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

| Louisiana                                                                   | 26-0513559                                |
|-----------------------------------------------------------------------------|-------------------------------------------|
| (State or other jurisdiction incorporation or organization)                 | (I.R.S. Employer Identification Number)   |
|                                                                        |                                      |
|                                                                        |                                      |
| 400 East Thomas Street                                                      |                                      |
| Hammond, Louisiana                                                          | 70401                                     |
| (Address of principal executive offices)                                    | (Zip Code)                                |
|                                                                        |
| (985) 345-7685                                                              |
| (Registrant’s telephone number, including area code)                  |
|                                                                        |
| Not Applicable                                                              |
| (Former name or former address, if changed since last report)               |
|                                                                        |
| Securities registered pursuant to Section 12(b) of the Act:  None |
|                                                                        |
| Securities registered pursuant to Section 12(g) of the Act:                 |
|                                                                        |                                      |
| Title of each class                                                         | Name of each exchange on which registered |
| Common Stock, $1 par value per share                                        | None                                      |

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|       |                                                                                | Page   |
|------------|-------------------------------------------------------------------------------------|--------|
| Part I.    |                                                                                |   |
| Item 1     | Business                                                                            | 4      |
| Item 1A    | Risk Factors                                                                        | 15     |
| Item 1B    | Unresolved Staff Comments                                                           | 21     |
| Item 2     | Properties                                                                          | 22     |
| Item 3     | Legal Proceedings                                                                   | 23     |
| Item 4     | Reserved                                                                            | 23     |
|       |                                                                                |   |
| Part II.   |                                                                                |   |
| Item 5     | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer       |   |
|       |   Purchases of Equity Securities                                          | 23     |
| Item 6     | Selected Financial Data                                                             | 25     |
| Item 7     | Management's Discussion and Analysis of Financial Condition and Results             |   |
|       |   of Operations                                                           | 27     |
| Item 7A    | Quantitative and Qualitative Disclosures about Market Risk                          | 50     |
| Item 8     | Financial Statements and Supplementary Data                                         | 52     |
| Item 9     | Changes in and Disagreements with Accountants on Accounting and Financial           |   |
|       |   Disclosures                                                             | 85     |
| Item 9a(T) | Controls and Procedures                                                             | 85     |
| Item 9b    | Other Information                                                                   | 85     |
|       |                                                                                |   |
| Part III.  |                                                                                |   |
| Item 10    | Directors, Executive Officers and Corporate Governance                              | 86     |
| Item 11    | Executive Compensation                                                              | 86     |
| Item 12    | Security Ownership of Certain Beneficial Owners, Management and Related Stockholder | 86     |
|       |   Matters                                                                 |   |
| Item 13    | Certain Relationships and Related Transactions and Director Independence            | 86     |
| Item 14    | Principal Accountant Fees and Services                                              | 86     |
|       |                                                                                |   |
| Part IV.   |                                                                                |   |
| Item 15    | Exhibits and Financial Statement Schedules                                          | 87     |

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      -  factoring accounts receivable; 
      -  making, acquiring, brokering or servicing loans and usual related activities; 
      -  leasing personal or real property; 
      -  operating a non-bank depository institution, such as a savings association; 
      -  trust company functions; 
      -  financial and investment advisory activities; 
      -  conducting discount securities brokerage activities; 
      -  underwriting and dealing in government obligations and money market instruments; 
      -  providing specified Management consulting and counseling activities; 
      -  performing selected data processing services and support services; 
      -  acting as agent or broker in selling credit life insurance and other types of insurance in connection with credit transactions; and 
      -  performing selected insurance underwriting activities.   

- lending, exchanging, transferring, investing for others, or safeguarding money or securities; 
- insuring, guaranteeing or indemnifying against loss or harm, or providing and issuing annuities, and acting as principal, agent or broker for these purposes, in any state; 
- providing financial, investment or advisory services; 
- issuing or selling instruments representing interests in pools of assets permissible for a bank to hold directly; 
- underwriting, dealing in or making a market in securities; 
- other activities that the FRB may determine to be so closely related to banking or managing or controlling banks as to be a proper incident to managing or controlling banks; 
- foreign activities permitted outside of the United States if the FRB has determined them to be usual in connection with banking operations abroad; 
- merchant banking through securities or insurance affiliates; and 
- insurance company portfolio investments. 

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    - the federal "Truth -In-Lending Act," governing disclosures of credit terms to consumer borrowers; 
    - the "Home Mortgage Disclosure Act of 1975," requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obigation to help meet the housing needs of the community it serves; 
    - the "Equal Credit Opportunity Act," prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; 
    - the "Fair Credit Reporting Act of 1978," governing the use and provision of information to credit reporting agencies; 
    - the "Real Estate Settlement Procedures Act"; 
    - the "Fair Debt Collection Act," governing the manner in which consumer debts may be collected by collection agencies; and 
    - The rules and regulations of the various federal agencies charged with the responsibility of implementing these federal laws. 

    - the "Right to Financial Privacy Act," which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; 
    - the "Electronic Funds Transfer Act," and Regulation E issued by the FRB to implement that act, which govern automatic deposits to and withdrawals from deposit accounts and customers' rights and liabilities arising from the use of automated teller machines and other electronic banking services; 
    - the "Truth in Savings Act"; and 
    - the "Expedited Funds Availability Act". 

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    - well-capitalized (at least 5% leverage capital, 6% Tier 1 risk-based capital and 10% total risk-based capital); 
    - adequately capitalized (at least 4% leverage capital, 4% Tier 1 risk-based capital and 8% total risk-based capital); 
    - undercapitalized (less than 8% total risk-based capital, 4% Tier 1 risk-based capital or 3% leverage capital); 
    - significantly undercapitalized (less than 6% total risk-based capital, 3% Tier 1 risk-based capital or 3% leverage capital); and 
    - critically undercapitalized (less than 2% tangible capital). 

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- First Guaranty Bank’s loans or extensions of credit to affiliates; 
- First Guaranty Bank’s  investment in affiliates; 
- assets that First Guaranty Bank may purchase from affiliates, except for real and personal property exempted by the FRB; 
- the amount of loans or extensions of credit to third parties collateralized by the securities or obligations of affiliates; and 
- First Guaranty Bank’s guarantee, acceptance or letter of credit issued on behalf of an affiliate. 

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    - Limits on compensation incentives for risk taking for senior executive officers. 
    - Requirement of recovery of any compensation paid based on inaccurate financial information. 
    - Prohibition on "Golden Parachute Payments". 
    - Prohibition on compensation plans that would encourage manipulation of reported earnings to enhance the compensation of employees. 
    - Publicly registered TARP recipients must establish a board compensation committee comprised entirely of independent directors, for the purpose of reviewing employee compensation plans. 
    -  Prohibition on bonus, retention award, or incentive compensation, except for payments of long term restricted stock. 
    - Limitation on luxury expenditures. 
    - TARP recipients are required to permit a separate shareholder vote to approve the compensation of executives, as disclosed pursuant  to the SEC's compensation disclosure rules. 

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-  We expect to face increased regulation of our industry, including as a result of the Emergency Economic Stabilization Act of 2008 (EESA).  
-  Compliance with such regulation may increase our costs and limit our ability to pursue business oppotunities. 
-   Market developments and the resulting economic pressure on consumers may affect consumer confidence levels and may cause increases in delinquencies and default rates, which, among other effects, could affect our charge-offs and provision for laon losses.  Competition in the industry could intensify as a result of the increasing consolidation of financial services companies in connection with the current market conditions.      
-  The current market disruptions make valuation even more difficult and subjective, and our ability to measure the fair value of our assets could be adversely affected.  If we determine that a significant portion of our assets have values significantly below their recorded carrying value, we could recognize a material charge to earnings in the quarter in which such determination was made, our capital ratios would be adversely affected and a rating agency might downgrade our credit rating or put us on credit watch. 

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-     inflation rates; 
-     business activity levels; 
-     money supply; and 
-     domestic and foreign financial markets. 

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| Location                                                           |   | Use of Facilities        |   | Year Facility Opened or Acquired  |   |  Owned/Leased |
|-------------------------------------------------------------------------|--------|-------------------------------|--------|----------------------------------------|--------|--------------------|
| First Guaranty Square400 East Thomas StreetHammond, LA  70401 |   | Bank’s Main Office      |   | 1975                                   |   | Owned              |
| 2111 West Thomas StreetHammond, LA  70401                     |   | Guaranty West Banking Center  |   | 1974                                   |   | Owned              |
| 100 East Oak StreetAmite, LA  70422                           |   | Amite Banking Center          |   | 1970                                   |   | Owned              |
| 455 Railroad AvenueIndependence, LA  70443                    |   | Independence Banking Center   |   | 1979                                   |   | Owned              |
| 301 Avenue FKentwood, LA  70444                               |   | Kentwood Banking Center       |   | 1975                                   |   | Owned              |
| 170 West HickoryPonchatoula, LA  70454                        |   | Ponchatoula Banking Center    |   | 1960                                   |   | Owned              |
| 189 Burt BlvdBenton, LA  71006                                |   | Benton Banking Center         |   | 2010                                   |   | Owned              |
| 126 South Hwy. 1Oil City, LA  71061                           |   | Oil City Banking Center       |   | 1999                                   |   | Owned              |
| 401 North 2nd StreetHomer, LA  71040                          |   | Homer Main Banking Center     |   | 1999                                   |   | Owned              |
| 10065 Hwy 79Haynesville, LA  71038                            |   | Haynesville Banking Center    |   | 1999                                   |   | Owned              |
| 117 East Hico StreetDubach, LA 71235                                    |   | Dubach Banking Center         |   | 1999                                   |   | Owned              |
| 102 East Louisiana AvenueVivian, LA  71082                    |   | Vivian Banking Center         |   | 1999                                   |   | Owned              |
| 500 North CaryJennings, LA  70546                             |   | Jennings Banking Center       |   | 1999                                   |   | Owned              |
| 799 West Summers DriveAbbeville, LA  70510                    |   | Abbeville Banking Center      |   | 1999                                   |   | Owned              |
| 105 BerrylandPonchatoula, LA  70454                           |   | Berryland Banking Center      |   | 2004                                   |   | Leased             |
| 2231 S. Range AvenueDenham Springs, LA 70726                            |   | Denham Springs Banking Center |   | 2005                                   |   | Owned              |
| North 6th StreetPonchatoula, LA  70454                        |   | Ponchatoula Banking Center 1  |   | 2007                                   |   | Owned              |
| 29815 Walker Rd SWalker, LA 70785                                       |   | Walker Banking Center         |   | 2007                                   |   | Owned              |

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|           |   | 2010   |   |   | 2009   |   |
|----------------|--------|--------|--------|--------|--------|--------|
| Quarter Ended: |   | High   |   |   | Low    |   |   | Dividend |   |   | High |   |   | Low |   |   | Dividend |   |
| March          |   | $      | 17.00  |   |   | $      | 17.00 |   |   | $ | 0.16 |   |   | $ | 25.00 |   |   | $ | 17.00 |   |   | $ | 0.16 |   |
| June           |   |   | 18.62  |   |   |   | 17.00 |   |   |   | 0.16 |   |   |   | 17.00 |   |   |   | 17.00 |   |   |   | 0.16 |   |
| September      |   |   | 18.62  |   |   |   | 17.50 |   |   |   | 0.16 |   |   |   | 17.00 |   |   |   | 15.00 |   |   |   | 0.16 |   |
| December       |   |   | 18.62  |   |   |   | 18.62 |   |   |   | 0.16 |   |   |   | 17.00 |   |   |   | 12.00 |   |   |   | 0.16 |   |

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|                                                           |   | At or For the Years Ended December 31, |      |
|----------------------------------------------------------------|--------|----------------------------------------|-----------|
|                                                           |   | 2010                                   |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                           |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Year End Balance Sheet Data:                                   |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| (in thousands)                                                 |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |
|  Securities                                               |   | $                                      | 481,961   |   |   | $ | 261,829 |   |   | $ | 139,162 |   |   | $ | 142,068 |   |   | $ | 158,352 |   |
|  Federal funds sold                                       |   |                                   | 9,129     |   |   |   | 13,279 |   |   |   | 838 |   |   |   | 35,869 |   |   |   | 6,793 |   |
|  Loans, net of unearned income                            |   |                                   | 575,640   |   |   |   | 589,902 |   |   |   | 606,369 |   |   |   | 575,256 |   |   |   | 507,195 |   |
|  Allowance for loan losses                                |   |                                   | 8,317     |   |   |   | 7,919 |   |   |   | 6,482 |   |   |   | 6,193 |   |   |   | 6,675 |   |
|  Total assets(1)                                          |   |                                   | 1,132,792 |   |   |   | 930,847 |   |   |   | 871,233 |   |   |   | 807,994 |   |   |   | 715,216 |   |
|  Total deposits                                           |   |                                   | 1,007,383 |   |   |   | 799,746 |   |   |   | 780,372 |   |   |   | 723,094 |   |   |   | 626,293 |   |
|  Borrowings                                               |   |                                   | 12,589    |   |   |   | 31,929 |   |   |   | 18,122 |   |   |   | 13,494 |   |   |   | 24,568 |   |
|  Stockholders' equity(1)                                  |   |                                   | 97,938    |   |   |   | 94,935 |   |   |   | 65,487 |   |   |   | 66,355 |   |   |   | 59,471 |   |
|  Common Stockholders' equity(1)                           |   |                                   | 76,963    |   |   |   | 74,165 |   |   |   | 65,487 |   |   |   | 66,355 |   |   |   | 59,471 |   |
|                                                           |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Balance Sheet Data:                                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (dollars in thousands)                                         |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Securities                                               |   | $                                      | 342,589   |   |   | $ | 245,952 |   |   | $ | 127,586 |   |   | $ | 152,990 |   |   | $ | 178,419 |   |
|  Federal funds sold                                       |   |                                   | 11,007    |   |   |   | 24,662 |   |   |   | 17,247 |   |   |   | 8,083 |   |   |   | 3,115 |   |
|  Loans, net of unearned income                            |   |                                   | 593,429   |   |   |   | 599,609 |   |   |   | 600,854 |   |   |   | 543,946 |   |   |   | 505,623 |   |
|  Total earning assets                                     |   |                                   | 964,039   |   |   |   | 906,158 |   |   |   | 752,093 |   |   |   | 712,212 |   |   |   | 690,057 |   |
|  Total assets                                             |   |                                   | 1,015,681 |   |   |   | 948,556 |   |   |   | 797,024 |   |   |   | 751,237 |   |   |   | 726,593 |   |
|  Total deposits                                           |   |                                   | 883,440   |   |   |   | 842,274 |   |   |   | 707,114 |   |   |   | 658,456 |   |   |   | 622,869 |   |
|  Borrowings                                               |   |                                   | 27,324    |   |   |   | 22,907 |   |   |   | 16,287 |   |   |   | 23,450 |   |   |   | 42,435 |   |
|  Stockholders' equity                                     |   |                                   | 99,575    |   |   |   | 77,135 |   |   |   | 67,769 |   |   |   | 63,564 |   |   |   | 56,640 |   |
|  Stockholders' common equity                              |   |                                   | 79,245    |   |   |   | 70,055 |   |   |   | 67,769 |   |   |   | 63,564 |   |   |   | 56,640 |   |
|                                                           |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performance Ratios:                                            |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Return on average assets                                 |   |                                   | 0.99      | % |   |   | 0.80 | % |   |   | 0.69 | % |   |   | 1.30 | % |   |   | 1.16 | % |
|  Return on average common equity                          |   |                                   | 12.65     | % |   |   | 10.84 | % |   |   | 8.13 | % |   |   | 15.37 | % |   |   | 14.88 | % |
|  Return on average tangible assets(2)                     |   |                                   | 0.99      | % |   |   | 0.80 | % |   |   | 0.69 | % |   |   | 1.30 | % |   |   | 1.16 | % |
|  Return on average tangible common equity(3)              |   |                                   | 12.95     | % |   |   | 11.14 | % |   |   | 8.77 | % |   |   | 16.47 | % |   |   | 15.73 | % |
|  Net interest margin                                      |   |                                   | 3.96      | % |   |   | 3.57 | % |   |   | 4.25 | % |   |   | 4.79 | % |   |   | 4.60 | % |
|  Average loans to average deposits                        |   |                                   | 67.17     | % |   |   | 71.19 | % |   |   | 84.97 | % |   |   | 82.61 | % |   |   | 81.18 | % |
|  Efficiency ratio (1)                                     |   |                                   | 56.20     | % |   |   | 60.80 | % |   |   | 70.73 | % |   |   | 55.80 | % |   |   | 51.80 | % |
| Efficiency ratio (excluding amortization of                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |
|    intangibles and securities transactions) (1) |   |                                   | 59.25     | % |   |   | 61.99 | % |   |   | 61.20 | % |   |   | 54.59 | % |   |   | 49.90 | % |
|  Full time equivalent employees (year end)                |   |                                   | 246       |   |   |   | 230 |   |   |   | 225 |   |   |   | 222 |   |   |   | 196 |   |

|          (1)   For the years ended 2006, 2007 and 2008 amounts were restated in 2009 to reflect prior period adjustments.  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          (2)   Average tangible assets represent average assets less average core deposit intangibles. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          (3)   Average tangible equity represents average equity less average core deposit intangibles. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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|                                                            |   | At or For the Years Ended December 31, |      |
|-----------------------------------------------------------------|--------|----------------------------------------|-----------|
|                                                            |   | 2010                                   |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                            |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Ratios:                                                 |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |
|  Average stockholders' equity to average assets            |   |                                   | 9.80      | % |   |   | 8.13 | % |   |   | 8.50 | % |   |   | 8.46 | % |   |   | 7.80 | % |
|  Average tangible equity to average tangible assets(1),(2) |   |                                   | 9.64      | % |   |   | 7.95 | % |   |   | 8.25 | % |   |   | 8.31 | % |   |   | 7.71 | % |
|  Common stockholders' equity to total assets(3)            |   |                                   | 6.79      | % |   |   | 7.97 | % |   |   | 7.52 | % |   |   | 8.21 | % |   |   | 8.32 | % |
|  Tier 1 leverage capital(3)                                |   |                                   | 8.69      | % |   |   | 9.58 | % |   |   | 7.88 | % |   |   | 7.38 | % |   |   | 8.11 | % |
|  Tier 1 capital(3)                                         |   |                                   | 11.98     | % |   |   | 11.90 | % |   |   | 9.19 | % |   |   | 10.13 | % |   |   | 9.85 | % |
|  Total risk-based capital(3)                               |   |                                   | 13.03     | % |   |   | 12.97 | % |   |   | 10.11 | % |   |   | 11.09 | % |   |   | 10.96 | % |
|                                                            |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Data:                                                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (dollars in thousands)                                          |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                 |   | $                                      | 51,390    |   |   | $ | 47,191 |   |   | $ | 47,661 |   |   | $ | 55,480 |   |   | $ | 50,937 |   |
| Interest expense(3)                                             |   |                                   | 13,223    |   |   |   | 14,844 |   |   |   | 15,881 |   |   |   | 21,934 |   |   |   | 19,769 |   |
| Net interest income(3)                                          |   |                                   | 38,167    |   |   |   | 32,347 |   |   |   | 31,780 |   |   |   | 33,546 |   |   |   | 31,168 |   |
| Provision for loan losses                                       |   |                                   | 5,654     |   |   |   | 4,155 |   |   |   | 1,634 |   |   |   | 1,918 |   |   |   | 4,419 |   |
| Noninterest income (excluding securities transactions)          |   |                                   | 6,741     |   |   |   | 5,909 |   |   |   | 5,689 |   |   |   | 5,176 |   |   |   | 4,601 |   |
| Securities (losses) gains                                       |   |                                   | 2,824     |   |   |   | 2,056 |   |   |   | (1 | ) |   |   | (478 | ) |   |   | (234 | )  |
| Loss on securities impairment                                   |   |                                   | -         |   |   |   | (829 | ) |   |   | (4,611 | ) |   |   | - |   |   |   | - |   |
| Noninterest expense(3)                                          |   |                                   | 26,827    |   |   |   | 24,007 |   |   |   | 23,241 |   |   |   | 21,341 |   |   |   | 18,373 |   |
| Earnings before income taxes(3)                                 |   |                                   | 15,251    |   |   |   | 11,321 |   |   |   | 7,982 |   |   |   | 14,985 |   |   |   | 12,744 |   |
| Net income(3)                                                   |   |                                   | 10,025    |   |   |   | 7,595 |   |   |   | 5,512 |   |   |   | 9,772 |   |   |   | 8,431 |   |
| Net income available to common shareholders(3)                  |   |                                   | 8,692     |   |   |   | 7,001 |   |   |   | 5,512 |   |   |   | 9,772 |   |   |   | 8,431 |   |
|                                                            |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per Common Share Data:                                          |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net earnings(3)                                           |   | $                                      | 1.56      |   |   | $ | 1.26 |   |   | $ | 0.99 |   |   | $ | 1.76 |   |   | $ | 1.52 |   |
|  Cash dividends paid                                       |   |                                   | 0.64      |   |   |   | 0.64 |   |   |   | 0.64 |   |   |   | 0.63 |   |   |   | 0.60 |   |
|  Book value(3)                                             |   |                                   | 13.84     |   |   |   | 13.34 |   |   |   | 11.78 |   |   |   | 11.94 |   |   |   | 10.70 |   |
|  Dividend payout ratio(3)                                  |   |                                   | 40.94     | % |   |   | 50.82 | % |   |   | 64.53 | % |   |   | 35.85 | % |   |   | 39.56 | % |
|  Weighted average number of shares outstanding             |   |                                   | 5,559,644 |   |   |   | 5,559,644 |   |   |   | 5,559,644 |   |   |   | 5,559,644 |   |   |   | 5,559,644 |   |
|  Number of shares outstanding (year end)                   |   |                                   | 5,559,644 |   |   |   | 5,559,644 |   |   |   | 5,559,644 |   |   |   | 5,559,644 |   |   |   | 5,559,644 |   |
|  Market data:                                              |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    High                                          |   | $                                      | 18.62     |   |   | $ | 25.00 |   |   | $ | 25.00 |   |   | $ | 24.30 |   |   | $ | 23.42 |   |
|    Low                                           |   | $                                      | 17.00     |   |   | $ | 12.00 |   |   | $ | 24.30 |   |   | $ | 23.42 |   |   | $ | 18.57 |   |
|    Trading Volume                                |   |                                   | 181,353   |   |   |   | 165,386 |   |   |   | 368,454 |   |   |   | 924,692 |   |   |   | 535,264 |   |
|    Stockholders of record                        |   |                                   | 1,361     |   |   |   | 1,356 |   |   |   | 1,343 |   |   |   | 1,293 |   |   |   | 1,181 |   |
|                                                            |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality Ratios:                                           |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Nonperforming assets to total assets                      |   |                                   | 2.73      | % |   |   | 1.68 | % |   |   | 1.14 | % |   |   | 1.39 | % |   |   | 1.85 | % |
|  Nonperforming assets to loans                             |   |                                   | 5.38      | % |   |   | 2.65 | % |   |   | 1.63 | % |   |   | 1.95 | % |   |   | 2.61 | % |
|  Loan loss reserve to nonperforming assets                 |   |                                   | 26.9      | % |   |   | 50.68 | % |   |   | 65.46 | % |   |   | 55.26 | % |   |   | 50.43 | % |
|  Net charge-offs to average loans                          |   |                                   | 0.89      | % |   |   | 0.45 | % |   |   | 0.22 | % |   |   | 0.50 | % |   |   | 1.06 | % |
|  Provision for loan loss to average loans                  |   |                                   | 0.95      | % |   |   | 0.69 | % |   |   | 0.27 | % |   |   | 0.35 | % |   |   | 0.87 | % |
|  Allowance for loan loss to total loans                    |   |                                   | 1.44      | % |   |   | 1.34 | % |   |   | 1.07 | % |   |   | 1.08 | % |   |   | 1.32 | % |

|             (1)   Average tangible assets represents average assets less average core deposit intangibles. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             (2)   Average tangible equity represents average equity less average core deposit intangibles. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             (3)   For the years ended 2006, 2007 and 2008 amounts were restated in 2009 to reflect prior period adjustments. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | Net income for 2010 and 2009 was $10.0 million and $7.6 million respectively.  Net income to common shareholders after preferred stock dividends was $8.7 million and $7.0 million for 2010 and 2009, with earnings per common share of $1.56 and $1.26 respectively.  The increase in net income was primarily the result of an increase in net interest income due to a larger investment portfolio and higher loan pricing.  The Company also recognized gains from sales of securities of $2.8 million compared to $2.1 million for 2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net interest income for 2010 and 2009 was $38.2 million and $32.3 million, respectively.  The net interest margin for the Company was 4.0% at December 31, 2010 and 3.6% at December 31, 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The provision for loan losses for 2010 was $5.7 million compared to $4.2 million for 2009.  |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | Total assets at December 31, 2010 were $1.133 billion, an increase of $201.9 million or 21.7% when compared to $930.8 million at December 31, 2009. The increase in assets primarily resulted from excess cash received from deposit growth which was primarily invested in the securities portfolio. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Investment securities totaled $482.0 million at December 31, 2010, an increase of $220.1 million when compared to $261.8 million at December 31, 2009. At December 31, 2010, available for sale securities, at fair value, totaled $322.1 million, an increase of $72.6 million when compared to December 31, 2009. The Company had $159.8 million in the held to maturity category as of December 31, 2010.  Our securities in the held to maturity category totaled $12.3 million at December 31, 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The net loan portfolio at December 31, 2010 totaled $567.3 million, a decrease of $14.7 million from the December 31, 2009 level of $582.0 million.  Net loans are reduced by the allowance for loan losses which totaled $8.3 million for December 31, 2010 and $7.9 million for December 31, 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Non-performing assets at December 31, 2010 were $31.0 million, an increase of $15.3 million compared to December 31, 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | Total deposits increased $207.6 million or 26.0% in 2010 compared to the year ended December 31, 2009. |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | Return on average assets for the twelve months ending December 31, 2010 and December 31, 2009 was 1.0% and 0.8% respectively.  Return on average common shareholders’ equity for  2010 and 2009 were 12.7% and 10.8% respectively.  Return on average assets is calculated by dividing  net income before preferred dividends by average assets.  Return on common shareholders’ equity is calculated by dividing net earnings applicable to common shareholders by average common shareholders’ equity. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company’s Board of Directors declared cash dividends of $0.64 per common share in 2010 and 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------|

----

----

|                                                  |   | December 31,   |
|-------------------------------------------------------|--------|----------------|
|                                                  |   | 2010           |   | 2009 |   | 2008 |
|                                                  |   |           |   |   | As % of |   |   |   |   | As % of |   |   |   |   | As % of |
|                                                  |   | Balance        |   |   | Category |   | Balance |   |   | Category |   | Balance |   |   | Category |
|                                                  |   | (in thousands) |
| Real estate                                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Construction & land development |   | $              | 65,570 |   |   |   | 11.4 | % |   | $ | 78,686 |   |   |   | 13.3 | % |   | $ | 92,029 |   |   |   | 15.2 | % |
|    Farmland                            |   |           | 13,337 |   |   |   | 2.3 | % |   |   | 11,352 |   |   |   | 1.9 | % |   |   | 16,403 |   |   |   | 2.7 | % |
|    1-4 Family                          |   |           | 73,158 |   |   |   | 12.7 | % |   |   | 77,470 |   |   |   | 13.1 | % |   |   | 79,285 |   |   |   | 13.1 | % |
|    Multifamily                         |   |           | 14,544 |   |   |   | 2.5 | % |   |   | 8,927 |   |   |   | 1.5 | % |   |   | 15,707 |   |   |   | 2.6 | % |
|    Non-farm non-residential            |   |           | 292,809 |   |   |   | 50.8 | % |   |   | 300,673 |   |   |   | 51.0 | % |   |   | 261,744 |   |   |   | 43.0 | % |
|       Total real estate |   |           | 459,418 |   |   |   | 79.7 | % |   |   | 477,108 |   |   |   | 80.8 | % |   |   | 465,168 |   |   |   | 76.6 | % |
|                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agricultural                                          |   |           | 17,361 |   |   |   | 3.0 | % |   |   | 14,017 |   |   |   | 2.4 | % |   |   | 18,536 |   |   |   | 3.0 | % |
| Commercial and industrial                             |   |           | 76,590 |   |   |   | 13.3 | % |   |   | 82,348 |   |   |   | 13.9 | % |   |   | 105,555 |   |   |   | 17.4 | % |
| Consumer and other                                    |   |           | 22,970 |   |   |   | 4.0 | % |   |   | 17,226 |   |   |   | 2.9 | % |   |   | 17,926 |   |   |   | 3.0 | % |
| Total loans before unearned income                    |   |           | 576,339 |   |   |   | 100.0 | % |   |   | 590,699 |   |   |   | 100.0 | % |   |   | 607,185 |   |   |   | 100.0 | % |
| Less: unearned income                                 |   |           | (699 | ) |   |   |   |   |   |   | (797 | ) |   |   |   |   |   |   | (816 | ) |   |   |   |   |
| Total loans net of unearned income                    |   | $              | 575,640 |   |   |   |   |   |   | $ | 589,902 |   |   |   |   |   |   | $ | 606,369 |   |   |   |   |   |
|                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   | December 31,   |   |   |   |   |   |   |   |   |
|                                                  |   | 2007           |   | 2006 |   |   |   |   |   |   |   |   |
|                                                  |   |           |   |   |   | As % of |   |   |   |   |   | As % of |   |   |   |   |   |   |   |   |
|                                                  |   | Balance        |   |   | Category |   | Balance |   |   | Category |   |   |   |   |   |   |   |   |
|                                                  |   | (in thousands) |   |   |   |   |   |   |   |   |
| Real estate                                           |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Construction & land development |   | $              | 98,127 |   |   |   | 17.0 | % |   | $ | 49,837 |   |   |   | 9.9 | % |   |   |   |   |   |   |   |   |
|    Farmland                            |   |           | 23,065 |   |   |   | 4.0 | % |   |   | 25,582 |   |   |   | 5.0 | % |   |   |   |   |   |   |   |   |
|    1-4 Family                          |   |           | 84,640 |   |   |   | 14.7 | % |   |   | 67,022 |   |   |   | 13.2 | % |   |   |   |   |   |   |   |   |
|    Multifamily                         |   |           | 13,061 |   |   |   | 2.3 | % |   |   | 14,702 |   |   |   | 2.9 | % |   |   |   |   |   |   |   |   |
|    Non-farm non-residential            |   |           | 236,474 |   |   |   | 41.1 | % |   |   | 256,176 |   |   |   | 50.5 | % |   |   |   |   |   |   |   |   |
|       Total real estate |   |           | 455,367 |   |   |   | 79.1 | % |   |   | 413,319 |   |   |   | 81.5 | % |   |   |   |   |   |   |   |   |
|                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agricultural                                          |   |           | 16,816 |   |   |   | 2.9 | % |   |   | 16,359 |   |   |   | 3.2 | % |   |   |   |   |   |   |   |   |
| Commercial and industrial                             |   |           | 81,073 |   |   |   | 14.1 | % |   |   | 59,072 |   |   |   | 11.6 | % |   |   |   |   |   |   |   |   |
| Consumer and other                                    |   |           | 22,517 |   |   |   | 3.9 | % |   |   | 18,880 |   |   |   | 3.7 | % |   |   |   |   |   |   |   |   |
| Total loans before unearned income                    |   |           | 575,773 |   |   |   | 100.0 | % |   |   | 507,630 |   |   |   | 100.0 | % |   |   |   |   |   |   |   |   |
| Less: unearned income                                 |   |           | (517 | ) |   |   |   |   |   |   | (435 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans net of unearned income                    |   | $              | 575,256 |   |   |   |   |   |   | $ | 507,195 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                  |   |  December 31, 2010 |    |
|-------------------------------------------------------|--------|-------------------------|---------|
|                                                  |   | One Year                |    |   | One Through |   |   | After |   |   |   |   |
|                                                  |   | or Less                 |    |   | Five Years |   |   | Five Years |   |   | Total |   |
|                                                  |   | (in thousands)          |    |
| Real estate:                                          |   |                    |    |   |   |   |   |   |   |   |   |   |
|    Construction and land development   |   | $                       | 50,377  |   |   | $ | 11,979 |   |   | $ | 3,214 |   |   | $ | 65,570 |   |
|    Farmland                            |   |                    | 6,647   |   |   |   | 3,863 |   |   |   | 2,827 |   |   |   | 13,337 |   |
|    1-4 Family                          |   |                    | 19,745  |   |   |   | 24,098 |   |   |   | 29,315 |   |   |   | 73,158 |   |
|    Multifamily                         |   |                    | 7,815   |   |   |   | 5,426 |   |   |   | 1,303 |   |   |   | 14,544 |   |
|    Non-farm non-residential            |   |                    | 114,034 |   |   |   | 172,283 |   |   |   | 6,492 |   |   |   | 292,809 |   |
|       Total real estate |   |                    | 198,618 |   |   |   | 217,649 |   |   |   | 43,151 |   |   |   | 459,418 |   |
|                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agricultural                                          |   |                    | 7,080   |   |   |   | 3,414 |   |   |   | 6,867 |   |   |   | 17,361 |   |
| Commercial and industrial                             |   |                    | 46,185  |   |   |   | 23,869 |   |   |   | 6,536 |   |   |   | 76,590 |   |
| Consumer and other                                    |   |                    | 7,767   |   |   |   | 15,054 |   |   |   | 149 |   |   |   | 22,970 |   |
| Total loans before unearned income                    |   | $                       | 259,650 |   |   | $ | 259,986 |   |   | $ | 56,703 |   |   | $ | 576,339 |   |
| Less: unearned income                                 |   |                    |    |   |   |   |   |   |   |   |   |   |   |   | (699 | ) |
| Total loans net of unearned income                    |   |                    |    |   |   |   |   |   |   |   | $ | 575,640 |   |
|                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                    |   | December 31, 2010 |    |
|-------------------------|--------|-------------------|---------|
|                    |   | Fixed             |    |   | Floating |   |   | Total |   |
|                    |   | (in thousands)    |    |
|                    |   |              |    |   |   |   |   |   |   |
| One year or less        |   | $                 | 67,944  |   |   | $ | 167,399 |   |   | $ | 235,343 |   |
| One to five years       |   |              | 127,401 |   |   |   | 132,345 |   |   |   | 259,746 |   |
| Five to 15 years        |   |              | 2,456   |   |   |   | 30,953 |   |   |   | 33,409 |   |
| Over 15 years           |   |              | 9,735   |   |   |   | 9,388 |   |   |   | 19,123 |   |
|   Subtotal    |   |              | 207,536 |   |   |   | 340,085 |   |   |   | 547,621 |   |
| Nonaccrual loans        |   |              |    |   |   |   |   |   |   |   | 28,718 |   |
|   Total loans |   |              |    |   |   |   |   |   |   | $ | 576,339 |   |
|   Unearned Income  |   |              |    |   |   |   |   |   |   |   | (699 | ) |

|   Total loans net of unearned income |   |   |   |   |   |   |   |   |   | $ | 575,640 |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|---------|--------|

----

|                                             |   | At December 31, |
|--------------------------------------------------|--------|-----------------|
|                                             |   | 2010            |   |   |   2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                             |   | (in thousands)  |
| Non-accrual loans:                               |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Real estate loans:                         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Construction and land development         |   | $               | 3,383 |   |   | $  | 2,841  |   |   | $ | 1,644 |   |   | $ | 1,841 |   |   | $ | 2,676 |   |
|   Farmland                                  |   |            | - |   |   |   | 54  |   |   |   | 182 |   |   |   | 419 |   |   |   | 33 |   |
|   1 - 4 family residential                  |   |            | 1,480 |   |   |   | 2,814  |   |   |   | 1,445 |   |   |   | 1,819 |   |   |   | 3,202 |   |
|   Multifamily                               |   |            | 1,357 |   |   |   | -  |   |   |   | - |   |   |   | 2 |   |   |   | - |   |
|   Non-farm non-residential                  |   |            | 21,944 |   |   |   | 7,439  |   |   |   | 5,263 |   |   |   | 4,950 |   |   |   | 3,882 |   |
|  Non-real estate loans:                     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Agricultural                              |   |            | 446 |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Commercial and industrial                 |   |            | 76 |   |   |   | 830  |   |   |   | 275 |   |   |   | 978 |   |   |   | 267 |   |
|   Consumer and other                        |   |            | 32 |   |   |   | 205  |   |   |   | 320 |   |   |   | 279 |   |   |   | 302 |   |
|    Total non-accrual loans             |   |            | 28,718 |   |   |   | 14,183  |   |   |   | 9,129 |   |   |   | 10,288 |   |   |   | 10,362 |   |
|                                             |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans 90 days and greater delinquent             |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and still accruing:                              |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Real estate loans:                         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Construction and land development         |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Farmland                                  |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   1 - 4 family residential                  |   |            | 1,663 |   |   |   | 757  |   |   |   | 185 |   |   |   | 544 |   |   |   | 334 |   |
|   Multifamily                               |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Non-farm non-residential                  |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Non-real estate loans:                     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Agricultural                              |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Commercial and industrial                 |   |            | - |   |   |   | -  |   |   |   | 17 |   |   |   | - |   |   |   | - |   |
|   Consumer and other                        |   |            | 10 |   |   |   | 28  |   |   |   | 3 |   |   |   | 3 |   |   |   | - |   |
|    Total loans 90 days greater         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     delinquent and still accruing |   |            | 1,673 |   |   |   | 785  |   |   |   | 205 |   |   |   | 547 |   |   |   | 334 |   |
|                                             |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-performing loans                       |   |            | 30,391 |   |   |   | 14,968  |   |   |   | 9,334 |   |   |   | 10,835 |   |   |   | 10,696 |   |
|                                             |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate owned:                               |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Construction and land development          |   |            | 231 |   |   |   | -  |   |   |   | 89 |   |   |   | 84 |   |   |   | 2,217 |   |
|  Farmland                                   |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  1 - 4 family residential                   |   |            | 232 |   |   |   | 292  |   |   |   | 223 |   |   |   | 170 |   |   |   | 78 |   |
|  Multifamily                                |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Non-farm non-residential                   |   |            | 114 |   |   |   | 366  |   |   |   | 256 |   |   |   | 119 |   |   |   | 245 |   |
| Non-real estate loans:                           |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Agricultural                               |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Commercial and industrial                  |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Consumer and other                         |   |            | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Total real estate owned                   |   |            | 577 |   |   |   | 658  |   |   |   | 568 |   |   |   | 373 |   |   |   | 2,540 |   |
|                                             |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-performing assets                      |   | $               | 30,968 |   |   | $  | 15,626  |   |   | $ | 9,902 |   |   | $ | 11,208 |   |   | $ | 13,236 |   |
|                                             |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restructured Loans                               |   |            | 9,535 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 51 |   |
|                                             |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios:                                          |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Non-performing assets to total loans       |   |            | 5.38 | % |   |   | 2.65  | %  |   |   | 1.63 | % |   |   | 1.95 | % |   |   | 2.61 | % |
|  Non-performing assets to total assets      |   |            | 2.73 | % |   |   | 1.68  | %  |   |   | 1.14 | % |   |   | 1.39 | % |   |   | 1.85 | % |

----

-  past due and nonperforming assets; 
-  specific internal analysis of loans requiring special attention; 
-  the current level of regulatory classified and criticized assets and the associated risk factors with each; 
-  changes in underwriting standards or lending procedures and policies; 
-  charge-off and recovery practices; 
-  national and local economic and business conditions; 
-  nature and volume of loans; 
-  overall portfolio quality; 
-  adequacy of loan collateral; 
-  quality of loan review system and degree of oversight by its Board of Directors; 
-  competition and legal and regulatory requirements on borrowers; 
-  examinations of the loan portfolio by federal and state regulatory agencies and examinations; 
-  and review by our internal loan review department and independent accountants. 

----

|                                    |   | At December 31, |   |
|-----------------------------------------|--------|-----------------|--------|
|                                    |   | 2010            |   |   | 2009 |   |   |   2008 |   |
|                                    |   |            |   |  Percent of |   |   | Percent of |   |   |   |   |  Percent of |   |   | Percent of |   |   |   |   |  Percent of |   |   |   |  Percent of |   |
|                                    |   | Allowance       |   | Allowance to |   |   | loans in each |   |   | Allowance |   |  Allowance to |   |   | Loans in Each |   |   |  Allowance |   |  Allowance to |   |   |   | Loans in Each |   |
|                                    |   | for Loan        |   |  Total Allowance |   |   | category to |   |   | for Loan |   |  Total Allowance |   |   | Category to |   |   |   for Loan |   |  Total Allowance |   |   |   |  Category to |   |
|                                    |   | Losses          |   |  for Loan Losses |   |   | Total loans |   |   | Losses |   |  for Loan Losses |   |   | Total Loans |   |   |   Losses |   |  for Loan Losses |   |   |   |  Total Loans |   |
|                                    |   | (in thousands)  |   |
| Real estate loans:                      |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Construction and land development |   | $               | 977    |   |   | 11.7 | % |   |   | 11.4 | % |   | $ | 1,176 |   |   |  14.9 | % |   |   | 13.3 | % |   |  $ |  315 |   |   |  4.9 | % |   |   |  15.2 | % |
|  Farmland                          |   |            | 46     |   |   | 0.5 | % |   |   | 2.3 | % |   |   | 56 |   |   | 0.7 | % |   |   | 1.9 | % |   |   |  39 |   |   |  0.6 | % |   |   |  2.7 | % |
|  1 - 4 family residential          |   |            | 1,891  |   |   | 22.7 | % |   |   | 12.7 | % |   |   | 2,466 |   |   | 31.2 | % |   |   | 13.1 | % |   |   |  1,712 |   |   |  26.4 | % |   |   |  13.1 | % |
|  Multifamily                       |   |            | 487    |   |   | 5.9 | % |   |   | 2.5 | % |   |   | 128 |   |   | 1.6 | % |   |   | 1.5 | % |   |   |  227 |   |   |  3.5 | % |   |   |  2.6 | % |
|  Non-farm non-residential          |   |            | 3,423  |   |   | 41.2 | % |   |   | 50.8 | % |   |   | 2,727 |   |   | 34.4 | % |   |   | 51.0 | % |   |   |  2,572 |   |   |  39.6 | % |   |   |  43.0 | % |
| Non-real estate loans:                  |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Agricultural                      |   |            | 80     |   |   | 1.0 | % |   |   | 3.0 | % |   |   | 82 |   |   | 1.0 | % |   |   | 2.4 | % |   |   | 92 |   |   |  1.4 | % |   |   |  3.0 | % |
|  Commercial and industrial         |   |            | 510    |   |   | 6.1 | % |   |   | 13.3 | % |   |   | 1,031 |   |   | 13.0 | % |   |   | 13.9 | % |   |   | 1,119 |   |   |  17.3 | % |   |   |  17.4 | % |
|  Consumer and other                |   |            | 390    |   |   | 4.7 | % |   |   | 4.0 | % |   |   | 246 |   |   | 3.1 | % |   |   | 2.9 | % |   |   | 355 |   |   |  5.5 | % |   |   |  3.0 | % |
| Unallocated                             |   |            | 513    |   |   | 6.2 | % |   |   | N/A | % |   |   | 7 |   |   | 0.1 | % |   |   | N/A |   |   |   |  51 |   |   |  0.8 | % |   |   |  N/A |   |
|  Total                             |   | $               | 8,317  |   |   | 100.0 | % |   |   | 100.0 | % |   | $ | 7,919 |   |   |  100.0 | % |   |   | 100.0 | % |   |  $ |  6,482 |   |   |  100.0 | % |   |   |  100 | % |
|                                    |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                       |    |  At or For the Years Ended December 31, |
|------------------------------------------------------------|---------|----------------------------------------------|
|                                                       |    |  2010                                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                       |    |  (in thousands)                         |
|                                                       |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at beginning of period                             | $  | 7,919                                        |   |   | $ | 6,482 |   |   | $ | 6,193 |   |   | $ | 6,675 |   |   | $ | 7,597 |   |
|                                                       |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs:                                               |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Real estate loans:                                   |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Construction and land development                   |    | (5                                           | )  |   |   | (448 | ) |   |   | (166 | ) |   |   | (386 | ) |   |   | (5,008 | ) |
|   Farmland                                            |    | -                                       |   |   |   | - |   |   |   | (10 | ) |   |   | (123 | ) |   |   | - |   |
|   1 - 4 family residential                            |    | (1,534                                       | )  |   |   | (564 | ) |   |   | (260 | ) |   |   | (639 | ) |   |   | (59 | ) |
|   Multifamily                                         |    | -                                       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Non-farm non-residential                            |    | (235                                         | )  |   |   | (586 | ) |   |   | (256 | ) |   |   | (1,901 | ) |   |   | (208 | ) |
| Commercial and industrial loans                            |    | (3,395                                       | )  |   |   | (678 | ) |   |   | (561 | ) |   |   | (273 | ) |   |   | (301 | ) |
| Consumer and other                                         |    | (444                                         | )  |   |   | (603 | ) |   |   | (360 | ) |   |   | (563 | ) |   |   | (312 | ) |
|   Total charge-offs                                   |    | (5,613                                       | )  |   |   | (2,879 | ) |   |   | (1,613 | ) |   |   | (3,885 | ) |   |   | (5,888 | ) |
|                                                       |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Real estate loans:                                   |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Construction and land development                   |    | 1                                            |   |   |   | 1 |   |   |   | 2 |   |   |   | 779 |   |   |   | 39 |   |
|   Farmland                                            |    | -                                       |   |   |   | 1 |   |   |   | - |   |   |   | 14 |   |   |   | - |   |
|   1 - 4 family residential                            |    | 11                                           |   |   |   | 15 |   |   |   | 10 |   |   |   | 14 |   |   |   | 25 |   |
|   Multifamily                                         |    | -                                       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Non-farm non-residential                            |    | 30                                           |   |   |   | - |   |   |   | 57 |   |   |   | 4 |   |   |   | 40 |   |
| Commercial and industrial loans                            |    | 164                                          |   |   |   | 28 |   |   |   | 10 |   |   |   | 148 |   |   |   | 304 |   |
| Consumer and other                                         |    | 151                                          |   |   |   | 116 |   |   |   | 189 |   |   |   | 201 |   |   |   | 139 |   |
|   Total recoveries                                    |    | 357                                          |   |   |   | 161 |   |   |   | 268 |   |   |   | 1,160 |   |   |   | 547 |   |
|                                                       |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs                                            |    | (5,256                                       | ) |   |   | (2,718 | ) |   |   | (1,345 | ) |   |   | (2,725 | ) |   |   | (5,341 | ) |
| Provision for loan losses                                  |    | 5,654                                        |   |   |   | 4,155 |   |   |   | 1,634 |   |   |   | 1,918 |   |   |   | 4,419 |   |
| Additional provision from acquisition                      |    | -                                       |   |   |   | - |   |   |   | - |   |   |   | 325 |   |   |   | - |   |
|                                                       |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at end of period                                   | $  | 8,317                                        |   |   | $ | 7,919 |   |   | $ | 6,482 |   |   | $ | 6,193 |   |   | $ | 6,675 |   |
|                                                       |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios:                                                    |    |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net loan charge-offs to average loans                |    | 0.89                                         | %  |   |   | 0.45 | % |   |   | 0.22 | % |   |   | 0.50 | % |   |   | 1.06 | % |
|  Net loan charge-offs to loans at end of period       |    | 0.91                                         | %  |   |   | 0.46 | % |   |   | 0.22 | % |   |   | 0.47 | % |   |   | 1.05 | % |
|  Allowance for loan losses to loans at end of period  |    | 1.44                                         | %  |   |   | 1.34 | % |   |   | 1.07 | % |   |   | 1.08 | % |   |   | 1.32 | % |
|  Net loan charge-offs to allowance for loan losses    |    | 63.20                                        | %  |   |   | 34.32 | % |   |   | 20.75 | % |   |   | 44.00 | % |   |   | 80.01 | % |
|  Net loan charge-offs to provision charged to expense |    | 92.96                                        | %  |   |   | 65.42 | % |   |   | 82.32 | % |   |   | 142.04 | % |   |   | 120.86 | % |

----

-     Federal Home Loan Mortgage Corporation (Freddie Mac) 
-     Federal National Mortgage Association (Fannie Mae) 
-     Federal Home Loan Bank (FHLB) 
-     Federal Farm Credit Bank System (FFCB) 

----

----

|                                          |   | December 31, 2010 |    | December 31, 2009 |       |
|-----------------------------------------------|--------|-------------------|---------|-------------------|------------|
|                                          |   |              |    |              | Gross      |   |   | Gross |   |   |   |   |   |   |   | Gross |   |   | Gross |   |   |   |   |
|                                          |   | Amortized         |    |              | Unrealized |   |   | Unrealized |   |   | Fair |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                          |   | Cost              |    |              | Gains      |   |   | Losses |   |   | Value |   | Cost |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                          |   | (in thousands)    |
| Available for sale:                           |   |              |    |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies                      |   | $                 | 172,958 |              |       | $ | 242 |   |   | $ | (3,982 | ) |   | $ | 169,218 |   | $ | 140,843 |   |   | $ | 382 |   |   | $ | (1,562) |   |   | $ | 139,663 |   |
| Mortgage-backed obligations                   |   |              | -       |              |       |   | - |   |   |   | - |   |   |   | - |   |   | 1,472 |   |   |   | 104 |   |   |   | - |   |   |   | 1,576 |   |
| Asset-backed securities                       |   |              | -       |              |       |   | - |   |   |   | - |   |   |   | - |   |   | - |   |   |   | 8 |   |   |   | - |   |   |   | 8 |   |
| Corporate debt securities                     |   |              | 138,925 |              |       |   | 4,804 |   |   |   | (1,331 | ) |   |   | 142,398 |   |   | 92,414 |   |   |   | 5,648 |   |   |   | (1,086 | ) |   |   | 96,976 |   |
| Mutual funds or other equity securities       |   |              | 1,250   |              |       |   | 20 |   |   |   | (132 | ) |   |   | 1,138 |   |   | 1,380 |   |   |   | 62 |   |   |   | (185 | ) |   |   | 1,257 |   |
| Municipal bonds                               |   |              | 9,388   |              |       |   | - |   |   |   | (14 | ) |   |   | 9,374 |   |   | 10,000 |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
|  Total available for sale securities     |   | $                 | 322,521 |              |       | $ | 5,066 |   |   | $ | (5,459 | ) |   | $ | 322,128 |   | $ | 246,109 |   |   | $ | 6,204 |   |   | $ | (2,833 | ) |   | $ | 249,480 |   |
|                                          |   |              |    |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   |              |    |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                             |   |              |    |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies                      |   | $                 | 159,833 |              |       | $ |     - |   |   | $ | (4,507 | )  |   | $ | 155,326 |   | $ | 10,721 |   |   | $ | 52 |   |   | $ | - |   |   | $ | 10,773 |   |
| Mortgage-backed obligations                   |   |              | -       |              |       |   | - |   |   |   | - |   |   |   | - |   |   | 1,628 |   |   |   | 61 |   |   |   | - |   |   |   | 1,689 |   |
|   Total held to maturity securities |   | $                 | 159,833 |              |       | $ | - |   |   | $ | (4,507 | )  |   | $ | 155,326 |   | $ | 12,349 |   |   | $ | 113 |   |   | $ | - |   |   | $ | 12,462 |   |
|                                          |   |              |    |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                    |   |             |    |   |  More than One Year |   |    | More than Five Years  |   |   |                |   |
|-------------------------------------------------------------------------|--------|------------------|---------|--------|--------------------------|--------|---------|---------------------------------|--------|--------|---------------------|--------|
|                                                                    |   | One Year or Less |    |   | through Five Years       |   |    | through Ten Years               |   |   | More than Ten Years |   |
|                                                                    |   |             |    |   |  Weighted           |   |    |                            |   |   | Weighted       |   |   |   |   |   |  Weighted |   |   |   |   |   |  Weighted |   |
|                                                                    |   |  Amortized  |    |   |  Average            |   |    | Amortized                  |   |   |  Average       |   |   | Amortized  |   |   | Average  |   |   | Amortized  |   |   | Average  |   |
|                                                                    |   | Cost             |    |   | Yield                    |   |    | Cost                            |   |   | Yield               |   |   | Cost |   |   | Yield |   |   | Cost |   |   | Yield |   |
|                                                                    |   | (in thousands)   |    |
| Available for sale:                                                     |   |             |    |   |                     |   |    |                            |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies                                                |   | $                | -       |   |                     |   | -       |                            |   | $      | 13,999              |   |   |   | 2.19 | % |   | $ | 78,975 |   |   |   | 3.29 | % |   | $ | 79,984 |   |   |   | 3.79 | % |
| Corporate debt securities                                               |   |             | 10,562  |   |                     |   | 6.72    | %                               |   |   | 48,385              |   |   |   | 6.17 | % |   |   | 75,578 |   |   |   | 4.71 | % |   |   | 4,400 |   |   |   | 7.78 | % |
| Mutual funds or other equity securities                                 |   |             | -       |   |                     |   | -       |                            |   |   | -                   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,250 |   |   |   | 2.82 | % |
| Municipal bonds                                                         |   |             | 872     |   |                     |   | 0.78    | %                          |   |   | 3,496               |   |   |   | 0.79 | % |   |   | 3,628 |   |   |   | 0.86 | % |   |   | 1,392 |   |   |   | 5.77 | % |
|       Total available for sale securities |   | $                | 11,434  |   |                     |   | 6.21    | %                               |   | $      | 65,880              |   |   |   | 5.00 | % |   | $ | 158,181 |   |   |   | 3.89 | % |   | $ | 87,026 |   |   |   | 4.01 | % |
|                                                                    |   |             |    |   |                     |   |    |                            |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Held to maturity:                                                 |   |             |    |   |                     |   |    |                            |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  U.S. Government agencies                                          |   | $                | -       |   |                     |   |  - |                            |   | $      |  7,968         |   |   |   |  2.37 | % |   | $ | 106,876 |   |   |   |  2.75 | % |   | $ |  44,989 |   |   |   | 3.54 | % |
|        Total held to maturity securities  |   | $                |  - |   |                     |   |  - |                            |   | $      |  7,968         |   |   |   |  2.37 | % |   | $ | 106,876 |   |   |   | 2.75 | % |   | $  |  44,989 |   |   |   | 3.54 | % |
|                                      |   |             |    |   |                     |   |    |                            |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |             |    |   |                     |   |    |                            |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |             |    |   |                     |   |    |                            |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                             |   |             |          |   |       |   |           |   |   |       |   |   |
|------------------------------------------------------------------|--------|------------------|---------------|--------|------------|--------|----------------|--------|--------|------------|--------|--------|
|                                                             |   | Total Securities |          |
|                                                             |   |             |          |   |       |   |  Weighted |   |
|                                                             |   |  Amortized  |          |   |       |   | Average   |   |
|                                                             |   | Cost             |          |   | Fair Value |   | Yield          |   |
|                                                             |   | (in thousands)   |          |
| Available for sale:                                              |   |             |          |   |       |   |           |   |
| U.S. Government agencies                                         |   | $                | 172,958       |   |       | $      | 169,218        |   |   | 3.43       | %      |
| Corporate debt securities                                        |   |             | 138,925       |   |       |   | 142,398        |   |   | 5.47       | %      |
| Mutual funds or other equity securities                          |   |             | 1,250         |   |       |   | 1,138          |   |   | 2.82       | %      |
| Municipal bonds                                                  |   |             | 9,388         |   |       |   | 9,374          |   |   | 1.55       | %      |
|      Total available for sale securities     |   | $                | 322,521       |   |       | $      | 322,128        |   |   | 4.23       | %      |
|                                                             |   |             |          |   |       |   |           |   |   |       |   |
| Held to maturity:                                                |   |             |          |   |       |   |           |   |   |       |   |
| U.S. Government agencies                                         |   | $                |  159,833 |   |       | $      |  155,326  |   |   |  2.95 | %      |
|       Total held to maturity securities |   | $                |  159,833 |   |       | $      |  155,326  |   |   | 2.95       | %      |
|                                                             |   |             |          |   |       |   |           |   |   |       |   |
|                                                             |   |             |          |   |       |   |           |   |   |       |   |
|                                                             |   |             |          |   |       |   |           |   |   |       |   |

----

|                       |   | December 31,   |      |
|----------------------------|--------|----------------|-----------|
|                       |   | 2010           |      |   | 2009 |   |   | 2008 |   |
|                       |   | (in thousands) |      |
|                       |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   | Balance        |      |   | As % of Total |   |   | Wtd Avg Rate |   | Balance |   |   | As % of Total |   |   | Wtd Avg Rate |   | Balance |   |   | As % of Total |   |   | Wtd Avg Rate |   |
| Noninterest-bearing demand |   | $              | 130,897   |   |   |   | 13.0 | % |   |   | 0.0 | % |   | $ | 131,818 |   |   |   | 16.5 | % |   |   | 0.0 | % |   | $ | 118,255 |   |   |   | 15.2 | % |   |   | 0.0 | % |
| Interest-bearing demand    |   |           | 192,139   |   |   |   | 19.1 | % |   |   | 0.5 | % |   |   | 188,252 |   |   |   | 23.5 | % |   |   | 0.6 | % |   |   | 180,230 |   |   |   | 23.1 | % |   |   | 1.4 | % |
| Savings                    |   |           | 46,663    |   |   |   | 4.6 | % |   |   | 0.1 | % |   |   | 40,272 |   |   |   | 5.0 | % |   |   | 0.2 | % |   |   | 41,357 |   |   |   | 5.3 | % |   |   | 0.4 | % |
| Time                       |   |           | 637,684   |   |   |   | 63.3 | % |   |   | 2.3 | % |   |   | 439,404 |   |   |   | 55.0 | % |   |   | 2.8 | % |   |   | 440,530 |   |   |   | 56.4 | % |   |   | 3.6 | % |
|   Total deposits |   | $              | 1,007,383 |   |   |   | 100.0 | % |   |   |   |   |   | $ | 799,746 |   |   |   | 100.0 | % |   |   |   |   |   | $ | 780,372 |   |   |   | 100.0 | % |   |   |   |   |
|                       |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                              |   | December 31,   |    |
|-------------------------------------------------------------------|--------|----------------|---------|
|                                                              |   | 2010           |    |   | 2009 |   |   | 2008 |   |
|                                                              |   |           |    |   | Weighted |   |   |   |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                              |   |           |    |   | Average |   |   |   |   |   | Average |   |   |   |   |   | Average |   |
|                                                              |   | Balance        |    |   | Rate |   |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |
|                                                              |   | (in thousands) |    |
|                                                              |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due in one year or less                                           |   | $              | 209,979 |   |   |   | 1.32 | % |   | $ | 234,685 |   |   |   | 1.71 | % |   | $ | 163,375 |   |   |   | 2.10 | % |
| Due after one year through three years                            |   |           | 189,833 |   |   |   | 2.56 | % |   |   | 19,930 |   |   |   | 3.89 | % |   |   | 57,431 |   |   |   | 4.04 | % |
| Due after three years                                             |   |           | 20,331  |   |   |   | 3.51 | % |   |   | 16,577 |   |   |   | 4.91 | % |   |   | 26,944 |   |   |   | 4.19 | % |
|           Total |   | $              | 420,143 |   |   |   | 1.99 | % |   | $ | 271,192 |   |   |   | 2.06 | % |   | $ | 247,750 |   |   |   | 2.78 | % |
|                                                              |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                  |   | December 31,   |   |
|---------------------------------------|--------|----------------|--------|
|                                  |   | 2010           |   |   | 2009 |   |   | 2008 |   |
|                                  |   | (in thousands) |   |
|                                  |   |           |   |   |   |   |   |   |   |
| Outstanding at year end               |   | $              | 12,589 |   |   | $ | 11,929 |   |   | $ | 9,767 |   |
| Maximum month-end outstanding         |   |           | 30,465 |   |   |   | 26,372 |   |   |   | 41,321 |   |
| Average daily outstanding             |   |           | 13,086 |   |   |   | 18,233 |   |   |   | 11,379 |   |
| Weighted average rate during the year |   |           | 0.21   | % |   |   | 0.81 | % |   |   | 2.16 | % |
| Average rate at year end              |   |           | 0.21   | % |   |   | 0.23 | % |   |   | 0.19 | % |

----

|                            | December 31, |
|---------------------------------|--------------|
|                            | 2010         | 2009 | 2008 |
|                            |         |   |   |
| Return on average assets        | 0.99%        | 0.80% | 0.69% |
| Return on average common equity | 12.65%       | 10.84% | 8.13% |
| Dividend payout ratio           | 40.94%       | 50.82% | 64.53% |

----

|                                                       | Years Ended December 31,                                                                           |
|------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
|                                                       | 2010                                                                                               |   | 2009 |   | 2008 |
|                                                       | Average                                                                                            |   | Yield/ |   | Average |   | Yield/ |   | Average |   | Yield/ |
|                                                       | Balance                                                                                            | Interest | Rate |   | Balance | Interest | Rate |   | Balance | Interest | Rate |
|                                                       |     (in thousands)                                                                       |
| Assets                                                     |                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                   |                                                                                               |   |   |   |   |   |   |   |   |   |   |
|   Interest-earning deposits with banks (1)       |    $      16,923                                      |  $       41 | 0.2% |   |    $      35,800 |  $       388 | 1.1% |   |    $       5,725 |  $          224 | 3.9% |
|   Securities (including FHLB stock)              | 342,589                                                                                            | 15,043 | 4.4% |   | 245,952 | 11,085 | 4.5% |   | 127,586 | 6,594 | 5.2% |
|   Federal funds sold                             | 11,007                                                                                             | 13 | 0.1% |   | 24,662 | 34 | 0.1% |   | 17,247 | 392 | 2.3% |
|   Loans held for sale                            |                 91 | 5 | 5.5% |   | 135 | 7 | 5.1% |   | 681 | 45 | 6.6% |
|   Loans, net of unearned income                  | 593,429                                                                                            | 36,288 | 6.1% |   | 599,609 | 35,677 | 6.0% |   | 600,854 | 40,406 | 6.7% |
|     Total interest-earning assets      | 964,039                                                                                            | 51,390 | 5.3% |   | 906,158 | 47,191 | 5.2% |   | 752,093 | 47,661 | 6.3% |
|                                                       |                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning assets:                                |                                                                                               |   |   |   |   |   |   |   |   |   |
|   Cash and due from banks                        | 17,961                                                                                             |   |   |   | 17,775 |   |   |   | 22,468 |   |   |
|   Premises and equipment, net                    | 16,662                                                                                             |   |   |   | 16,175 |   |   |   | 15,960 |   |   |
|   Other assets                                   | 17,019                                                                                             |   |   |   | 8,448 |   |   |   | 6,503 |   |   |
|     Total                              | $     1,015,681                                                                | $    51,390 |   |   | $     948,556 | $    47,191 |   |   | $     797,024 | $    47,661 |   |
|                                                       |                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                       |                                                                                               |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                              |                                                                                               |   |   |   |   |   |   |   |   |   |
|   Demand deposits                                |  $     185,195                                                       |  $    846 | 0.5% |   |  $    203,467 |  $      1,179 | 0.6% |   |  $     197,822 |  $      2,798 | 1.4% |
|   Savings deposits                               | 43,544                                                                                             | 42 | 0.1% |   | 41,747 | 98 | 0.2% |   | 43,631 | 193 | 0.4% |
|   Time deposits                                  | 529,181                                                                                            | 12,218 | 2.3% |   | 479,255 | 13,310 | 2.8% |   | 346,282 | 12,432 | 3.6% |
|   Borrowings                                     | 27,324                                                                                             | 117 | 0.4% |   | 22,907 | 257 | 1.1% |   | 16,287 | 458 | 2.8% |
|     Total interest-bearing liabilities | 785,244                                                                                            | 13,223 | 1.7% |   | 747,376 | 14,844 | 2.0% |   | 604,022 | 15,881 | 2.6% |
|                                                       |                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing liabilities:                           |                                                                                               |   |   |   |   |   |   |   |   |   |
|   Demand deposits                                | 125,520                                                                                            |   |   |   | 117,805 |   |   |   | 119,379 |   |   |
|   Other                                          | 5,343                                                                                              |   |   |   | 6,240 |   |   |   | 5,854 |   |   |
|     Total liabilities                  | 916,107                                                                                            | 13,223 |   |   | 871,421 | 14,844 |   |   | 729,255 | 15,881 |   |
|   Stockholders' equity                           | 99,574                                                                                             |   |   |   | 77,135 |   |   |   | 67,769 |   |   |
|     Total                              | $    1,015,681                                                                 | 13,223 |   |   | $     948,556 | 14,844 |   |   | $     797,024 | 15,881 |   |
| Net interest income                                        |                                                                                               | $     38,167 |   |   |   | $     32,347 |   |   |   | $    31,780 |   |
| Net interest rate spread (2)                               |                                                                                               | 3.6% |   |   |   | 3.2% |   |   |   | 3.7% |
| Net interest-earning assets (3)                            |  $   178,795                                                                        |   |   |   |  $     158,782 |   |   |   |  $     148,071 |   |   |
| Net interest margin (4)                                    |                                                                                               |   | 4.0% |   |   |   | 3.6% |   |   |   | 4.2% |
|                                                       |                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Average interest-earning assets to                         |                                                                                               |   |   |   |   |   |   |   |   |
|      interest-bearing liabilities |                                                                                               | 122.8% |   |   |   | 121.2% |   |   |   | 124.5% |

----

|                                                        | Years Ended December 31,             |    |
|-------------------------------------------------------------|--------------------------------------|---------|
|                                                        | 2010 Compared to 2009                |    |   | 2009 Compared to 2008 |   |
|                                                        | Increase (Decrease) Due To           |    |   | Increase (Decrease) Due To |   |
|                                                        |                                 |    |   |   | Rate/ |   |  Increase/ |   |   |   |   |   |   | Rate/ |   | Increase/ |   |
|                                                        | Volume                               |    | Rate |   | Volume |   |  Decrease |   |   | Volume |   | Rate |   | Volume |   | Decrease |   |
|                                                        |                                 |    |   |   |   |   | (in thousands) |   |   |   |   |   |   |   |
| Interest earned on:                                         |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest-earning deposits with banks                  |  $    (204  | )  |  $     (301 | )  |  $      158 |   |  $        (347 | )  |   |  $       1,177 |   |  $       (162 | )  |  $       (851 | )  |  $       164 |   |
|  Securities (including FHLB stock)                     | 4,355                                |    | (285 | )  | (112 | )  | 3,958 |   |   | 6,118 |   |         (844 | )  |             (783 | )  | 4,491 |   |
|  Federal funds sold                                    | (19                                  | )  | (5 | )  | 3 |   | (21 | ) |   |           169 |   |         (368 | )  |         (159 | )  |             (358 | )  |
|  Loans held for sale                                   | (2                                   | )  | - |   | - |   | (2 | ) |   |         (36 | )  |           (10 | )  | 8 |   |           (38 | )  |
|  Loans, net of unearned income                         | (368                                 | )  | 989 |   | (10 | )  | 611 |   |   | (84 | )  |      (4,655 | )  | 10 |   |      (4,729 | )  |
|    Total interest income                     | 3,762                                |    | 398 |   | 39 |   | 4,199 |   |   | 7,344 |   |    (6,039 | )  |      (1,775 | )  |      (470 | )  |
|                                                        |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest paid on:                                           |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Demand deposits                                       | (106                                 | )  | (249 | )  | 22 |   | (333 | )  |   |             80 |   |      (1,652 | )  |           (47 | )  |      (1,619 | )  |
|  Savings deposits                                      | 4                                    |    | (58 | )  | (2 | )  | (56 | )  |   |               (8 | )  |           (91 | )  | 4 |   |           (95 | )  |
|  Time deposits                                         | 1,387                                |    | (2,245 | )  | (234 | )  | (1,092 | )  |   | 4,774 |   |      (2,816 | )  |         (1,080 | )  | 878 |   |
|  Borrowings                                            | 50                                   |    | (159 | )  | (31 | )  | (140 | )  |   | 186 |   |         (275 | )  |           (112 | )  |         (201 | )  |
|    Total interest expense                    | 1,335                                |    | (2,711 | )  | (245 | )  | (1,621 | )  |   | 5,032 |   |      (4,834 | )  |         (1,235 | )  |      (1,037 | )  |
|      Change in net interest income |  $    2,427 |    |  $  3,109 |   |  $      284 |   |  $        5,820 |   |   |  $    2,312 |   |  $  (1,205 | )  |  $  (540 | )  |  $  567 |   |
|                                                        |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                |   | Years Ended December 31, |   |
|-------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                                                |   | (in thousands)           |   |
|                                                                                |   |                     |   |   |   |   |   |   |   |
| Other noninterest expense:                                                          |   |                     |   |   |   |   |   |   |   |
| Legal and professional fees                                                         |   | $                        | 1,791  |   |   | $ | 1,254 |   |   | $ | 1,496 |   |
| Operating supplies                                                                  |   |                     | 594    |   |   |   | 537 |   |   |   | 572 |   |
| Marketing and public relations                                                      |   |                     | 1,426  |   |   |   | 809 |   |   |   | 1,131 |   |
| Data processing                                                                     |   |                     | 1,143  |   |   |   | 1,067 |   |   |   | 1,063 |   |
| Travel and lodging                                                                  |   |                     | 435    |   |   |   | 398 |   |   |   | 416 |   |
| Taxes - sales and capital                                                           |   |                     | 620    |   |   |   | 529 |   |   |   | 571 |   |
| Telephone                                                                           |   |                     | 177    |   |   |   | 192 |   |   |   | 185 |   |
| Amortization of core deposit intangibles                                            |   |                     | 218    |   |   |   | 291 |   |   |   | 311 |   |
| Donations                                                            |   |                     | 778    |   |   |   | 221 |   |   |   | 258 |   |
| Regulatory assessment expense          |   |                     | 1,496  |   |   |   | 2,049 |   |   |   | 827 |   |
| Net cost of other real estate and repossessions                                     |   |                     | 858    |   |   |   | 399 |   |   |   | 249 |   |
| Other                                                                               |   |                     | 2,331  |   |   |   | 2,618 |   |   |   | 2,606 |   |
|   Total other expense                                                     |   | $                        | 11,867 |   |   | $ | 10,364 |   |   | $ | 9,685 |

----

----

----

|                                              |   | Interest Sensitivity Within |     |
|---------------------------------------------------|--------|-----------------------------|----------|
|                                              |   | 3 Months                    |     |   | Over 3 Months |   |   | Total |   |   | Over |   |   |   |   |
|                                              |   | Or Less                     |     |   | thru 12 Months |   |   | One Year |   |   | One Year |   |   | Total |   |
|                                              |   | (in thousands)              |     |
| Earning Assets:                                   |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |
|   Loans (including loans held for sale) |   | $                           | 122,909  |   |   | $ | 136,741 |   |   | $ | 259,650 |   |   | $ | 315,990 |   |   | $ | 575,640 |   |
|   Securities (including FHLB stock)     |   |                        | 5,446    |   |   |   | 6,210 |   |   |   | 11,656 |   |   |   | 471,920 |   |   |   | 483,576 |   |
|   Federal Funds Sold                    |   |                        | 9,129    |   |   |   | - |   |   |   | 9,129 |   |   |   | - |   |   |   | 9,129 |   |
|   Other earning assets                  |   |                        | 13       |   |   |   | - |   |   |   | 13 |   |   |   | - |   |   |   | 13 |   |
|     Total earning assets      |   |                        | 137,497  |   |   |   | 142,951 |   |   |   | 280,448 |   |   |   | 787,910 |   |   | $ | 1,068,358 |   |
|                                              |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Source of Funds:                                  |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing accounts:                        |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Demand deposits           |   |                        | 146,142  |   |   |   | - |   |   |   | 146,142 |   |   |   | 45,997 |   |   |   | 192,139 |   |
|     Savings deposits          |   |                        | 11,664   |   |   |   | - |   |   |   | 11,664 |   |   |   | 34,999 |   |   |   | 46,663 |   |
|     Time deposits             |   |                        | 112,652  |   |   |   | 177,125 |   |   |   | 289,777 |   |   |   | 347,907 |   |   |   | 637,684 |   |
|     Short-term borrowings     |   |                        | 12,589   |   |   |   | - |   |   |   | 12,589 |   |   |   | - |   |   |   | 12,589 |   |
|     Long-term borrowings      |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Noninterest-bearing, net                          |   |                        | -        |   |   |   |  - |   |   |   | - |   |   |   | 179,283 |   |   |   | 179,283 |   |
|     Total source of funds     |   |                        | 283,048  |   |   |   | 177,125 |   |   |   | 460,173 |   |   |   | 608,185 |   |   | $ | 1,068,358 |   |
| Period gap                                        |   |                        | (145,551 | ) |   |   | (34,174 | ) |   |   | (179,725 | ) |   |   | 179,725 |   |   |   |   |   |
| Cumulative gap                                    |   | $                           | (145,551 | ) |   | $ | (179,725 | ) |   | $ | (179,725 | ) |   | $ | - |   |   |   |   |   |
|                                              |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative gap as a                               |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   percent of earning assets             |   |                        | -13.62   | % |   |   | -16.82 | % |   |   | -16.82 | % |   |   |   |   |   |   |   |   |
|                                              |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Change inInterestRates |   | Estimated Increase(Decrease) in NIIDecember 31, 2010 |             |   |
|------------------------|--------|------------------------------------------------------|------------------|--------|
|   (basis points)  |   |                                                 |             |   |   |
|                   |   |                                                 |             |   |   |
|   -200            |   |                                                 | -1.72%           |   |   |
|   -100            |   |                                                 | -1.83%           |   |   |
|   Stable          |   |                                                 |   0.0% |   |   |
|   +100            |   |                                                 | -0.48%           |   |   |
|   +200            |   |                                                 | 2.86%            |   |   |

----

----

|                  |   | Payments Due by Period |        |
|-----------------------|--------|------------------------|-------------|
|                  |   | One Year               |        |   | One Through |   |   | Over Three |   |   |   |   |
|                  |   | or Less                |        |   | Three Years |   |   | Years |   |   | Total |   |
|                  |   | (in thousands)         |        |
|                  |   |                   |        |   |   |   |   |   |   |   |   |   |
| Operating leases      |   | $                      | 28          |   |   | $ | 31 |   |   | $ | 5 |   |   | $ | 64 |   |
| Software contracts    |   |                   |  1,037 |   |   |   |  678 |   |   |   |  112 |   |   |   |  1,827 |   |
| Time deposits         |   |                   | 289,777     |   |   |   | 303,772 |   |   |   | 44,135 |   |   |   | 637,684 |   |
| Short-term borrowings |   |                   | 12,589      |   |   |   | - |   |   |   | - |   |   |   | 12,589 |   |
| Long-term borrowings  |   |                   | -           |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Total           |   | $                      | 302,394     |   |   | $ | 303,803 |   |   | $ | 44,140 |   |   | $ | 650,337 |   |
|                  |   |                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY                     |
|--------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                        |
| (in thousands, except share data)                                  |
|                                                               |   | December 31, |   |
|                                                               |   | 2010 |   |   | 2009 |   |
| Assets                                                             |   |   |   |   |   |   |
| Cash and cash equivalents:                                         |   |   |   |   |   |   |
|   Cash and due from banks                                |   | $ | 35,695 |   |   | $ | 33,425 |   |
|   Interest-earning demand deposits with banks            |   |   | 13 |   |   |   | 14 |   |
|   Federal funds sold                                     |   |   | 9,129 |   |   |   | 13,279 |   |
|     Cash and cash equivalents                  |   |   | 44,837 |   |   |   | 46,718 |   |
|                                                               |   |   |   |   |   |   |   |   |
| Investment securities:                                             |   |   |   |   |   |   |   |   |
|  Available for sale, at fair value                            |   |   | 322,128 |   |   |   | 249,480 |   |
|  Held to maturity, at cost (estimated fair value of           |   |   |   |   |   |   |   |   |
|    $155,326 and $12,462, respectively)              |   |   | 159,833 |   |   |   | 12,349 |   |
|     Investment securities                      |   |   | 481,961 |   |   |   | 261,829 |   |
|                                                               |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank stock, at cost                              |   |   | 1,615 |   |   |   | 2,547 |   |
|                                                               |   |   |   |   |   |   |   |   |
| Loans, net of unearned income                                      |   |   | 575,640 |   |   |   | 589,902 |   |
| Less: allowance for loan losses                                    |   |   | 8,317 |   |   |   | 7,919 |   |
|   Net loans                                              |   |   | 567,323 |   |   |   | 581,983 |   |
|                                                               |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                        |   |   | 16,023 |   |   |   | 16,704 |   |
| Goodwill                                                           |   |   | 1,999 |   |   |   | 1,999 |   |
| Intangible assets, net                                             |   |   | 1,729 |   |   |   | 1,893 |   |
| Other real estate, net                                             |   |   | 577 |   |   |   | 658 |   |
| Accrued interest receivable                                        |   |   | 7,664 |   |   |   | 5,807 |   |
| Other assets                                                       |   |   | 9,064 |   |   |   | 10,709 |   |
|   Total Assets                                           |   | $ | 1,132,792 |   |   | $ | 930,847 |   |
| Liabilities and Stockholders' Equity                               |   |   |   |   |   |   |   |   |
| Deposits:                                                          |   |   |   |   |   |   |   |   |
|   Noninterest-bearing demand                             |   | $ | 130,897 |   |   | $ | 131,818 |   |
|   Interest-bearing demand                                |   |   | 192,139 |   |   |   | 188,252 |   |
|   Savings                                                |   |   | 46,663 |   |   |   | 40,272 |   |
|   Time                                                   |   |   | 637,684 |   |   |   | 439,404 |   |
|     Total deposits                             |   |   | 1,007,383 |   |   |   | 799,746 |   |
|                                                               |   |   |   |   |   |   |   |   |
| Short-term borrowings                                              |   |   | 12,589 |   |   |   | 11,929 |   |
| Accrued interest payable                                           |   |   | 3,539 |   |   |   | 2,519 |   |
| Long-term borrowings                                               |   |   | - |   |   |   | 20,000 |   |
| Other liabilities                                                  |   |   | 11,343 |   |   |   | 1,718 |   |
|   Total Liabilities                                      |   |   | 1,034,854 |   |   |   | 835,912 |   |
| Stockholders' Equity                                               |   |   |   |   |   |   |   |   |
| Preferred stock:                                                   |   |   |   |   |   |   |   |   |
| Series A - $1,000 par value - authorized 5,000 shares; issued      |   |   |   |   |   |
|    and outstanding 2,069.9 shares                   |   |   | 19,859 |   |   |   | 19,630 |   |
| Series B - $1,000 par value - authorized 5,000 shares; issued      |   |   |   |   |   |
|    and outstanding 103 shares                       |   |   | 1,116 |   |   |   | 1,140 |   |
| Common stock:                                                      |   |   |   |   |   |   |   |   |
| $1 par value - authorized 100,600,000 shares; issued and           |   |   |   |   |   |
|     outstanding 5,559,644 shares               |   |   | 5,560 |   |   |   | 5,560 |   |
| Surplus                                                            |   |   | 26,459 |   |   |   | 26,459 |   |
| Retained earnings                                                  |   |   | 45,203 |   |   |   | 40,069 |   |
| Accumulated other comprehensive income (loss)                      |   |   | (259 | )  |   |   | 2,077 |   |
|   Total Stockholders' Equity                             |   |   | 97,938 |   |   |   | 94,935 |   |
|     Total Liabilities and Stockholders' Equity |   | $ | 1,132,792 |   |   | $ | 930,847 |   |

----

| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY       |   |
|------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF INCOME                    |   |
| (in thousands, except share data)                    |   |
|                                                 |   |   |   |   |   |   |   |   |   |
|                                                 |   | Years Ended December 31, |   |
|                                                 |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Interest Income:                                     |   |   |   |   |   |   |   |   |   |
|   Loans (including fees)                   |   | $ | 36,288 |   |   | $ | 35,677 |   |   | $ | 40,406 |   |
|   Loans held for sale                      |   |   | 5 |   |   |   | 7 |   |   |   | 45 |   |
|   Deposits with other banks                |   |   | 41 |   |   |   | 388 |   |   |   | 224 |   |
|   Securities (including FHLB stock)        |   |   | 15,043 |   |   |   | 11,085 |   |   |   | 6,594 |   |
|   Federal funds sold                       |   |   | 13 |   |   |   | 34 |   |   |   | 392 |   |
|     Total Interest Income        |   |   | 51,390 |   |   |   | 47,191 |   |   |   | 47,661 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense:                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|   Demand deposits                          |   |   | 846 |   |   |   | 1,179 |   |   |   | 2,798 |   |
|   Savings deposits                         |   |   | 42 |   |   |   | 98 |   |   |   | 193 |   |
|   Time deposits                            |   |   | 12,218 |   |   |   | 13,310 |   |   |   | 12,432 |   |
|   Borrowings                               |   |   | 117 |   |   |   | 257 |   |   |   | 458 |   |
|     Total Interest Expense       |   |   | 13,223 |   |   |   | 14,844 |   |   |   | 15,881 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                                  |   |   | 38,167 |   |   |   | 32,347 |   |   |   | 31,780 |   |
| Provision for loan losses                            |   |   | 5,654 |   |   |   | 4,155 |   |   |   | 1,634 |   |
| Net Interest Income after Provision for Loan Losses  |   |   | 32,513 |   |   |   | 28,192 |   |   |   | 30,146 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest Income:                                  |   |   |   |   |   |   |   |   |   |
|   Service charges, commissions and fees    |   |   | 4,133 |   |   |   | 4,146 |   |   |   | 3,990 |   |
|   Net gains (losses) on sale of securities |   |   | 2,824 |   |   |   | 2,056 |   |   |   | (1 | ) |
|   Loss on securities impairment            |   |   | - |   |   |   | (829 | ) |   |   | (4,611 | )  |
|   Net gains on sale of loans               |   |   | 283 |   |   |   | 422 |   |   |   | 210 |   |
|   Gain on sale of fixed assets             |   |   | 962 |   |   |   | (10 | )  |   |   | - |   |
|   Other                                    |   |   | 1,363 |   |   |   | 1,351 |   |   |   | 1,489 |   |
|     Total Noninterest Income     |   |   | 9,565 |   |   |   | 7,136 |   |   |   | 1,077  |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest Expense:                                 |   |   |   |   |   |   |   |   |   |
|   Salaries and employee benefits           |   |   | 11,769 |   |   |   | 10,752 |   |   |   | 10,653 |   |
|   Occupancy and equipment expense          |   |   | 3,191 |   |   |   | 2,891 |   |   |   | 2,903 |   |
|   Other                                    |   |   | 11,867 |   |   |   | 10,364 |   |   |   | 9,685 |   |
|     Total Noninterest Expense    |   |   | 26,827 |   |   |   | 24,007 |   |   |   | 23,241 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Before Income Taxes                           |   |   | 15,251 |   |   |   | 11,321 |   |   |   | 7,982 |   |
| Provision for income taxes                           |   |   | 5,226 |   |   |   | 3,726 |   |   |   | 2,470 |   |
| Net Income                                           |   |   | 10,025 |   |   |   | 7,595 |   |   |   | 5,512 |   |
| Preferred Stock Dividends                            |   |   | (1,333 | ) |   |   | (594 | ) |   |   | - |   |
| Income Available to Common Shareholders              |   | $ | 8,692 |   |   | $ | 7,001 |   |   | $ | 5,512 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Per Common Share:                                    |   |   |   |   |   |   |   |   |   |
|   Earnings                                 |   | $ | 1.56 |   |   | $ | 1.26 |   |   | $ | 0.99 |   |
|   Cash dividends paid                      |   | $ | 0.64 |   |   | $ | 0.64 |   |   | $ | 0.64 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Common Shares Outstanding                    |   |   | 5,559,644 |   |   |   | 5,559,644 |   |   |   | 5,559,644 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |

----

| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY             |   |
|------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |   |
| (in thousands)                                             |   |
|                                                       |   |   Series A |   |   |   Series B |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   | Preferred |   |   | Preferred |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                       |   | Stock |   |   | Stock |   |   |   Common |   |   |   |   |   |   |   |   |  Other |   |   |   |   |
|                                                       |   | $1,000 |   |   | $1,000 |   |   |  Stock |   |   |   |   |   | Retained |   |   | Comprehensive |   |   |   |   |
|                                                       |   | Par |   |   | Par |   |   |  $1 Par |   |   | Surplus |   |   |  Earnings |   |   | Income/(Loss) |   |   | Total |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance December 31, 2007                                  |   |   | - |   |   |   | - |   |   |   | 5,560 |   |   |   | 26,459 |   |   |   | 34,671 |   |   |   | (335 | ) |   |   | 66,355 |   |
| Net income                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,512 |   |   |   | - |   |   |   | 5,512 |   |
|   Other comprehensive income, net of tax              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,823 | )  |   |   | (2,823 | ) |
| Total comprehensive income                                 |   |   | - |   |   |   |  - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 2,689 |   |
| Cash dividends on common stock ($0.64 per share)      |   |   |  - |   |   |   |  - |   |   |   | - |   |   |   | - |   |   |   | (3,557 | ) |   |   |   |   |   |   | (3,557 | ) |
| Balance December 31, 2008                                  |   |   | - |   |   |   | - |   |   |   | 5,560 |   |   |   | 26,459 |   |   |   | 36,626 |   |   |   | (3,158 | ) |   |   | 65,487 |   |
| Preferred stock issued                                     |   |   | 19,551 |   |   |   | 1,148 |   |   |   | - |   |   |   | - |   |   |   | -  |   |   |   | -  |   |   |   | 20,699  |   |
| Net income                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,595 |   |   |   | - |   |   |   | 7,595 |   |
|   Other comprehensive income, net of tax              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,235 |   |   |   | 5,235 |   |
| Total comprehensive income                                 |   |   |  - |   |   |   |  - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,830 |   |
| Cash dividends on common stock ($0.64 per share)           |   |   |  - |   |   |   |  - |   |   |   | - |   |   |   | - |   |   |   | (3,558 | ) |   |   | - |   |   |   | (3,558 | ) |
| Preferred stock dividend, amortization and accretion       |   |   | 79 |   |   |   | (8 | ) |   |   | - |   |   |   | - |   |   |   | (594 | ) |   |   | - |   |   |   | (523 | ) |
| Balance December 31, 2009                                  |   |   | 19,630 |   |   |   | 1,140 |   |   |   | 5,560 |   |   |   | 26,459 |   |   |   | 40,069 |   |   |   | 2,077 |   |   |   | 94,935 |   |
| Net income                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,025 |   |   |   | - |   |   |   | 10,025 |   |
|   Other comprehensive income, net of tax         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,336 | ) |   |   | (2,336 | ) |
| Total comprehensive income                                 |   |   |  - |   |   |   |  - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,689 |   |
| Cash dividends on common stock ($0.64 per share)           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,558 | ) |   |   | - |   |   |   | (3,558 | ) |
| Preferred stock dividend, amortization and accretion       |   |   | 229 |   |   |   | (24 | ) |   |   | - |   |   |   | - |   |   |   | (1,333 | ) |   |   | - |   |   |   | (1,128 | ) |
| Balance December 31, 2010                                  |   | $  | 19,859 |   |   | $  | 1,116 |   |   | $  | 5,560 |   |   | $  | 26,459 |   |   | $ | 45,203 |   |   | $ | (259 | ) |   | $ | 97,938 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY                               |
|------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                        |
| (in thousands)                                                               |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   Years Ended December 31, |
|                                                                         |   |  2010 |   |   | 2009 |   |   | 2008 |   |
| Cash Flows From Operating Activities                                         |   |   |   |   |   |   |   |   |   |
| Net income                                                                   |   | $  | 10,025 |   |   | $ | 7,595 |   |   | $ | 5,512 |   |
| Adjustments to reconcile net income to net cash                              |   |   |   |   |   |   |   |   |   |   |   |   |
|   provided by operating activities:                                |   |   |   |   |   |   |   |   |   |   |   |   |
|     Provision for loan losses                            |   |   | 5,654 |   |   |   | 4,155 |   |   |   | 1,634 |   |
|     Depreciation and amortization                        |   |   | 1,465 |   |   |   | 1,413 |   |   |   | 1,451 |   |
|     Amortization of premium/discount on investments      |   |   | 71 |   |   |   | (768 | ) |   |   | (807 | ) |
|    (Gain) Loss on call / sale of securities                   |   |   | (3,162 | )  |   |   | (2,066 | ) |   |   | 1 |   |
|     Gain on sale of assets                               |   |   | (1,244 | )  |   |   | (385 | ) |   |   | (211 | ) |
|     Other than temporary impairment charge on securities |   |   | - |   |   |   | 829 |   |   |   | 4,611 |   |
|     ORE writedowns and loss on disposition               |   |   |  693 |   |   |   | 270 |   |   |   | 113 |   |
|     FHLB stock dividends                                 |   |   |  (8 | )  |   |   | (3 | ) |   |   | (32 | ) |
|     Net decrease in loans held for sale                  |   |   |  - |   |   |   | - |   |   |   | 3,959 |   |
|     Non-cash donation                                         |   |   | 705 |   |   |   |  - |   |   |   |  - |   |
|     Change in other assets and liabilities, net          |   |   | 2,043 |   |   |   | (8,514 | ) |   |   | 3,326 |   |
| Net Cash Provided By Operating Activities                                    |   |   | 16,242 |   |   |   | 2,526 |   |   |   | 19,557 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows From Investing Activities                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from maturities, calls and sales of HTM securities             |   |   |  12,724 |   |   |   | 22,187 |   |   |   | 11,740 |   |
| Proceeds from maturities, calls and sales of AFS securities                  |   |   | 800,684 |   |   |   | 1,281,594 |   |   |   | 756,642 |   |
| Funds invested in AFS securities                                             |   |   | (864,419 | )  |   |   | (1,419,358 | ) |   |   | (773,772 | ) |
| Funds Invested in HTM securities                                             |   |   | (159,831 | ) |   |   |  - |   |   |   | - |   |
| Proceeds from sale of Federal Home Loan Bank stock                           |   |   | 2,972 |   |   |   | - |   |   |   | 1,900 |   |
| Funds invested in Federal Home Loan Bank stock                               |   |   | (2,032 | ) |   |   | (1,599 | ) |   |   | (1,857 | ) |
| Proceeds from maturities of time deposits with banks                         |   |   | - |   |   |   | 35,094 |   |   |   | 2,923 |   |
| Funds invested in time deposits with banks                                   |   |   | - |   |   |   | (13,613 | ) |   |   | (22,216 | ) |
| Net decrease (increase) in loans                                             |   |   | 5,718 |   |   |   | 12,620 |   |   |   | (33,196 | ) |
| Purchase of premises and equipment                                           |   |   | (1,327 | )  |   |   | (1,631 | ) |   |   | (1,017 | ) |
| Proceeds from sales of premises and equipment                                |   |   | 1,100 |   |   |   | 24 |   |   |   | - |   |
| Proceeds from sales of other real estate owned                               |   |   |  2,677 |   |   |   | 768 |   |   |   | 443 |   |
| Cash paid in excess of cash received in acquisition                          |   |   |  - |   |   |   | - |   |   |   | (72 | ) |
| Net Cash Used In Investing Activities                                        |   |   | (201,734 | )  |   |   | (83,914 | ) |   |   | (58,482 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows From Financing Activities                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase in deposits                                                     |   |   |  207,637 |   |   |   | 19,382 |   |   |   | 57,194 |   |
| Net increase (decrease) in federal funds purchased and short-term borrowings |   |   |  660 |   |   |   | 2,162 |   |   |   | (634 | ) |
| Proceeds from long-term borrowings                                           |   |   |  - |   |   |   | 20,000 |   |   |   | 10,000 |   |
| Repayment of long-term borrowings                                            |   |   |  (20,000 | )  |   |   | (8,355 | ) |   |   | (4,738 | ) |
| Proceeds from issuance of preferred stock                                    |   |   |  - |   |   |   | 20,699 |   |   |   | - |   |
| Dividends paid                                                               |   |   |  (4,686 | )  |   |   | (3,799 | ) |   |   | (3,557 | ) |
| Net Cash Provided By Financing Activities                                    |   |   | 183,611 |   |   |   | 50,089 |   |   |   | 58,265 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (Decrease) Increase In Cash and Cash Equivalents                         |   |   |  (1,881 | )  |   |   | (31,299 | ) |   |   | 19,340 |   |
| Cash and Cash Equivalents at the Beginning of the Period                     |   |   |  46,718 |   |   |   | 78,017 |   |   |   | 58,677 |   |
| Cash and Cash Equivalents at the End of the Period                           |   | $  |  44,837 |   |   | $ | 46,718 |   |   | $ | 78,017 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Noncash Activities:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|   Non-cash donation                                                |   | $ | 705 |   |   | $ | - |   |   | $ | - |   |
|   Loans transferred to foreclosed assets                           |   | $  |  3,288 |   |   | $ | 1,129 |   |   | $ | 751 |   |
| Cash Paid During The Period:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest on deposits and borrowed funds                          |   | $  |  12,203 |   |   | $ | 15,357 |   |   | $ | 15,804 |   |
|   Income taxes                                                     |   | $  |  5,600 |   |   | $ | 4,300 |   |   | $ | 1,200 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

----

----

----

|                                          |   | December 31, 2010 |    |   | December 31, 2009 |
|-----------------------------------------------|--------|-------------------|---------|--------|-------------------|
|                                          |   |              |    |   | Gross             |   |   | Gross |   |   |   |   |   |   |   |   | Gross |   |   | Gross |   |   |   |
|                                          |   | Amortized         |    |   | Unrealized        |   |   | Unrealized |   |   | Fair |   |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair |
|                                          |   | Cost              |    |   | Gains             |   |   | Losses |   |   | Value |   |   | Cost |   |   | Gains |   |   | Losses |   |   | Value |
|                                          |   | (in thousands)    |
| Available for sale:                           |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies                      |   | $                 | 172,958 |   |              | $ | 242 |   |   | $ | (3,982 | ) |   | $ | 169,218 |   |   | $ | 140,843 |   |   | $ | 382 |   |   | $ |  (1,562 | ) |   | $ | 139,663 |
| Mortgage-backed obligations                   |   |              | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,472 |   |   |   | 104 |   |   |   | - |   |   |   | 1,576 |
| Asset-backed securities                       |   |              | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8 |   |   |   | - |   |   |   | 8 |
| Corporate debt securities                     |   |              | 138,925 |   |              |   | 4,804 |   |   |   | (1,331 | ) |   |   | 142,398 |   |   |   | 92,414 |   |   |   | 5,648 |   |   |   | (1,086 | ) |   |   | 96,976 |
| Mutual funds or other equity securities       |   |              | 1,250   |   |              |   | 20 |   |   |   | (132 | ) |   |   | 1,138 |   |   |   | 1,380 |   |   |   | 62 |   |   |   | (185 | ) |   |   | 1,257 |
| Municipal bonds                               |   |              | 9,388   |   |              |   | - |   |   |   | (14 | )  |   |   | 9,374 |   |   |   | 10,000 |   |   |   | - |   |   |   | - |   |   |   | 10,000 |
|  Total available for sale securities     |   | $                 | 322,521 |   |              | $ | 5,066 |   |   | $ | (5,459 | ) |   | $ | 322,128 |   |   | $ | 246,109 |   |   | $ | 6,204 |   |   | $ | (2,833 | ) |   | $ | 249,480 |
|                                          |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                             |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies                      |   | $                 | 159,833 |   |              | $ | - |   |   | $ | (4,507 | )  |   | $ | 155,326 |   |   | $ | 10,721 |   |   | $ | 52 |   |   | $ | - |   |   | $ | 10,773 |
| Mortgage-backed obligations                   |   |              | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,628 |   |   |   | 61 |   |   |   | - |   |   |   | 1,689 |
|   Total held to maturity securities |   | $                 | 159,833 |   |              | $ | - |   |   | $ | (4,507 | )  |   | $ | 155,326 |   |   | $ | 12,349 |   |   | $ | 113 |   |   | $ | - |   |   | $ | 12,462 |
|                                          |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                            |   | December 31, 2010 |    |
|-------------------------------------------------|--------|-------------------|---------|
|                                            |   | Amortized         |    |   | Fair |   |
|                                            |   | Cost              |    |   | Value |   |
|                                            |   | (in thousands)    |    |
| Available For Sale:                             |   |              |    |   |   |   |
| Due in one year or less                         |   | $                 | 11,434  |   |   | $ | 11,656 |   |
| Due after one year through five years           |   |              | 65,880  |   |   |   | 69,424 |   |
| Due after five years through 10 years           |   |              | 158,181 |   |   |   | 156,417 |   |
| Over 10 years                                   |   |              | 87,026  |   |   |   | 84,631 |   |
|   Total available for sale securities |   | $                 | 322,521 |   |   | $ | 322,128 |   |
|                                            |   |              |    |   |   |   |   |   |
| Held to Maturity:                               |   |              |    |   |   |   |   |   |
| Due in one year or less                         |   | $                 | -       |   |   | $ | - |   |
| Due after one year through five years           |   |              | 7,968   |   |   |   | 7,968 |   |
| Due after five years through 10 years           |   |              | 106,876 |   |   |   | 104,065 |   |
| Over 10 years                                   |   |              | 44,989  |   |   |   | 43,293 |   |
|   Total held to maturity securities   |   | $                 | 159,833 |   |   | $ | 155,326 |   |
|                                            |   |              |    |   |   |   |   |   |

----

|                                                                  |   | Less Than 12 Months |      |   | 12 Months or More |   |     | Total      |   |
|-----------------------------------------------------------------------|--------|---------------------|-----------|--------|-------------------|--------|----------|------------|--------|
|                                                                  |   |                |      |   | Gross             |   |     |       |   |   | Gross |   |   |   |   |   | Gross |   |
|                                                                  |   |                |      |   | Unrealized        |   |     |       |   |   |  Unrealized |   |   |   |   |   | Unrealized  |   |
|                                                                  |   | Fair Value          |      |   | Losses            |   |     | Fair Value |   |   | Losses |   |   | Fair Value |   |   | Losses |   |
|                                                                  |   | (in thousands)      |      |
| Available for sale:                                                   |   |                |      |   |              |   |     |       |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and U.S.                                                |   |                |      |   |              |   |     |       |   |   |   |   |   |   |   |   |   |   |
| Government agencies                                                   |   | $                   | 133,974   |   |              | $      | 3,982    |       |   | $ | - |   |   | $ | - |   |   | $ | 133,974 |   |   | $ | 3,982 |   |
| Corporate debt securities                                             |   |                | 41,544    |   |              |   | 1,019    |       |   |   | 2,862 |   |   |   | 312 |   |   |   | 44,406 |   |   |   | 1,331 |   |
|  Municipal securities                                            |   |                |  985 |   |              |   |  14 |       |   |   |  - |   |   |   |  - |   |   |   |  985 |   |   |   |  14 |   |
| Mutual funds or other equity securites                                |   |                | -         |   |              |   | -        |       |   |   | 369 |   |   |   | 132 |   |   |   | 369 |   |   |   | 132 |   |
|   Total available for sale securities                       |   | $                   | 176,503   |   |              | $      | 5,015    |       |   | $ | 3,231 |   |   | $ | 444 |   |   | $ | 179,734 |   |   | $ | 5,459 |   |
|                                                                  |   |                |      |   |              |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                |      |   |              |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                                                     |   |                |      |   |              |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and U.S.                                                |   |                |      |   |              |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government agencies                                                   |   | $                   | 130,373   |   |              | $      | 4,507    |       |   | $ | - |   |   | $ | - |   |   | $ | 130,373 |   |   | $ | 4,507 |   |
|       Total held to maturity securities |   | $                   | 130,373   |   |              | $      | 4,507    |       |   | $ | - |   |   | $ | - |   |   | $ | 130,373 |   |   | $ | 4,507 |   |
|                                                                  |   |                |      |   |              |   |     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                 |   | Amortized      |    |   | Fair   |   |
|------------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                                 |   | Cost           |    |   | Value  |   |
|                                                 |   | (in thousands) |    |
|                                                 |   |           |    |   |   |   |
| Federal Home Loan Bank (FHLB)                        |   | $              | 158,881 |   |   | $      | 154,621 |   |
| Federal Home Loan Mortgage Corporation (Freddie Mac) |   |           | 30,991  |   |   |   | 30,472 |   |
| Federal National Mortgage Association (Fannie Mae)   |   |           | 24,999  |   |   |   | 24,428 |   |
| Federal Farm Credit Bank (FFCB)                      |   |           | 115,921 |   |   |   | 113,024 |   |
|  Total                                          |   | $              | 330,792 |   |   | $      | 322,545 |   |
|                                                 |   |           |    |   |   |   |   |   |

----

|                                                                               |   | December 31,   |    |
|------------------------------------------------------------------------------------|--------|----------------|---------|
|                                                                               |   | 2010           |    |   | 2009 |   |
|                                                                               |   |           |    |   | As % of |   |   |   |   |   | As % of |   |
|                                                                               |   | Balance        |    |   | Category |   |   | Balance |   |   | Category |   |
|                                                                               |   | (in thousands) |    |
| Real estate                                                                        |   |           |    |   |   |   |   |   |   |   |   |   |
|      Construction & land development                  |   | $              | 65,570  |   |   |   | 11.4 | % |   | $ | 78,686 |   |   |   | 13.3 | % |
|      Farmland                                             |   |           | 13,337  |   |   |   | 2.3 | % |   |   | 11,352 |   |   |   | 1.9 | % |
|      1-4 Family                                           |   |           | 73,158  |   |   |   | 12.7 | % |   |   | 77,470 |   |   |   | 13.1 | % |
|      Multifamily                                          |   |           | 14,544  |   |   |   | 2.5 | % |   |   | 8,927 |   |   |   | 1.5 | % |
|      Non-farm non-residential                             |   |           | 292,809 |   |   |   | 50.8 | % |   |   | 300,673 |   |   |   | 51.0 | % |
| Total real estate                                                                  |   |           | 459,418 |   |   |   | 79.7 | % |   |   | 477,108 |   |   |   | 80.8 | % |
|                                                                               |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agricultural                                                                       |   |           | 17,361  |   |   |   | 3.0 | % |   |   | 14,017 |   |   |   | 2.4 | % |
| Commercial and industrial                                                          |   |           | 76,590  |   |   |   | 13.3 | % |   |   | 82,348 |   |   |   | 13.9 | % |
| Consumer and other                                                                 |   |           | 22,970  |   |   |   | 4.0 | % |   |   | 17,226 |   |   |   | 2.9 | % |
|         Total loans before unearned income |   |           | 576,339 |   |   |   | 100.0 | % |   |   | 590,699 |   |   |   | 100.0 | % |
| Less: unearned income                                                              |   |           | (699    | ) |   |   |   |   |   |   | (797 | ) |   |   |   |   |
|         Total loans net of unearned income |   | $              | 575,640 |   |   |   |   |   |   | $ | 589,902 |   |   |   |   |   |
|                                                                               |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                           |   | December 31, 2010 |    |
|------------------------------------------------|--------|-------------------|---------|
|                                           |   | Fixed             |    |   | Floating |   |   | Total |   |
|                                           |   | (in thousands)    |    |
|                                           |   |              |    |   |   |   |   |   |   |
| One year or less                               |   | $                 | 67,944  |   |   | $ | 167,399 |   |   | $ | 235,343 |   |
| One to five years                              |   |              | 127,401 |   |   |   | 132,345 |   |   |   | 259,746 |   |
| Five to 15 years                               |   |              | 2,456   |   |   |   | 30,953 |   |   |   | 33,409 |   |
| Over 15 years                                  |   |              | 9,735   |   |   |   | 9,388 |   |   |   | 19,123 |   |
|   Subtotal                           |   |              | 207,536 |   |   |   | 340,085 |   |   |   | 547,621 |   |
| Nonaccrual loans                               |   |              |    |   |   |   |   |   |   |   | 28,718 |   |
|   Total loans before unearned income |   |              |    |   |   |   |   |   |   | $ | 576,339 |   |
|   Unearned income                         |   |              |    |   |   |   |   |   |   |   | (699 | ) |

|   Total loans net of unearned income |   |   |   |   |   |   |   |   |   | $ | 575,640 |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|---------|--------|

----

|                                                             |   | As of December 31, 2010         |         |
|------------------------------------------------------------------|--------|---------------------------------|--------------|
|                                                             |   | (in thousands)                  |         |
|                                                             |   |                            |         |   |   |   |   |   |   |   |   | Recorded Investment > |   |
|                                                             |   |   30-89 Days Past Due |         |   Greater Than 90 Days |   |   Total Past Due |   |   Current |   |   Total Loans |   |  90 Days Accruing |   |
|                                                             |   |                            |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                                                      |   |                            |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Construction & land development      |   |  $                         | 1,574        |   |  $ | 3,383 |   | $ | 4,957 |   | $ | 60,613 |   |  $ | 65,570 |   | $ | - |   |
|     Farmland                                 |   |                            | 41           |   |   | - |   |   | 41 |   |   | 13,296 |   |   | 13,337 |   |   | - |   |
|      1 - 4 family                       |   |                            | 4,742        |   |   | 3,189 |   |   | 7,931 |   |   | 65,227 |   |   | 73,158 |   |   | 1,663 |   |
|      Multifamily                        |   |                            | 5,781        |   |   | 1,357 |   |   | 7,138 |   |   | 7,406 |   |   | 14,544 |   |   | - |   |
|      Non-farm non-residential           |   |                            | 7,960        |   |   |  21,944 |   |   | 29,904 |   |   |  262,905 |   |   |  292,809 |   |   |  - |   |
| Total real estate                                                |   |                            | 20,098       |   |   |  29,873 |   |   |  49,971 |   |   |  409,447 |   |   | 459,418 |   |   |  1,663 |   |
|                                              |   |                            |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agricultural                                                     |   |                            | 333          |   |   | 446 |   |   | 779 |   |   | 16,582 |   |   | 17,361 |   |   | - |   |
| Commercial and industrial                                        |   |                            | 1,203        |   |   | 76 |   |   | 1,279 |   |   | 75,311 |   |   | 76,590 |   |   | - |   |
|  Consumer and other                                         |   |                            | 287     |   |   | 42  |   |   | 329 |   |   | 22,641  |   |   | 22,970 |   |   | 10 |   |
|                                                             |   |                            |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total loans before unearned income                   |   |  $                         | 21,921  |   |  $ | 30,437  |   |  $ | 52,358 |   |   | 523,981 |   |  $ | 576,339 |   |  $ | 1,673 |   |
|  Less: unearned income                                      |   |                            |         |   |   |   |   |   |   |   |   |   |   |   | (699 | )  |   |   |   |
|      Total loans net of unearned income |   |                            |         |   |   |   |   |   |   |   |   |   |   |  $ | 575,640 |   |   |   |   |

|                                                        |   | As of December 31, 2010 |         |
|-------------------------------------------------------------|--------|-------------------------|--------------|
|                                                        |   | (in thousands)          |         |
|                                                        |   |                    |         |   |   |
| Real estate:                                                |   |                    |         |   |   |
|     Construction & land development |   |  $                 | 3,383        |   |   |
|     Farmland                            |   |                    |  -      |   |   |
|     1 - 4 family                   |   |                    | 1,480        |   |   |
|      Multifamily                   |   |                    | 1,357        |   |   |
|     Non-farm non-real estate            |   |                    |  21,944 |   |   |
| Total real estate                                           |   |                    | 28,164  |   |   |
|                                         |   |                    |         |   |   |
| Agricultural                                                |   |                    | 446          |   |   |
| Commercial and industrial                                   |   |                    | 76           |   |   |
| Consumer and other                                          |   |                    |  32     |   |   |
|  Total                                                 |   |  $                 |  28,718 |   |   |

----

|                                                             |   | As of December 31, 2010 |    |
|------------------------------------------------------------------|--------|-------------------------|---------|
|                                                             |   | (in thousands)          |
|                                                             |   |                    |    |   |   |   |   |   |   |   |   |   |   |
|  Corporate Credit Exposure -- by Credit Rating              |   | Pass                    |    | Special Mention |   | Substandard |   | Total |   |
|                                                             |   |                    |    |   |   |   |   |   |   |   |   |   |   |
| Real Estate                                                      |   |                    |    |   |   |   |   |   |   |   |   |   |   |
|     Construction & land development      |   |  $                 | 55,228  |   |  $ | 249 |   | $ | 10,093 |   |  $ | 65,570 |   |
|     Farmland                                 |   |                    | 13,296  |   |   |  - |   |   |  41 |   |   | 13,337 |   |
|      1 - 4 family                       |   |                    | 60,870  |   |   | 4,172 |   |   | 8,116 |   |   | 73,158 |   |
|      Multifamily                        |   |                    | 8,763   |   |   | - |   |   | 5,781 |   |   | 14,544 |   |
|      Non-farm non-residential           |   |                    | 258,740 |   |   | 141 |   |   | 33,928 |   |   | 292,809 |   |
|  Total real estate                                          |   |                    | 396,897 |   |   | 4,562 |   |   | 57,959 |   |   | 459,418 |   |
|                                                             |   |                    |    |   |   |   |   |   |   |   |   |   |   |
|  Agricultural                                               |   |                    | 17,361  |   |   | - |   |   |  - |   |   |  17,361 |   |
|  Consumer and industrial                                    |   |                    | 73,686  |   |   | 13 |   |   |  2,891 |   |   | 76,590 |   |
|  Consumer and other                                         |   |                    | 22,845  |   |   | 32 |   |   | 93 |   |   | 22,970 |   |
|                                                             |   |                    |    |   |   |   |   |   |   |   |   |   |   |
|      Total loans before unearned income |   | $                       | 510,789 |   | $ | 4,607 |   |  $ | 60,943 |   |  $ | 576,339 |   |
|  Less: unearned income                                      |   |                    |    |   |   |   |   |   |   |   |   |  (699 | )  |
|      Total loans net of unearned income |   |                    |    |   |   |   |   |   |   |   |  $ |  575,640 |   |
|                                                             |   |                    |    |   |   |   |   |   |   |   |   |   |   |

----

|                                              |   As of December 31, 2010 |                                         |
|---------------------------------------------------|-------------------------------------|----------------------------------------------|
|                                              |   (in thousands)          |                                         |
|                                              |                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              | Real Estate Loans:                  |                                         |   | Non-Real Estate Loans: |   |   |   |   |
|                                              |                                |  Construction and Land Development |   |   |  Farmland |   |   |  1-4 Family |   |   | Multi-family |   |   | Non-farm non-residential |   |   | Agricultural |   |   | Commercial and industrial |   |   | Consumer and other |   |   |  Unallocated |   |   |  Total |   |
| Allowance for credit Losses:                      |                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Beginning balance                     |  $                             |  1,176                                  |   |   |  56 |   |   |  2,466 |   |  $ | 128 |   |  $ | 2,727 |   |  $ | 82 |   |  $ | 1,031 |   |  $ | 246 |   |   |  7 |   |  $ | 7,919 |   |
|        Charge-offs  |                                |  (5                                     | ) |   |  - |   |   |  (1,534 | ) |   | - |   |   | (235 | ) |   | - |   |   | (3,395 | ) |   | (444 | ) |   |  - |   |   | (5,613 | ) |
|    Recoveries                           |                                |  1                                      |   |   |  - |   |   |  11 |   |   | - |   |   | 30 |   |   | - |   |   | 164 |   |   | 151 |   |   |  - |   |   | 357 |   |
|        Provision    |                                |  (195                                   | ) |   |  (10 | ) |   |  948 |   |   | 359 |   |   | 901 |   |   | (2 | ) |   | 2,710 |   |   | 437 |   |   |  506 |   |   | 5,654 |   |
| Ending Balance                                    |  $                             |  977                                    |   |  $ |  46 |   |  $ |  1,891 |   |  $ | 487 |   |  $ | 3,423 |   |  $ | 80 |   |  $ | 510 |   |  $ | 390 |   |  $ |  513 |   |  $ | 8,317 |   |
|                                              |                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance at the end of year:                     |                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Individually evaluated for impairment |  $                             |  323                                    |   |  $ |  - |   |  $ |  726 |   |  $ | 179 |   |  $ | 1,901 |   |  $ | - |   |  $ | 408 |   |  $ | - |   |   |  - |   |  $ | 3,537 |   |
|   Collectively evaluated for impairment |                                |  654                                    |   |   |  46 |   |   |  1,165 |   |   | 308 |   |   | 1,522 |   |   | 80 |   |   | 102 |   |   | 390 |   |   |  513 |   |   | 4,780 |   |
|                                              |                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans at end of year (before unearned income)     | $                                   |  65,570                                 |   |  $ |  13,337 |   |  $ |  73,158 |   |  $ | 14,544 |   | $ | 292,809 |   |  $ | 17,361 |   |  $ | 76,590 |   |  $ | 22,970 |   |   |  - |   |  $ | 576,339 |   |
| Loans individually evaluated for impairment       |                                |  6,222                                  |   |   |  - |   |   |  4,450 |   |   | 7,138 |   |   | 35,931 |   |   | - |   |   | 2,735 |   |   | - |   |   |  - |   |   | 56,476 |   |
| Loans collectively evaluated for impairment       |                                |  59,348                                 |   |   |  13,337 |   |   |  68,708 |   |   | 7,406 |   |   | 256,878 |   |   | 17,361 |   |   | 73,855 |   |   | 22,970 |   |   |  - |   |   | 519,863 |   |
|                                              |                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |                                |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                             |   | Years Ended December 31, |   |
|----------------------------------|--------|--------------------------|--------|
|                             |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                             |   | (in thousands)           |   |
|                             |   |                     |   |   |   |   |   |   |   |
| Balance, beginning of year       |   | $                        | 7,919  |   |   | $ | 6,482 |   |   | $ | 6,193 |   |
| Provision charged to expense     |   |                     | 5,654  |   |   |   | 4,155 |   |   |   | 1,634 |   |
| Loans charged off                |   |                     | (5,613 | ) |   |   | (2,879 | ) |   |   | (1,613 | ) |
| Recoveries                       |   |                     | 357    |   |   |   | 161 |   |   |   | 268 |   |
|   Balance, end of year |   | $                        | 8,317  |   |   | $ | 7,919 |   |   | $ | 6,482 |   |
|                             |   |                     |   |   |   |   |   |   |   |   |   |   |

----

|                                                                    |   | 2010           |        |   | 2009   |   |       |   |    |
|-------------------------------------------------------------------------|--------|----------------|-------------|--------|--------|--------|------------|--------|---------|
|                                                                    |   | (in thousands) |        |   |   |
|                                                                    |   |           |        |   |   |   |       |   |    |
| Impaired loans without a valuation allowance                            |   | $              | 8,713       |   |   | $      | 5,853      |   |    |   |   |
| Impaired loans with a valuation allowance                               |   |           | 47,763      |   |   |   | 28,080     |   |    |   |   |
|  Total impaired loans                                              |   | $              | 56,476      |   |   | $      | 33,933     |   |    |   |   |
|                                                                    |   |           |        |   |   |   |       |   |    |   |   |
| Valuation allowance related to impaired loans                           |   | $              | 3,537       |   |   | $      | 2,967      |   |    |   |   |
| Total nonaccrual loans                                                  |   | $              | 28,718      |   |   | $      | 14,183     |   |    |   |   |
| Total loans past due ninety days and still accruing                     |   | $              | 1,673       |   |   | $      | 785        |   |    |   |   |
|                                                                    |   |           |        |   |   |   |       |   |    |   |   |
|                                                                    |   |           | 2010   |   |   |   | 2009  |   |    |  2008 |   |
| Average investment in impaired loans                                    |   | $              | 37,094      |   |   | $      | 8,979      |   | $  |  9,027 |   |
| Interest income recognized on impaired loans                            |   | $              | 2,402  |   |   | $      | 184        |   | $  | 1,049 |   |
| Interest income recognized on a cash basis on  impaired loans |   | $              | 1,304  |   |   | $      | 565        |   | $       |  283 |   |

|                                                                          |   |   As of December 31, 2010 |    |
|-------------------------------------------------------------------------------|--------|-------------------------------------|---------|
|                                                                          |   |   (in thousands)          |    |
|                                                                          |   |   Recorded Investment     |    |   Unpaid Principal Balance |   |   Related Allowance |   |   Average Recorded Investment |   |   Interest Income Recognized |   |
|  With no related allowance:                                              |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                                                                   |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Construction & land development    |   |  $                             | 4,105   |   |  $ | 5,380 |   | $ |  - |   |  $ | 5,532 |   |  $ |  389 |   |
|      Farmland                                        |   |                                |  - |   |   | - |   |   | - |   |   | - |   |   | - |   |
|      1 - 4 family                                    |   |                                | 53      |   |   | 684 |   |   | - |   |   | 2,576 |   |   | 204 |   |
|      Multifamily                                     |   |                                | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |
|      Non-farm non-residential                        |   |                                | 4,555   |   |   |  4,555 |   |   |  - |   |   | 3,331 |   |   | 203 |   |
| Total real estate                                                             |   |                                | 8,713   |   |   | 10,619 |   |   |  - |   |   | 11,439 |   |   |  796 |   |
|                                                                          |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Agricultural                                                            |   |                                |  - |   |   |  - |   |   |  - |   |   |  - |   |   |  - |   |
| Commercial and industrial                                                     |   |                                |  - |   |   |  - |   |   |  - |   |   |  425 |   |   |  37 |   |
| Consumer and other                                                            |   |                                |  - |   |   |  - |   |   |  - |   |   |  - |   |   |  - |   |
|                                                                          |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  With an allowance recorded:                                             |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                                                                   |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Construction & land development                   |   |                                | 2,117   |   |   |  2,117 |   |   |  323 |   |   | 2,557 |   |   | 182 |   |
|      Farmland                                        |   |                                | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |
|      1 - 4 familty                                   |   |                                | 4,397   |   |   | 4,397 |   |   | 726 |   |   | 1,490 |   |   |  103 |   |
|     Multifamily                                           |   |                                | 7,138   |   |   | 7,138 |   |   | 179 |   |   | 5,896 |   |   | 318 |   |
|      Non-farm non-residential                        |   |                                | 31,376  |   |   | 31,376  |   |   |  1,901 |   |   | 13,655 |   |   |  852 |   |
|  Total real estate                                                       |   |                                | 45,028  |   |   | 45,028  |   |   |  3,129 |   |   | 23,598 |   |   | 1,455  |   |
|                                                                          |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Agricultural                                                            |   |                                | -  |   |   | -  |   |   | -  |   |   |  - |   |   | -  |   |
|  Commercial and industrial                                               |   |                                | 2,735   |   |   |  2,735 |   |   | 408  |   |   | 1,632 |   |   | 114 |   |
|  Consumer and other                                                      |   |                                | -  |   |   |  - |   |   | -  |   |   |  - |   |   | -  |   |
|                                                                          |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total                                                                   |   |  $                             | 56,476  |   |  $ | 58,382 |   |  $ |  3,537 |   |  $ | 37,094 |   |  $ | 2,402 |   |

----

|                                                   |   | December 31,   |     |
|--------------------------------------------------------|--------|----------------|----------|
|                                                   |   | 2010           |     |   | 2009 |   |
|                                                   |   | (in thousands) |     |
|                                                   |   |           |     |   |   |   |
| Land                                                   |   | $              | 4,539    |   |   | $ | 4,514 |   |
| Bank premises                                          |   |           | 15,804   |   |   |   | 16,608 |   |
| Furniture and equipment                                |   |           | 15,074   |   |   |   | 14,264 |   |
|  Construction in progress     |   |           | 52  |   |   |   | - |   |
|  Acquired value                                   |   |           | 35,469   |   |   |   | 35,386 |   |
| Less: accumulated depreciation                         |   |           | 19,446   |   |   |   | 18,682 |   |
|  Net book value                                   |   | $              | 16,023   |   |   | $ | 16,704 |   |
|                                                   |   |           |     |   |   |   |   |   |

|                      |   | December 31,   |   |
|---------------------------|--------|----------------|--------|
|                      |   | 2010           |   |   | 2009 |   |
|                      |   | Gross Carrying |   |   | Accumulated |   |   | Net Carrying |   |   | Gross Carrying |   |   | Accumulated |   |   | Net Carrying |   |
|                      |   | Amount         |   |   | Amortization |   |   | Amount |   |   | Amount |   |   | Amortization |   |   | Amount |   |
|                      |   | (in thousands) |   |
|                      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Core deposit intangibles  |   | $              | 7,997  |   |   | $ | 6,457 |   |   | $ | 1,540 |   |   | $ | 7,997 |   |   | $ | 6,240 |   |   | $ | 1,757 |   |
| Mortgage Servicing Rights |   |           | 235    |   |   |   | 46 |   |   |   | 189 |   |   |   | 157 |   |   |   | 21 |   |   |   | 136 |   |
|   Total         |   | $              | 8,232  |   |   | $ | 6,503 |   |   | $ | 1,729 |   |   | $ | 8,154 |   |   | $ | 6,261 |   |   | $ | 1,893 |   |
|                      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|  For the Years Ended |   |   |  Estimated      |
|---------------------------|--------|--------|----------------------|
|  December 31,        |   |   | Amortization Expense |
| (in thousands)            |
| 2011                      |   |   | $                    | 218 |   |
| 2012                      |   |   |                 | 216 |   |
| 2013                      |   |   |                 | 185 |   |
| 2014                      |   |   |                 | 185 |   |
| 2015                      |   |   |                 | 185 |   |

|                                   |   | December 31, 2010 |    |
|----------------------------------------|--------|-------------------|---------|
|                                   |   | (in thousands)    |    |
|                                   |   |              |    |
| Due in one year or less                |   | $                 | 289,777 |   |
| Due after one year through three years |   |              | 303,772 |   |
| Due after three years                  |   |              | 44,135  |   |
|   Total                      |   | $                 | 637,684 |   |
|                                   |   |              |    |   |

----

|                                           |   | December 31,   |   |
|------------------------------------------------|--------|----------------|--------|
|                                           |   | 2010           |   |   | 2009 |   |
|                                           |   | (in thousands) |   |
|                                           |   |           |   |   |   |   |
| Securities sold under agreements to repurchase |   | $              | 12,589 |   |   | $ | 11,929 |   |
|  Total short-term borrowings              |   | $              | 12,589 |   |   | $ | 11,929 |   |
|                                           |   |           |   |   |   |   |   |   |

|                                  |   | December 31,   |   |
|---------------------------------------|--------|----------------|--------|
|                                  |   | 2010           |   |   | 2009 |   |   | 2008 |   |
|                                  |   | (in thousands) |   |
|                                  |   |           |   |   |   |   |   |   |   |
| Outstanding at year end               |   | $              | 12,589 |   |   | $ | 11,929 |   |   | $ | 9,767 |   |
| Maximum month-end outstanding         |   |           | 30,465 |   |   |   | 26,372 |   |   |   | 41,321 |   |
| Average daily outstanding             |   |           | 13,086 |   |   |   | 18,233 |   |   |   | 11,379 |   |
| Weighted average rate during the year |   |           | 0.21   | % |   |   | 0.81 | % |   |   | 2.16 | % |
| Average rate at year end              |   |           | 0.21   | % |   |   | 0.23 | % |   |   | 0.19 | % |

----

|                                  |           |   |         |            |              |              | Minimum           |
|---------------------------------------|----------------|--------|--------------|-----------------|-------------------|-------------------|-------------------|
|                                  |           |   |         |            |              |              | To Be Well        |
|                                  |           |   |         |            |              |              | Capitalized Under |
|                                  |           |   |         | Minimum Capital |              | Prompt Corrective |
|                                  | Actual         |   | Requirements |            | Action Provisions |
|                                  | Amount         | Ratio  |         | Amount          | Ratio             |              | Amount            | Ratio |
|                                  | (in thousands) |
| December 31, 2010                     |           |   |         |            |              |              |              |   |
| Total risk-based capital:             |           |   |         |            |              |              |              |   |
|  First Guaranty Bancshares, Inc. | $102,828       | 13.03% |         | $63,117         | 8.00%             |              | N/A               | N/A |
|  First Guaranty Bank             | 95,644         | 12.13% |         | 63,096          | 8.00%             |              | 78,870            | 10.00% |
| Tier 1 capital:                       |           |   |         |            |              |              |              |   |
|  First Guaranty Bancshares, Inc. | 94,511         | 11.98% |         | 31,588          | 4.00%             |              | N/A               | N/A |
|  First Guaranty Bank             | 87,347         | 11.07% |         | 31,548          | 4.00%             |              | 47,322            | 6.00% |
| Tier 1 leverage capital:              |           |   |         |            |              |              |              |   |
|  First Guaranty Bancshares, Inc. | 94,511         | 8.69%  |         | 43,528          | 4.00%             |              | N/A               | N/A |
|  First Guaranty Bank             | 87,347         | 8.06%  |         | 43,356          | 4.00%             |              | 54,195            | 5.00% |
|                                  |           |   |         |            |              |              |              |   |
| December 31, 2009                     |           |   |         |            |              |              |              |   |
| Total risk-based capital:             |           |   |         |            |              |              |              |   |
|  First Guaranty Bancshares, Inc. | $96,514        | 12.97% |         | $59,536         | 8.00%             |              | N/A               | N/A |
|  First Guaranty Bank             | 91,388         | 12.22% |         | 59,834          | 8.00%             |              | 74,793            | 10.00% |
| Tier 1 capital:                       |           |   |         |            |              |              |              |   |
|  First Guaranty Bancshares, Inc. | 88,595         | 11.90% |         | 29,768          | 4.00%             |              | N/A               | N/A |
|  First Guaranty Bank             | 83,469         | 11.16% |         | 29,917          | 4.00%             |              | 44,876            | 6.00% |
| Tier 1 leverage capital:              |           |   |         |            |              |              |              |   |
|  First Guaranty Bancshares, Inc. | 88,595         | 9.58%  |         | 36,979          | 4.00%             |              | N/A               | N/A |
|  First Guaranty Bank             | 83,469         | 9.03%  |         | 36,985          | 4.00%             |              | 46,231            | 5.00% |

----

|                             |   | December 31,   |    |
|----------------------------------|--------|----------------|---------|
|                             |   | 2010           |    |   | 2009 |   |
|                             |   | (in thousands) |    |
|                             |   |           |    |   |   |   |
| Balance, beginning of year       |   | $              | 23, 340 |   |   | $ | 22,457 |   |
| New loans                        |   |           | 8,636   |   |   |   | 16,098 |   |
| Repayments                       |   |           | (12,490 | ) |   |   | (15,215 | ) |
|   Balance, end of year |   | $              | 19,486  |   |   | $ | 23,340 |   |
|                             |   |           |    |   |   |   |   |   |

----

|                                                                                |   | Years Ended December 31, |   |
|-------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                                                |   | (in thousands)           |   |
|                                                                                |   |                     |   |   |   |   |   |   |   |
| Other noninterest expense:                                                          |   |                     |   |   |   |   |   |   |   |
| Legal and professional fees                                                         |   | $                        | 1,791  |   |   | $ | 1,254 |   |   | $ | 1,496 |   |
| Operating supplies                                                                  |   |                     | 594    |   |   |   | 537 |   |   |   | 572 |   |
| Marketing and public relations                                                      |   |                     | 1,426  |   |   |   | 809 |   |   |   | 1,131 |   |
| Data processing                                                                     |   |                     | 1,143  |   |   |   | 1,067 |   |   |   | 1,063 |   |
| Travel and lodging                                                                  |   |                     | 435    |   |   |   | 398 |   |   |   | 416 |   |
| Taxes - sales and capital                                                           |   |                     | 620    |   |   |   | 529 |   |   |   | 571 |   |
| Telephone                                                                           |   |                     | 177    |   |   |   | 192 |   |   |   | 185 |   |
| Amortization of core deposit intangibles                                            |   |                     | 218    |   |   |   | 291 |   |   |   | 311 |   |
| Donations                                                            |   |                     | 778    |   |   |   | 221 |   |   |   | 258 |   |
| Regulatory assessment expense          |   |                     | 1,496  |   |   |   | 2,049 |   |   |   | 827 |   |
| Net cost of other real estate and repossessions                                     |   |                     | 858    |   |   |   | 399 |   |   |   | 249 |   |
| Other                                                                               |   |                     | 2,331  |   |   |   | 2,618 |   |   |   | 2,606 |   |
|   Total other expense                                                     |   | $                        | 11,867 |   |   | $ | 10,364 |   |   | $ | 9,685 |

|              |   | Years Ended December 31, |   |
|-------------------|--------|--------------------------|--------|
|              |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|              |   | (in thousands)           |   |
|              |   |                     |   |   |   |   |   |   |   |
| Current           |   | $                        | 4,604  |   |   | $ | 3,705 |   |   | $ | 5,423 |   |
| Deferred          |   |                     | 622    |   |   |   | 67 |   |   |   | (2,848 | ) |
| Tax credits       |   |                     | -      |   |   |   | (46 | ) |   |   | (105 | ) |
|   Total |   | $                        | 5,226  |   |   | $ | 3,726 |   |   | $ | 2,470 |   |
|              |   |                     |   |   |   |   |   |   |   |   |   |   |

|                                   |   | Years Ended December 31, |   |
|----------------------------------------|--------|--------------------------|--------|
|                                   |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                   |   | (in thousands)           |   |
|                                   |   |                     |   |   |   |   |   |   |   |
| Statutory tax rate                     |   |                     | 34.2   | % |   |   | 34.0 | % |   |   | 34.3 | % |
| Federal income taxes at statutory rate |   | $                        | 5,224  |   |   | $ | 3,854 |   |   | $ | 2,739 |   |
| Tax credits                            |   |                     | -      |   |   |   | (46 | ) |   |   | (105 | ) |
| Other                                  |   |                     | 2      |   |   |   | (82 | ) |   |   | (164 | ) |
|   Total                      |   | $                        | 5,226  |   |   | $ | 3,726 |   |   | $ | 2,470 |   |
|                                   |   |                     |   |   |   |   |   |   |   |   |   |   |

----

|                                             |   | Years Ended December 31, |   |
|--------------------------------------------------|--------|--------------------------|--------|
|                                             |   | 2010                     |   |   | 2009 |   |
|                                             |   | (in thousands)           |   |
| Deferred tax assets:                             |   |                     |   |   |   |   |
| Allowance for loan losses                        |   | $                        | 2,828  |   |   | $ | 2,692 |   |
| Other real estate owned                          |   |                     | 135    |   |   |   | 36 |   |
| Impairment writedown on securities               |   |                     | 168    |   |   |   | 1,236 |   |
| Unrealized loss on available for sale securities |   |                     | 133    |   |   |   | - |   |
| Other                                            |   |                     | 249    |   |   |   | 145 |   |
|   Gross deferred tax assets            |   |                     | 3,513  |   |   |   | 4,109 |   |
|                                             |   |                     |   |   |   |   |   |   |
| Deferred tax liabilities:                        |   |                     |   |   |   |   |   |   |
| Depreciation and amortization                    |   |                     | (1,139 | ) |   |   | (1,238 | ) |
| Unrealized gains on avalable for sale securities |   |                     | -      |   |   |   | (1,070 | ) |
| Other                                            |   |                     | (218   | ) |   |   | (226 | ) |
|   Gross deferred tax liabilities       |   |                     | (1,357 | ) |   |   | (2,534 | ) |
|     Net deferred tax assets  |   | $                        | 2,156  |   |   | $ | 1,575 |   |
|                                             |   |                     |   |   |   |   |   |   |

----

|                                                                     |   | December 31,   |   |
|--------------------------------------------------------------------------|--------|----------------|--------|
|                                                                     |   | 2010           |   |   | 2009 |   |   | 2008 |   |
|                                                                     |   | (in thousands) |   |
|                                                                     |   |           |   |   |   |   |   |   |   |
| Unrealized gain (loss) on available for sale securities, net             |   | $              | (1,085 | )  |   | $ | 9,382 |   |   | $ | (8,889 | )  |
| Unrealized loss on held to maturity securities, net                      |   |           | -      |   |   |   | (224 | )  |   |   | - |   |
| Reclassification for OTTI losses                                         |   |           | -      |   |   |   | 829 |   |   |   | 4,611 |   |
| Reclassification adjustments for net (gains) losses, realized net income |   |           | (2,453 | ) |   |   | (2,056 | ) |   |   | 1 |   |
|   Other comprehensive income (loss)                            |   |           | (3,538 | ) |   |   | 7,931 |   |   |   | (4,277 | ) |
| Income tax (provision) benefit related to other comprehensive income     |   |           | 1,202  |   |   |   | (2,696 | ) |   |   | 1,454 |   |
|   Other comprehensive income (loss), net of income taxes       |   | $              | (2,336 | ) |   | $ | 5,235 |   |   | $ | (2,823 | ) |
|                                                                     |   |           |   |   |   |   |   |   |   |   |   |   |

|                                                                  |   | December 31,   |   |
|-----------------------------------------------------------------------|--------|----------------|--------|
|                                                                  |   | 2010           |   |   | 2009 |   |
|                                                                  |   | (in thousands) |   |
| Financial instruments whose contract                                  |   |           |   |   |   |   |
|  amounts represent credit risk:                                  |   |           |   |   |   |   |
|     Commitments to extend credit                  |   | $              | 95,204 |   |   | $ | 51,132 |   |
|     Standby and commercial letters of credit |   |           | 5,681  |   |   |   | 7,091 |   |

----

----

|                                                                             |   |  At December 31, |
|----------------------------------------------------------------------------------|--------|-----------------------|
|                                                                             |   |  (in thousands)  |
|                                                                             |   | 2010                  |   |   | 2009 |
|                                                                             |   |                  |   |   |   |
|  Securities available for sale measured at fair value                       | $      | 322,128               |   | $ | 249,480 |
|                                                                   |   |                  |   |   |   |
|  Fair Value Measurements Using:                                             |   |                  |   |   |   |
|    Quoted Prices in Active Markets For Identical Assets (Level 1) |   | 14,374                |   |   | 16,943 |
|    Significant Other Observable Inputs (Level 2)                       |   | 299,366               |   |   | 223,537 |
|    Significant Unoberservable Inputs (Level 3)                    |   | 8,388                 |   |   | 9,000 |
|                                                                             |   |                  |   |   |   |
|                                                                             |   |                  |   |   |   |
|                                                                             |   |                  |   |   |   |
|                                                                             |   |                  |   |   |   |
|                                                                             |   |                  |   |   |   |

|                                                                                                    |   |            |   |
|---------------------------------------------------------------------------------------------------------|--------|-----------------|--------|
|                                                                                                    |   | Municipal Bonds |   |
|                                                                                                    |   | (in thousands)  |   |
|                                                                                                    |   |            |   |
| Balance, beginning of year                                                                              |   | $               | 9,000  |   |
| Total gains or losses (realized/unrealized)                                                             |   |            |   |   |
|    Included in earnings                                                        |   |            | -      |   |
|    Included in other comprehensive income                                                     |   |            | -      |   |
| Purchases, sales, issuances and settlements, net                                                        |   |            | (612   | ) |
| Transfers in and/or out of Level 3                                                                      |   |            | -      |   |
| Balance as of end of year                                                                               |   |            | 8,388  |   |
| The amount of total gains or losses for the period included in earnings attributable to the             |   |            |   |   |
|    change in unrealized gains or losses relating to assets still held as of December 31, 2010 |   | $               | -      |   |

----

|                                                    |   |   Noninterest Income |   | Other Comprehensive Income |   |
|---------------------------------------------------------|--------|--------------------------------|--------|----------------------------|--------|
|                                                    |   |                           |   |                       |   |
| Total gains included in earnings                        | $      | 3,162                          |   |                       |   |
| (or changes in net assets)                              |   |                           |   |                       |   |
|                                                    |   |                           |   |                       |   |
| Changes in unrealized gains (losses) relating to assets |   |                           | $      | (2,336                     | )      |
|  still held at December 31, 2010                   |   |                           |   |                       |   |
|                                                    |   |                           |   |                       |   |
|                                                    |   |                           |   |                       |   |
|                                                    |   |                           |   |                       |   |
|                                                    |   |                           |   |                       |   |

|                                                                             |   |  At December 31, |
|----------------------------------------------------------------------------------|--------|-----------------------|
|                                                                             |   |  (in thousands)  |
|                                                                             |   | 2010                  |   |   | 2009 |
|                                                                             |   |                  |   |   |   |
| Impaired loans measured at fair value                                            | $      | 47,763                |   |  $ | 28,080 |
|                                                                   |   |                  |   |   |   |
|  Fair Value Measurements Using:                                             |   |                  |   |   |   |
|    Quoted Prices in Active Markets For Identical Assets (Level 1) |   | -                     |   |   | - |
|    Significant Other Observable Inputs (Level 2)                       |   | 30,364                |   |   | 11,166 |
|    Significant Unoberservable Inputs (Level 3)                    |   | 17,399                |   |   | 16,914 |
|                                                                             |   |                  |   |   |   |
|                                                                             |   |                  |   |   |   |
| Other real estate owned measured at fair value                    | $      | 577                   |   | $ | 658 |
|                                                                             |   |                  |   |   |   |
|    Quoted Prices in Active Markets For Identical Assets (Level 1)      |   | -                     |   |   | - |
|    Significant Other Observable Inputs (Level 2)                       |   | 577                   |   |   | 658 |
|    Significant Unoberservable Inputs (Level 3)                         |   | -                     |   |   | - |
|                                                                             |   |                  |   |   |   |
|                                                                             |   |                  |   |   |   |

----

----

|                           |   | December 31,   |      |
|--------------------------------|--------|----------------|-----------|
|                           |   | 2010           |      |   | 2009 |   |
|                           |   |           |      |   | Estimated |   |   |   |   |   | Estimated |   |
|                           |   | Carrying       |      |   | Fair |   |   | Carrying |   |   | Fair |   |
|                           |   | Value          |      |   | Value |   |   | Value |   |   | Value |   |
|                           |   | (in thousands) |      |
| Assets                         |   |           |      |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents      |   | $              | 44,837    |   |   | $ | 44,837 |   |   | $ | 46,718 |   |   | $ | 46,718 |   |
| Securities, available for sale |   |           | 322,128   |   |   |   | 322,128 |   |   |   | 249,480 |   |   |   | 249,480 |   |
| Securities, held to maturity   |   |           | 159,833   |   |   |   | 155,326 |   |   |   | 12,349 |   |   |   | 12,462 |   |
| Federal Home Loan Bank stock   |   |           | 1,615     |   |   |   | 1,615 |   |   |   | 2,547 |   |   |   | 2,547 |   |
| Loans, net                     |   |           | 567,323   |   |   |   | 570,566 |   |   |   | 581,983 |   |   |   | 584,248 |   |
| Accrued interest receivable    |   |           | 7,664     |   |   |   | 7,664 |   |   |   | 5,807 |   |   |   | 5,807 |   |
|                           |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                    |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                       |   | $              | 1,007,383 |   |   | $ | 1,016,679 |   |   | $ | 799,746 |   |   | $ | 802,183 |   |
| Borrowings                     |   |           | 12,589    |   |   |   | 12,591 |   |   |   | 31,929 |   |   |   | 31,918 |   |
| Accrued interest payable       |   |           | 3,539     |   |   |   | 3,539 |   |   |   | 2,519 |   |   |   | 2,519 |   |

----

|  First Guaranty Bancshares, Inc.                              |   |
|--------------------------------------------------------------------|--------|
| Condensed Balance Sheets                                           |   |
| (in thousands)                                                     |   |
|                                                               |   |   |   |   |   |   |
|                                                               |   | December 31, |   |
| Assets                                                             |   | 2010 |   |   | 2009 |   |
|   Cash                                                   |   | $ | 7,523 |   |   | $ | 5,547 |   |
|   Investment in bank subsidiary                          |   |   | 90,701 |   |   |   | 89,363 |   |
|   Other assets                                           |   |   | 257 |   |   |   | 409 |   |
|     Total Assets                               |   | $ | 98,481 |   |   | $ | 95,319 |   |
|                                                               |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                               |   |   |   |   |   |   |   |   |
|   Other liabilities                                      |   | $ | 543 |   |   | $ | 384 |   |
|   Stockholders' Equity                                   |   |   | 97,938 |   |   |   | 94,935 |   |
|     Total Liabilities and Stockholders' Equity |   | $ | 98,481 |   |   | $ | 95,319 |   |
|                                                               |   |   |   |   |   |   |   |   |

|  First Guaranty Bancshares, Inc.                                                            |   |
|--------------------------------------------------------------------------------------------------|--------|
| Condensed Statements of Income                                                                   |   |
| (in thousands)                                                                                   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                                             |   | Years ended December 31, |   |
| Operating Income                                                                                 |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|    Dividends received from bank subsidiary                                        |   | $ | 6,893 |   |   | $ | 5,109 |   |   | $ | 7,200 |   |
|    Other income                                                                   |   |   | 4 |   |   |   | 4 |   |   |   | 143 |   |
|      Total operating income                                             |   |   | 6,897 |   |   |   | 5,113 |   |   |   | 7,343 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest expense                                                                     |   |   | - |   |   |   | 114 |   |   |   | 152 |   |
|   Salaries & Benefits                 |   |   | 88 |   |   |   | 78 |   |   |   | 106 |   |
|   Other expenses                                                                       |   |   | 766 |   |   |   | 423 |   |   |   | 597 |   |
|      Total operating expenses                                           |   |   | 854 |   |   |   | 615 |   |   |   | 855 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income tax benefit and increase in equity in undistributed                    |   |   |   |   |
|   earnings of subsidiary                                                                    |   |   | 6,043 |   |   |   | 4,498 |   |   |   | 6,488 |   |
| Income tax benefit                                                                               |   |   | 296 |   |   |   | 214 |   |   |   | 289 |   |
|     Income before increase in equity in undistributed earnings of subdisiary |   |   | 6,339 |   |   |   | 4,712 |   |   |   | 6,777 |   |
| Increase (Decrease) in equity in undistributed earnings of subsidiary                            |   |   | 3,686 |   |   |   | 2,883 |   |   |   | (1,265 | ) |
|     Net Income                                                               |   |   | 10,025 |   |   |   | 7,595 |   |   |   | 5,512 |   |
| Less preferred stock dividends                                                                   |   |   | (1,333 | ) |   |   | (594 | ) |   |   | - |   |
|     Net income available to common shareholders                              |   | $ | 8,692 |   |   | $ | 7,001 |   |   | $ | 5,512 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                                                                          |   |                     |   |    |   |   |    |    |   |
|-----------------------------------------------------------------------------------------------|--------|--------------------------|--------|---------|--------|--------|---------|---------|--------|
| First Guaranty Bancshares, Inc.                                                               |   |
| Condensed Statements of Cash Flow                                                             |   |
|   (in thousands)                                                                         |   |
|                                                                                          |   | Years ended December 31, |   |
|                                                                                          |   | 2010                     |   |    | 2009   |   |    | 2008    |   |
|                                                                                          |   | (in thousands)           |   |
|                                                                                          |   |                     |   |    |   |   |    |    |   |
| Cash Flows From Operating Activities                                                          |   |                     |   |    |   |   |    |    |   |
| Net income                                                                                    |   | $                        | 10,025 |    |   | $      | 7,595   |    |   | $ | 5,512 |   |
| Adjustments to reconcile net income to net cash                                               |   |                     |   |    |   |   |    |    |   |   |   |   |
|   provided by operating activities:                                                 |   |                     |   |    |   |   |    |    |   |   |   |   |
|     Provision for deferred income taxes                                   |   |                     | -      |    |   |   | -       |    |   |   | (16 | ) |
|     (Increase) Decrease in equity in undistributed earnings of subsidiary |   |                     | (3,686 | )       |   |   | (2,883  | )       |   |   | 1,265 |   |
|     Net change in other liabilities                                       |   |                     | 159    |    |   |   | (83     | )       |   |   | 65 |   |
|     Net change in other assets                                            |   |                     | 164    |    |   |   | 275     |    |   |   | (132 | ) |
| Net Cash Provided By Operating Activities                                                     |   |                     | 6,662  |    |   |   | 4,904   |    |   |   | 6,694 |   |
|                                                                                          |   |                     |   |    |   |   |    |    |   |   |   |   |
| Cash Flows From Investing Activities                                                          |   |                     |   |    |   |   |    |    |   |   |   |   |
| Payments for investments in and advances to subsidiary                                        |   |                     | -      |    |   |   | (16,350 | )       |   |   | - |   |
| Net Cash Used in Investing Activities                                                         |   |                     | -      |    |   |   | (16,350 | )  |   |   | - |   |
|                                                                                          |   |                     |   |    |   |   |    |    |   |   |   |   |
| Cash Flows From Financing Activities                                                          |   |                     |   |    |   |   |    |    |   |   |   |   |
| Repayment of long-term debt                                                                   |   |                     | -      |    |   |   | -       |    |   |   | (3,093 | ) |
| Proceeds from issuance of preferred stock                                                     |   |                     | -      |    |   |   | 20,699  |    |   |   | - |   |
| Dividends paid                                                                                |   |                     | (4,686 | )       |   |   | (3,799  | )       |   |   | (3,557 | ) |
| Net Cash Provided by (Used In) Financing Activities                                           |   |                     | (4,686 | )  |   |   | 16,900  |    |   |   | (6,650 | ) |
|                                                                                          |   |                     |   |    |   |   |    |    |   |   |   |   |
| Net Increase In Cash and Cash Equivalents                                                     |   |                     | 1,976  |    |   |   | 5,454   |    |   |   | 44 |   |
| Cash and Cash Equivalents at the Beginning of the Period                                      |   |                     | 5,547  |    |   |   | 93      |    |   |   | 49 |   |
| Cash and Cash Equivalents at the End of the Period                                            |   | $                        | 7,523  |    |   | $      | 5,547   |    |   | $ | 93 |   |
|                                                                                          |   |                     |   |    |   |   |    |    |   |   |   |   |

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| (a)            | 1      | Consolidated Financial Statements                                                                                                                                                                                                                                                                                                     |           |
|----------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|           |   |                                                                                                                                                                                                                                                                                                                                  |           |
|           |   | Item                                                                                                                                                                                                                                                                                                                                  | Page           |
|           |   | First Guaranty Bancshares, Inc. and Subsidiary                                                                                                                                                                                                                                                                                        |           |
|           |   | Report of Independent Registered Accounting Firm                                                                                                                                                                                                                                                                                      |   51 |
|           |   | Consolidated Balance Sheets - December 31, 2010 and 2009                                                                                                                                                                                                                                                                              |   52 |
|           |   | Consolidated Statements of Income – Years Ended December 31, 2010, 2009 and 2008                                                                                                                                                                                                                                                |   53 |
|           |   | Consolidated Statements of Changes in Stockholders’ Equity -  December 31, 2010, 2009 and 2008                                                                                                                                                                                                                        |   54 |
|           |   | Consolidated Statements of Cash Flows - Years Ended December 31, 2010, 2009 and 2008                                                                                                                                                                                                                                                  |   55 |
|           |   | Notes to Consolidated Financial Statements                                                                                                                                                                                                                                                                                            |   56 |
|           |   |                                                                                                                                                                                                                                                                                                                                  |           |
|           | 2      | Consolidated Financial Statement Schedules                                                                                                                                                                                                                                                                                            |           |
|           |   | All schedules to the consolidated financial statements of First Guaranty Bancshares, Inc. and its subsidiary have been omitted because they are not required under the related instructions or are inapplicable, or because the required information has been provided in the consolidated financial statements or the notes thereto. |           |
|           |   |                                                                                                                                                                                                                                                                                                                                  |           |
|           | 3      | Exhibits                                                                                                                                                                                                                                                                                                                              |           |
|           |   |                                                                                                                                                                                                                                                                                                                                  |           |
|           |   | The exhibits required by Regulation S-K are set forth in the following list and are filed either by incorporation by reference from previous filings with the Securities and Exchange Commission or by attachment to this Annual Report on Form 10-K as indicated below.                                                    |           |
| Exhibit Number |   | Exhibit                                                                                                                                                                                                                                                                                                                               |           |
| 3.1            |   | Restatement of Articles of Incorporation of First Guaranty Banchshares, Inc. dated July 27, 2007 (filed as Exhibit 3.1 on Form 8-K12G3 dated August 2, 2007 and incorporated herein by reference).                                                                                                                                    |           |
| 3.2            |   | Bylaws of First Guaranty Bancshares, Inc. dated January 4, 2007 (filed as Exhibit 3.2 on Form 8-K12G3 dated August 2, 2007 and incorporated herein by reference).                                                                                                                                                                     |           |
| 3.3            |   | Amendment to Bylaws of First Guaranty Bancshares, Inc., dated May 17, 2007 (filed as exhibit 3.3 on Form 8-K12G3 dated August 2, 2007 and incorporated herein by reference).                                                                                                                                                          |           |
| 11             |   | Statement Regarding Computation of Earnings Per Share                                                                                                                                                                                                                                                                                 |           |
| 12             |   | Statement Regarding Computation of Ratios                                                                                                                                                                                                                                                                                             |           |
| 14.1           |   | First Guaranty Bancshares, Inc. and Subsidiary Code of Conduct and Ethics for Employees, Officers and Directors adopted March 18, 2010 (filed at Exhibit 14.3 on the Company’s Form 10-K dated March 31, 2010 and incorporated herein by reference)                                                                             |           |
| 14.2           |   | First Guaranty Bancshares, Inc. Code of Ethics for Senior Financial Officers adopted March 18, 2010 (filed at Exhibit 14.4 on the Company’s Form 10-K dated March 31, 2010 and incorporated herein by reference).                                                                                                               |           |
| 14.3           |   | First Guaranty Bancshares, Inc. and Subsidiary Code of Conduct and Ethics for Employees, Officers and Directors adopted March 17, 2011.                                                                                                                                                                                               |           |
| 14.4           |   | First Guaranty Bancshares, Inc. Code of Ethics for Senior Financial Officers adopted March 17, 2011.                                                                                                                                                                                                                                  |           |
| 21             |   | Subsidiaries of the First Guaranty Bancshares, Inc. (filed as Exhibit 21 on the Company’s Form 8-K dated November 8, 2007 and incorporated herein by reference).                                                                                                                                                                |           |
| 24             |   | Power of attorney                                                                                                                                                                                                                                                                                                                     |           |
| 31.1           |   | Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         |           |
| 31.2           |   | Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         |           |
| 32.1           |   | Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                |           |
| 32.2           |   | Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                |           |
| 99.1           |   | Chief Executive Officer TARP Certification                                                                                                                                                                                                                                                                                       |           |
| 99.2      |   | Chief Financial Officer TARP Certification                                                                                                                                                                                                                                                                                       |           |

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|  /s/ Alton B. LewisAlton B. Lewis                  | Chief Executive Officer andDirector                                                         | March 31, 2011       |
|---------------------------------------------------------|---------------------------------------------------------------------------------------------|----------------------|
|                                                    |                                                                                        |                 |
|                                                    |                                                                                        |                 |
| /s/ Eric J. DoschEric J. Dosch                          | Chief Financial Officer,Secretary and Treasurer(Principal Financial and Accounting Officer) | March 31, 2011       |
|                                                    |                                                                                        |                 |
|                                                    |                                                                                        |                 |
| *___________________________Marshall T. Reynolds        | Chairman of the Board                                                                       | March 31, 2011       |   |
|                                                    |                                                                                        |                 |
|                                                    |                                                                                        |                 |
| *___________________________William K. Hood             | Director                                                                                    | March 31, 2011       |
|                                                    |                                                                                        |                 |
|                                                    |                                                                                        |                 |   |
|  *___________________________Sandra C. Ramsey |  Director                                                                              |  March 31, 2011 |   |
|                                                    |                                                                                        |                 |   |
|                                                    |                                                                                        |                 |   |

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