667 |   |   | $ | 637,346 |   |   | $ | 21,303 |   |   | $ | 12,232 |   |   | $ | 786 |   |

|          (a) | Excludes interest. |
|------------------------------------------------------|--------------------|

|          (b) | Includes interest on fixed rate obligations. |
|------------------------------------------------------|----------------------------------------------|

|                         |   | Maturities by period |    |
|------------------------------|--------|----------------------|---------|
| Commitments                  |   | Total                |    |   | Less than 1 year |   |   | 1-3 years |   |   | 3-5 years |   |   | More than 5 years |   |
|                         |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                   |   | $                    | 75,622  |   |   | $ | 57,251 |   |   | $ | 7,520 |   |   | $ | 9,200 |   |   | $ | 1,651 |   |
| Agriculture                  |   |                 | 36,295  |   |   |   | 33,424 |   |   |   | 1,076 |   |   |   | — |   |   |   | 1,795 |   |
| Real Estate Mortgage         |   |                 | 53,279  |   |   |   | 7,462 |   |   |   | 10,868 |   |   |   | 6,899 |   |   |   | 28,050 |   |
| Real Estate Construction     |   |                 | 9,445   |   |   |   | 4,665 |   |   |   | 30 |   |   |   | — |   |   |   | 4,750 |   |
| Installment                  |   |                 | 16,948  |   |   |   | 16,252 |   |   |   | 696 |   |   |   | — |   |   |   | — |   |
| Commitments to sell loans    |   |                 | 3,179   |   |   |   | 3,179 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Standby Letters of Credit    |   |                 | 3,572   |   |   |   | 3,572 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                        |   | $                    | 198,340 |   |   | $ | 125,805 |   |   | $ | 20,190 |   |   | $ | 16,099 |   |   | $ | 36,246 |   |

----

|                         |   | 2009   |    |   | 2008   |   |
|------------------------------|--------|--------|---------|--------|--------|--------|
|                         |   |   |    |   |   |   |
| Undisbursed loan commitments |   | $      | 191,589 |   |   | $      | 198,615 |   |
| Standby letters of credit    |   |   | 3,572   |   |   |   | 5,715 |   |
| Commitments to sell loans    |   |   | 3,179   |   |   |   | 9,764 |   |
|                         |   |   |    |   |   |   |   |   |
|                         |   | $      | 198,340 |   |   | $      | 214,094 |   |

----

| Management’s Report                                                                                                         | Page 54 |
|-----------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                              |    |
| Report of Independent Registered Public Accounting Firm                                                                           | Page 55 |
|                                                                                                                              |    |
| Consolidated Balance Sheets as of December 31, 2009 and 2008                                                                      | Page 56 |
|                                                                                                                              |    |
| Consolidated Statements of Operations for Years ended December 31, 2009, 2008, and 2007                                           | Page 57 |
|                                                                                                                              |    |
| Consolidated Statements of Stockholders' Equity and Comprehensive Income (loss) for Years ended December 31, 2009, 2008, and 2007 | Page 58 |
|                                                                                                                              |    |
| Consolidated Statements of Cash Flows for Years ended December 31, 2009, 2008, and 2007                                           | Page 60 |
|                                                                                                                              |    |
| Notes to Consolidated Financial Statements                                                                                        | Page 61 |

----

|   | /s/ Owen J. Onsum                                       |
|--------|---------------------------------------------------------|
|   |                                                    |
|   | Owen J. Onsum                                           |
|   | President/Chief Executive Officer/Director              |
|   | (Principal Executive Officer)                           |
|   |                                                    |
|   |                                                    |
|   | /s/ Louise A. Walker                                    |
|   |                                                    |
|   | Louise A. Walker                                        |
|   | Senior Executive Vice President/Chief Financial Officer |
|   | (Principal Financial Officer)                           |

----

----

|                                                                                                                                                                                        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| FIRST NORTHERN COMMUNITY BANCORP                                                                                                                                                            |   |
| AND SUBSIDIARY                                                                                                                                                                              |   |
| Consolidated Balance Sheets                                                                                                                                                                 |   |
| December 31, 2009 and 2008                                                                                                                                                                  |   |
| (in thousands, except share amounts)                                                                                                                                                        |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |
|                                                                                                                                                                                        |   | 2009 |   |   | 2008 |   |
| Assets                                                                                                                                                                                      |   |   |   |   |   |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |
| Cash and due from banks                                                                                                                                                                     |   | $ | 147,076 |   |   | $ | 25,150 |   |
| Federal funds sold                                                                                                                                                                          |   |   | — |   |   |   | 40,860 |   |
| Investment securities – available-for-sale, at fair value (includes securities pledged to creditors with the right to sell or repledge of $29,194 and $21,071, respectively)          |   |   | 75,868 |   |   |   | 42,106 |   |
| Loans (net of allowance for loan losses of $11,916 at December 31, 2009 and $14,435 at December 31, 2008)                                                                                   |   |   | 474,378 |   |   |   | 516,968 |   |
| Loans held-for-sale                                                                                                                                                                         |   |   | 1,640 |   |   |   | 2,192 |   |
| Stock in Federal Home Loan Bank and other equity securities, at cost                                                                                                                        |   |   | 2,506 |   |   |   | 2,311 |   |
| Premises and equipment, net                                                                                                                                                                 |   |   | 7,397 |   |   |   | 7,620 |   |
| Other real estate owned                                                                                                                                                                     |   |   | 3,518 |   |   |   | 4,368 |   |
| Other assets                                                                                                                                                                                |   |   | 35,242 |   |   |   | 29,227 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                                                                |   | $ | 747,625 |   |   | $ | 670,802 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Deposits:                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Demand                                                                                                                                                                                      |   | $ | 179,684 |   |   | $ | 181,600 |   |
| Interest-bearing transaction deposits                                                                                                                                                       |   |   | 133,224 |   |   |   | 123,614 |   |
| Savings and MMDAs                                                                                                                                                                           |   |   | 186,456 |   |   |   | 155,656 |   |
| Time, under $100,000                                                                                                                                                                        |   |   | 55,013 |   |   |   | 64,252 |   |
| Time, $100,000 and over                                                                                                                                                                     |   |   | 97,049 |   |   |   | 59,596 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Total Deposits                                                                                                                                                                              |   |   | 651,426 |   |   |   | 584,718 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| FHLB advances and other borrowings                                                                                                                                                          |   |   | 11,813 |   |   |   | 18,259 |   |
| Accrued interest payable and other liabilities                                                                                                                                              |   |   | 6,293 |   |   |   | 5,796 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Total Liabilities                                                                                                                                                                           |   |   | 669,532 |   |   |   | 608,773 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| 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 in 2009 and none in 2008, respectively; |   |   | 16,822 |   |   |   | — |   |
| Common stock, no par value; 16,000,000 shares authorized; 9,019,320 and 8,608,802 shares issued and outstanding in 2009 and 2008, respectively;                                             |   |   | 62,457 |   |   |   | 58,983 |   |
| Additional paid-in capital                                                                                                                                                                  |   |   | 977 |   |   |   | 977 |   |
| (Accumulated deficit) retained earnings                                                                                                                                                     |   |   | (2,074 | ) |   |   | 2,026 |   |
| Accumulated other comprehensive (loss)/income, net                                                                                                                                          |   |   | (89 | ) |   |   | 43 |   |
| Total Stockholders’ Equity                                                                                                                                                            |   |   | 78,093 |   |   |   | 62,029 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                                            |   | $ | 747,625 |   |   | $ | 670,802 |   |
|                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                                                                                                                                |   |   |   |   |   |   |   |   |

----

| FIRST NORTHERN COMMUNITY BANCORP                                                      |
|---------------------------------------------------------------------------------------|
| AND SUBSIDIARY                                                                        |
| Consolidated Statements of Operations                                                 |
| Years Ended December 31, 2009, 2008 and 2007(in thousands, except share amounts) |
|                                                                                  |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|    Interest and dividend income:                                       |   |   |   |   |   |   |   |   |   |
| Interest and fees on loans                                                            |   | $ | 30,520 |   |   | $ | 35,077 |   |   | $ | 41,488 |   |
| Federal funds sold                                                                    |   |   | 58 |   |   |   | 519 |   |   |   | 2,660 |   |
| Due from interest bearing accounts                                                    |   |   | 164 |   |   |   | 557 |   |   |   | 273 |   |
| Investment securities:                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                               |   |   | 1,311 |   |   |   | 1,344 |   |   |   | 2,789 |   |
| Non-taxable                                                                           |   |   | 1,003 |   |   |   | 1,254 |   |   |   | 1,271 |   |
| Other earning assets                                                                  |   |   | 10 |   |   |   | 120 |   |   |   | 113 |   |
| Total interest and dividend income                                                    |   |   | 33,066 |   |   |   | 38,871 |   |   |   | 48,594 |   |
|    Interest expense:                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time deposits $100,000 and over                                                       |   |   | 1,651 |   |   |   | 2,056 |   |   |   | 3,019 |   |
| Other deposits                                                                        |   |   | 2,810 |   |   |   | 3,747 |   |   |   | 8,406 |   |
| Other borrowings                                                                      |   |   | 499 |   |   |   | 572 |   |   |   | 313 |   |
| Total interest expense                                                                |   |   | 4,960 |   |   |   | 6,375 |   |   |   | 11,738 |   |
| Net interest income                                                                   |   |   | 28,106 |   |   |   | 32,496 |   |   |   | 36,856 |   |
|    Provision for loan losses                                           |   |   | 10,489 |   |   |   | 16,164 |   |   |   | 4,795 |   |
| Net interest income after provision                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| for loan losses                                                                       |   |   | 17,617 |   |   |   | 16,332 |   |   |   | 32,061 |   |
|    Other operating income:                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                                                   |   |   | 3,497 |   |   |   | 3,734 |   |   |   | 3,450 |   |
| Net realized gains on available-for-sale securities                                   |   |   | 454 |   |   |   | 569 |   |   |   | 638 |   |
| Net realized gains on loans held-for-sale                                             |   |   | 954 |   |   |   | 255 |   |   |   | 241 |   |
| Net realized gains on other real estate owned                                         |   |   | 4 |   |   |   | 102 |   |   |   | 353 |   |
| Other income                                                                          |   |   | 3,644 |   |   |   | 3,136 |   |   |   | 2,478 |   |
| Total other operating income                                                          |   |   | 8,553 |   |   |   | 7,796 |   |   |   | 7,160 |   |
|    Other operating expenses:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                        |   |   | 15,379 |   |   |   | 15,469 |   |   |   | 16,240 |   |
| Occupancy and equipment                                                               |   |   | 3,789 |   |   |   | 3,682 |   |   |   | 3,654 |   |
| Data processing                                                                       |   |   | 1,756 |   |   |   | 1,715 |   |   |   | 1,628 |   |
| Stationery and supplies                                                               |   |   | 409 |   |   |   | 471 |   |   |   | 560 |   |
| Advertising                                                                           |   |   | 712 |   |   |   | 717 |   |   |   | 885 |   |
| Directors fees                                                                        |   |   | 215 |   |   |   | 211 |   |   |   | 220 |   |
| OREO expense and write-downs                                                          |   |   | 1,549 |   |   |   | 1,593 |   |   |   | 44 |   |
| Other                                                                                 |   |   | 6,259 |   |   |   | 5,279 |   |   |   | 5,572 |   |
| Total other operating expenses                                                        |   |   | 30,068 |   |   |   | 29,137 |   |   |   | 28,803 |   |
| (Loss) income before income tax (benefit) expense                                     |   |   | (3,898 | ) |   |   | (5,009 | ) |   |   | 10,418 |   |
|   (Benefit) provision for income tax                                        |   |   | (2,844 | ) |   |   | (3,635 | ) |   |   | 3,137 |   |
| Net (loss) income                                                                     |   |   | (1,054 | ) |   |   | (1,374 | ) |   |   | 7,281 |   |
|  Preferred stock dividends and accretion                                         |   |   | (792 | ) |   |   | — |   |   |   | — |   |
| Net (loss) income available to common   shareholders                   |   | $ | (1,846 | ) |   | $ | (1,374 | ) |   | $ | 7,281 |   |
|    Basic (loss) income per share                                       |   | $ | (0.21 | ) |   | $ | (0.15 | ) |   | $ | 0.79 |   |
|    Diluted (loss) income per share                                     |   | $ | (0.21 | ) |   | $ | (0.15 | ) |   | $ | 0.77 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                          |   |   |   |   |   |   |   |   |   |   |   |   |

----

| FIRST NORTHERN COMMUNITY BANCORP                                                                    |   |
|-----------------------------------------------------------------------------------------------------|--------|
| AND SUBSIDIARY                                                                                      |   |
| Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss)                     |   |
| Years Ended December 31, 2009, 2008 and 2007                                                        |   |
| (in thousands, except share amounts)                                                                |   |
|                                                                                                |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Retained |   |   | Accumulated |   |   |   |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | Earnings / |   |   | Other |   |   |   |   |
|                                                                                                |   | Preferred |   |   | Common Stock |   |   | Comprehensive |   |   | Paid-in |   |   | (Accumulated |   |   | Comprehensive |   |   |   |   |
|                                                                                                |   | Stock |   |   | Shares |   |   | Amounts |   |   | Income |   |   | Capital |   |   | Deficit) |   |   | (Loss) / Income |   |   | Total |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2006                                                                        |   | $ | — |   |   |   | 7,980,952 |   |   | $ | 45,726 |   |   |   |   |   | $ | 977 |   |   | $ | 15,792 |   |   | $ | (505 | ) |   | $ | 61,990 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 7,281 |   |   |   |   |   |   |   | 7,281 |   |   |   |   |   |   |   | 7,281 |   |
| Other comprehensive income,  net of tax:                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding losses on securities arising during the current period, net of tax effect of $30 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (45 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment due to gains realized on sales of securities, net of tax effect of $255 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 383 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other comprehensive income, net of tax effect of $225                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 338 |   |   |   |   |   |   |   |   |   |   |   | 338 |   |   |   | 338 |   |
| Comprehensive income                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 7,619 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 6% stock dividend                                                                                   |   |   |   |   |   |   | 476,976 |   |   |   | 10,851 |   |   |   |   |   |   |   |   |   |   |   | (10,851 | ) |   |   |   |   |   |   | — |   |
| Cash in lieu of fractional shares                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (13 | ) |   |   |   |   |   |   | (13 | ) |
| Stock-based compensation and related tax benefits                                                   |   |   |   |   |   |   |   |   |   |   | 705 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 705 |   |
| Common shares issued, stock options exercised, net of swapped shares                                |   |   |   |   |   |   | 82,560 |   |   |   | 525 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 525 |   |
| Stock repurchase and retirement                                                                     |   |   |   |   |   |   | (370,716 | ) |   |   | (6,851 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,851 | ) |
| Balance at December 31, 2007                                                                        |   | $ | — |   |   |   | 8,169,772 |   |   | $ | 50,956 |   |   |   |   |   |   | $ | 977 |   |   | $ | 12,209 |   |   | $ | (167 | ) |   | $ | 63,975 |   |
| Cumulative  effect of adoption of accounting for split dollar life insurance              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (158 | ) |   |   |   |   |   |   | (158 | ) |
| Comprehensive income:                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (1,374 | ) |   |   |   |   |   |   | (1,374 | ) |   |   |   |   |   |   | (1,374 | ) |
| Other comprehensive income,  net of tax:                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains on securities arising during the current period, net of tax effect of $62  |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 92 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment due to gains realized on sales of securities, net of tax effect of $228 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (341 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Directors’ and officers’ retirement plan equity adjustments, net of tax effect of $306  |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 459 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other comprehensive income, net of tax effect of $140                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 210 |   |   |   |   |   |   |   |   |   |   |   | 210 |   |   |   | 210 |   |
| Comprehensive income                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (1,164 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 6% stock dividend                                                                                   |   |   |   |   |   |   | 488,234 |   |   |   | 8,642 |   |   |   |   |   |   |   |   |   |   |   | (8,642 | ) |   |   |   |   |   |   | — |   |
| Cash in lieu of fractional shares                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (9 | ) |   |   |   |   |   |   | (9 | ) |
| Stock-based compensation and related tax benefits                                                   |   |   |   |   |   |   |   |   |   |   | 519 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 519 |   |
| Common shares issued, stock options exercised, net of swapped shares                                |   |   |   |   |   |   | 36,211 |   |   |   | 225 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 225 |   |
| Stock repurchase and retirement                                                                     |   |   |   |   |   |   | (85,415 | ) |   |   | (1,359 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,359 | ) |
| Balance at December 31, 2008                                                                        |   | $ | — |   |   |   | 8,608,802 |   |   | $ | 58,983 |   |   |   |   |   |   | $ | 977 |   |   | $ | 2,026 |   |   | $ | 43 |   |   | $ | 62,029 |   |

----

| FIRST NORTHERN COMMUNITY BANCORP                                                                     |   |
|------------------------------------------------------------------------------------------------------|--------|
| AND SUBSIDIARY                                                                                       |   |
| Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss)                      |   |
| Years Ended December 31, 2009, 2008 and 2007                                                         |   |
| (in thousands, except share amounts)                                                                 |   |
| (Continued)                                                                                          |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Retained |   |   | Accumulated |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | Earnings / |   |   | Other |   |   |   |   |
|                                                                                                 |   | Preferred |   |   | Common Stock |   |   | Comprehensive |   |   | Paid-in |   |   | (Accumulated |   |   | Comprehensive |   |   |   |   |
|                                                                                                 |   | Stock |   |   | Shares |   |   | Amounts |   |   | Income |   |   | Capital |   |   | Deficit) |   |   | (Loss) / Income |   |   | Total |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2008                                                                         |   | $ | — |   |   |   | 8,608,802 |   |   | $ | 58,983 |   |   |   |   |   | $ | 977 |   |   | $ | 2,026 |   |   | $ | 43 |   |   | $ | 62,029 |   |
| Comprehensive income:                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (1,054 | ) |   |   |   |   |   |   | (1,054 | ) |   |   |   |   |   |   | (1,054 | ) |
| Other comprehensive loss,  net of tax:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding losses on securities arising during the current period, net of tax effect of $134 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 200 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment due to gains realized on sales of securities, net of tax effect of $182  |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (272 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Directors’ and officers’ retirement plan equity adjustments, net of tax effect of $40    |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (60 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other comprehensive loss, net of tax effect of $88                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (132 | ) |   |   |   |   |   |   |   |   |   |   | (132 | ) |   |   | (132 | ) |
| Comprehensive loss                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (1,186 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of preferred stock                                                                          |   |   | 16,726 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 16,726 |   |
| Issuance of common stock warrants                                                                    |   |   |   |   |   |   |   |   |   |   | 664 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 664 |   |
| 4% stock dividend                                                                                    |   |   |   |   |   |   | 346,011 |   |   |   | 2,249 |   |   |   |   |   |   |   |   |   |   |   | (2,249 | ) |   |   |   |   |   |   | — |   |
| Dividend on preferred stock                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (696 | ) |   |   |   |   |   |   | (696 | ) |
| Discount accretion on preferred stock                                                                |   |   | 96 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (96 | ) |   |   |   |   |   |   | — |   |
| Cash in lieu of fractional shares                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (5 | ) |   |   |   |   |   |   | (5 | ) |
| Stock-based compensation and related tax benefits                                                    |   |   |   |   |   |   |   |   |   |   | 345 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 345 |   |
| Common shares issued, stock options exercised, net of swapped shares                                 |   |   |   |   |   |   | 64,507 |   |   |   | 216 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 216 |   |
| Balance at December 31, 2009                                                                         |   | $ | 16,822 |   |   |   | 9,019,320 |   |   | $ | 62,457 |   |   |   |   |   |   | $ | 977 |   |   |   | (2,074 | ) |   | $ | (89 | ) |   | $ | 78,093 |   |

----

| FIRST NORTHERN COMMUNITY BANCORP                                      |   |   |
|-----------------------------------------------------------------------|--------|--------|
| AND SUBSIDIARY                                                        |   |   |
| Consolidated Statements of Cash Flows                                 |   |   |
| Years Ended December 31, 2009, 2008 and 2007                          |   |   |
| (in thousands)                                                        |   |   |
|                                                                  |   | 2009   |   |   | 2008 |   |   | 2007 |   |   |
| Cash flows from operating activities:                                 |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                     |   | $      | (1,054 | ) |   | $ | (1,374 | ) |   | $ | 7,281 |   |   |
| Adjustments to reconcile net (loss) income to net cash provided by    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operating activities:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                             |   |   | 10,489 |   |   |   | 16,164 |   |   |   | 4,795 |   |   |
| Stock plan accruals                                                   |   |   | 336 |   |   |   | 497 |   |   |   | 523 |   |   |
| Tax benefit for stock options                                         |   |   | 9 |   |   |   | 22 |   |   |   | 182 |   |   |
| Depreciation and amortization                                         |   |   | 940 |   |   |   | 1,045 |   |   |   | 1,112 |   |   |
| Accretion and amortization, net                                       |   |   | 621 |   |   |   | (47 | ) |   |   | (149 | ) |   |
| Net realized gains on available-for-sale securities                   |   |   | (454 | ) |   |   | (569 | ) |   |   | (638 | ) |   |
| Net realized gains on loans held-for-sale                             |   |   | (954 | ) |   |   | (255 | ) |   |   | (241 | ) |   |
| Gain on sale of OREO properties                                       |   |   | (4 | ) |   |   | (102 | ) |   |   | (353 | ) |   |
| Write-downs of OREO properties                                        |   |   | 1,208 |   |   |   | 1,484 |   |   |   | — |   |   |
| Net loss (gain) on sale of bank premises and equipment                |   |   | 10 |   |   |   | 19 |   |   |   | (2 | ) |   |
| Benefit from deferred income taxes                                    |   |   | (1,185 | ) |   |   | (2,162 | ) |   |   | (2,085 | ) |   |
| Proceeds from sales of loans held-for-sale                            |   |   | 105,479 |   |   |   | 35,816 |   |   |   | 36,776 |   |   |
| Originations of loans held-for-sale                                   |   |   | (103,973 | ) |   |   | (36,410 | ) |   |   | (36,310 | ) |   |
| Decrease in deferred loan origination fees and costs, net             |   |   | (164 | ) |   |   | (539 | ) |   |   | (196 | ) |   |
| Increase in accrued interest receivable and other  assets   |   |   | (4,833 | ) |   |   | (824 | ) |   |   | (1,203 | ) |   |
| Increase (decrease) in accrued interest payable and other liabilities |   |   | 497 |   |   |   | (1,621 | ) |   |   | (1,155 | ) |   |
| Net cash provided by operating activities                             |   |   | 6,968 |   |   |   | 11,144 |   |   |   | 8,337 |   |   |
| Cash flows from investing activities:                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from maturities of available-for-sale securities             |   |   | 3,075 |   |   |   | 9,992 |   |   |   | 14,205 |   |   |
| Proceeds from sales of available-for-sale securities                  |   |   | 27,866 |   |   |   | 32,764 |   |   |   | 20,140 |   |   |
| Principal repayments on available-for-sale securities                 |   |   | 9,389 |   |   |   | 4,010 |   |   |   | 3,461 |   |   |
| Purchase of available-for-sale securities                             |   |   | (74,379 | ) |   |   | (13,822 | ) |   |   | (37,125 | ) |   |
| Net increase in other interest earnings assets                        |   |   | (195 | ) |   |   | (112 | ) |   |   | (106 | ) |   |
| Net decrease (increase) in loans                                      |   |   | 28,252 |   |   |   | (41,417 | ) |   |   | (24,633 | ) |   |
| Purchases of bank premises and equipment                              |   |   | (727 | ) |   |   | (812 | ) |   |   | (924 | ) |   |
| Proceeds from sale of bank premises and equipment                     |   |   | — |   |   |   | — |   |   |   | 2 |   |   |
| Proceeds from sale of OREO                                            |   |   | 3,659 |   |   |   | 1,924 |   |   |   | 353 |   |   |
| Net cash used in investing activities                                 |   |   | (3,060 | ) |   |   | (7,473 | ) |   |   | (24,627 | ) |   |
| Cash flows from financing activities:                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in deposits                                   |   |   | 66,708 |   |   |   | (37,953 | ) |   |   | 18,989 |   |   |
| Proceeds from issuance of preferred stock                             |   |   | 16,726 |   |   |   | — |   |   |   | — |   |   |
| Proceeds from issuance of common stock warrants                       |   |   | 664 |   |   |   | — |   |   |   | — |   |   |
| Net (decrease) increase in FHLB advances and other borrowings         |   |   | (6,446 | ) |   |   | 2,427 |   |   |   | 4,851 |   |   |
| Dividends on preferred stock                                          |   |   | (696 | ) |   |   | — |   |   |   | — |   |   |
| Cash dividends paid in lieu of fractional shares                      |   |   | (5 | ) |   |   | (9 | ) |   |   | (13 | ) |   |
| Common stock issued                                                   |   |   | 216 |   |   |   | 225 |   |   |   | 525 |   |   |
| Tax benefit for stock options                                         |   |   | (9 | ) |   |   | (22 | ) |   |   | (182 | ) |   |
| Repurchase of common stock                                            |   |   | — |   |   |   | (1,359 | ) |   |   | (6,851 | ) |   |
| Net cash provided by (used in) financing activities                   |   |   | 77,158 |   |   |   | (36,691 | ) |   |   | 17,319 |   |   |
| Net increase (decrease) in cash and cash equivalents                  |   |   | 81,066 |   |   |   | (33,020 | ) |   |   | 1,029 |   |   |
| Cash and cash equivalents at beginning of year                        |   |   | 66,010 |   |   |   | 99,030 |   |   |   | 98,001 |   |   |
| Cash and cash equivalents at end of year                              |   | $      | 147,076 |   |   | $ | 66,010 |   |   | $ | 99,030 |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.          |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| FIRST NORTHERN COMMUNITY BANCORP                                                 |
|----------------------------------------------------------------------------------|
| AND SUBSIDIARY                                                                   |
| Notes to Consolidated Financial Statements                                       |
| Years Ended December 31, 2009, 2008 and 2007(in thousands, except share amounts) |

| (1) | Summary of Significant Accounting Policies |
|-----|--------------------------------------------|

|             (a) | Cash Equivalents |
|------------------------------------------------------------------------|------------------|

|             (b) | Investment Securities |
|-----------------------------------------------------------------------------|-----------------------|

----

|            (c) | Loans |
|------------------------------------------------------------------|-------|

|             (d) | Loans Held-for-Sale |
|------------------------------------------------------------------------|---------------------|

|             (e) | Allowance for Loan Losses |
|------------------------------------------------------------------------|---------------------------|

----

|             (f) | Premises and Equipment |
|------------------------------------------------------------------------|------------------------|

| Buildings and improvements                                                                                                                                                                                                                                                                                               |   | 15 to 50 years                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                  Furniture and equipment |   | 3 to 10 years                         |

|             (g) | Other Real Estate Owned |
|------------------------------------------------------------------------|-------------------------|

|             (h) | Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of |
|------------------------------------------------------------------------|-------------------------------------------------------------------------|

|             (i)  | Gain or Loss on Sale of Loans and Servicing Rights |
|------------------------------------------------------------------------------|----------------------------------------------------|

----

|             (j) | Income Taxes |
|------------------------------------------------------------------------|--------------|

----

|             (k) | Stock Option Plan |
|------------------------------------------------------------------------|-------------------|

|    (l)        | Earnings (Loss) Per Share (EPS) |
|------------------------------------------------------------|---------------------------------|

| (m)      | Comprehensive Income |
|-----------------------------------|----------------------|

| (n)     | Fiduciary Powers |
|-----------------------------|------------------|

| (o)     | Impact of Recently Issued Accounting Standards |
|-----------------------------|------------------------------------------------|

----

----

| (p)      | Reclassifications |
|------------------------------|-------------------|

| (2)  | Cash and Due from Banks |
|-----------|-------------------------|

----

| (3)  | Investment Securities |
|-----------|-----------------------|

|                                                    |   | Amortized cost |   |   | Unrealized gains |   |    | Unrealized losses |   |   | Estimated market value |   |
|---------------------------------------------------------|--------|----------------|--------|--------|------------------|--------|---------|-------------------|--------|--------|------------------------|--------|
|                                                    |   |           |   |   |             |   |    |              |   |   |                   |   |
| Investment securities available-for-sale:               |   |           |   |   |             |   |    |              |   |   |                   |   |
| U.S. Treasury securities                                |   | $              | 253    |   |             | $      | — |              |   | $      | —                |   |   | $ | 253 |   |
| Securities of U.S. government agencies and corporations |   |           | 4,353  |   |             |   | — |              |   |   | (18                    | )      |   |   | 4,335 |   |
| Obligations of states and political subdivisions        |   |           | 23,374 |   |             |   | 308     |              |   |   | (266                   | )      |   |   | 23,416 |   |
| Mortgage-backed securities                              |   |           | 47,737 |   |             |   | 213     |              |   |   | (86                    | )      |   |   | 47,864 |   |
|                                                    |   |           |   |   |             |   |    |              |   |   |                   |   |   |   |   |   |
| Total debt securities                                   |   | $              | 75,717 |   |             | $      | 521     |              |   | $      | (370                   | )      |   | $ | 75,868 |   |

|                                                    |   | Amortized cost |   |   | Unrealized gains |   |   | Unrealized losses |   |   | Estimated market value |   |
|---------------------------------------------------------|--------|----------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|------------------------|--------|
|                                                    |   |           |   |   |             |   |   |              |   |   |                   |   |
| Investment securities available-for-sale:               |   |           |   |   |             |   |   |              |   |   |                   |   |
| U.S. Treasury securities                                |   | $              | 249    |   |             | $      | 25     |              |   | $      | —                |   |   | $ | 274 |   |
| Securities of U.S. government agencies and corporations |   |           | 2,018  |   |             |   | 21     |              |   |   | —                |   |   |   | 2,039 |   |
| Obligations of states and political subdivisions        |   |           | 26,345 |   |             |   | 244    |              |   |   | (358                   | )      |   |   | 26,231 |   |
| Mortgage-backed securities                              |   |           | 13,223 |   |             |   | 369    |              |   |   | (30                    | )      |   |   | 13,562 |   |
|                                                    |   |           |   |   |             |   |   |              |   |   |                   |   |   |   |   |   |
| Total debt securities                                   |   | $              | 41,835 |   |             | $      | 659    |              |   | $      | (388                   | )      |   | $ | 42,106 |   |

|                                   |   | Amortized cost |   |   | Estimated market value |   |
|----------------------------------------|--------|----------------|--------|--------|------------------------|--------|
|                                   |   |           |   |   |                   |   |
| Due in one year or less                |   | $              | 2,813  |   |                   | $      | 2,825 |   |
| Due after one year through five years  |   |           | 51,222 |   |                   |   | 51,365 |   |
| Due after five years through ten years |   |           | 3,724  |   |                   |   | 3,718 |   |
| Due after ten years                    |   |           | 17,958 |   |                   |   | 17,960 |   |
|                                   |   |           |   |   |                   |   |   |   |
|                                   |   | $              | 75,717 |   |                   | $      | 75,868 |   |

----

|                                                                                                                     |   | Less than 12 months |   |   | 12 months or more |   |   | Total      |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|------------|--------|
|                                                                                                                     |   | Fair Value          |   |   | Unrealized losses |   |   | Fair Value |   |   | Unrealized losses |   |   | Fair Value |   |   | Unrealized losses |   |
| Securities of U.S.      government agencies      and corporations |   | $                   | 3,332  |   |              | $      | (18    | )          |   | $ | — |   |   | $ | — |   |   | $ | 3,332 |   |   | $ | (18 | ) |
|                                                                                                                     |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of states and political subdivisions                                                                         |   |                | 5,624  |   |              |   | (154   | )          |   |   | 951 |   |   |   | (112 | ) |   |   | 6,575 |   |   |   | (266 | ) |
|                                                                                                                     |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities                                                                                               |   |                | 16,290 |   |              |   | (86    | )          |   |   | — |   |   |   | — |   |   |   | 16,290 |   |   |   | (86 | ) |
|                                                                                                                     |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                     |   |                |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                    |   | $                   | 25,246 |   |              | $      | (258   | )          |   | $ | 951 |   |   | $ | (112 | ) |   | $ | 26,197 |   |   | $ | (370 | ) |

|                                                    |   | Less than 12 months |    |   | 12 months or more |   |    | Total      |   |
|---------------------------------------------------------|--------|---------------------|---------|--------|-------------------|--------|---------|------------|--------|
|                                                    |   | Fair Value          |    |   | Unrealized losses |   |    | Fair Value |   |   | Unrealized losses |   |   | Fair Value |   |   | Unrealized losses |   |
|                                                    |   |                |    |   |              |   |    |       |   |   |   |   |   |   |   |   |   |   |
| Securities of U.S. government agencies and corporations |   | $                   | — |   |              | $      | — |       |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Obligations of states and political subdivisions        |   |                | 4,888   |   |              |   | (197    | )          |   |   | 5,454 |   |   |   | (161 | ) |   |   | 10,342 |   |   |   | (358 | ) |
|                                                    |   |                |    |   |              |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities                              |   |                | 1,638   |   |              |   | (30     | )          |   |   | 30 |   |   |   | — |   |   |   | 1,668 |   |   |   | (30 | ) |
|                                                    |   |                |    |   |              |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                |    |   |              |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                   |   | $                   | 6,526   |   |              | $      | (227    | )          |   | $ | 5,484 |   |   | $ | (161 | ) |   | $ | 12,010 |   |   | $ | (388 | ) |

----

| (4) | Loans |
|-----|-------|

|                                    |   | 2009   |    |   | 2008   |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|
|                                    |   |   |    |   |   |   |
| Commercial                              |   | $      | 93,459  |   |   | $      | 114,693 |   |
| Agriculture                             |   |   | 33,993  |   |   |   | 39,413 |   |
| Real estate:                            |   |   |    |   |   |   |   |   |
| Mortgage                                |   |   | 312,477 |   |   |   | 303,444 |   |
| Construction                            |   |   | 42,182  |   |   |   | 69,156 |   |
| Installment and other loans             |   |   | 4,435   |   |   | $      | 5,113 |   |
|                                    |   |   |    |   |   |   |   |   |
|                                    |   | $      | 486,546 |   |   |   | 531,819 |   |
| Allowance for loan losses               |   |   | (11,916 | )      |   |   | (14,435 | ) |
| Net deferred origination fees and costs |   |   | (252    | )      |   |   | (416 | ) |
|                                    |   |   |    |   |   |   |   |   |
| Loans, net                              |   | $      | 474,378 |   |   | $      | 516,968 |   |

----

|                                       |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                       |   |   |    |   |   |   |    |   |   |
| Balance, beginning of year                 |   | $      | 14,435  |   |   | $      | 10,876  |   |   | $ | 8,361 |   |
| Provision for loan losses                  |   |   | 10,489  |   |   |   | 16,164  |   |   |   | 4,795 |   |
| Loans charged-off                          |   |   | (14,293 | )      |   |   | (13,324 | )      |   |   | (3,060 | ) |
| Recoveries of loans previously charged-off |   |   | 1,285   |   |   |   | 719     |   |   |   | 780 |   |
|                                       |   |   |    |   |   |   |    |   |   |   |   |   |
|   Balance, end of year           |   | $      | 11,916  |   |   | $      | 14,435  |   |   | $ | 10,876 |   |

| (5)  | Premises and Equipment |
|-----------|------------------------|

|                                           |   | 2009   |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                           |   |   |   |   |   |   |
| Land                                           |   | $      | 2,718  |   |   | $      | 2,718 |   |
| Buildings                                      |   |   | 5,086  |   |   |   | 4,720 |   |
| Furniture and equipment                        |   |   | 10,726 |   |   |   | 11,068 |   |
| Leasehold improvements                         |   |   | 1,916  |   |   |   | 1,787 |   |
|                                           |   |   |   |   |   |   |   |   |
|                                           |   |   | 20,446 |   |   |   | 20,293 |   |
| Less accumulated depreciation and amortization |   |   | 13,049 |   |   |   | 12,673 |   |
|                                           |   |   |   |   |   |   |   |   |
|                                           |   | $      | 7,397  |   |   | $      | 7,620 |   |

| (6)  | Other Assets |
|-----------|--------------|

|                                  |   | 2009   |   |   | 2008   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|
|                                  |   |   |   |   |   |   |
| Accrued interest                      |   | $      | 2,528  |   |   | $      | 2,524 |   |
| Software, net of amortization         |   |   | 209    |   |   |   | 340 |   |
| Officer’s Life Insurance        |   |   | 11,481 |   |   |   | 11,059 |   |
| Prepaid and other                     |   |   | 9,646  |   |   |   | 5,906 |   |
| Investment in Limited Partnerships    |   |   | 2,191  |   |   |   | 1,573 |   |
| Deferred tax assets, net (see Note 9) |   |   | 9,187  |   |   |   | 7,825 |   |
|                                  |   |   |   |   |   |   |   |   |
|                                  |   | $      | 35,242 |   |   | $      | 29,227 |   |

----

| (7)  | Fair Value Measurement  |
|-----------|------------------------------|

|   | 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. |

----

|                                     |   |   |   |   |    |   |    |    |   |   |    |   |
|------------------------------------------|--------|--------|--------|--------|---------|--------|---------|---------|--------|--------|---------|--------|
| December 31, 2009                        |   | Total  |   |   | Level 1 |   |    | Level 2 |   |   | Level 3 |   |
| Investment securities available-for-sale |   | $      | 75,868 |   |    | $      | — |    |   | $      | 75,868  |   |   | $ | — |   |
|                                     |   |   |   |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Total investments at fair value          |   | $      | 75,868 |   |    | $      | — |    |   | $      | 75,868  |   |   | $ | — |   |
|                                     |   |   |   |   |    |   |    |    |   |   |    |   |   |   |   |   |
|                                     |   |   |   |   |    |   |    |    |   |   |    |   |   |   |   |   |
| December 31, 2008                        |   | Total  |   |   | Level 1 |   |    | Level 2 |   |   | Level 3 |   |
| Investment securities available-for-sale |   | $      | 42,106 |   |    | $      | — |    |   | $      | 42,106  |   |   | $ | — |   |
|                                     |   |   |   |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Total investments at fair value          |   | $      | 42,106 |   |    | $      | — |    |   | $      | 42,106  |   |   | $ | — |   |
|                                     |   |   |   |   |    |   |    |    |   |   |    |   |   |   |   |   |

|                                                         |   |   |   |   |    |   |    |    |   |   |    |   |
|--------------------------------------------------------------|--------|--------|--------|--------|---------|--------|---------|---------|--------|--------|---------|--------|
| December 31, 2009                                            |   | Total  |   |   | Level 1 |   |    | Level 2 |   |   | Level 3 |   |
| Impaired loans                                               |   | $      | 7,344  |   |    | $      | — |    |   | $      | — |   |   | $ | 7,344 |   |
| Other real estate owned                                      |   |   | 3,518  |   |    |   | — |    |   |   | — |   |   |   | 3,518 |   |
| Loan servicing rights                                        |   |   | 1,273  |   |    |   | — |    |   |   | — |   |   |   | 1,273 |   |
|                                                         |   |   |   |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Total impaired loans and loan servicing rights at fair value |   | $      | 12,135 |   |    | $      | — |    |   | $      | — |   |   | $ | 12,135 |   |

----

| (8)  | Supplemental Compensation Plans |
|-----------|---------------------------------|

----

|                                     |   | For the Year Ended December 31, |    |
|------------------------------------------|--------|---------------------------------|---------|
|                                     |   | 2009                            |    |   | 2008 |   |   | 2007 |   |
|                                     |   |                            |    |   |   |   |   |   |   |
| Change in benefit obligation             |   |                            |    |   |   |   |   |   |   |
| Benefit obligation at beginning of year  |   | $                               | 1,900   |   |   | $ | 2,310 |   |   | $ | 2,040 |   |
| Service cost                             |   |                            | 72      |   |   |   | 133 |   |   |   | 121 |   |
| Interest cost                            |   |                            | 110     |   |   |   | 119 |   |   |   | 115 |   |
| Amendments                               |   |                            | — |   |   |   | — |   |   |   | — |   |
| Plan loss (gain)                         |   |                            | 149     |   |   |   | (608 | ) |   |   | 88 |   |
| Benefits Paid                            |   |                            | (54     | ) |   |   | (54 | ) |   |   | (54 | ) |
| Benefit obligation at end of year        |   |                            | 2,177   |   |   |   | 1,900 |   |   |   | 2,310 |   |
|                                     |   |                            |    |   |   |   |   |   |   |   |   |   |
| Change in plan assets                    |   |                            |    |   |   |   |   |   |   |   |   |   |
| Employer Contribution                    |   |                            | 54      |   |   |   | 54 |   |   |   | 54 |   |
| Benefits Paid                            |   |                            | (54     | ) |   |   | (54 | ) |   |   | (54 | ) |
| Fair value of plan assets at end of year |   | $                               | — |   |   | $ | — |   |   | $ | — |   |
|                                     |   |                            |    |   |   |   |   |   |   |   |   |   |
| Reconciliation of funded status          |   |                            |    |   |   |   |   |   |   |   |   |   |
| Funded status                            |   | $                               | (2,177  | ) |   | $ | (1,900 | ) |   | $ | (2,310 | ) |
| Unrecognized net plan loss (gain)        |   |                            | (357    | ) |   |   | (537 | ) |   |   | 68 |   |
| Unrecognized prior service cost          |   |                            | 671     |   |   |   | 759 |   |   |   | 846 |   |
| Net amount recognized                    |   | $                               | (1,863  | ) |   | $ | (1,678 | ) |   | $ | (1,396 | ) |
|                                     |   |                            |    |   |   |   |   |   |   |   |   |   |
| Amounts recognized in the consolidated   |   |                            |    |   |   |   |   |   |   |   |   |   |
| balance sheets consist of:               |   |                            |    |   |   |   |   |   |   |   |   |   |
| Accrued benefit liability                |   | $                               | (2,177  | ) |   | $ | (1,900 | ) |   | $ | (2,310 | ) |
| Intangible asset                         |   |                            | — |   |   |   | — |   |   |   | — |   |
| Accumulated other comprehensive income   |   |                            | 314     |   |   |   | 222 |   |   |   | 914 |   |
| Net amount recognized                    |   | $                               | (1,863  | ) |   | $ | (1,678 | ) |   | $ | (1,396 | ) |
|                                     |   |                            |    |   |   |   |   |   |   |   |   |   |

----

|                                                                                                               |   | For the Year Ended December 31, |   |
|--------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                                               |   | 2009                            |   |   | 2008 |   |   | 2007 |   |
|                                                                                                               |   |                            |   |   |   |   |   |   |   |
| Components of net periodic benefit cost                                                                            |   |                            |   |   |   |   |   |   |   |
| Service cost                                                                                                       |   | $                               | 72     |   |   | $ | 133 |   |   | $ | 121 |   |
| Interest cost                                                                                                      |   |                            | 110    |   |   |   | 119 |   |   |   | 115 |   |
| Amortization of prior service cost                                                                                 |   |                            | 87     |   |   |   | 87 |   |   |   | 88 |   |
| Net periodic benefit cost                                                                                          |   |                            | 269    |   |   |   | 339 |   |   |   | 324 |   |
| Additional amounts recognized                                                                                      |   |                            | (31    | ) |   |   | (2 | ) |   |   | — |   |
| Total benefit cost                                                                                                 |   | $                               | 238    |   |   | $ | 337 |   |   | $ | 324 |   |
|                                                                                                               |   |                            |   |   |   |   |   |   |   |   |   |   |
|                                                                                                               |   |                            |   |   |   |   |   |   |   |   |   |   |
| Additional Information                                                                                             |   |                            |   |   |   |   |   |   |   |   |   |   |
| Minimum benefit obligation at year end                                                                             |   | $                               | 2,177  |   |   | $ | 1,900 |   |   | $ | 2,310 |   |
|     Increase (decrease) in minimum liability included  in other comprehensive income |   | $                               | 92     |   |   | $ | (693 | ) |   | $ | 539 |   |

| Assumptions used to determine benefit obligations at December 31                      |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                  |   |   |   |   |   |   |   |   |   |
| Discount rate used to determine net periodic benefit cost for years ended December 31 |   |   | 5.60   | %      |   |   | 5.60   | %      |   |   | 5.40 | % |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount rate used to determine benefit obligations at December 31                    |   |   | 5.40   | %      |   |   | 5.60   | %      |   |   | 5.40 | % |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Future salary increases                                                               |   |   | 4.00   | %      |   |   | 4.00   | %      |   |   | 6.00 | % |

| Contributions and Estimated Benefit Payments                                                                                                                                                                                                                                                                |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                        |   |
| For unfunded plans, contributions to the Salary Continuation Plan are the benefit payments made to participants. The Bank paid $54 in benefit payments during fiscal 2009. The following benefit payments, which reflect expected future service, are expected to be paid in future fiscal years: |   |
|                                                                                                                                                                                                                                                                                                        |   |   |   |
| Year ending December 31,                                                                                                                                                                                                                                                                                    |   | Pension Benefits |   |
|                                                                                                                                                                                                                                                                                                        |   |   |   |
| 2010                                                                                                                                                                                                                                                                                                        |   | $ | 54 |   |
| 2011                                                                                                                                                                                                                                                                                                        |   |   | 176 |   |
| 2012                                                                                                                                                                                                                                                                                                        |   |   | 176 |   |
| 2013                                                                                                                                                                                                                                                                                                        |   |   | 176 |   |
| 2014                                                                                                                                                                                                                                                                                                        |   |   | 188 |   |
| 2015-2019                                                                                                                                                                                                                                                                                                   |   |   | 1,321 |   |

----

|                                                                  |   | For the Year Ended December 31, |    |
|-----------------------------------------------------------------------|--------|---------------------------------|---------|
|                                                                  |   | 2009                            |    |   | 2008 |   |   | 2007 |   |
|                                                                  |   |                            |    |   |   |   |   |   |   |
| Change in benefit obligation                                          |   |                            |    |   |   |   |   |   |   |
| Benefit obligation at beginning of year                               |   | $                               | 540     |   |   | $ | 539 |   |   | $ | 469 |   |
| Service cost                                                          |   |                            | 44      |   |   |   | 58 |   |   |   | 58 |   |
| Interest cost                                                         |   |                            | 32      |   |   |   | 31 |   |   |   | 27 |   |
| Plan loss (gain)                                                      |   |                            | 8       |   |   |   | (73 | ) |   |   | — |   |
| Benefits paid                                                         |   |                            | (15     | ) |   |   | (15 | ) |   |   | (15 | ) |
| Benefit obligation at end of year                                     |   | $                               | 609     |   |   | $ | 540 |   |   | $ | 539 |   |
|                                                                  |   |                            |    |   |   |   |   |   |   |   |   |   |
| Change in plan assets                                                 |   |                            |    |   |   |   |   |   |   |   |   |   |
| Employer contribution                                                 |   | $                               | 15      |   |   | $ | 15 |   |   | $ | 15 |   |
| Benefits paid                                                         |   |                            | (15     | ) |   |   | (15 | ) |   |   | (15 | ) |
| Fair value of plan assets at end of year                              |   | $                               | — |   |   | $ | — |   |   | $ | — |   |
|                                                                  |   |                            |    |   |   |   |   |   |   |   |   |   |
| Reconciliation of funded status                                       |   |                            |    |   |   |   |   |   |   |   |   |   |
| Funded status                                                         |   | $                               | (609    | ) |   | $ | (540 | ) |   | $ | (539 | ) |
| Unrecognized net plan loss                                            |   |                            | (15     | ) |   |   | (22 | ) |   |   | 50 |   |
| Net amount recognized                                                 |   | $                               | (624    | ) |   | $ | (562 | ) |   | $ | (489 | ) |
|                                                                  |   |                            |    |   |   |   |   |   |   |   |   |   |
| Amounts recognized in the statement of financial position consist of: |   |                            |    |   |   |   |   |   |   |   |   |   |
| Accrued benefit liability                                             |   | $                               | (609    | ) |   | $ | (540 | ) |   | $ | (539 | ) |
| Accumulated other comprehensive income                                |   |                            | (15     | ) |   |   | (22 | ) |   |   | 50 |   |
| Net amount recognized                                                 |   | $                               | (624    | ) |   | $ | (562 | ) |   | $ | (489 | ) |

----

|                                                                          |   | For the Year Ended December 31, |    |
|-------------------------------------------------------------------------------|--------|---------------------------------|---------|
|                                                                          |   | 2009                            |    |   | 2008 |   |   | 2007 |   |
|                                                                          |   |                            |    |   |   |   |   |   |   |
| Components of net periodic benefit cost                                       |   |                            |    |   |   |   |   |   |   |
| Service cost                                                                  |   | $                               | 44      |   |   | $ | 58 |   |   | $ | 58 |   |
| Interest cost                                                                 |   |                            | 32      |   |   |   | 31 |   |   |   | 27 |   |
| Recognized actuarial (gain)loss                                               |   |                            | — |   |   |   | — |   |   |   | — |   |
| Net periodic benefit cost                                                     |   |                            | 76      |   |   |   | 89 |   |   |   | 85 |   |
| Additional amounts recognized                                                 |   |                            | — |   |   |   | — |   |   |   | — |   |
| Total benefit cost                                                            |   | $                               | 76      |   |   | $ | 89 |   |   | $ | 85 |   |
|                                                                          |   |                            |    |   |   |   |   |   |   |   |   |   |
|                                                                          |   |                            |    |   |   |   |   |   |   |   |   |   |
| Additional Information                                                        |   |                            |    |   |   |   |   |   |   |   |   |   |
| Minimum benefit obligation at year end                                        |   | $                               | 609     |   |   | $ | 540 |   |   | $ | 539 |   |
| (Decrease) increase in minimum liability included in other comprehensive loss |   | $                               | 8       |   |   | $ | (73 | ) |   | $ | — |   |

|  Assumptions used to determine benefit obligations at December 31                |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                  |   |   |   |   |   |   |   |   |   |
| Discount rate used to determine net periodic benefit cost for years ended December 31 |   |   | 5.50   | %      |   |   | 5.40   | %      |   |   | 5.20 | % |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount rate used to determine benefit obligations at December 31                    |   |   | 5.30   | %      |   |   | 5.50   | %      |   |   | 5.20 | % |

| Contributions and Estimated Benefit Payments                                                                                                                                                                                                                                                                        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                |   |
| For unfunded plans, contributions to the Directors’ Retirement Plan are the benefit payments made to participants. The Bank paid $15 in benefit payments during fiscal 2009. The following benefit payments, which reflect expected future service, are expected to be paid in future fiscal years: |   |
|                                                                                                                                                                                                                                                                                                                |   |   |   |
| Year ending December 31,                                                                                                                                                                                                                                                                                            |   | Pension Benefits |   |
|                                                                                                                                                                                                                                                                                                                |   |   |   |
| 2010                                                                                                                                                                                                                                                                                                                |   | $ | 15 |   |
| 2011                                                                                                                                                                                                                                                                                                                |   |   | 25 |   |
| 2012                                                                                                                                                                                                                                                                                                                |   |   | 23 |   |
| 2013                                                                                                                                                                                                                                                                                                                |   |   | 31 |   |
| 2014                                                                                                                                                                                                                                                                                                                |   |   | 60 |   |
| 2015-2019                                                                                                                                                                                                                                                                                                           |   |   | 464 |   |

----

----

| (9) | Income Taxes |
|-----|--------------|

|      |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Current:  |   |   |   |   |   |   |   |   |   |
| Federal   |   | $      | (1,683 | )      |   | $      | (1,464 | )      |   | $ | 3,939 |   |
| State     |   |   | 155    |   |   |   | (9     | )      |   |   | 1,283 |   |
|      |   |   |   |   |   |   |   |   |   |   |   |   |
|      |   |   | (1,528 | )      |   |   | (1,473 | )      |   |   | 5,222 |   |
| Deferred: |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal   |   |   | (566   | )      |   |   | (1,365 | )      |   |   | (1,769 | ) |
| State     |   |   | (750   | )      |   |   | (797   | )      |   |   | (316 | ) |
|      |   |   |   |   |   |   |   |   |   |   |   |   |
|      |   |   | (1,316 | )      |   |   | (2,162 | )      |   |   | (2,085 | ) |
|      |   |   |   |   |   |   |   |   |   |   |   |   |
|      |   | $      | (2,844 | )      |   | $      | (3,635 | )      |   | $ | 3,137 |   |

|                                    |   | 2009   |    |   | 2008   |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred tax assets:                    |   |   |    |   |   |   |
| Allowance for loan losses               |   | $      | 5,271   |   |   | $      | 6,361 |   |
| Deferred compensation                   |   |   | 484     |   |   |   | 459 |   |
| Retirement compensation                 |   |   | 1,016   |   |   |   | 922 |   |
| Stock option compensation               |   |   | 770     |   |   |   | 719 |   |
| Post retirement benefits                |   |   | 120     |   |   |   | — |   |
| Current state franchise taxes           |   |   | 1       |   |   |   | 1 |   |
| Non-accrual interest                    |   |   | 18      |   |   |   | 22 |   |
| Investment securities unrealized losses |   |   | — |   |   |   | 55 |   |
| Net operating loss                      |   |   | 784     |   |   |   | 197 |   |
| Tax credit carryovers                   |   |   | 2,823   |   |   |   | 1,162 |   |
| Other                                   |   |   | 441     |   |   |   | 524 |   |
|                                    |   |   |    |   |   |   |   |   |
| Deferred tax assets                     |   |   | 11,728  |   |   |   | 10,422 |   |
|                                    |   |   |    |   |   |   |   |   |
| Deferred tax liabilities:               |   |   |    |   |   |   |   |   |
| Fixed assets                            |   |   | 1,397   |   |   |   | 1,572 |   |
| FHLB dividends                          |   |   | 260     |   |   |   | 260 |   |
| Tax credit – loss on pass-through |   |   | 332     |   |   |   | 235 |   |
| Deferred loan costs                     |   |   | 479     |   |   |   | 457 |   |
| Investment securities unrealized gains  |   |   | 61      |   |   |   | — |   |
| Other                                   |   |   | 12      |   |   |   | 73 |   |
|                                    |   |   |    |   |   |   |   |   |
| Total deferred tax liabilities          |   |   | 2,541   |   |   |   | 2,597 |   |
|                                    |   |   |    |   |   |   |   |   |
| Net deferred tax assets (see Note 6)    |   | $      | 9,187   |   |   | $      | 7,825 |   |

----

|                                                   |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                   |   |   |   |   |   |   |   |   |   |
| Income tax (benefit) expense at statutory rates        |   | $      | (1,325 | )      |   | $      | (1,703 | )      |   | $ | 3,542 |   |
| Reduction for tax exempt interest                      |   |   | (397   | )      |   |   | (495   | )      |   |   | (523 | ) |
| State franchise tax, net of federal income tax benefit |   |   | (393   | )      |   |   | (532   | )      |   |   | 638 |   |
| Cash surrender value of life insurance                 |   |   | (143   | )      |   |   | (141   | )      |   |   | (140 | ) |
| Solar credit amortization                              |   |   | (465   | )      |   |   | (578   | )      |   |   | (65 | ) |
| Other                                                  |   |   | (121   | )      |   |   | (186   | )      |   |   | (315 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | $      | (2,844 | )      |   | $      | (3,635 | )      |   | $ | 3,137 |   |

|                                                                |   |   |    |
|---------------------------------------------------------------------|--------|--------|---------|
| Balance at January 1, 2009                                          |   | $      | 122     |   |
| Additions for tax positions taken in the current period             |   |   | — |   |
| Reductions for tax positions taken in the current period            |   |   | — |   |
| Additions for tax positions taken in prior years                    |   |   | 105     |   |
| Reductions for tax positions taken in prior years                   |   |   | — |   |
| Decreases  related to settlements with taxing authorities |   |   | — |   |
| Decreases as a result of a lapse in statue of limitations           |   |   | — |   |
|                                                                |   |   |    |   |
| Balance at December 31, 2009                                        |   | $      | 227     |   |

----

| (10) | Outstanding Shares and (Loss) Earnings Per Share |
|------|--------------------------------------------------|

|                                                |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Basic (loss) earnings per share:                    |   |   |      |   |   |   |      |   |   |
|                                                |   |   |      |   |   |   |      |   |   |
| Net (loss) income                                   |   | $      | (1,054    | )      |   | $      | (1,374    | )      |   | $ | 7,281 |   |
| Preferred stock dividend and accretion              |   |   | (792      | )      |   |   | —   |   |   |   | — |   |
| Net (loss) income available to common shareholders  |   | $      | (1,846    | )      |   | $      | (1,374    | )      |   | $ | 7,281 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Weighted average common shares outstanding          |   |   | 8,973,402 |   |   |   | 8,931,906 |   |   |   | 9,165,198 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Basic (loss) earnings per share                     |   | $      | (0.21     | )      |   | $      | (0.15     | )      |   | $ | 0.79 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Diluted (loss) earnings per share:                  |   |   |      |   |   |   |      |   |   |   |   |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Net (loss) income                                   |   | $      | (1,054    | )      |   | $      | (1,374    | )      |   | $ | 7,281 |   |
| Preferred stock dividend and accretion              |   |   | (792      | )      |   |   | —   |   |   |   | — |   |
| Net (loss) income available to common shareholders  |   | $      | (1,846    | )      |   | $      | (1,374    | )      |   | $ | 7,281 |   |
| Net (loss) income available to common shareholders  |   |   |      |   |   |   |      |   |   |   |   |   |
| Weighted average common shares outstanding          |   |   | 8,973,402 |   |   |   | 8,931,906 |   |   |   | 9,165,198 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Effect of dilutive options                          |   |   | —   |   |   |   | —   |   |   |   | 273,019 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Adjusted weighted average common shares outstanding |   |   | 8,973,402 |   |   |   | 8,931,906 |   |   |   | 9,438,217 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Diluted (loss) earnings per share                   |   | $      | (0.21     | )      |   | $      | (0.15     | )      |   | $ | 0.77 |   |

----

| (11) | Related Party Transactions |
|------|----------------------------|

|                                   |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |   |   |   |   |
| Outstanding balance, beginning of year |   | $      | 2,823  |   |   | $      | 2,699  |   |   | $ | 273 |   |
| Credit granted                         |   |   | 741    |   |   |   | 506    |   |   |   | 3,005 |   |
| Repayments / Reductions                |   |   | (3,038 | )      |   |   | (382   | )      |   |   | (579 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding balance, end of year       |   | $      | 526    |   |   | $      | 2,823  |   |   | $ | 2,699 |   |

| (12) | Profit Sharing Plan |
|------|---------------------|

----

| (13)     | Stock Compensation Plans |
|------------------------------|--------------------------|

|                              |   |             |    |
|-----------------------------------|--------|------------------|---------|
|                              |   | Stock Options    |    |
|                              |   | Number of shares |    |   | Weighted average exercise price |   |
|                              |   |             |    |   |   |   |
| Balance at December 31, 2008 |   |             | 555,591 |   |   | $ | 10.71 |   |
| Granted                           |   |             | 8,000   |   |   |   | 4.50 |   |
| Exercised                         |   |             | (46,944 | ) |   |   | 3.81 |   |
| Cancelled                         |   |             | (1,840  | ) |   |   | 3.65 |   |
|                              |   |             |    |   |   |   |   |   |
| Balance at December 31, 2009      |   |             | 514,807 |   |   | $ | 11.27 |   |

|                                                   |   | Number of Shares |    |   | Weighted Average Exercise Price |   |   | Aggregate Intrinsic Value |   |   | Weighted Average Remaining Contractual Term |   |
|--------------------------------------------------------|--------|------------------|---------|--------|---------------------------------|--------|--------|---------------------------|--------|--------|---------------------------------------------|--------|
|                                                   |   |             |    |   |                            |   |   |                      |   |   |                                        |   |
| Options exercised                                      |   |             | 46,944  |   |                            | $      | 3.81   |                      |   | $      | 107                                         |   |   |   |   |
|                                                   |   |             |    |   |                            |   |   |                      |   |   |                                        |   |   |   |   |
| Stock options fully vested and expected to vest:  |   |             | 514,807 |   |                            | $      | 11.27  |                      |   | $      | 10                                          |   |   |   | 4.08 |   |
|                                                   |   |             |    |   |                            |   |   |                      |   |   |                                        |   |   |   |   |   |
| Stock options vested and currently exercisable:   |   |             | 461,341 |   |                            | $      | 10.58  |                      |   | $      | 7                                           |   |   |   | 3.72 |   |
|                                                   |   |             |    |   |                            |   |   |                      |   |   |                                        |   |   |   |   |   |

----

|                                         |   |   |   |   |   |   |   |   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                         |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|     Risk-Free Interest Rate   |   |   | 2.00   | %      |   |   | 2.76   | %      |   |   | 4.67 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Expected Dividend Yield                      |   |   | 0.00   | %      |   |   | 0.00   | %      |   |   | 0.00 | % |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|     Expected Life in Years    |   |   | 5.00   |   |   |   | 5.00   |   |   |   | 4.18 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|     Expected Price Volatility |   |   | 41.35  | %      |   |   | 27.92  | %      |   |   | 26.03 | % |

|                              |   | Restricted Stock Awards |    |
|-----------------------------------|--------|-------------------------|---------|
|                              |   | Number of shares        |    |   | Weighted average grant date fair value |   |
|                              |   |                    |    |   |   |   |
| Balance at December 31, 2008 |   |                    | 31,071  |   |   | $ | 16.03 |   |
| Granted                           |   |                    | 9,300   |   |   |   | 4.50 |   |
| Exercised                         |   |                    | (4,554  | ) |   |   | 14.79 |   |
| Cancelled                         |   |                    | — |   |   |   | — |   |
|                              |   |                    |    |   |   |   |   |   |
| Balance at December 31, 2009      |   |                    | 35,817  |   |   | $ | 13.20 |   |

----

----

| (14) | Short-Term and Long-Term Borrowings |
|------|-------------------------------------|

| (15)  | Commitments and Contingencies |
|------------|-------------------------------|

| Year ending December 31: |   |   |   |
|-------------------------------|--------|--------|--------|
| 2010                          |   | $      | 1,221  |   |
| 2011                          |   |   | 1,023  |   |
| 2012                          |   |   | 953    |   |
| 2013                          |   |   | 888    |   |
| 2014                          |   |   | 701    |   |
| Thereafter                    |   |   | 786    |   |
|                          |   |   |   |   |
|                          |   | $      | 5,572  |   |

| Year ending December 31: |   |   |    |
|-------------------------------|--------|--------|---------|
| 2010                          |   | $      | 133,958 |   |
| 2011                          |   |   | 8,000   |   |
| 2012                          |   |   | 8,928   |   |
| 2013                          |   |   | 1,027   |   |
| 2014                          |   |   | 149     |   |
| Thereafter                    |   |   | — |   |
|                          |   |   |    |   |
|                          |   | $      | 152,062 |   |

----

| (16)  | Financial Instruments with Off-Balance Sheet Risk |
|------------|---------------------------------------------------|

|                         |   | 2009   |    |   | 2008   |   |
|------------------------------|--------|--------|---------|--------|--------|--------|
|                         |   |   |    |   |   |   |
| Undisbursed loan commitments |   | $      | 191,589 |   |   |   | 198,615 |   |
| Standby letters of credit    |   |   | 3,572   |   |   |   | 5,715 |   |
| Commitments to sell loans    |   |   | 3,179   |   |   |   | 9,764 |   |
|                         |   |   |    |   |   |   |   |   |
|                         |   | $      | 198,340 |   |   |   | 214,094 |   |

----

| (17)  | Capital Adequacy and Restriction on Dividends |
|------------|-----------------------------------------------|

|                                               |   | The Company |   |
|----------------------------------------------------|--------|-------------|--------|
|                                               |   |        |   |   |   |   |   | Adequately |   |
|                                               |   | 2009        |   |   | 2008 |   |   | Capitalized |   |
|                                               |   | Capital     |   |   | Ratio |   |   | Capital |   |   | Ratio |   |   | Ratio |   |
|                                               |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Leverage Capital (to Average Assets)        |   | $           | 75,005 |   |   |   | 10.0 | % |   | $ | 58,760 |   |   |   | 8.8 | % |   |   | 4.0 | % |
| Tier 1 Capital (to Risk-Weighted Assets)      |   |        | 75,005 |   |   |   | 14.6 | % |   |   | 58,760 |   |   |   | 10.1 | % |   |   | 4.0 | % |
| Total Risk-Based Capital (to Risk-Weighted Assets) |   |        | 81,496 |   |   |   | 15.9 | % |   |   | 66,107 |   |   |   | 11.4 | % |   |   | 8.0 | % |

|                                               |   | The Bank |   |
|----------------------------------------------------|--------|----------|--------|
|                                               |   |     |   |   |   |   |   | Adequately |   |   | Well |   |
|                                               |   | 2009     |   |   | 2008 |   |   | Capitalized |   |   | Capitalized |   |
|                                               |   | Capital  |   |   | Ratio |   |   | Capital |   |   | Ratio |   |   | Ratio |   |   | Ratio |   |
|                                               |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Leverage Capital (to Average Assets)        |   | $        | 73,453 |   |   |   | 9.8 | % |   | $ | 58,377 |   |   |   | 8.7 | % |   |   | 4.0 | % |   |   | 5.0 | % |
| Tier 1 Capital (to Risk-Weighted Assets)      |   |     | 73,453 |   |   |   | 14.3 | % |   |   | 58,377 |   |   |   | 10.1 | % |   |   | 4.0 | % |   |   | 6.0 | % |
| Total Risk-Based Capital (to Risk-Weighted Assets) |   |     | 79,944 |   |   |   | 15.6 | % |   |   | 65,724 |   |   |   | 11.3 | % |   |   | 8.0 | % |   |   | 10.0 | % |

----

| (18)  |  Fair Values of Financial Instruments |
|------------|--------------------------------------------|

|   |  Cash and Cash Equivalents |
|--------|---------------------------------|

|   |  Investment Securities |
|--------|-----------------------------|

|   |  Federal Home Loan Bank and Other Equity Securities |
|--------|----------------------------------------------------------|

|   |  Loans Receivable |
|--------|------------------------|

|   |  Commitments to Extend Credit and Standby Letters of Credit |
|--------|------------------------------------------------------------------|

|   |  Deposit Liabilities |
|--------|---------------------------|

|   |  FHLB Advances and Other Borrowings |
|--------|------------------------------------------|

|   |  Limitations |
|--------|-------------------|

----

|                               |   | 2009            |    |   | 2008       |   |
|------------------------------------|--------|-----------------|---------|--------|------------|--------|
|                               |   | Carrying amount |    |   | Fair value |   |   | Carrying amount |   |   | Fair value |   |
|                               |   |            |    |   |       |   |   |   |   |   |   |   |
| Financial assets:                  |   |            |    |   |       |   |   |   |   |   |   |   |
| Cash and federal funds sold        |   | $               | 147,076 |   |       | $      | 147,076 |   |   | $ | 66,010 |   |   | $ | 66,010 |   |
| Investment securities              |   |            | 75,868  |   |       |   | 75,868 |   |   |   | 42,106 |   |   |   | 42,106 |   |
| Other equity securities            |   |            | 2,506   |   |       |   | 2,506 |   |   |   | 2,311 |   |   |   | 2,311 |   |
| Loans:                             |   |            |    |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Net loans                          |   |            | 474,378 |   |       |   | 476,485 |   |   |   | 516,968 |   |   |   | 516,949 |   |
| Loans held-for-sale                |   |            | 1,640   |   |       |   | 1,652 |   |   |   | 2,192 |   |   |   | 2,268 |   |
| Financial liabilities:             |   |            |    |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                           |   |            | 651,426 |   |       |   | 632,322 |   |   |   | 584,718 |   |   |   | 547,419 |   |
| FHLB advances and other borrowings |   |            | 11,813  |   |       |   | 12,260 |   |   |   | 18,259 |   |   |   | 19,025 |   |

|                                |   | 2009            |    |
|-------------------------------------|--------|-----------------|---------|
|                                |   | Contract amount |    |   | Fair value |   |
|                                |   |            |    |   |   |   |
| Unrecognized financial instruments: |   |            |    |   |   |   |
| Commitments to extend credit        |   | $               | 191,589 |   |   | $ | 1,437 |   |
|                                |   |            |    |   |   |   |   |   |
| Standby letters of credit           |   | $               | 3,572   |   |   | $ | 36 |   |
|                                |   |            |    |   |   |   |   |   |

|                                |   | 2008            |    |
|-------------------------------------|--------|-----------------|---------|
|                                |   | Contract amount |    |   | Fair value |   |
|                                |   |            |    |   |   |   |
| Unrecognized financial instruments: |   |            |    |   |   |   |
| Commitments to extend credit        |   | $               | 198,615 |   |   | $ | 1,490 |   |
|                                |   |            |    |   |   |   |   |   |
| Standby letters of credit           |   | $               | 5,715   |   |   | $ | 57 |   |
|                                |   |            |    |   |   |   |   |   |

----

|                                                                    |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|-------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                                    |   |   |    |   |   |   |    |   |   |
| Supplemental disclosure of cash flow information:                       |   |   |    |   |   |   |    |   |   |
| Cash paid during the year for:                                          |   |   |    |   |   |   |    |   |   |
| Interest                                                                |   | $      | 5,007   |   |   | $      | 6,581   |   |   | $ | 11,728 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Income taxes                                                            |   | $      | 481     |   |   | $      | 344     |   |   | $ | 4,363 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Supplemental disclosure of non-cash investing and financing activities: |   |   |    |   |   |   |    |   |   |   |   |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Stock dividend distributed                                              |   | $      | 2,249   |   |   | $      | 8,642   |   |   | $ | 10,851 |   |
| Preferred stock dividend payable and accretion                          |   | $      | 792     |   |   | $      | — |   |   | $ | — |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Fair value adjustment of securities available for sale, net of tax      |   | $      | (72     | )      |   | $      | (249    | )      |   | $ | 338 |   |
| Loans held-for-sale transferred to loans held-for-investment            |   | $      | — |   |   | $      | — |   |   | $ | 2,892 |   |
| Loans held-for-investment transferred to other real estate owned        |   | $      | 3,803   |   |   | $      | 6,897   |   |   | $ | 879 |   |

| (20)  | Parent Company Financial Information |
|------------|--------------------------------------|

| Balance Sheets                                   |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Assets                                           |   |   |   |   |   |   |
| Cash                                             |   | $      | 1,659  |   |   | $      | 377 |   |
| Investment in wholly owned subsidiary            |   |   | 76,541 |   |   |   | 61,646 |   |
| Other assets                                     |   |   | 4      |   |   |   | 6 |   |
|                                             |   |   |   |   |   |   |   |   |
| Total assets                                     |   | $      | 78,204 |   |   | $      | 62,029 |   |
| Liabilities and stockholders’ equity       |   |   |   |   |   |   |   |   |
| Other liabilities                                |   |   | 111    |   |   |   | — |   |
| Stockholders’ equity                       |   |   | 78,093 |   |   |   | 62,029 |   |
|                                             |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity |   | $      | 78,204 |   |   | $      | 62,029 |   |
|                                             |   |   |   |   |   |   |   |   |

| Statements of Operations                                  |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                      |   |   |    |   |   |   |   |   |   |
| Dividends (to) from subsidiary                            |   | $      | (16,000 | )      |   | $      | 100    |   |   | $ | 6,000 |   |
| Other operating expenses                                  |   |   | (138    | )      |   |   | (127   | )      |   |   | (114 | ) |
| Income tax benefit                                        |   |   | 57      |   |   |   | 53     |   |   |   | 48 |   |
| (Loss) income before undistributed earnings of subsidiary |   |   | (16,081 | )      |   |   | 26     |   |   |   | 5,934 |   |
| Equity in undistributed earnings of subsidiary            |   |   | 15,027  |   |   |   | (1,400 | )      |   |   | 1,347 |   |
|                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                         |   | $      | (1,054  | )      |   | $      | (1,374 | )      |   | $ | 7,281 |   |

----

| Statements of Cash Flows                                                                |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|-----------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Net (loss) income                                                                       |   | $      | (1,054  | )      |   | $      | (1,374  | )      |   | $ | 7,281 |   |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities |   |   |    |   |   |   |    |   |   |   |   |   |
| Decrease (increase) in other assets                                                     |   |   | 2       |   |   |   | (6      | )      |   |   | — |   |
| Increase in other liabilities                                                           |   |   | 111     |   |   |   | — |   |   |   | — |   |
| Equity in undistributed earnings of subsidiary                                          |   |   | (15,027 | )      |   |   | 1,400   |   |   |   | (1,347 | ) |
|                                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Net cash (used in) provided by operating activities                                     |   |   | (15,968 | )      |   |   | 20      |   |   |   | 5,934 |   |
|                                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
|                                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash flows from financing activities:                                                   |   |   |    |   |   |   |    |   |   |   |   |   |
| Issuance of preferred stock                                                             |   |   | 16,726  |   |   |   | — |   |   |   | — |   |
| Issuance of common stock warrants                                                       |   |   | 664     |   |   |   | — |   |   |   | — |   |
| Dividend on preferred stock                                                             |   |   | (696    | )      |   |   | — |   |   |   | — |   |
| Common stock issued and stock based compensation                                        |   |   | 561     |   |   |   | 744     |   |   |   | 1,230 |   |
| Stock repurchases                                                                       |   |   | — |   |   |   | (1,359  | )      |   |   | (6,851 | ) |
| Cash in lieu of fractional shares                                                       |   |   | (5      | )      |   |   | (9      | )      |   |   | (13 | ) |
|                                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                     |   |   | 17,250  |   |   |   | (624    | )      |   |   | (5,634 | ) |
|                                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Net change in cash                                                                      |   |   | 1,282   |   |   |   | (604    | )      |   |   | 300 |   |
|                                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash at beginning of year                                                               |   |   | 377     |   |   |   | 981     |   |   |   | 681 |   |
|                                                                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash at end of year                                                                     |   | $      | 1,659   |   |   | $      | 377     |   |   | $ | 981 |   |

----

----

----

|    Plan category                            |   |  Number of securities to be issued upon exercise of outstanding options, warrants and rights |   |  Weighted-average exercise price of outstanding options, warrants and rights |   | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column) |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                       |   |                                                                                              |   |                                                                              |
| Equity compensation plans approved by security holders     |   | 550,624                                                                                           |   | $ 11.27                                                                           |   | 786,042                                                                                                                                           |
| Equity compensation plans not approved by security holders |   | —                                                                                           |   | —                                                                           |   | —                                                                                                                                           |
| Total                                                      |   | 550,624                                                                                           |   | $ 11.27                                                                           |   | 786,042                                                                                                                                           |

----

| The following is a list of all exhibits filed as part of this Annual Report on Form 10-K: |
|-------------------------------------------------------------------------------------------|
|                                                                                      |   |   |   |
|                                                                                      |   |   | Exhibit |
|                                                                                      | Exhibit Number |   |   |
|                                                                                      |   |   |   |
|                                                                                      | 3.1 |   | Amended Articles of Incorporation of First Northern Community Bancorp (the “Company”) – incorporated herein by reference to Exhibit 3.1 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006 |
|                                                                                      |   |   |   |
|                                                                                      | 3.2 |   | Certificate of Amendment to the Articles of Incorporation of the Company – incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated March 9, 2009 |
|                                                                                      |   |   |   |
|                                                                                      | 3.3 |   | Certificate of Determination of Fixed Rate Cumulative Perpetual Preferred Stock, Series A of the Company – incorporated herein by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K dated March 9, 2009 |
|                                                                                      |   |   |   |
|                                                                                      | 3.4 |   | Amended and Restated Bylaws of the Company – incorporated herein by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K dated September 15, 2005 |
|                                                                                      |   |   |   |
|                                                                                      | 4.1 |   | Letter Agreement, dated March 13, 2009, including Securities Purchase Agreement – Standard Terms attached thereto as Exhibit A, between the Company and the United States Department of the Treasury, as modified by the Side Letter Agreement, dated March 13, 2009, between the Company and the United States Department of the Treasury, as modified by the California Side Letter Agreement, dated March 13, 2009, between the Company and the United States Department of the Treasury – incorporated herein by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009  |
|                                                                                      |   |   |   |
|                                                                                      | 4.2 |   | Warrant to purchase 352,977 Shares of Common Stock (common shares) of the Company, issued to the United States Department of the Treasury on March 13, 2009 – incorporated herein by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009 |
|                                                                                      |   |   |   |
|                                                                                      | 10.1 |   | First Northern Community Bancorp 2000 Stock Option Plan – incorporated herein by reference to Exhibit 4.1 of the Company’s Registration Statement on Form S-8 dated May 25, 2000* |
|                                                                                      |   |   |   |
|                                                                                      | 10.2 |   | First Northern Community Bancorp Outside Directors 2000 Non-statutory Stock Option Plan – incorporated herein by reference to Exhibit 4.3 of the Company’s Registration Statement dated Form S-8 on May 25, 2000* |
|                                                                                      |   |   |   |
|                                                                                      | 10.3 |   | Amended First Northern Community Bancorp Employee Stock Purchase Plan – incorporated herein by reference to Appendix B of the Company’s Definitive Proxy Statement on Schedule 14A for its 2006 Annual Meeting of Shareholders   |
|                                                                                      |   |   |   |

----

|   | 10.4        |   | First Northern Community Bancorp 2000 Stock Option Plan Forms “Incentive Stock Option Agreement” and “Notice of Exercise of Stock Option” – incorporated herein by reference to Exhibit 4.2 of the Company’s Registration Statement on Form S-8 dated May 25, 2000*                                                                                                                      |
|--------|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.5        |   | First Northern Community Bancorp 2000 Outside Directors 2000 Non-statutory Stock Option Plan Forms “Non-statutory Stock Option Agreement” and “Notice of Exercise of Stock Option” – incorporated herein by reference to Exhibit 4.4 of the Company’s Registration Statement on Form S-8 dated May 25, 2000*                                                                             |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.6        |   | First Northern Community Bancorp 2000 Employee Stock Purchase Plan Forms “Participation Agreement” and “Notice of Withdrawal” – incorporated herein by reference to Exhibit 4.6 of the Company’s Registration Statement on Form S-8 dated May 25, 2000*                                                                                                                                  |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.7        |   | Amended and Restated Employment Agreement entered into as of July 23, 2001 by and between First Northern Bank of Dixon and Don Fish – incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2001*                                                                                                                                  |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.8        |   | Employment Agreement entered into as of July 23, 2001 by and between First Northern Bank of Dixon and Owen J. Onsum – incorporated herein by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2001*                                                                                                                                                  |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.9        |   | Employment Agreement entered into as of July 23, 2001 by and between First Northern Bank of Dixon and Louise Walker – incorporated herein by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2001*                                                                                                                                                  |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.10       |   | Employment Agreement entered into as of July 23, 2001 by and between First Northern Bank of Dixon and Robert Walker – incorporated herein by reference to Exhibit 10.4 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2001*                                                                                                                                                  |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.11       |   | Form of Director Retirement and Split Dollar Agreements between First Northern Bank of Dixon and Lori J. Aldrete, Frank J. Andrews Jr., John M. Carbahal, Gregory DuPratt, John F. Hamel, Diane P. Hamlyn, Foy S. McNaughton, William Jones, Jr. and David Schulze – incorporated herein by reference to Exhibit 10.11 to Company’s Annual Report on Form 10-K for the year ended December 31, 2001*             |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.12       |   | Form of Salary Continuation and Split Dollar Agreement between First Northern Bank of Dixon and Owen J. Onsum, Louise A. Walker, Don Fish, and Robert Walker – incorporated herein by reference to Exhibit 10.12 to Company’s Annual Report on Form 10-K for the year ended December 31, 2001*                                                                                                                   |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.13       |   | Amended Form of Director Retirement and Split Dollar Agreements between First Northern Bank of Dixon and Lori J. Aldrete, Frank J. Andrews Jr., John M. Carbahal, Gregory DuPratt, John F. Hamel, Diane P. Hamlyn, Foy S. McNaughton, William Jones, Jr. and David Schulze – incorporated herein by reference to Exhibit 10.13 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2004* |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.14       |   | Amended Form of Salary Continuation and Split Dollar Agreement between First Northern Bank of Dixon and Owen J. Onsum, Louise A. Walker, Don Fish, and Robert Walker – incorporated herein by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2004*                                                                                                       |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.15       |   | Form of Salary Continuation Agreement between Pat Day and First Northern Bank of Dixon – incorporated herein by reference to Exhibit 10.15 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006*                                                                                                                                                                                     |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.16       |   | Form of Supplemental Executive Retirement Plan Agreement between First Northern Bank of Dixon and Owen J. Onsum and Louise A. Walker – provided herewith*                                                                                                                                                                                                                                                              |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.17       |   | First Northern Bancorp 2006 Stock Incentive Plan – incorporated by reference to Appendix A of the Company’s Definitive Proxy Statement on Schedule 14A for its 2006 Annual Meeting of Shareholders*                                                                                                                                                                                                              |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.18       |   | First Northern Bank Annual Incentive Compensation Plan – incorporated herein by reference to Exhibit 10.18 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006*                                                                                                                                                                                                                     |
|   |        |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.19  |   | Form of Senior Executive Officer Waiver – incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009                                                                                                                                                                                                                            |

----

|                                                                 |        |   |                                                                                                                                                                        |
|----------------------------------------------------------------------|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                 | 10.20       |   | First Northern Community Bancorp 2006 Stock Option Plan Forms “Stock Option Agreement” and “Notice of Exercise of Stock Option” provided herewith * |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 10.21  |   | First Northern Community Bancorp 2006 Stock Incentive Plan “Restricted Stock Agreement provided herewith *                                                            |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 11.1        |   | Statement of Computation of Per Share Earnings (See Page 65 of this Form 10-K)                                                                                              |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 21.1        |   | Subsidiaries of the Company – provided herewith                                                                                                                       |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 23.1        |   | Consent of independent registered public accounting firm – provided herewith                                                                                          |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 31.1        |   | Rule 13(a) – 14(a) / 15(d) –14(a) Certification of the Company’s Chief Executive Officer – provided herewith                                        |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 31.2        |   | Rule 13(a) – 14(a) / 15(d) –14(a) Certification of the Company’s Chief Financial Officer – provided herewith                                        |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 32.1        |   | Section 1350 Certification of the Chief Executive Officer – provided herewith                                                                                         |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 32.2        |   | Section 1350 Certification of the Chief Financial Officer – provided herewith                                                                                         |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 99.1        |   | Certification of Chief Executive Officer pursuant to Section 111(b)(4) of the EESA                                                                                          |
|                                                                 |        |   |                                                                                                                                                                        |
|                                                                 | 99.2        |   | Certification of Chief Financial Officer pursuant to Section 111(b)(4) of the EESA                                                                                          |
|                                                                 |
| * Management contract or compensatory plan, contract or arrangement. |
|                                                                 |

----

|   | FIRST NORTHERN COMMUNITY BANCORP |
|--------|----------------------------------|
|   |                             |   |
|   | By:                              | /s/ Owen J. Onsum |
|   |                             |   |
|   |                             | Owen J. Onsum |
|   |                             | President/Chief Executive Officer/Director |
|   |                             | (Principal Executive Officer) |
|   |                             |   |

| Name                                                                                                               | Title                                                         | Date                 |
|--------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|----------------------|
|      /s/ OWEN J. ONSUM             |  President/Chief Executive Officer/Director              | March 29, 2010       |
| Owen J. Onsum                                                                                                      |  (Principal Executive Officer)                           |                 |
|                                                                                                               |                                                          |                 |
|     /s/ LOUISE A. WALKER                                                                            |  Senior Executive Vice President/Chief Financial Officer | March 29, 2010       |
| Louise A. Walker                                                                                              |  (Principal Financial Officer)                           |                 |
|                                                                                                     |                                                          |                 |
|     /s/ STANLEY R. BEAN                                                                             | Senior Vice President/Controller                         | March 29, 2010  |
| Stanley R. Bean                                                                                               |  (Principal Accounting Officer)                          |                 |
|                                                                                                               |                                                          |                 |
| /s/ LORI J. ALDRETE                                                                                           | Director                                                      | March 29, 2010       |
| Lori J. Aldrete                                                                                                    |                                                          |                 |
|                                                                                                               |                                                          |                 |
| /s/ FRANK J. ANDREWS, JR.                                                                                     | Director                                                      | March 29, 2010       |
| Frank J. Andrews, Jr.                                                                                              |                                                          |                 |
|                                                                                                               |                                                          |                 |
| /s/ JOHN M. CARBAHAL                                                                                          | Director and Vice Chairman of the Board                       | March 29, 2010       |
| John M. Carbahal                                                                                                   |                                                          |                 |
|                                                                                                               |                                                          |                 |
| /s/ GREGORY DUPRATT                                                                                                | Director and Chairman of the Board                            | March 29, 2010       |
| Gregory DuPratt                                                                                                    |                                                          |                 |
|                                                                                                               |                                                          |                 |
| /s/ JOHN F. HAMEL                                                                                                  | Director                                                      | March 29, 2010       |
| John F. Hamel                                                                                                      |                                                          |                 |
|                                                                                                               |                                                          |                 |
| /s/ DIANE P. HAMLYN                                                                                                | Director                                                      | March 29, 2010       |
| Diane P. Hamlyn                                                                                                    |                                                          |                 |
|                                                                                                               |                                                          |                 |
| /s/ FOY S. MCNAUGHTON                                                                                              | Director                                                      | March 29, 2010       |
| Foy S. McNaughton                                                                                                  |                                                          |                 |
|                                                                                                               |                                                          |                 |
|   /s/ DAVID W. SCHULZE                                                                                   | Director                                                      | March 29, 2010       |
| David W. Schulze                                                                                                   |                                                          |                 |
|                                                                                                               |                                                          |                 |
|                                                                                                          |                                                          |                 |