----

----

| FOR QUARTER ENDED MARCH 31, 2011    | COMMISSION FILE NUMBER 0-12436 |
|----------------------------------------------------|--------------------------------|

| GEORGIA                                         | 58-1492391                              |
|----------------------------------------------------------------|-----------------------------------------|
| (STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) | (I.R.S. EMPLOYER IDENTIFICATION NUMBER) |

| LARGE ACCELERATED FILER  o               | ACCELERATED FILER  o                    |
|-----------------------------------------------|----------------------------------------------|
| NON ACCELERATED FILER  o       | SMALLER REPORTING COMPANY   x |
| (DO NOT CHECK IF A SMALLER REPORTING COMPANY) |                                         |

| CLASS              | OUTSTANDING AT MAY 13, 2011 |
|----------------------------------------|-----------------------------|
| COMMON STOCK, $1 PAR VALUE   | 8,442,958                   |

----

----

----

TABLE OF CONTENTS

| PART I – Financial Information | Page                                 |
|--------------------------------------|--------------------------------------|
|                                 |                                 |   |   |
|                                 | Forward Looking Statement Disclosure | 3 |
|                                 |                                 |   |
|                                 | Item 1.                              | Financial Statements | 4 |
|                                 | Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operation | 40 |
|                                 | Item 3.                              | Quantitative and Qualitative Disclosures About Market Risk | 64 |
|                                 | Item 4.                              | Controls and Procedures | 67 |
|                                 |                                 |   |   |
| PART II – Other Information    |                                 |
|                                 |                                 |   |   |
|                                 | Item 1.                              | Legal Proceedings | 68 |
|                                 | Item 1A.                             | Risk Factors | 68 |
|                                 | Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds | 68 |
|                                 | Item 3.                              | Defaults Upon Senior Securities | 68 |
|                                 | Item 4.                              | (Removed and Reserved) | 68 |
|                                 | Item 5.                              | Other Information | 68 |
|                                 | Item 6.                              | Exhibits | 69 |
|                                 | Signatures                           |   | 71 |

----

Table of Contents

Forward Looking Statement Disclosure

| ·   |   | General economic conditions, whether national or regional, that could affect the demand for loans or lead to increased loan losses; |
|--------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   | Competitive factors, including increased competition with community, regional, and national financial institutions, that may lead to pricing pressures that reduce yields the Company achieves on loans and increase rates the Company pays on deposits, loss of the Company’s most valued customers, defection of key employees or groups of employees, or other losses; |
|--------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   | Increasing or decreasing interest rate environments, including the shape and level of the yield curve, that could lead to decreases in net interest margin, lower net interest and fee income, including lower gains on sales of loans, and changes in the value of the Company’s investment securities; |
|--------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   | Changing business or regulatory conditions, or new legislation, affecting the financial services industry that could lead to increased costs, changes in the competitive balance among financial institutions, or revisions to our strategic focus; |
|--------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   | Changes or failures in technology or third party vendor relationships in important revenue production or service areas, or increases in required investments in technology that could reduce our revenue, increase our costs or lead to disruptions in our business. |
|--------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   | Readers are cautioned not to place undue reliance on our forward-looking statements, which reflect management’s analysis only as of the date of the statements.  The Company does not intend to publicly revise or update forward-looking statements to reflect events or circumstances that arise after the date of this report. |
|--------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

FINANCIAL

|   | A.  | CONSOLIDATED BALANCE SHEETS – MARCH 31, 2011 AND DECEMBER 31, 2010. |
|--------|----------|---------------------------------------------------------------------------|

|   | B. | CONSOLIDATED STATEMENTS OF INCOME – FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010. |
|--------|----|-----------------------------------------------------------------------------------------------|

|   | C. | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME – FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010. |
|--------|----|-------------------------------------------------------------------------------------------------------------|

|   | D. | CONSOLIDATED STATEMENTS OF CASH FLOWS – FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010.                     |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                                                                                             |   | March 31, 2011 |      |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
| ASSETS                                                                                                                                                           |   | (Unaudited)         |      |   | (Audited)              |   |
|                                                                                                                                                             |   |                |      |   |                   |   |
| Cash and Cash Equivalents                                                                                                                                        |   |                |      |   |                   |   |
| Cash and Due from Banks                                                                                                                                          |   | $                   | 18,762    |   |                   | $      | 16,613 |   |
| Federal Funds Sold                                                                                                                                               |   |                | 70,896    |   |                   |   | 32,536 |   |
| Securities Purchased Under Agreement                                                                                                                             |   |                | 5,000     |   |                   |   | 5,000 |   |
|                                                                                                                                                             |   |                | 94,658    |   |                   |   | 54,149 |   |
| Interest-Bearing Deposits                                                                                                                                        |   |                | 14,736    |   |                   |   | 50,727 |   |
| Investment Securities                                                                                                                                            |   |                |      |   |                   |   |   |   |
| Available for Sale, at Fair Value                                                                                                                                |   |                | 292,203   |   |                   |   | 303,838 |   |
| Held to Maturity, at Cost (Fair Value of $53 and $53, as of March 31, 2011 and December 31, 2010, Respectively)                                                  |   |                | 50        |   |                   |   | 48 |   |
|                                                                                                                                                             |   |                | 292,253   |   |                   |   | 303,886 |   |
|                                                                                                                                                             |   |                |      |   |                   |   |   |   |
| Federal Home Loan Bank Stock, at Cost                                                                                                                            |   |                | 6,063     |   |                   |   | 6,063 |   |
| Loans                                                                                                                                                            |   |                | 782,981   |   |                   |   | 813,250 |   |
| Allowance for Loan Losses                                                                                                                                        |   |                | (22,470   | )      |                   |   | (28,280 | ) |
| Unearned Interest and Fees                                                                                                                                       |   |                | (61       | )      |                   |   | (61 | ) |
|                                                                                                                                                             |   |                | 760,450   |   |                   |   | 784,909 |   |
| Premises and Equipment                                                                                                                                           |   |                | 26,770    |   |                   |   | 27,148 |   |
| Other Real Estate                                                                                                                                                |   |                | 21,094    |   |                   |   | 20,208 |   |
| Other Intangible Assets                                                                                                                                          |   |                | 286       |   |                   |   | 295 |   |
| Other Assets                                                                                                                                                     |   |                | 27,765    |   |                   |   | 28,273 |   |
| Total Assets                                                                                                                                                     |   | $                   | 1,244,075 |   |                   | $      | 1,275,658 |   |
|                                                                                                                                                             |   |                |      |   |                   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                             |   |                |      |   |                   |   |   |   |
| Deposits                                                                                                                                                         |   |                |      |   |                   |   |   |   |
| Noninterest-Bearing                                                                                                                                              |   | $                   | 94,859    |   |                   | $      | 102,959 |   |
| Interest-Bearing                                                                                                                                                 |   |                | 936,104   |   |                   |   | 956,165 |   |
|                                                                                                                                                             |   |                | 1,030,963 |   |                   |   | 1,059,124 |   |
| Borrowed Money                                                                                                                                                   |   |                |      |   |                   |   |   |   |
| Securities Sold Under Agreements to Repurchase                                                                                                                   |   |                | 20,000    |   |                   |   | 20,000 |   |
| Subordinated Debentures                                                                                                                                          |   |                | 24,229    |   |                   |   | 24,229 |   |
| Other Borrowed Money                                                                                                                                             |   |                | 71,981    |   |                   |   | 75,076 |   |
|                                                                                                                                                             |   |                | 116,210   |   |                   |   | 119,305 |   |
|                                                                                                                                                             |   |                |      |   |                   |   |   |   |
| Other Liabilities                                                                                                                                                |   |                | 4,042     |   |                   |   | 4,271 |   |
| Commitments and Contingencies                                                                                                                                    |   |                |      |   |                   |   |   |   |
| Stockholders' Equity                                                                                                                                             |   |                |      |   |                   |   |   |   |
| Preferred Stock, No Par Value; Authorized 10,000,000 Shares, Issued 28,000 Shares                                                                                |   |                | 27,544    |   |                   |   | 27,506 |   |
| Common Stock, Par Value $1 a Share; Authorized 20,000,000 Shares, Issued 8,442,958 and 8,442,958 Shares as of March 31, 2011 and December 31, 2010, Respectively |   |                | 8,443     |   |                   |   | 8,443 |   |
| Paid-In Capital                                                                                                                                                  |   |                | 29,171    |   |                   |   | 29,171 |   |
| Retained Earnings                                                                                                                                                |   |                | 29,147    |   |                   |   | 28,479 |   |
| Restricted Stock - Unearned Compensation                                                                                                                         |   |                | (30       | )      |                   |   | (41 | ) |
| Accumulated Other Comprehensive Income (Loss), Net of Tax                                                                                                        |   |                | (1,415    | )      |                   |   | (600 | ) |
|                                                                                                                                                             |   |                | 92,860    |   |                   |   | 92,958 |   |
| Total Liabilities and Stockholders' Equity                                                                                                                       |   | $                   | 1,244,075 |   |                   | $      | 1,275,658 |   |
|                                                                                                                                                             |   |                |      |   |                   |   |   |   |

----

Table of Contents

|                                                |   | Three Months Ended |      |
|-----------------------------------------------------|--------|--------------------|-----------|
|                                                |   | 3/31/2011          |      |   | 3/31/2010 |   |
| Interest Income                                     |   |               |      |   |   |   |
| Loans, Including Fees                               |   | $                  | 11,568    |   |   | $ | 13,432 |   |
| Federal Funds Sold                                  |   |               | 34        |   |   |   | 26 |   |
| Deposits with Other Banks                           |   |               | 18        |   |   |   | 3 |   |
| Investment Securities                               |   |               |      |   |   |   |   |   |
| U.S. Government Agencies                            |   |               | 1,843     |   |   |   | 1,676 |   |
| State, County and Municipal                         |   |               | 29        |   |   |   | 25 |   |
| Corporate Obligations and Asset-Backed Securities   |   |               | 23        |   |   |   | 56 |   |
| Dividends on Other Investments                      |   |               | 12        |   |   |   | 4 |   |
|                                                |   |               | 13,527    |   |   |   | 15,222 |   |
| Interest Expense                                    |   |               |      |   |   |   |   |   |
| Deposits                                            |   |               | 3,654     |   |   |   | 4,440 |   |
| Federal Funds Purchased                             |   |               | 167       |   |   |   | 186 |   |
| Borrowed Money                                      |   |               | 888       |   |   |   | 918 |   |
|                                                |   |               | 4,709     |   |   |   | 5,544 |   |
|                                                |   |               |      |   |   |   |   |   |
| Net Interest Income                                 |   |               | 8,818     |   |   |   | 9,678 |   |
| Provision for Loan Losses                           |   |               | 1,500     |   |   |   | 3,250 |   |
| Net Interest Income After Provision for Loan Losses |   |               | 7,318     |   |   |   | 6,428 |   |
|                                                |   |               |      |   |   |   |   |   |
| Noninterest Income                                  |   |               |      |   |   |   |   |   |
| Service Charges on Deposits                         |   |               | 756       |   |   |   | 907 |   |
| Other Service Charges, Commissions and Fees         |   |               | 315       |   |   |   | 270 |   |
| Mortgage Fee Income                                 |   |               | 62        |   |   |   | 61 |   |
| Securities Gains                                    |   |               | 396       |   |   |   | 781 |   |
| Other                                               |   |               | 575       |   |   |   | 521 |   |
|                                                |   |               | 2,104     |   |   |   | 2,540 |   |
| Noninterest Expenses                                |   |               |      |   |   |   |   |   |
| Salaries and Employee Benefits                      |   |               | 3,569     |   |   |   | 3,554 |   |
| Occupancy and Equipment                             |   |               | 1,016     |   |   |   | 1,108 |   |
| Other                                               |   |               | 3,354     |   |   |   | 3,651 |   |
|                                                |   |               | 7,939     |   |   |   | 8,313 |   |
|                                                |   |               |      |   |   |   |   |   |
| Income Before Income Taxes                          |   |               | 1,483     |   |   |   | 655 |   |
| Income Tax (Benefits) Expense                       |   |               | 427       |   |   |   | (29 | ) |
| Net Income                                          |   |               | 1,056     |   |   |   | 684 |   |
| Preferred Stock Dividends                           |   |               | 350       |   |   |   | 350 |   |
| Net Income Available to Common Stockholders         |   | $                  | 706       |   |   | $ | 334 |   |
| Net Income Per Share of Common Stock                |   |               |      |   |   |   |   |   |
| Basic                                               |   | $                  | 0.08      |   |   | $ | 0.05 |   |
| Diluted                                             |   | $                  | 0.08      |   |   | $ | 0.05 |   |
| Cash Dividends Declared Per Share of Common Stock   |   | $                  | 0.00      |   |   | $ | 0.00 |   |
| Weighted Average Basic Shares Outstanding           |   |               | 8,439,220 |   |   |   | 7,256,062 |   |
| Weighted Average Diluted Shares Outstanding         |   |               | 8,439,220 |   |   |   | 7,256,062 |   |

----

Table of Contents

|                                                                                                                        |   | Three Months |   |   | Three Months |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|
|                                                                                                                        |   | Ended        |   |   | Ended        |   |
|                                                                                                                        |   | 03/31/11     |   |   | 03/31/10     |   |
|                                                                                                                        |   |         |   |   |         |   |
| Net Income                                                                                                                  |   | $            | 1,056  |   |         | $      | 684 |   |
|                                                                                                                        |   |         |   |   |         |   |   |   |
| Other Comprehensive Income (Loss), Net of Tax                                                                               |   |         |   |   |         |   |   |   |
| Gains (Losses) on Securities Arising During the Year                                                                        |   |         | (554   | )      |         |   | 702 |   |
| Reclassification Adjustment                                                                                                 |   |         | (261   | )      |         |   | (516 | ) |
|                                                                                                                        |   |         |   |   |         |   |   |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effect |   |         | (815   | )      |         |   | 186 |   |
|                                                                                                                        |   |         |   |   |         |   |   |   |
| Comprehensive Income                                                                                                        |   | $            | 241    |   |         | $      | 870 |   |

----

Table of Contents

|                                                            |   | 2011   |    |   | 2010   |   |
|-----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                            |   |   |    |   |   |   |
| Net Income                                                      |   | $      | 1,056   |   |   | $      | 684 |   |
| Adjustments to Reconcile Net Income to Net Cash                 |   |   |    |   |   |   |   |   |
| Provided by Operating Activities:                               |   |   |    |   |   |   |   |   |
| Depreciation                                                    |   |   | 455     |   |   |   | 541 |   |
| Provision for Loan Losses                                       |   |   | 1,500   |   |   |   | 3,250 |   |
| Securities Gains                                                |   |   | (396    | )      |   |   | (781 | ) |
| Amortization and Accretion                                      |   |   | 872     |   |   |   | 1,090 |   |
| Loss on Sale of Other Real Estate and Repossessions             |   |   | 10      |   |   |   | 226 |   |
| Unrealized Loss on Other Real Estate                            |   |   | 443     |   |   |   | 554 |   |
| (Increase) Decrease in Cash Surrender Value of Life Insurance   |   |   | (61     | )      |   |   | 63 |   |
| Other Prepaids, Deferrals and Accruals, Net                     |   |   | 705     |   |   |   | 938 |   |
|                                                            |   |   | 4,584   |   |   |   | 6,565 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                            |   |   |    |   |   |   |   |   |
| Purchases of Investment Securities Available for Sale           |   |   | (76,277 | )      |   |   | (141,625 | ) |
| Proceeds from Maturities, Calls, and Paydowns of                |   |   |    |   |   |   |   |   |
| Investment Securities:                                          |   |   |    |   |   |   |   |   |
| Available for Sale                                              |   |   | 12,363  |   |   |   | 12,710 |   |
| Proceeds from Sale of Investment Securities                     |   |   |    |   |   |   |   |   |
| Available for Sale                                              |   |   | 73,896  |   |   |   | 118,301 |   |
| (Increase) Decrease in Interest-Bearing Deposits in Other Banks |   |   | 35,991  |   |   |   | (24,368 | ) |
| Decrease in Net Loans to Customers                              |   |   | 20,865  |   |   |   | 39,171 |   |
| Purchase of Premises and Equipment                              |   |   | (78     | )      |   |   | (172 | ) |
| Proceeds from Sale of Other Real Estate and Repossessions       |   |   | 771     |   |   |   | 2,018 |   |
|                                                            |   |   | 67,531  |   |   |   | 6,035 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                            |   |   |    |   |   |   |   |   |
| Noninterest-Bearing Customer Deposits                           |   |   | (8,100  | )      |   |   | (3,677 | ) |
| Interest-Bearing Customer Deposits                              |   |   | (20,061 | )      |   |   | 2,101 |   |
| Securities Sold Under Agreements to Repurchase                  |   |   | --      |   |   |   | (15,000 | ) |
| Dividends Paid On Preferred Stock                               |   |   | (350    | )      |   |   | (350 | ) |
| Proceeds from Issuance of Common Stock                          |   |   | --      |   |   |   | 5,000 |   |
| Principal Payments on Other Borrowed Money                      |   |   | (3,095  | )      |   |   | (1,000 | ) |
| Proceeds from Other Borrowed Money                              |   |   | --      |   |   |   | 5,784 |   |
|                                                            |   |   | (31,606 | )      |   |   | (7,142 | ) |
|                                                            |   |   |    |   |   |   |   |   |
| Net Increase in Cash and Cash Equivalents                       |   |   | 40,509  |   |   |   | 5,458 |   |
| Cash and Cash Equivalents at Beginning of Period                |   |   | 54,149  |   |   |   | 42,429 |   |
| Cash and Cash Equivalents at End of Period                      |   | $      | 94,658  |   |   | $      | 47,887 |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|         Description                 | Life in Years                   |                   Method                  . |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Banking Premises                                                                                                                                            |      15-40       | Straight-Line and Accelerated                                                                                                                                                                                                   |
| Furniture and Equipment                                                                                                                                     |        5-10 | Straight-Line and Accelerated                                                                                                                                                                                                   |

----

Table of Contents

----

Table of Contents

|                                          |   |  March 31, 2011 |   |   | December 31, 2010 |   |
|-----------------------------------------------|--------|---------------------------|--------|--------|------------------------|--------|
| Cash on Hand and Cash Items                   |   | $                         | 9,971  |   |                   | $      | 8,898 |   |
| Noninterest-Bearing Deposits with Other Banks |   |                      | 8,791  |   |                   |   |  7,715 |   |
|                                          |   | $                         | 18,762 |   |                   | $      | 16,613  |   |

|                                     |   |      |    |   | Gross      |   |     | Gross      |   |   |   |   |
|------------------------------------------|--------|-----------|---------|--------|------------|--------|----------|------------|--------|--------|--------|--------|
|                                     |   | Amortized |    |   | Unrealized |   |     | Unrealized |   |   | Fair   |   |
|                                     |   | Cost      |    |   | Gains      |   |     | Losses     |   |   | Value  |   |
| Securities Available for Sale:           |   |      |    |   |       |   |     |       |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $         | 288,627 |   |       | $      | 741      |       |   | $      | (2,620 | )      |   | $ | 286,748 |   |
| State, County & Municipal            |   |      | 3,242   |   |       |   | 55       |       |   |   | (2     | )      |   |   | 3,295 |   |
| Corporate Obligations                    |   |      | 2,000   |   |       |   | 92       |       |   |   | (64    | )      |   |   | 2,028 |   |
| Asset-Backed Securities                  |   |      | 479     |   |       |   |  -- |       |   |   | (347   | )      |   |   | 132 |   |
|                                     |   | $         | 294,348 |   |       | $      | 888      |       |   | $      | (3,033 | )      |   | $ | 292,203 |   |
|                                     |   |      |    |   |       |   |     |       |   |   |   |   |   |   |   |   |
| Securities Held to Maturity:             |   |      |    |   |       |   |     |       |   |   |   |   |   |   |   |   |
| State, County and Municipal              |   | $         | 50      |   |       | $      | 3        |       |   | $      | --     |   |   | $ | 53 |   |

----

Table of Contents

|                                   |   | Securities          |    |
|----------------------------------------|--------|---------------------|---------|
|                                   |   | Available for Sale  |    |   | Held to Maturity |   |
|                                   |   | Amortized Cost |    |   | Fair Value |   |   | Amortized Cost |   |   | Fair Value |   |
|                                   |   |                |    |   |   |   |   |   |   |   |   |   |
| Due After One Year Through Five Years  |   | $                   | 499     |   |   | $ | 521 |   |   | $ | 50 |   |   | $ | 53 |   |
| Due After Five Years Through Ten Years |   |                | 2,737   |   |   |   | 2,853 |   |   |   | -- |   |   |   | -- |   |
| Due After Ten Years                    |   |                | 2,485   |   |   |   | 2,081 |   |   |   | -- |   |   |   | -- |   |
|                                   |   |                | 5,721   |   |   |   | 5,455 |   |   |   | 50 |   |   |   | 53 |   |
|                                   |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities             |   |                | 288,627 |   |   |   | 286,748 |   |   |   | -- |   |   |   | -- |   |
|                                   |   | $                   | 294,348 |   |   | $ | 292,203 |   |   | $ | 50 |   |   | $ | 53 |   |

|                                     |   |      |    |   | Gross      |   |     | Gross      |   |   |   |   |
|------------------------------------------|--------|-----------|---------|--------|------------|--------|----------|------------|--------|--------|--------|--------|
|                                     |   | Amortized |    |   | Unrealized |   |     | Unrealized |   |   | Fair   |   |
|                                     |   | Cost      |    |   | Gains      |   |     | Losses     |   |   | Value  |   |
| Securities Available for Sale:           |   |      |    |   |       |   |     |       |   |   |   |   |
|                                     |   |      |    |   |       |   |     |       |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $         | 299,019 |   |       | $      | 1,763    |       |   | $      | (2,319 | )      |   | $ | 298,463 |   |
| State, County & Municipal            |   |      | 3,248   |   |       |   | 35       |       |   |   | (27    | )      |   |   | 3,256 |   |
| Corporate Obligations                    |   |      | 2,000   |   |       |   | 102      |       |   |   | (115   | )      |   |   | 1,987 |   |
| Asset-Backed Securities                  |   |      | 479     |   |       |   |  -- |       |   |   | (347   | )      |   |   | 132 |   |
|                                     |   | $         | 304,746 |   |       | $      | 1,900    |       |   | $      | (2,808 | )      |   | $ | 303,838 |   |
|                                     |   |      |    |   |       |   |     |       |   |   |   |   |   |   |   |   |
| Securities Held to Maturity:             |   |      |    |   |       |   |     |       |   |   |   |   |   |   |   |   |
| State, County and Municipal              |   | $         | 48      |   |       | $      | 5        |       |   | $      | --     |   |   | $ | 53 |   |

----

Table of Contents

|                                     |   | Less Than 12 Months |    |   | 12 Months or Greater |   |   | Total  |   |
|------------------------------------------|--------|---------------------|---------|--------|----------------------|--------|--------|--------|--------|
|                                     |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                |    |   | Gross                |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|                                     |   | Fair                |    |   | Unrealized           |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                     |   | Value               |    |   | Losses               |   |   | Value  |   |   | Losses |   |   | Value |   |   | Losses |   |
|                                     |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2011                           |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $                   | 197,062 |   |                 | $      | (2,620 | )      |   | $ | -- |   |   | $ | 197,062 |   |   | $ | (2,620 | ) |
| State, County and Municipal              |   |                | 527     |   |                 |   | (2     | )      |   |   | -- |   |   |   | -- |   |   |   | 527 |   |   |   | (2 | ) |
| Corporate Obligations                    |   |                | --      |   |                 |   | --     |   |   |   | 937 |   |   |   | (64 | ) |   |   | 937 |   |   |   | (64 | ) |
| Asset-Backed Securities                  |   |                | --      |   |                 |   | --     |   |   |   | 132 |   |   |   | (347 | ) |   |   | 132 |   |   |   | (347 | ) |
|                                     |   | $                   | 197,589 |   |                 | $      | (2,622 | )      |   | $ | 1,069 |   |   | $ | (411 | ) |   | $ | 198,658 |   |   | $ | (3,033 | ) |
|                                     |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010                        |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $                   | 152,287 |   |                 | $      | (2,319 | )      |   | $ | -- |   |   | $ | -- |   |   | $ | 152,287 |   |   | $ | (2,319 | ) |
| State, County and Municipal              |   |                | 1,777   |   |                 |   | (27    | )      |   |   | -- |   |   |   | -- |   |   |   | 1,777 |   |   |   | (27 | ) |
| Corporate Obligations                    |   |                | --      |   |                 |   | --     |   |   |   | 885 |   |   |   | (115 | ) |   |   | 885 |   |   |   | (115 | ) |
| Asset-Backed Securities                  |   |                | --      |   |                 |   | --     |   |   |   | 132 |   |   |   | (347 | ) |   |   | 132 |   |   |   | (347 | ) |
|                                     |   | $                   | 154,064 |   |                 | $      | (2,346 | )      |   | $ | 1,017 |   |   | $ | (462 | ) |   | $ | 155,081 |   |   | $ | (2,808 | ) |

----

Table of Contents

|                                                   |   | March 31, 2011 |    |   | December 31, 2010 |   |
|--------------------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
| Commercial and Industrial                              |   |                |    |   |                   |   |
|      Commercial               |   | $                   | 52,581  |   |                   | $      | 53,220 |   |
|      Industrial               |   |                | 9,715   |   |                   |   | 10,552 |   |
|                                                   |   |                |    |   |                   |   |   |   |
| Real Estate                                            |   |                |    |   |                   |   |   |   |
|      Commercial Construction  |   |                | 72,645  |   |                   |   | 72,309 |   |
|      Residential Construction |   |                | 4,180   |   |                   |   | 4,373 |   |
|      Commercial               |   |                | 343,853 |   |                   |   | 362,878 |   |
|      Residential              |   |                | 204,566 |   |                   |   | 207,472 |   |
|      Farmland                 |   |                | 48,790  |   |                   |   | 52,778 |   |
|                                                   |   |                |    |   |                   |   |   |   |
| Consumer and Other                                     |   |                |    |   |                   |   |   |   |
|      Consumer                 |   |                | 32,682  |   |                   |   | 33,564 |   |
|      Other                    |   |                | 13,969  |   |                   |   | 16,104 |   |
|                                                   |   |                |    |   |                   |   |   |   |
| Total Loans                                            |   | $                   | 782,981 |   |                   | $      | 813,250 |   |

| ·   |   | Grades 1 and 2 – Borrowers with these assigned grades range in risk from virtual absence of risk to minimal risk.  Such loans may be secured by Company-issued and controlled certificates |
|--------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   | Grades 3 and 4 – Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk.  The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average. |
|--------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   | Grade 5 – This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term. |
|--------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   | Grade 6 – This grade includes “substandard” loans in accordance with regulatory guidelines.  This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms.  Loans considered to be impaired are assigned this grade, and these loans often have assigned loss allocations as part of the allowance for loan and lease losses.  Generally, loans on which interest accrual has been stopped would be included in this grade. |
|--------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   |   | Grades 7 and 8 – These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively.  In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades.  Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 6. |
|--------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| March 31, 2011            |   |   |    |   |            |   |   |        |   |   |        |   |
|---------------------------|--------|--------|---------|--------|-----------------|--------|--------|-------------|--------|--------|-------------|--------|
|                      |   | Pass   |    |   | Special Mention |   |   | Substandard |   |   | Total Loans |   |
| Commercial and Industrial |   |   |    |   |            |   |   |        |   |   |        |   |
| Commercial                |   | $      | 47,331  |   |            | $      | 2,255  |        |   | $      | 2,995       |   |   | $ | 52,581 |   |
| Industrial                |   |   | 9,153   |   |            |   | 144    |        |   |   | 418         |   |   |   | 9,715 |   |
|                      |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Real Estate               |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Commercial Construction   |   |   | 36,730  |   |            |   | 8,756  |        |   |   | 27,159      |   |   |   | 72,645 |   |
| Residential Construction  |   |   | 4,080   |   |            |   | 100    |        |   |   | --          |   |   |   | 4,180 |   |
| Commercial                |   |   | 282,865 |   |            |   | 12,271 |        |   |   | 48,717      |   |   |   | 343,853 |   |
| Residential               |   |   | 187,489 |   |            |   | 5,281  |        |   |   | 11,796      |   |   |   | 204,566 |   |
| Farmland                  |   |   | 46,627  |   |            |   | 1,296  |        |   |   | 867         |   |   |   | 48,790 |   |
|                      |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Consumer and Other        |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Consumer                  |   |   | 31,445  |   |            |   | 437    |        |   |   | 800         |   |   |   | 32,682 |   |
| Other                     |   |   | 13,441  |   |            |   | 291    |        |   |   | 237         |   |   |   | 13,969 |   |
|                      |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Total Loans               |   | $      | 659,161 |   |            | $      | 30,831 |        |   | $      | 92,989      |   |   | $ | 782,981 |   |

| December 31, 2010         |   |   |    |   |            |   |   |        |   |   |        |   |
|---------------------------|--------|--------|---------|--------|-----------------|--------|--------|-------------|--------|--------|-------------|--------|
|                      |   | Pass   |    |   | Special Mention |   |   | Substandard |   |   | Total Loans |   |
| Commercial and Industrial |   |   |    |   |            |   |   |        |   |   |        |   |
| Commercial                |   | $      | 48,732  |   |            | $      | 2,498  |        |   | $      | 1,990       |   |   | $ | 53,220 |   |
| Industrial                |   |   | 10,059  |   |            |   | 169    |        |   |   | 324         |   |   |   | 10,552 |   |
|                      |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Real Estate               |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Commercial Construction   |   |   | 33,523  |   |            |   | 10,064 |        |   |   | 28,722      |   |   |   | 72,309 |   |
| Residential Construction  |   |   | 3,974   |   |            |   | 204    |        |   |   | 195         |   |   |   | 4,373 |   |
| Commercial                |   |   | 294,186 |   |            |   | 11,847 |        |   |   | 56,845      |   |   |   | 362,878 |   |
| Residential               |   |   | 183,518 |   |            |   | 9,196  |        |   |   | 14,758      |   |   |   | 207,472 |   |
| Farmland                  |   |   | 49,500  |   |            |   | 1,838  |        |   |   | 1,440       |   |   |   | 52,778 |   |
|                      |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Consumer and Other        |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Consumer                  |   |   | 32,046  |   |            |   | 727    |        |   |   | 791         |   |   |   | 33,564 |   |
| Other                     |   |   | 14,553  |   |            |   | 1,186  |        |   |   | 365         |   |   |   | 16,104 |   |
|                      |   |   |    |   |            |   |   |        |   |   |        |   |   |   |   |   |
| Total Loans               |   | $      | 670,091 |   |            | $      | 37,729 |        |   | $      | 105,430     |   |   | $ | 813,250 |   |

----

Table of Contents

| March 31, 2011            |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |
|---------------------------|--------|----------------|--------|--------|----------|--------|--------|--------------------------|--------|--------|------------|--------|--------|--------------------|--------|--------|-------------|--------|
|                      |   | Accruing Loans |   |   |     |   |   |                     |   |   |       |   |
|                      |   |           |   |   | 90 Days  |   |   |                     |   |   |       |   |   |               |   |   |        |   |
|                      |   | 30-89 Days     |   |   | or More  |   |   | Total Accruing      |   |   | Nonaccrual |   |   |               |   |   |        |   |
|                      |   | Past Due       |   |   | Past Due |   |   | Loans Past Due |   |   | Loans      |   |   | Current Loans |   |   | Total Loans |   |
| Commercial and Industrial |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |
| Commercial                |   | $              | 1,969  |   |     | $      | --     |                     |   | $      | 1,969      |   |   | $                  | 211    |   |        | $      | 50,401 |   |   | $ | 52,581 |   |
| Industrial                |   |           | 48     |   |     |   | --     |                     |   |   | 48         |   |   |               | 313    |   |        |   | 9,354 |   |   |   | 9,715 |   |
|                      |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Real Estate               |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Commercial Construction   |   |           | 995    |   |     |   | --     |                     |   |   | 995        |   |   |               | 9,352  |   |        |   | 62,298 |   |   |   | 72,645 |   |
| Residential Construction  |   |           | --     |   |     |   | --     |                     |   |   | --         |   |   |               | --     |   |        |   | 4,180 |   |   |   | 4,180 |   |
| Commercial                |   |           | 8,204  |   |     |   | --     |                     |   |   | 8,204      |   |   |               | 16,315 |   |        |   | 319,334 |   |   |   | 343,853 |   |
| Residential               |   |           | 3,136  |   |     |   | --     |                     |   |   | 3,136      |   |   |               | 2,930  |   |        |   | 198,500 |   |   |   | 204,566 |   |
| Farmland                  |   |           | 46     |   |     |   | --     |                     |   |   | 46         |   |   |               | 444    |   |        |   | 48,300 |   |   |   | 48,790 |   |
|                      |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Consumer and Other        |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Consumer                  |   |           | 575    |   |     |   | --     |                     |   |   | 575        |   |   |               | 204    |   |        |   | 31,903 |   |   |   | 32,682 |   |
| Other                     |   |           | 178    |   |     |   | --     |                     |   |   | 178        |   |   |               | 23     |   |        |   | 13,768 |   |   |   | 13,969 |   |
|                      |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Total Loans               |   | $              | 15,151 |   |     | $      | --     |                     |   | $      | 15,151     |   |   | $                  | 29,792 |   |        | $      | 738,038 |   |   | $ | 782,981 |   |

----

Table of Contents

| December 31, 2010         |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |
|---------------------------|--------|----------------|--------|--------|----------|--------|--------|--------------------------|--------|--------|------------|--------|--------|--------------------|--------|--------|-------------|--------|
|                      |   | Accruing Loans |   |   |     |   |   |                     |   |   |       |   |
|                      |   |           |   |   | 90 Days  |   |   |                     |   |   |       |   |   |               |   |   |        |   |
|                      |   | 30-89 Days     |   |   | or More  |   |   | Total Accruing      |   |   | Nonaccrual |   |   |               |   |   |        |   |
|                      |   | Past Due       |   |   | Past Due |   |   | Loans Past Due |   |   | Loans      |   |   | Current Loans |   |   | Total Loans |   |
| Commercial and Industrial |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |
| Commercial                |   | $              | 382    |   |     | $      | --     |                     |   | $      | 382        |   |   | $                  | 394    |   |        | $      | 52,444 |   |   | $ | 53,220 |   |
| Industrial                |   |           | 101    |   |     |   | --     |                     |   |   | 101        |   |   |               | 175    |   |        |   | 10,276 |   |   |   | 10,552 |   |
|                      |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Real Estate               |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Commercial Construction   |   |           | 1,514  |   |     |   | --     |                     |   |   | 1,514      |   |   |               | 10,182 |   |        |   | 60,613 |   |   |   | 72,309 |   |
| Residential Construction  |   |           | 195    |   |     |   | --     |                     |   |   | 195        |   |   |               | --     |   |        |   | 4,178 |   |   |   | 4,373 |   |
| Commercial                |   |           | 11,790 |   |     |   | --     |                     |   |   | 11,790     |   |   |               | 13,568 |   |        |   | 337,520 |   |   |   | 362,878 |   |
| Residential               |   |           | 4,268  |   |     |   | 16     |                     |   |   | 4,284      |   |   |               | 3,057  |   |        |   | 200,131 |   |   |   | 207,472 |   |
| Farmland                  |   |           | 567    |   |     |   | --     |                     |   |   | 567        |   |   |               | 1,157  |   |        |   | 51,054 |   |   |   | 52,778 |   |
|                      |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Consumer and Other        |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Consumer                  |   |           | 703    |   |     |   | 3      |                     |   |   | 706        |   |   |               | 290    |   |        |   | 32,568 |   |   |   | 33,564 |   |
| Other                     |   |           | 219    |   |     |   | --     |                     |   |   | 219        |   |   |               | 79     |   |        |   | 15,806 |   |   |   | 16,104 |   |
|                      |   |           |   |   |     |   |   |                     |   |   |       |   |   |               |   |   |        |   |   |   |   |   |   |   |
| Total Loans               |   | $              | 19,739 |   |     | $      | 19     |                     |   | $      | 19,758     |   |   | $                  | 28,902 |   |        | $      | 764,590 |   |   | $ | 813,250 |   |

----

Table of Contents

| March 31, 2011             |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |
|----------------------------|--------|----------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|
|                       |   |     |   |   |      |   |   | Average    |   |   | Interest   |   |   | Interest  |   |
|                       |   | Impaired |   |   | Related   |   |   | Recorded   |   |   | Income     |   |   | Income    |   |
|                       |   | Balance  |   |   | Allowance |   |   | Investment |   |   | Recognized |   |   | Collected |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |
| With No Related            |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |
| Allowance Recorded         |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |
| Commercial                 |   | $        | 190    |   |      | $      | --     |       |   | $      | 190        |   |   | $         | (2     | ) |   | $ | -- |   |
| Agricultural               |   |     | 312    |   |      |   | --     |       |   |   | 312        |   |   |      | (25    | ) |   |   | 1 |   |
| Commercial Construction    |   |     | 7,799  |   |      |   | --     |       |   |   | 7,799      |   |   |      | 6      |   |   |   | 5 |   |
| Commercial Real Estate     |   |     | 18,128 |   |      |   | --     |       |   |   | 18,128     |   |   |      | 32     |   |   |   | 86 |   |
| Residential Real Estate    |   |     | 2,757  |   |      |   | --     |       |   |   | 2,757      |   |   |      | (7     | ) |   |   | 3 |   |
| Farmland                   |   |     | 444    |   |      |   | --     |       |   |   | 444        |   |   |      | 66     |   |   |   | 66 |   |
| Consumer                   |   |     | 204    |   |      |   | --     |       |   |   | 204        |   |   |      | --     |   |   |   | 1 |   |
| Other                      |   |     | 23     |   |      |   | --     |       |   |   | 23         |   |   |      | --     |   |   |   | -- |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
|                       |   |     | 29,857 |   |      |   | --     |       |   |   | 29,857     |   |   |      | 70     |   |   |   | 162 |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| With An Allowance Recorded |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Commercial                 |   |     | 21     |   |      |   | 4      |       |   |   | 21         |   |   |      | --     |   |   |   | -- |   |
| Commercial Construction    |   |     | 7,977  |   |      |   | 1,981  |       |   |   | 7,977      |   |   |      | 29     |   |   |   | 29 |   |
| Commercial Real Estate     |   |     | 9,672  |   |      |   | 2,819  |       |   |   | 9,672      |   |   |      | 80     |   |   |   | 72 |   |
| Residential Real Estate    |   |     | 560    |   |      |   | 198    |       |   |   | 560        |   |   |      | 6      |   |   |   | 6 |   |
| Other                      |   |     | 78     |   |      |   | 8      |       |   |   | 78         |   |   |      | 5      |   |   |   | -- |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
|                       |   |     | 18,308 |   |      |   | 5,010  |       |   |   | 18,308     |   |   |      | 120    |   |   |   | 107 |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Total                      |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Commercial                 |   |     | 211    |   |      |   | 4      |       |   |   | 211        |   |   |      | (2     | ) |   |   | -- |   |
| Agricultural               |   |     | 312    |   |      |   | --     |       |   |   | 312        |   |   |      | (25    | ) |   |   | 1 |   |
| Commercial Construction    |   |     | 15,776 |   |      |   | 1,981  |       |   |   | 15,776     |   |   |      | 35     |   |   |   | 34 |   |
| Commercial Real Estate     |   |     | 27,800 |   |      |   | 2,819  |       |   |   | 27,800     |   |   |      | 112    |   |   |   | 158 |   |
| Residential Real Estate    |   |     | 3,317  |   |      |   | 198    |       |   |   | 3,317      |   |   |      | (1     | ) |   |   | 9 |   |
| Farmland                   |   |     | 444    |   |      |   | --     |       |   |   | 444        |   |   |      | 66     |   |   |   | 66 |   |
| Consumer                   |   |     | 204    |   |      |   | --     |       |   |   | 204        |   |   |      | --     |   |   |   | 1 |   |
| Other                      |   |     | 101    |   |      |   | 8      |       |   |   | 101        |   |   |      | 5      |   |   |   | -- |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
|                       |   | $        | 48,165 |   |      | $      | 5,010  |       |   | $      | 48,165     |   |   | $         | 190    |   |   | $ | 269 |   |

----

Table of Contents

| December 31, 2010          |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |
|----------------------------|--------|----------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|
|                       |   |     |   |   |      |   |   | Average    |   |   | Interest   |   |   | Interest  |   |
|                       |   | Impaired |   |   | Related   |   |   | Recorded   |   |   | Income     |   |   | Income    |   |
|                       |   | Balance  |   |   | Allowance |   |   | Investment |   |   | Recognized |   |   | Collected |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |
| With No Related            |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |
| Allowance Recorded         |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |
| Commercial                 |   | $        | 259    |   |      | $      | --     |       |   | $      | 309        |   |   | $         | (1     | ) |   | $ | 6 |   |
| Agricultural               |   |     | 175    |   |      |   | --     |       |   |   | 221        |   |   |      | 1      |   |   |   | 1 |   |
| Commercial Construction    |   |     | 10,182 |   |      |   | --     |       |   |   | 11,761     |   |   |      | 7      |   |   |   | 32 |   |
| Residential Construction   |   |     | --     |   |      |   | --     |       |   |   | 8          |   |   |      | --     |   |   |   | -- |   |
| Commercial Real Estate     |   |     | 4,271  |   |      |   | --     |       |   |   | 9,042      |   |   |      | 81     |   |   |   | 85 |   |
| Residential Real Estate    |   |     | 3,057  |   |      |   | --     |       |   |   | 3,931      |   |   |      | 41     |   |   |   | 54 |   |
| Farmland                   |   |     | 1,157  |   |      |   | --     |       |   |   | 646        |   |   |      | (7     | ) |   |   | 11 |   |
| Consumer                   |   |     | 290    |   |      |   | --     |       |   |   | 296        |   |   |      | 17     |   |   |   | 19 |   |
| Other                      |   |     | 79     |   |      |   | --     |       |   |   | 129        |   |   |      | 5      |   |   |   | 8 |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
|                       |   |     | 19,470 |   |      |   | --     |       |   |   | 26,343     |   |   |      | 144    |   |   |   | 216 |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| With An Allowance Recorded |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Commercial                 |   |     | 135    |   |      |   | 116    |       |   |   | 34         |   |   |      | (1     | ) |   |   | 3 |   |
| Commercial Real Estate     |   |     | 9,297  |   |      |   | 540    |       |   |   | 2,324      |   |   |      | 342    |   |   |   | 476 |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
|                       |   |     | 9,432  |   |      |   | 656    |       |   |   | 2,358      |   |   |      | 341    |   |   |   | 479 |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Total                      |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Commercial                 |   |     | 394    |   |      |   | 116    |       |   |   | 343        |   |   |      | (2     | ) |   |   | 9 |   |
| Agricultural               |   |     | 175    |   |      |   | --     |       |   |   | 221        |   |   |      | 1      |   |   |   | 1 |   |
| Commercial Construction    |   |     | 10,182 |   |      |   | --     |       |   |   | 11,761     |   |   |      | 7      |   |   |   | 32 |   |
| Residential Construction   |   |     | --     |   |      |   | --     |       |   |   | 8          |   |   |      | --     |   |   |   | -- |   |
| Commercial Real Estate     |   |     | 13,568 |   |      |   | 540    |       |   |   | 11,366     |   |   |      | 423    |   |   |   | 561 |   |
| Residential Real Estate    |   |     | 3,057  |   |      |   | --     |       |   |   | 3,931      |   |   |      | 41     |   |   |   | 54 |   |
| Farmland                   |   |     | 1,157  |   |      |   | --     |       |   |   | 646        |   |   |      | (7     | ) |   |   | 11 |   |
| Consumer                   |   |     | 290    |   |      |   | --     |       |   |   | 296        |   |   |      | 17     |   |   |   | 19 |   |
| Other                      |   |     | 79     |   |      |   | --     |       |   |   | 129        |   |   |      | 5      |   |   |   | 8 |   |
|                       |   |     |   |   |      |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
|                       |   | $        | 28,902 |   |      | $      | 656    |       |   | $      | 28,701     |   |   | $         | 485    |   |   | $ | 695 |   |

----

Table of Contents

| March 31, 2011            |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |
|---------------------------|--------|-----------|--------|--------|-------------|--------|--------|------------|--------|--------|-----------|--------|--------|---------|--------|
|                      |   | Beginning |   |   |        |   |   |       |   |   |      |   |   | Ending  |   |
|                      |   | Balance   |   |   | Charge-Offs |   |   | Recoveries |   |   | Provision |   |   | Balance |   |
|                      |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |
| Commercial and Industrial |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |
| Commercial                |   | $         | 4,415  |   |        | $      | (207   | )          |   | $      | 18        |   |   | $       | (1,111 | ) |   | $ | 3,115 |   |
| Industrial                |   |      | 698    |   |        |   | (455   | )          |   |   | 1         |   |   |    | (176   | ) |   |   | 68 |   |
|                      |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
| Real Estate               |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
| Commercial Construction   |   |      | 4,126  |   |        |   | (2,088 | )          |   |   | 18        |   |   |    | 1,213  |   |   |   | 3,269 |   |
| Residential Construction  |   |      | 520    |   |        |   | --     |       |   |   | --        |   |   |    | (122   | ) |   |   | 398 |   |
| Commercial                |   |      | 8,030  |   |        |   | (4,484 | )          |   |   | 95        |   |   |    | 4,768  |   |   |   | 8,409 |   |
| Residential               |   |      | 5,942  |   |        |   | (146   | )          |   |   | 29        |   |   |    | (1,733 | ) |   |   | 4,092 |   |
| Farmland                  |   |      | 944    |   |        |   | (20    | )          |   |   | --        |   |   |    | (278   | ) |   |   | 646 |   |
|                      |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
| Consumer and Other        |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
| Consumer                  |   |      | 3,074  |   |        |   | (68    | )          |   |   | 58        |   |   |    | (793   | ) |   |   | 2,271 |   |
| Other                     |   |      | 531    |   |        |   | (66    | )          |   |   | 5         |   |   |    | (268   | ) |   |   | 202 |   |
|                      |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
|                      |   | $         | 28,280 |   |        | $      | (7,534 | )          |   | $      | 224       |   |   | $       | 1,500  |   |   | $ | 22,470 |   |

| March 31, 2011                        |   |           |   |   |          |   |    |   |   |
|---------------------------------------|--------|----------------|--------|--------|---------------|--------|---------|--------|--------|
|                                  |   | Ending Balance |   |
|                                  |   | Individually   |   |   | Collectively  |   |    |   |   |
|                                  |   | Evaluated for  |   |   | Evaluated for |   |    |   |   |
|                                  |   | Impairment     |   |   | Impairment    |   |    | Total  |   |
| Commercial and Industrial             |   |           |   |   |          |   |    |   |   |
| Commercial                            |   | $              | 668    |   |          | $      | 2,447   |   |   | $ | 3,115 |   |
| Industrial                            |   |           | 3      |   |          |   | 65      |   |   |   | 68 |   |
|                                  |   |           |   |   |          |   |    |   |   |   |   |   |
| Real Estate                           |   |           |   |   |          |   |    |   |   |   |   |   |
| Commercial Construction               |   |           | 3,113  |   |          |   | 156     |   |   |   | 3,269 |   |
| Residential Construction              |   |           | --     |   |          |   | 398     |   |   |   | 398 |   |
| Commercial                            |   |           | 7,606  |   |          |   | 803     |   |   |   | 8,409 |   |
| Residential                           |   |           | 1,482  |   |          |   | 2,610   |   |   |   | 4,092 |   |
| Farmland                              |   |           | 16     |   |          |   | 630     |   |   |   | 646 |   |
|                                  |   |           |   |   |          |   |    |   |   |   |   |   |
| Consumer and Other                    |   |           |   |   |          |   |    |   |   |   |   |   |
| Consumer                              |   |           | 55     |   |          |   | 2,216   |   |   |   | 2,271 |   |
| Other                                 |   |           | --     |   |          |   | 202     |   |   |   | 202 |   |
|                                  |   |           |   |   |          |   |    |   |   |   |   |   |
| Total End of Period Allowance Balance |   | $              | 12,943 |   |          | $      | 9,527   |   |   | $ | 22,470 |   |
|                                  |   |           |   |   |          |   |    |   |   |   |   |   |
| Total End of Period Loan Balance      |   | $              | 89,988 |   |          | $      | 692,993 |   |   | $ | 782,981 |   |

----

Table of Contents

| March 31, 2010            |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |
|---------------------------|--------|-----------|--------|--------|-------------|--------|--------|------------|--------|--------|-----------|--------|--------|---------|--------|
|                      |   | Beginning |   |   |        |   |   |       |   |   |      |   |   | Ending  |   |
|                      |   | Balance   |   |   | Charge-Offs |   |   | Recoveries |   |   | Provision |   |   | Balance |   |
|                      |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |
| Commercial and Industrial |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |
| Commercial                |   | $         | 3,931  |   |        | $      | (53    | )          |   | $      | 20        |   |   | $       | (38    | ) |   | $ | 3,860 |   |
| Industrial                |   |      | 779    |   |        |   | (182   | )          |   |   | --        |   |   |    | (3     | ) |   |   | 594 |   |
|                      |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
| Real Estate               |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
| Commercial Construction   |   |      | 7,402  |   |        |   | (1,508 | )          |   |   | 1         |   |   |    | 1,232  |   |   |   | 7,127 |   |
| Residential Construction  |   |      | 448    |   |        |   | --     |       |   |   | --        |   |   |    | (151   | ) |   |   | 297 |   |
| Commercial                |   |      | 8,790  |   |        |   | (1,910 | )          |   |   | 57        |   |   |    | 1,378  |   |   |   | 8,315 |   |
| Residential               |   |      | 5,026  |   |        |   | (1,183 | )          |   |   | 136       |   |   |    | 772    |   |   |   | 4,751 |   |
| Farmland                  |   |      | 942    |   |        |   | (23    | )          |   |   | --        |   |   |    | (28    | ) |   |   | 891 |   |
|                      |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
| Consumer and Other        |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
| Consumer                  |   |      | 2,826  |   |        |   | (183   | )          |   |   | 56        |   |   |    | (26    | ) |   |   | 2,673 |   |
| Other                     |   |      | 1,257  |   |        |   | (189   | )          |   |   | 6         |   |   |    | 114    |   |   |   | 1,188 |   |
|                      |   |      |   |   |        |   |   |       |   |   |      |   |   |    |   |   |   |   |   |   |
|                      |   | $         | 31,401 |   |        | $      | (5,231 | )          |   | $      | 276       |   |   | $       | 3,250  |   |   | $ | 29,696 |   |

| March 31, 2010                        |   |           |   |   |          |   |    |   |   |
|---------------------------------------|--------|----------------|--------|--------|---------------|--------|---------|--------|--------|
|                                  |   | Ending Balance |   |
|                                  |   | Individually   |   |   | Collectively  |   |    |   |   |
|                                  |   | Evaluated for  |   |   | Evaluated for |   |    |   |   |
|                                  |   | Impairment     |   |   | Impairment    |   |    | Total  |   |
| Commercial and Industrial             |   |           |   |   |          |   |    |   |   |
| Commercial                            |   | $              | 205    |   |          | $      | 3,655   |   |   | $ | 3,860 |   |
| Industrial                            |   |           | 61     |   |          |   | 533     |   |   |   | 594 |   |
|                                  |   |           |   |   |          |   |    |   |   |   |   |   |
| Real Estate                           |   |           |   |   |          |   |    |   |   |   |   |   |
| Commercial Construction               |   |           | 1,375  |   |          |   | 5,752   |   |   |   | 7,127 |   |
| Residential Construction              |   |           | --     |   |          |   | 297     |   |   |   | 297 |   |
| Commercial                            |   |           | 4,861  |   |          |   | 3,454   |   |   |   | 8,315 |   |
| Residential                           |   |           | 1,815  |   |          |   | 2,936   |   |   |   | 4,751 |   |
| Farmland                              |   |           | --     |   |          |   | 891     |   |   |   | 891 |   |
|                                  |   |           |   |   |          |   |    |   |   |   |   |   |
| Consumer and Other                    |   |           |   |   |          |   |    |   |   |   |   |   |
| Consumer                              |   |           | 24     |   |          |   | 2,649   |   |   |   | 2,673 |   |
| Other                                 |   |           | 550    |   |          |   | 638     |   |   |   | 1,188 |   |
|                                  |   |           |   |   |          |   |    |   |   |   |   |   |
| Total End of Period Allowance Balance |   | $              | 8,891  |   |          | $      | 20,805  |   |   | $ | 29,696 |   |
|                                  |   |           |   |   |          |   |    |   |   |   |   |   |
| Total End of Period Loan Balance      |   | $              | 88,711 |   |          | $      | 796,570 |   |   | $ | 885,281 |   |

----

Table of Contents

|                              |   | March 31, 2011 |    |   | December 31, 2010 |   |
|-----------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                              |   |                |    |   |                   |   |
| Land                              |   | $                   | 7,788   |   |                   | $      | 7,788 |   |
| Building                          |   |                | 23,791  |   |                   |   | 23,791 |   |
| Furniture, Fixtures and Equipment |   |                | 13,773  |   |                   |   | 13,737 |   |
| Leasehold Improvements            |   |                | 984     |   |                   |   | 993 |   |
|                              |   |                | 46,336  |   |                   |   | 46,309 |   |
|                              |   |                |    |   |                   |   |   |   |
| Accumulated Depreciation          |   |                | (19,566 | )      |                   |   | (19,161 | ) |
|                              |   | $                   | 26,770  |   |                   | $      | 27,148 |   |

|                         |   | Three Months Ended |                                                     | Three Months Ended |
|------------------------------|--------|------------------------------|----------------------------------------------------------|------------------------------|
|                         |   | March 31, 2011               |                                                     | March 31, 2010               |
|                         |   |                         |                                                     |                         |   |   |   |   |
| Goodwill                     |   |                         |                                                     |                         |   |   |   |   |
| Balance, Beginning           |   |                         |          -- |                         |   | $ | -- |   |
| Goodwill Acquired            |   |                         |          -- |                         |   |   |         -- |   |
| Balance, Ending              |   |                         |          -- |                         |   | $ | -- |   |
|                         |   |                         |                                                     |                         |   |   |   |   |
| Net Core Deposit, Intangible |   |                         |                                                     |                         |   |   |   |   |
| Balance, Beginning           |   | $                            | 295                                                      |                         |   | $ | 331 |   |
| Amortization Expense         |   |                         | (9)                                                      |                         |   |   | (9) |   |
| Balance, Ending              |   | $                            | 286                                                      |                         |   | $ | 322 |   |

| 2011                |   | $      | 27  |   |
|---------------------|--------|--------|-----|--------|
| 2012                |   |   | 36  |   |
| 2013                |   |   | 36  |   |
| 2014                |   |   | 36  |   |
| 2015 and thereafter |   |   | 151 |   |
|                |   | $      | 286 |   |

----

Table of Contents

|  ● | Level 1        | inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.                                                                                                                                              |
|---------------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                |                                                                                                                                                                                                                                                                   |
|  ● | Level 2             | inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|          |                |                                                                                                                                                                                                                                                                   |
|  ● | Level 3   | inputs to the valuation methodology are unobservable and significant to the fair value measurement.                                                                                                                                                                    |

----

Table of Contents

|                          |   |           |      |   | Fair Value Measurements at Reporting Date Using |   |
|-------------------------------|--------|----------------|-----------|--------|-------------------------------------------------|--------|
|                          |   |           |      |   | Quoted Prices in                                |   |   |   |   |   | Significant |   |
|                          |   |           |      |   | Active Markets for                              |   |   | Significant Other |   |   | Unobservable |   |
|                          |   |           |      |   | Identical Assets                                |   |   | Observable |   |   | Inputs |   |
|                          |   | March 31, 2011 |      |   | (Level 1)                                       |   |   | Inputs (Level 2) |   |   | (Level 3) |   |
| Recurring                     |   |           |      |   |                                            |   |   |   |   |   |   |   |
| Securities Available for Sale |   |           |      |   |                                            |   |   |   |   |   |   |   |
| Mortgage-backed               |   | $              | 286,748   |   |                                            | $      | --- |   |   | $ | 286,748 |   |   | $ | --- |   |
| State,County & Municipal  |   |           | 3,295     |   |                                            |   | --- |   |   |   | 3,295 |   |   |   | --- |   |
| Corporate Obligations         |   |           | 2,028     |   |                                            |   | --- |   |   |   | 1,092 |   |   |   | 936 |   |
| Asset-Backed Securities       |   |           |  132 |   |                                            |   |  --- |   |   |   |  --- |   |   |   |  132 |   |
|                          |   | $              | 292,203   |   |                                            | $      | --- |   |   | $ | 291,135 |   |   | $ | 1,068 |   |
|                          |   |           |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Nonrecurring                  |   |           |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Impaired Loans                |   | $              | 48,165    |   |                                            | $      | --- |   |   | $ | --- |   |   | $ | 48,165 |   |
|                          |   |           |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Other Real Estate             |   | $              | 21,094    |   |                                            | $      | --- |   |   | $ | --- |   |   | $ | 21,094 |   |

| Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | Available for |
|------------------------------------------------------------------------|---------------|
|                                                                   |          | Sale Securities |
|                                                                   |          | (In Thousands) |
|                                                                   |          |   |   |   |
| Balance, Beginning                                                     |          | $ | 1,017 |   |
| Total Unrealized Gains (Losses) Included In                            |          |   |   |   |
| Net Income                                                             |          |   |         --- |   |
| Other Comprehensive Income                                             |          |   |         51 |   |
| Purchases, Sales, Issuances and Settlements, Net                       |          |   |         --- |   |
| Transfers In and (Out) of Level 3                                      |          |   |         --- |   |
|                                                                   |          |   |   |   |
| Balance, Ending                                                        |          | $ | 1,068 |   |

----

Table of Contents

|                    |   | March 31, 2011 |    |   | December 31, 2010 |   |
|-------------------------|--------|---------------------|---------|--------|------------------------|--------|
| Interest-Bearing Demand |   | $                   | 233,299 |   |                   | $      | 235,855 |   |
| Savings                 |   |                | 41,032  |   |                   |   | 36,630 |   |
| Time, $100,000 and Over |   |                | 291,741 |   |                   |   | 298,010 |   |
| Other Time              |   |                | 370,032 |   |                   |   | 385,670 |   |
|                    |   | $                   | 936,104 |   |                   | $      | 956,165 |   |

| Maturity     |   | March 31, 2011 |    |   | December 31, 2010 |   |
|----------------------------------|--------|----------------|---------|--------|------------------------|--------|
| One Year and Under          |   | $              | 478,593 |   |                   | $      | 480,446 |   |
| One to Three Years          |   |           | 171,522 |   |                   |   | 189,879 |   |
| Three Years and Over        |   |           | 11,658  |   |                   |   | 13,355 |   |
|                             |   | $              | 661,773 |   |                   | $      | 683,680 |   |

|                            |   | March 31, 2011 |         |   | December 31,2010 |   |
|---------------------------------|--------|---------------------|--------------|--------|------------------|--------|
| Secured Borrowings    |   | $                   | 981          |   |             | $      | 4,076 |   |
| Federal Home Loan Bank Advances |   |                |  71,000 |   |             |   | 71,000 |   |
|                            |   | $                   | 71,981       |   |             | $      | 75,076 |   |

----

Table of Contents

|                |   |   |   |
|---------------------|--------|--------|--------|
| Year                |   | Amount |   |
| 2011                |   | $      | 981    |   |
| 2012                |   |   | 41,000 |   |
| 2013                |   |   | --     |   |
| 2014 and Thereafter |   |   | 30,000 |   |
|                |   | $      | 71,981 |   |

----

Table of Contents

----

Table of Contents

|                      |   | Contract Amount     |   |
|---------------------------|--------|---------------------|--------|
|                      |   | March 31, 2011 |   |   | December 31, 2010 |   |
|                      |   |                |   |   |   |   |
| Loan Commitments          |   | $                   | 56,761 |   |   | $ | 39,457 |   |
| Standby Letters of Credit |   |                | 1,444  |   |   |   | 1,540 |   |

----

Table of Contents

----

Table of Contents

|                                           |   | March 31, 2011  |      |   | December 31, 2010 |   |
|------------------------------------------------|--------|----------------------|-----------|--------|-------------------|--------|
|                                           |   | Carrying             |      |   | Estimated         |   |   | Carrying |   |   | Estimated |   |
|                                           |   | Amount               |      |   | Fair Value        |   |   | Amount |   |   | Fair Value |   |
|                                           |   |                 |      |   | (in thousands)    |   |   |   |   |
|                                           |   |                 |      |   |              |   |   |   |   |   |   |   |
| Assets                                         |   |                 |      |   |              |   |   |   |   |   |   |   |
| Cash and Short-Term Investments                |   | $                    | 109,394   |   |              | $      | 109,394 |   |   | $ | 104,876 |   |   | $ | 104,876 |   |
| Investment Securities Available for Sale       |   |                 | 292,203   |   |              |   | 292,203 |   |   |   | 303,838 |   |   |   | 303,838 |   |
| Investment Securities Held to Maturity         |   |                 | 50        |   |              |   | 53 |   |   |   | 48 |   |   |   | 53 |   |
| Federal Home Loan Bank Stock                   |   |                 | 6,063     |   |              |   | 6,063 |   |   |   | 6,063 |   |   |   | 6,063 |   |
| Loans, Net                                     |   |                 | 760,450   |   |              |   | 763,572 |   |   |   | 784,909 |   |   |   | 788,455 |   |
|                                           |   |                 |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                    |   |                 |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                       |   |                 | 1,030,963 |   |              |   | 1,034,555 |   |   |   | 1,059,124 |   |   |   | 1,064,695 |   |
| Subordinated Debentures                        |   |                 | 24,229    |   |              |   | 24,229 |   |   |   | 24,229 |   |   |   | 24,229 |   |
| Securities Sold Under Agreements to Repurchase |   |                 | 20,000    |   |              |   | 20,155 |   |   |   | 20,000 |   |   |   | 20,308 |   |
| Other Borrowed Money                           |   |                 | 71,981    |   |              |   | 73,276 |   |   |   | 75,076 |   |   |   | 77,119 |   |

----

Table of Contents

|                                   |   |   |    |   | To Be Well Capitalized |   |
|----------------------------------------|--------|--------|---------|--------|------------------------|--------|
|                                   |   |   |    |   | For Capital            |   |   | Under Prompt Corrective |   |
|                                   |   | Actual |    |   | Adequacy Purposes      |   |   | Action Provisions |   |
|                                   |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | Amount |    |   | Ratio                  |   |   | Amount |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of March 31, 2011                   |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk-Weighted Assets  |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   | $      | 117,256 |   |                   |   | 15.39 | % |   | $ | 60,960 |   |   |   | 8.00 | % |   | NA |   |   | NA |   |
| Colony Bank                            |   |   | 114,029 |   |                   |   | 14.99 |   |   |   | 60,836 |   |   |   | 8.00 |   |   | $ | 76,064 |   |   |   | 10.00 | % |
|                                   |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Risk-Weighted Assets |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |   | 107,571 |   |                   |   | 14.12 |   |   |   | 30,480 |   |   |   | 4.00 |   |   | NA |   |   | NA |   |
| Colony Bank                            |   |   | 104,361 |   |                   |   | 13.72 |   |   |   | 30,418 |   |   |   | 4.00 |   |   |   | 45,628 |   |   |   | 6.00 |   |
|                                   |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Average Assets       |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |   | 107,571 |   |                   |   | 8.63 |   |   |   | 49,832 |   |   |   | 4.00 |   |   | NA |   |   | NA |   |
| Colony Bank                            |   |   | 104,361 |   |                   |   | 8.39 |   |   |   | 49,760 |   |   |   | 4.00 |   |   |   | 62,200 |   |   |   | 5.00 |   |

|                                   |   |   |    |   | To Be Well Capitalized |   |
|----------------------------------------|--------|--------|---------|--------|------------------------|--------|
|                                   |   |   |    |   | For Capital            |   |   | Under Prompt Corrective |   |
|                                   |   | Actual |    |   | Adequacy Purposes      |   |   | Action Provisions |   |
|                                   |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | Amount |    |   | Ratio                  |   |   | Amount |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of December 31, 2010                |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk-Weighted Assets  |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   | $      | 116,914 |   |                   |   | 14.85 | % |   | $ | 62,981 |   |   |   | 8.00 | % |   | NA |   |   | NA |   |
| Colony Bank                            |   |   | 113,119 |   |                   |   | 14.39 |   |   |   | 62,905 |   |   |   | 8.00 |   |   | $ | 78,631 |   |   |   | 10.00 | % |
|                                   |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Risk-Weighted Assets |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |   | 106,845 |   |                   |   | 13.57 |   |   |   | 31,491 |   |   |   | 4.00 |   |   | NA |   |   | NA |   |
| Colony Bank                            |   |   | 103,062 |   |                   |   | 13.11 |   |   |   | 31,452 |   |   |   | 4.00 |   |   |   | 47,179 |   |   |   | 6.00 |   |
|                                   |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Average Assets       |   |   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |   | 106,845 |   |                   |   | 8.59 |   |   |   | 49,748 |   |   |   | 4.00 |   |   | NA |   |   | NA |   |
| Colony Bank                            |   |   | 103,062 |   |                   |   | 8.30 |   |   |   | 49,697 |   |   |   | 4.00 |   |   |   | 62,122 |   |   |   | 5.00 |   |

----

Table of Contents

| ASSETS                                                                                                                                                           |   | March 31, 2011 |      |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
|                                                                                                                                                             |   | (Unaudited)         |      |   | (Audited)              |   |
|                                                                                                                                                             |   |                |      |   |                   |   |
| Cash                                                                                                                                                             |   | $                   | 2,201     |   |                   | $      | 3,173 |   |
| Premises and Equipment, Net                                                                                                                                      |   |                | 1,452     |   |                   |   | 1,478 |   |
| Investment in Subsidiaries, at Equity                                                                                                                            |   |                | 112,864   |   |                   |   | 112,389 |   |
| Other                                                                                                                                                            |   |                |  911 |   |                   |   | 484 |   |
|                                                                                                                                                             |   |                |      |   |                   |   |   |   |
| Totals Assets                                                                                                                                                    |   | $                   | 117,428   |   |                   | $      | 117,524 |   |
|                                                                                                                                                             |   |                |      |   |                   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                       |   |                |      |   |                   |   |   |   |
| Liabilities                                                                                                                                                      |   |                |      |   |                   |   |   |   |
| Dividends Payable                                                                                                                                                |   |                | 175       |   |                   | $      | 175 |   |
| Other                                                                                                                                                            |   |                | 164       |   |                   |   | 162 |   |
|                                                                                                                                                             |   |                | 339       |   |                   |   | 337 |   |
| Subordinated Debt                                                                                                                                                |   |                | 24,229    |   |                   |   | 24,229 |   |
|                                                                                                                                                             |   |                |      |   |                   |   |   |   |
|                                                                                                                                                             |   |                |      |   |                   |   |   |   |
| Stockholders’ Equity                                                                                                                                       |   |                |      |   |                   |   |   |   |
| Preferred Stock, Par Value $1,000 a Share; Authorized 10,000,000Shares, Issued 28,000 Shares as of March 31, 2011                                                |   |                | 27,544    |   |                   |   | 27,506 |   |
| Common Stock, Par Value $1 a Share; Authorized 20,000,000 Shares, Issued 8,442,958 and 8,442,958 Shares as of March 31, 2011 and December 31, 2010, Respectively |   |                | 8,443     |   |                   |   | 8,443 |   |
| Paid-In Capital                                                                                                                                                  |   |                | 29,171    |   |                   |   | 29,171 |   |
| Retained Earnings                                                                                                                                                |   |                | 29,147    |   |                   |   | 28,479 |   |
| Restricted Stock - Unearned Compensation                                                                                                                         |   |                | (30       | )      |                   |   | (41 | ) |
| Accumulated Other Comprehensive Loss, Net of Tax                                                                                                                 |   |                | (1,415    | )      |                   |   | (600 | ) |
|                                                                                                                                                             |   |                | 92,860    |   |                   |   | 92,958 |   |
|                                                                                                                                                             |   |                |      |   |                   |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                                       |   | $                   | 117,428   |   |                   | $      | 117,524 |   |

----

Table of Contents

|                                                                            |   | MARCH 31, 2011 |   |   | MARCH 31, 2010 |   |
|---------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
|                                                                            |   |                |   |   |                |   |
| Income                                                                          |   |                |   |   |                |   |
| Dividends from Subsidiaries                                                     |   | $                   | 4      |   |                | $      | 4 |   |
| Management Fees                                                                 |   |                | 126    |   |                |   | 114 |   |
| Other                                                                           |   |                | 26     |   |                |   | 22 |   |
|                                                                            |   |                | 156    |   |                |   | 140 |   |
| Expenses                                                                        |   |                |   |   |                |   |   |   |
| Interest                                                                        |   |                | 125    |   |                |   | 121 |   |
| Salaries and Employee Benefits                                                  |   |                | 193    |   |                |   | 198 |   |
| Other                                                                           |   |                | 175    |   |                |   | 182 |   |
|                                                                            |   |                | 493    |   |                |   | 501 |   |
|                                                                            |   |                |   |   |                |   |   |   |
| Income (Loss) Before Taxes and Equity in Undistributed Earnings of Subsidiaries |   |                | (337   | )      |                |   | (361 | ) |
| Income Tax (Benefits)                                                           |   |                | (103   | )      |                |   | (109 | ) |
|                                                                            |   |                |   |   |                |   |   |   |
| Income (Loss) Before Equity in Undistributed                                    |   |                |   |   |                |   |   |   |
| Earnings of Subsidiaries                                                        |   |                | (234   | )      |                |   | (252 | ) |
| Equity in Undistributed Earnings of Subsidiaries                                |   |                | 1,290  |   |                |   | 936 |   |
|                                                                            |   |                |   |   |                |   |   |   |
| Net Income (Loss)                                                               |   |                | 1,056  |   |                |   | 684 |   |
|                                                                            |   |                |   |   |                |   |   |   |
| Preferred Stock Dividends                                                       |   |                | 350    |   |                |   | 350 |   |
|                                                                            |   |                |   |   |                |   |   |   |
| Net (Loss) Available to Common Shareholders                                     |   | $                   | 706    |   |                | $      | 334 |   |

----

Table of Contents

|                                                                                                                         |   | MARCH 31, 2011 |   |   | MARCH 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
|                                                                                                                         |   |                |   |   |                |   |
| Net Income                                                                                                                   |   | $                   | 1,056  |   |                | $      | 684 |   |
|                                                                                                                         |   |                |   |   |                |   |   |   |
| Other Comprehensive Income (Loss), Net of Tax                                                                                |   |                |   |   |                |   |   |   |
| Gains (Losses) on Securities Arising During Year                                                                             |   |                | (554   | )      |                |   | 702 |   |
| Reclassification Adjustment                                                                                                  |   |                | (261   | )      |                |   | (516 | ) |
|                                                                                                                         |   |                |   |   |                |   |   |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects |   |                | (815   | )      |                |   | 186 |   |
|                                                                                                                         |   |                |   |   |                |   |   |   |
| Comprehensive Income                                                                                                         |   | $                   | 241    |   |                | $      | 870 |   |

----

Table of Contents

|                                                                               |   | 2011   |     |   | 2010   |   |
|------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                               |   |   |     |   |   |   |
| Cash Flows from Operating Activities                                               |   |   |     |   |   |   |
| Net Income                                                                         |   | $      | 1,056    |   |   | $      | 684 |   |
| Adjustments to Reconcile Net Income to Net Cash Provided from Operating Activities |   |   |     |   |   |   |   |   |
| Depreciation and Amortization                                                      |   |   | 37       |   |   |   | 55 |   |
| Equity in Undistributed Earnings of Subsidiary                                     |   |   | (1,290   | )      |   |   | (936 | ) |
| Other                                                                              |   |   | (425     | )      |   |   | (160 | ) |
|                                                                               |   |   | (622     | )      |   |   | (357 | ) |
| Cash Flows from Investing Activities                                               |   |   |     |   |   |   |   |   |
| Purchases of Premises and Equipment                                                |   |   |  -- |   |   |   | (29 | ) |
|                                                                               |   |   | --       |   |   |   | (29 | ) |
| Cash Flows from Financing Activities                                               |   |   |     |   |   |   |   |   |
| Dividends Paid Preferred Stock                                                     |   |   | (350     | )      |   |   | (350 | ) |
| Dividends Paid Common Stock                                                        |   |   | --       |   |   |   | -- |   |
| Proceeds from Issuance of Common Stock                                             |   |   |  -- |   |   |   | 5,000 |   |
|                                                                               |   |   | (350     | )      |   |   | 4,650 |   |
|                                                                               |   |   |     |   |   |   |   |   |
| Net Increase (Decrease) in Cash                                                    |   |   | (972     | )      |   |   | 4,264 |   |
|                                                                               |   |   |     |   |   |   |   |   |
| Cash, Beginning                                                                    |   |   | 3,173    |   |   |   | 556 |   |
|                                                                               |   |   |     |   |   |   |   |   |
| Cash, Ending                                                                       |   | $      | 2,201    |   |   | $      | 4,820 |   |

----

Table of Contents

|                                             |   | Three Months Ended |   |   | Three Months Ended |   |
|--------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
|                                             |   | March 31, 2011     |   |   | March 31, 2010     |   |
|                                             |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |               |   |   | Common             |   |   |   |   |   |   |   |   | Common |   |   |   |   |
|                                             |   | Income             |   |   | Shares             |   |   |   |   |   | Income |   |   | Shares |   |   |   |   |
|                                             |   | Numerator          |   |   | Denominator        |   |   | EPS |   |   | Numerator |   |   | Denominator |   |   | EPS |   |
|                                             |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS                                        |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders   |   | $                  | 706    |   |               |   | 8,439 |   |   | $ | 0.08 |   |   | $ | 334 |   |   |   | 7,256 |   |   | $ | 0.05 |   |
|                                             |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive Effect of Potential Common Stock        |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restricted Stock                                 |   |               |   |   |               |   |  - |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |
| Stock Warrants                                   |   |               |   |   |               |   |  - |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |
|                                             |   |               |   |   |               |   |  - |   |   |   |   |   |   |   |   |   |   |   |  - |   |   |   |   |   |
|                                             |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                      |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders   |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| After Assumed Conversions of Dilutive Securities |   | $                  | 706    |   |               |   | 8,439 |   |   | $ | 0.08 |   |   | $ | 334 |   |   |   | 7,256 |   |   | $ | 0.05 |   |

----

Table of Contents

MANAGEMENT

|   | · | Local and regional economic conditions and the impact they may have on the Company and its customers and the Company’s assessment of that impact. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Inflation, interest rate, market and monetary fluctuations. |
|--------|--------|-------------------------------------------------------------|

|   | · | Political instability. |
|--------|--------|------------------------|

|   | · | Acts of war or terrorism. |
|--------|--------|---------------------------|

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

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

|   | · | Technological changes. |
|--------|--------|------------------------|

|   | · | Acquisitions and integration of acquired businesses. |
|--------|--------|------------------------------------------------------|

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

|   | · | The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Changes in the Company’s organization, compensation and benefit plans. |
|--------|--------|------------------------------------------------------------------------------|

|   | · | The costs and effects of litigation and of unexpected or adverse outcomes in such litigation. |
|--------|--------|-----------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | Greater than expected costs or difficulties related to the integration of new lines of business. |
|--------------------|--------------------------------------------------------------------------------------------------|

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

----

Table of Contents

|                                                |   | Three Months Ended |
|-----------------------------------------------------|--------|--------------------|
|                                                |   | March 31           |
|                                                |   |               |   |   |   |   |
|                                                |   | 2011               |   |   | 2010 |   |
|                                                |   |               |   |   |   |   |
| Taxable-equivalent net interest income              |   | $                  | 8,860 |   |   | $ | 9,723 |   |
| Taxable-equivalent adjustment                       |   |               | 42 |   |   |   | 45 |   |
|                                                |   |               |   |   |   |   |   |   |
| Net interest income                                 |   |               | 8,818 |   |   |   | 9,678 |   |
| Provision for possible loan losses                  |   |               | 1,500 |   |   |   | 3,250 |   |
| Noninterest income                                  |   |               | 2,104 |   |   |   | 2,540 |   |
| Noninterest expense                                 |   |               | 7,939 |   |   |   | 8,313 |   |
|                                                |   |               |   |   |   |   |   |   |
| Income (loss) before income taxes                   |   | $                  | 1,483 |   |   | $ | 655 |   |
| Income Taxes (Benefits)                             |   |               | 427 |   |   |   | (29 | ) |
|                                                |   |               |   |   |   |   |   |   |
| Net income (loss)                                   |   | $                  | 1,056 |   |   | $ | 684 |   |
|                                                |   |               |   |   |   |   |   |   |
| Preferred stock dividends                           |   |               | 350 |   |   |   | 350 |   |
|                                                |   |               |   |   |   |   |   |   |
| Net income (loss) available to common shareholders  |   | $                  | 706 |   |   | $ | 334 |   |
|                                                |   |               |   |   |   |   |   |   |
| Net Income (loss) available to common shareholders: |   |               |   |   |   |   |   |   |
| Basic                                               |   | $                  | 0.08 |   |   | $ | 0.05 |   |
| Diluted                                             |   | $                  | 0.08 |   |   | $ | 0.05 |   |
| Return on average assets                            |   |               | 0.22 | % |   |   | 0.10 | % |
| Return on average common equity                     |   |               | 3.05 | % |   |   | 1.48 | % |

----

Table of Contents

----

Table of Contents

|                                              |   | Changes from March 31, 2010 to March 31, 2011 |   |
|---------------------------------------------------|--------|-----------------------------------------------|--------|
| ($ in thousands)                                  |   | Volume                                        |   |   | Rate |   |   | Total |   |
|                                              |   |                                          |   |   |   |   |   |   |   |
| Interest Income                                   |   |                                          |   |   |   |   |   |   |   |
| Loans, Net-taxable                                |   | $                                             | (1,691 | ) |   | $ | (179 | ) |   | $ | (1,870 | ) |
|                                              |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Investment Securities                             |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Taxable                                           |   |                                          | 289    |   |   |   | (154 | ) |   |   | 135 |   |
| Tax-exempt                                        |   |                                          | 12     |   |   |   | (6 | ) |   |   | 6 |   |
| Total Investment Securities                       |   |                                          | 301    |   |   |   | (160 | ) |   |   | 141 |   |
|                                              |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Deposits in other Banks          |   |                                          | 4      |   |   |   | 5 |   |   |   | 9 |   |
|                                              |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Federal Funds Sold                                |   |                                          | 8      |   |   |   | --- |   |   |   | 8 |   |
|                                              |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Other Interest - Earning Assets                   |   |                                          | ---    |   |   |   | 14 |   |   |   | 14 |   |
| Total Interest Income                             |   |                                          | (1,378 | ) |   |   | (320 | ) |   |   | (1,698 | ) |
|                                              |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                                  |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Demand and Savings Deposits      |   |                                          | 28     |   |   |   | (154 | ) |   |   | (126 | ) |
| Time Deposits                                     |   |                                          | (259   | ) |   |   | (401 | ) |   |   | (660 | ) |
| Federal Funds Purchased and Repurchase Agreements |   |                                          | (75    | ) |   |   | 56 |   |   |   | (19 | ) |
| Subordinated Debentures                           |   |                                          | ---    |   |   |   | 4 |   |   |   | 4 |   |
| Other Borrowed Money                              |   |                                          | (174   | ) |   |   | 140 |   |   |   | (34 | ) |
|                                              |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Total Interest Expense                            |   |                                          | (480   | ) |   |   | (355 | ) |   |   | (835 | ) |
| Net Interest Income                               |   | $                                             | (898   | ) |   | $ | 35 |   |   | $ | (863 | ) |

| 1) | Changes in net interest income for the periods, based on either changes in average balances or changes in average rates for interest-earning assets and interest-bearing liabilities, are shown on this table. During each year, there are numerous and simultaneous balance and rate changes; therefore, it is not possible to precisely allocate the changes between balances and rates. For the purpose of this table, changes that are not exclusively due to balance changes or rate changes have been attributed to rates. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

|                                |   | Three Months Ended |   |
|-------------------------------------|--------|--------------------|--------|
|                                |   | March 31           |   |
|                                |   | 2011               |   |   | 2010 |   |
|                                |   |               |   |   |   |   |
| Service Charges on Deposit Accounts |   | $                  | 756    |   |   | $ | 907 |   |
| Other Charges, Commissions and Fees |   |               | 315    |   |   |   | 270 |   |
| Other                               |   |               | 575    |   |   |   | 521 |   |
| Mortgage Fee Income                 |   |               | 62     |   |   |   | 61 |   |
| Securities Gains                    |   |               | 396    |   |   |   | 781 |   |
|                                |   |               |   |   |   |   |   |   |
| Total                               |   | $                  | 2,104  |   |   | $ | 2,540 |   |

----

Table of Contents

|                           |   | Three Months Ended |   |
|--------------------------------|--------|--------------------|--------|
|                           |   | March 31           |   |
|                           |   |               |   |   |   |   |
|                           |   | 2011               |   |   | 2010 |   |
|                           |   |               |   |   |   |   |
| Salaries and Employee Benefits |   | $                  | 3,569  |   |   | $ | 3,554 |   |
| Occupancy and Equipment        |   |               | 1,016  |   |   |   | 1,108 |   |
| Other                          |   |               | 3,354  |   |   |   | 3,651 |   |
|                           |   |               |   |   |   |   |   |   |
| Total                          |   | $                  | 7,939  |   |   | $ | 8,313 |   |

----

Table of Contents

|                                        |   | Three Months Ended |      |
|---------------------------------------------|--------|--------------------|-----------|
|                                        |   | March 31,          |      |
| Sources of Funds:                           |   | 2011               |      |   | 2010 |   |
| Deposits:                                   |   |               |      |   |   |   |   |   |   |   |   |   |
| Noninterest-Bearing                         |   | $                  | 97,739    |   |   |   | 7.78 | % |   | $ | 82,271 |   |   |   | 6.31 | % |
| Interest-Bearing                            |   |               | 943,860   |   |   |   | 75.15 |   |   |   | 974,815 |   |   |   | 74.78 |   |
| Federal Funds Purchased and Repo Agreements |   |               | 20,000    |   |   |   | 1.59 |   |   |   | 33,397 |   |   |   | 2.56 |   |
| Long-term Debt and Other Borrowings         |   |               | 97,690    |   |   |   | 7.78 |   |   |   | 118,232 |   |   |   | 9.07 |   |
| Other Noninterest-Bearing Liabilities       |   |               | 4,128     |   |   |   | 0.33 |   |   |   | 4,492 |   |   |   | 0.35 |   |
| Equity Capital                              |   |               | 92,594    |   |   |   | 7.37 |   |   |   | 90,335 |   |   |   | 6.93 |   |
| Total                                       |   | $                  | 1,256,011 |   |   |   | 100.00 | % |   | $ | 1,303,542 |   |   |   | 100.00 | % |
|                                        |   |               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Uses of Funds:                              |   |               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                       |   | $                  | 766,502   |   |   |   | 61.03 | % |   | $ | 875,957 |   |   |   | 67.20 | % |
| Securities                                  |   |               | 304,229   |   |   |   | 24.22 |   |   |   | 260,507 |   |   |   | 19.98 |   |
| Federal Funds Sold                          |   |               | 54,786    |   |   |   | 4.36 |   |   |   | 41,419 |   |   |   | 3.18 |   |
| Interest-Bearing Deposits in Other Banks    |   |               | 29,382    |   |   |   | 2.34 |   |   |   | 14,500 |   |   |   | 1.11 |   |
| Other Interest-Earning Assets               |   |               | 6,064     |   |   |   | 0.48 |   |   |   | 6,345 |   |   |   | 0.49 |   |
| Other Noninterest-Earning Assets            |   |               | 95,048    |   |   |   | 7.57 |   |   |   | 104,814 |   |   |   | 8.04 |   |
| Total                                       |   | $                  | 1,256,011 |   |   |   | 100.00 | % |   | $ | 1,303,542 |   |   |   | 100.00 | % |

|                                   |   | March 31, 2011 |    |   | December 31, 2010 |   |
|----------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                                   |   |                |    |   |                   |   |
| Commercial, Financial and Agricultural |   | $                   | 62,296  |   |                   | $      | 63,772 |   |
| Real Estate                            |   |                |    |   |                   |   |   |   |
|    Construction         |   |                | 76,825  |   |                   |   | 76,682 |   |
|    Mortgage, Farmland   |   |                | 48,790  |   |                   |   | 52,778 |   |
|    Mortgage, Other      |   |                | 548,419 |   |                   |   | 570,350 |   |
| Consumer                               |   |                | 32,682  |   |                   |   | 33,564 |   |
| Other                                  |   |                | 13,969  |   |                   |   | 16,104 |   |
|                                   |   |                | 782,981 |   |                   |   | 813,250 |   |
| Unearned Interest and Fees             |   |                | (61     | )      |                   |   | (61 | ) |
| Allowance for Loan Losses              |   |                | (22,470 | )      |                   |   | (28,280 | ) |
|                                   |   |                |    |   |                   |   |   |   |
| Loans                                  |   | $                   | 760,450 |   |                   | $      | 784,909 |   |

----

Table of Contents

| Maturity and Repricing Opportunity   |   | ($ in Thousands) |    |
|--------------------------------------|--------|------------------|---------|
|                                 |   |             |    |
| One Year or Less                     |   | $                | 500,742 |   |
| After One Year through Three Years   |   |             | 247,641 |   |
| After Three Years through Five Years |   |             | 24,351  |   |
| Over Five Years                      |   |             | 10,247  |   |
|                                 |   | $                | 782,981 |   |

----

Table of Contents

|                        |   | March 31, 2011 |   |   | December 31, 2010   |   |
|-----------------------------|--------|----------------|--------|--------|---------------------|--------|
|                        |   |           |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   |           |   |   | Period End Balances |   |   |   |   |   | Period End Balances |   |
|                        |   | Number of      |   |   |                |   |   |   |   |   | Number of |   |   |   |   |   |   |   |
|                        |   |           |   |   |                |   |   |   |   |   |   |   |
|                        |   | Relationships  |   |   | Committed           |   |   | Outstanding |   |   | Relationships |   |   | Committed |   |   | Outstanding |   |
|                        |   |           |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Large Credit Relationships: |   |           |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $10 million and greater     |   |           | 1      |   |                | $      | 15,025 |   |   | $ | 15,025 |   |   |   | 1 |   |   | $ | 15,025 |   |   | $ | 15,025 |   |
| $5 million to $9.9 million  |   |           | 6      |   |                | $      | 39,712 |   |   | $ | 39,712 |   |   |   | 7 |   |   | $ | 46,794 |   |   | $ | 45,588 |   |

|                               |   | Due in OneYear or Less |    |   | After One,but WithinThree Years |   |    | After Three,but WithinFive Years |   |   | AfterFiveYears |   |   |  Total |   |
|------------------------------------|--------|-----------------------------|---------|--------|---------------------------------|--------|---------|----------------------------------|--------|--------|----------------|--------|--------|-------------|--------|
|                               |   |                        |    |   |                            |   |    |                             |   |   |           |   |   |        |   |
| Loans with fixed interest rates    |   | $                           | 282,591 |   |                            | $      | 246,231 |                             |   | $      | 22,693         |   |   | $           | 9,797  |   |   | $ | 561,312 |   |
| Loans with floating interest rates |   |                        | 218,151 |   |                            |   | 1,410   |                             |   |   | 1,658          |   |   |        | 450    |   |   |   | 221,669 |   |
|                               |   |                        |    |   |                            |   |    |                             |   |   |           |   |   |        |   |   |   |   |   |   |
| Total                              |   | $                           | 500,742 |   |                            | $      | 247,641 |                             |   | $      | 24,351         |   |   | $           | 10,247 |   |   | $ | 782,981 |   |

----

Table of Contents

|                                                              |   | March 31, 2011 |   |   | December 31, 2010 |   |   | March 31, 2010 |   |
|-------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|--------|----------------|--------|
|                                                              |   |           |   |   |              |   |   |           |   |
| Loans Accounted for on Nonaccrual                                 |   | $              | 29,792 |   |              | $      | 28,902 |           |   | $ | 34,718 |   |
| Loans Past Due 90 Days or More                                    |   |           | --     |   |              |   | 19     |           |   |   | 27 |   |
| Other Real Estate Foreclosed                                      |   |           | 21,094 |   |              |   | 20,208 |           |   |   | 18,846 |   |
| Securities Accounted for on Nonaccrual                            |   |           | 132    |   |              |   | 132    |           |   |   | 132 |   |
| Total Nonperforming Assets                                        |   | $              | 51,018 |   |              | $      | 49,261 |           |   | $ | 53,723 |   |
|                                                              |   |           |   |   |              |   |   |           |   |   |   |   |
| Nonperforming Assets as a Percentage of:                          |   |           |   |   |              |   |   |           |   |   |   |   |
| Total Loans and Foreclosed Assets                                 |   |           | 6.35   | %      |              |   | 5.91   | %              |   |   | 5.94 | % |
| Total Assets                                                      |   |           | 4.10   | %      |              |   | 3.86   | %              |   |   | 4.13 | % |
| Supplemental Data:                                                |   |           |   |   |              |   |   |           |   |   |   |   |
| Trouble Debt Restructured Loans In Compliance with Modified Terms |   |           | 17,247 |   |              |   | 26,556 |           |   |   | 10,839 |   |
| Trouble Debt Restructured Loans Past Due 30-89 Days               |   |           | 1,126  |   |              |   | 1,048  |           |   |   | -- |   |
| Accruing Past Due Loans:                                          |   |           |   |   |              |   |   |           |   |   |   |   |
| 30-89 Days Past Due                                               |   | $              | 15,151 |   |              | $      | 19,740 |           |   | $ | 10,073 |   |
| 90 or More Days Past Due                                          |   |           | --     |   |              |   | 19     |           |   |   | 27 |   |
| Total Accruing Past Due Loans                                     |   | $              | 15,151 |   |              | $      | 19,759 |           |   | $ | 10,100 |   |

----

Table of Contents

|                                   |   | March 31, 2011 |   |   | December 31, 2010 |   |
|----------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                   |   |           |   |   |              |   |   |   |   |   |   |   |
|                                   |   | Reserve        |   |   |              | %      | * |   | Reserve |   |   |   | % | * |
| Commercial, Financial and Agricultural |   | $              | 3,183  |   |              |   | 8 | % |   | $ | 5,113 |   |   |   | 8 | % |
| Real Estate – Construction       |   |           | 5,838  |   |              |   | 10 | % |   |   | 4,646 |   |   |   | 9 | % |
| Real Estate – Farmland           |   |           | 701    |   |              |   | 6 | % |   |   | 944 |   |   |   | 7 | % |
| Real Estate – Other              |   |           | 10,275 |   |              |   | 70 | % |   |   | 13,972 |   |   |   | 70 | % |
| Loans to Individuals                   |   |           | 2,271  |   |              |   | 4 | % |   |   | 3,074 |   |   |   | 4 | % |
| All Other Loans                        |   |           | 202    |   |              |   | 2 | % |   |   | 531 |   |   |   | 2 | % |
|      Total    |   | $              | 22,470 |   |              |   | 100 | % |   | $ | 28,280 |   |   |   | 100 | % |

| * | Loan balance in each category expressed as a percentage of total end of period loans. |
|---|---------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                            |   | Three Months Ended |   |   | Three Months Ended |   |
|---------------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|
| ($ in thousands)                                                                |   | March 31, 2011               |   |   | March 31, 2010               |   |
|                                                                            |   |                         |   |   |                         |   |
| Allowance for Loan Losses at Beginning of Quarter                               |   | $                            | 28,280 |   |                         | $      | 31,401 |   |
|                                                                            |   |                         |   |   |                         |   |   |   |
| Charge-Off                                                                      |   |                         |   |   |                         |   |   |   |
|     Commercial, Financial and Agricultural                  |   |                         | 662    |   |                         |   | 235 |   |
|     Real Estate – Construction & Land Development |   |                         | 2,110  |   |                         |   | 1,531 |   |
|     Real Estate – Residential                         |   |                         | 741    |   |                         |   | 1,836 |   |
|     Real Estate – Nonfarm Residential                 |   |                         | 3,887  |   |                         |   | 1,257 |   |
|     Consumer                                                |   |                         | 68     |   |                         |   | 183 |   |
|     All Other                                               |   |                         | 66     |   |                         |   | 189 |   |
|                                                                            |   |                         | 7,534  |   |                         |   | 5,231 |   |
| Recoveries                                                                      |   |                         |   |   |                         |   |   |   |
|     Commercial, Financial and Agricultural                  |   |                         | 19     |   |                         |   | 20 |   |
|     Real Estate – Construction & Land Development |   |                         | 18     |   |                         |   | 1 |   |
|     Real Estate – Residential                         |   |                         | 29     |   |                         |   | 136 |   |
|     Real Estate – Nonfarm Residential                 |   |                         | 95     |   |                         |   | 57 |   |
|     Consumer                                                |   |                         | 58     |   |                         |   | 56 |   |
|     All Other                                               |   |                         | 5      |   |                         |   | 6 |   |
|                                                                            |   |                         | 224    |   |                         |   | 276 |   |
|                                                                            |   |                         |   |   |                         |   |   |   |
| Net Charge-Offs                                                                 |   |                         | 7,310  |   |                         |   | 4,955 |   |
|                                                                            |   |                         |   |   |                         |   |   |   |
| Provision for Loan Losses                                                       |   |                         | 1,500  |   |                         |   | 3,250 |   |
|                                                                            |   |                         |   |   |                         |   |   |   |
| Allowance for Loan Losses at End of Quarter                                     |   | $                            | 22,470 |   |                         | $      | 29,696 |   |
|                                                                            |   |                         |   |   |                         |   |   |   |
| Ratio of Net Charge-Offs to Average Loans                                       |   |                         | 0.92   | %      |                         |   | 0.55 | % |

----

Table of Contents

----

Table of Contents

| ($ in thousands)                                   |   | March 31, 2011 |    |   | December 31, 2010 |   |
|----------------------------------------------------|--------|--------------------------|---------|--------|-----------------------------|--------|
|                                               |   |                     |    |   |                        |   |
| State, County and Municipal                        |   | $                        | 3,345   |   |                        | $      | 3,304 |   |
| Corporate Obligations                              |   |                     | 2,028   |   |                        |   | 1,987 |   |
| Asset-Backed Securities                            |   |                     | 132     |   |                        |   | 132 |   |
|                                               |   |                     |    |   |                        |   |   |   |
| Investment Securities                              |   |                     | 5,505   |   |                        |   | 5,423 |   |
| Mortgage-Backed Securities                         |   |                     | 286,748 |   |                        |   | 298,463 |   |
| Total Investment Securities and                    |   |                     |    |   |                        |   |   |   |
|     Mortgage Backed Securities |   | $                        | 292,253 |   |                        | $      | 303,886 |   |

|                         |   | Within 1 Year |   |   | After 1 Year ButWithin 5 Years |   |   | After 5 Years But Within 10 Years |   |   | After 10 Years  |
|------------------------------|--------|---------------|--------|--------|--------------------------------|--------|--------|-----------------------------------|--------|--------|----------------------|
|                         |   | Amount        |   |   | Yield                          |   |   | Amount                            |   |   | Yield                |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |
| Mortgage-Backed Securities   |   | $             | 14,124 |   |                           |   | 1.71   | %                                 |   | $      | 213,384              |   |   |   | 2.47 | % |   | $ | 39,354 |   |   |   | 2.78 | % |   | $ | 19,886 |   |   |   | 3.71 | % |
|                         |   |          |   |   |                           |   |   |                              |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State, County, and Municipal |   |          | 1,063  |   |                           |   | 4.09   |                              |   |   | 1,228                |   |   |   | 3.11 |   |   |   | 1,054 |   |   |   | 3.46 |   |   |   | --- |   |   |   | --- |   |
|                         |   |          |   |   |                           |   |   |                              |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate Obligations        |   |          | ---    |   |                           |   | ---    |                              |   |   | ---                  |   |   |   | --- |   |   |   | 1,092 |   |   |   | 5.67 |   |   |   | 936 |   |   |   | 3.54 |   |
|                         |   |          |   |   |                           |   |   |                              |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset-Backed Securities      |   |          | ---    |   |                           |   | ---    |                              |   |   | ---                  |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | 132 |   |   |   | 0.00 |   |
|                         |   |          |   |   |                           |   |   |                              |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Investment Portfolio   |   | $             | 15,187 |   |                           |   | 1.88   | %                                 |   | $      | 214,612              |   |   |   | 2.47 | % |   | $ | 41,500 |   |   |   | 2.87 | % |   | $ | 20,954 |   |   |   | 3.62 | % |

----

Table of Contents

|                                         |   | March 31, 2011 |      |   | March 31, 2010 |   |
|----------------------------------------------|--------|----------------|-----------|--------|----------------|--------|
|                                         |   | Average        |      |   | Average        |   |   | Average |   |   | Average |   |
| ($ in thousands)                             |   | Amount         |      |   | Rate           |   |   | Amount |   |   | Rate |   |
|                                         |   |           |      |   |           |   |   |   |   |   |   |   |
| Noninterest-Bearing Demand Deposits     |   | $              | 97,739    |   |           |   |   |   | $ | 82,271 |   |   |   |   |
| Interest-Bearing Demand and Savings Deposits |   |           | 269,891   |   |           |   | 0.48 | % |   |   | 253,931 |   |   |   | 0.71 | % |
| Time Deposits                                |   |           | 673,969   |   |           |   | 1.97 | % |   |   | 720,884 |   |   |   | 2.21 | % |
|                                         |   |           |      |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Total Deposits                               |   | $              | 1,041,599 |   |           |   | 1.40 | % |   | $ | 1,057,086 |   |   |   | 1.68 | % |

|                             |   | Time       |    |   | Time      |   |    |   |   |
|----------------------------------|--------|------------|---------|--------|-----------|--------|---------|--------|--------|
|                             |   | Deposits   |    |   | Deposits  |   |    |   |   |
|                             |   | $100,000   |    |   | Less Than |   |    |   |   |
| ($ in thousands)                 |   | or Greater |    |   | $100,000  |   |    | Total  |   |
|                             |   |       |    |   |      |   |    |   |   |   |   |
| Months to Maturity               |   |       |    |   |      |   |    |   |   |   |   |
| 3 or Less                        |   | $          | 50,971  |   |      | $      | 48,461  |   |   | $ | 99,432 |   |
| Over 3 through 12 Months         |   |       | 166,088 |   |      |   | 213,073 |   |   |   | 379,161 |   |
| Over 12 Months through 36 Months |   |       | 70,612  |   |      |   | 100,910 |   |   |   | 171,522 |   |
| Over 36 Months                   |   |       | 4,070   |   |      |   | 7,588   |   |   |   | 11,658 |   |
|                             |   |       |    |   |      |   |    |   |   |   |   |   |
|                             |   | $          | 291,741 |   |      | $      | 370,032 |   |   | $ | 661,773 |   |

----

Table of Contents

|                                                               |   | Payments Due by Period |    |
|--------------------------------------------------------------------|--------|------------------------|---------|
|                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                   |    |   | More than 1 |   |   | 3 Years or |   |   |   |   |   |   |   |
|                                                               |   |                   |    |   | Year but Less |   |   | More but Less |   |   | 5 Years or |   |   |   |   |
|                                                               |   | 1 Year or Less         |    |   | Than 3 Years |   |   | Than 5 Years |   |   | More |   |   | Total |   |
| Contractual obligations:                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Subordinated debentures                                            |   | $                      | ----    |   |   | $ | ---- |   |   | $ | ---- |   |   | $ | 24,229 |   |   | $ | 24,229 |   |
| Federal Funds purchased and repurchase agreements                  |   |                   | 20,000  |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 20,000 |   |
| Secured Borrowings                                                 |   |                   | 981     |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 981 |   |
| Federal Home Loan Bank advances                                    |   |                   | 13,500  |   |   |   | 27,500 |   |   |   | ---- |   |   |   | 30,000 |   |   |   | 71,000 |   |
| Operating leases                                                   |   |                   | 129     |   |   |   | 190 |   |   |   | ---- |   |   |   | ---- |   |   |   | 319 |   |
| Deposits with stated maturity dates                                |   |                   | 478,593 |   |   |   | 171,522 |   |   |   | 11,478 |   |   |   | 180 |   |   |   | 661,773 |   |
|                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                   | 513,203 |   |   |   | 199,212 |   |   |   | 11,478 |   |   |   | 54,409 |   |   |   | 778,302 |   |
| Other commitments:                                                 |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan commitments                                                   |   |                   | 56,761  |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 56,761 |   |
| Standby letters of credit                                          |   |                   | 1,444   |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 1,444 |   |
| Standby letter of credit issued by Federal Home Loan Bank for Bank |   |                   | 60      |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 60 |   |
|                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                   | 58,265  |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 58,265 |   |
| Total contractual obligations and Other commitments                |   | $                      | 571,468 |   |   | $ | 199,212 |   |   | $ | 11,478 |   |   | $ | 54,409 |   |   | $ | 836,567 |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                   |   | Three Months Ended |   |
|----------------------------------------|--------|--------------------|--------|
|                                   |   | March 31, 2011     |   |
|                                   |   | 2011               |   |   | 2010 |   |
|                                   |   |               |   |   |   |   |
| Return on Average Assets (1)           |   |               | 0.22   | % |   |   | 0.10 | % |
|                                   |   |               |   |   |   |   |   |   |
| Return on Average Total Equity (1)     |   |               | 3.05   | % |   |   | 1.48 | % |
|                                   |   |               |   |   |   |   |   |   |
| Average Total Equity to Average Assets |   |               | 7.37   | % |   |   | 6.93 | % |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

Quantitative

| AVERAGE BALANCE SHEETS                                         |   | Three Months Ended |      |   | Three Months Ended |   |
|----------------------------------------------------------------|--------|--------------------|-----------|--------|--------------------|--------|
|                                                           |   | March 31, 2011     |      |   | March 31, 2010     |   |
|                                                           |   | Average            |      |   | Income/            |   |   | Yields/ |   |   | Average |   |   | Income/ |   |   | Yields/ |   |
| ($ in thousands)                                               |   | Balances           |      |   | Expense            |   |   | Rates |   |   | Balances |   |   | Expense |   |   | Rates |   |
| Assets                                                         |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Earning Assets                                        |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, Net of Unearned Interest and fees                       |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable (1)                                                    |   | $                  | 794,563   |   |               | $      | 11,596 |   |   |   | 5.84 | % |   | $ | 908,610 |   |   | $ | 13,466 |   |   |   | 5.93 | % |
| Investment Securities                                          |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                        |   |               | 301,113   |   |               |   | 1,869 |   |   |   | 2.48 | % |   |   | 258,206 |   |   |   | 1,734 |   |   |   | 2.69 | % |
| Tax-Exempt (2)                                                 |   |               | 3,116     |   |               |   | 40 |   |   |   | 5.13 | % |   |   | 2,301 |   |   |   | 34 |   |   |   | 5.91 | % |
| Total Investment Securities                                    |   |               | 304,229   |   |               |   | 1,909 |   |   |   | 2.51 | % |   |   | 260,507 |   |   |   | 1,768 |   |   |   | 2.72 | % |
| Interest-Bearing Deposits                                      |   |               | 29,382    |   |               |   | 12 |   |   |   | 0.16 | % |   |   | 14,500 |   |   |   | 3 |   |   |   | 0.11 | % |
| Federal Funds Sold                                             |   |               | 54,786    |   |               |   | 34 |   |   |   | 0.25 | % |   |   | 41,419 |   |   |   | 26 |   |   |   | 0.25 | % |
| Interest-Bearing Other Assets                                  |   |               | 6,064     |   |               |   | 18 |   |   |   | 1.19 | % |   |   | 6,345 |   |   |   | 4 |   |   |   | 0.19 | % |
| Total Interest-Earning Assets                                  |   |               | 1,189,024 |   |               | $      | 13,569 |   |   |   | 4.56 | % |   |   | 1,231,381 |   |   | $ | 15,267 |   |   |   | 4.96 | % |
| Non-interest-Earning Assets                                    |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents                                      |   |               | 21,400    |   |               |   |   |   |   |   |   |   |   |   | 21,185 |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses                                      |   |               | (28,061   | )      |               |   |   |   |   |   |   |   |   |   | (32,653 | ) |   |   |   |   |   |   |   |   |
| Other Assets                                                   |   |               | 73,648    |   |               |   |   |   |   |   |   |   |   |   | 83,629 |   |   |   |   |   |   |   |   |   |
| Total Noninterest-Earning Assets                               |   |               | 66,987    |   |               |   |   |   |   |   |   |   |   |   | 72,161 |   |   |   |   |   |   |   |   |   |
| Total Assets                                                   |   | $                  | 1,256,011 |   |               |   |   |   |   |   |   |   |   | $ | 1,303,542 |   |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                           |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities                                   |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Deposits                                      |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Demand and Savings                            |   | $                  | 269,891   |   |               | $      | 327 |   |   |   | 0.48 | % |   | $ | 253,931 |   |   | $ | 453 |   |   |   | 0.71 | % |
| Other Time                                                     |   |               | 673,969   |   |               |   | 3,327 |   |   |   | 1.97 | % |   |   | 720,884 |   |   |   | 3,987 |   |   |   | 2.21 | % |
| Total Interest-Bearing Deposits                                |   |               | 943,860   |   |               |   | 3,654 |   |   |   | 1.55 | % |   |   | 974,815 |   |   |   | 4,440 |   |   |   | 1.82 | % |
| Other Interest-Bearing Liabilities                             |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Borrowed Money                                           |   |               | 73,461    |   |               |   | 763 |   |   |   | 4.15 | % |   |   | 94,003 |   |   |   | 797 |   |   |   | 3.39 | % |
| Subordinated Debentures                                        |   |               | 24,229    |   |               |   | 125 |   |   |   | 2.06 | % |   |   | 24,229 |   |   |   | 121 |   |   |   | 2.00 | % |
| Federal Funds Purchased and Repurchase Agreements              |   |               | 20,000    |   |               |   | 167 |   |   |   | 3.34 | % |   |   | 33,397 |   |   |   | 186 |   |   |   | 2.23 | % |
| Total Other Interest-Bearing Liabilities                       |   |               | 117,690   |   |               |   | 1,055 |   |   |   | 3.59 | % |   |   | 151,629 |   |   |   | 1,104 |   |   |   | 2.91 | % |
| Total Interest-Bearing Liabilities                             |   |               | 1,061,550 |   |               | $      | 4,709 |   |   |   | 1.77 | % |   |   | 1,126,444 |   |   | $ | 5,544 |   |   |   | 1.97 | % |
| Noninterest-Bearing Liabilities and                            |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' Equity                                           |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand Deposits                                                |   |               | 97,739    |   |               |   |   |   |   |   |   |   |   |   | 82,271 |   |   |   |   |   |   |   |   |   |
| Other Liabilities                                              |   |               | 4,128     |   |               |   |   |   |   |   |   |   |   |   | 4,492 |   |   |   |   |   |   |   |   |   |
| Stockholders' Equity                                           |   |               | 92,594    |   |               |   |   |   |   |   |   |   |   |   | 90,335 |   |   |   |   |   |   |   |   |   |
| Total Noninterest-Bearing Liabilities and Stockholders' Equity |   |               | 194,461   |   |               |   |   |   |   |   |   |   |   |   | 177,098 |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders' Equity                     |   | $                  | 1,256,011 |   |               |   |   |   |   |   |   |   |   | $ | 1,303,542 |   |   |   |   |   |   |   |   |   |
|                                                           |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Rate Spread                                           |   |               |      |   |               |   |   |   |   |   | 2.79 | % |   |   |   |   |   |   |   |   |   |   | 2.99 | % |
| Net Interest Income                                            |   |               |      |   |               | $      | 8,860 |   |   |   |   |   |   |   |   |   |   | $ | 9,723 |   |   |   |   |   |
| Net Interest Margin                                            |   |               |      |   |               |   |   |   |   |   | 2.98 | % |   |   |   |   |   |   |   |   |   |   | 3.16 | % |

| (1) | The average balance of loans includes the average balance of nonaccrual loans.  Income on such loans is recognized and recorded on the cash basis.  Taxable equivalent adjustments totaling $28 and $34 for three month periods ended March 31, 2011 and 2010, respectively, are included in tax-exempt interest on loans. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Taxable-equivalent adjustments totaling $14 and $11 for three month periods ended March 31, 2011 and 2010, respectively, are included in tax-exempt interest on investment securities.  The adjustments are based on a federal tax rate of 34 percent with appropriate reductions for the effect of disallowed interest expense incurred in carrying tax-exempt obligations. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                               |   | Assets and Liabilities Repricing Within |    |
|------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   | 3 Months                                |    |   | 4 to 12 |   |   |   |   |   | 1 to 5 |   |   | Over 5 |   |   |   |   |
|                                                                               |   | or Less                                 |    |   | Months |   |   | 1 Year |   |   | Years |   |   | Years |   |   | Total |   |
| ($ in Thousands)                                                                   |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNING ASSETS:                                                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Deposits                                                          |   | $                                       | 14,736  |   |   | $ | --- |   |   | $ | 14,736 |   |   | $ | --- |   |   |   | --- |   |   | $ | 14,736 |   |
| Federal Funds Sold                                                                 |   |                                    | 70,896  |   |   |   | --- |   |   |   | 70,896 |   |   |   | --- |   |   |   | --- |   |   |   | 70,896 |   |
| Investment Securities                                                              |   |                                    | 5,403   |   |   |   | 6,958 |   |   |   | 12,361 |   |   |   | 207,305 |   |   |   | 72,587 |   |   |   | 292,253 |   |
| Loans, Net of Unearned Income                                                      |   |                                    | 322,561 |   |   |   | 178,151 |   |   |   | 500,712 |   |   |   | 271,961 |   |   |   | 10,247 |   |   |   | 782,920 |   |
| Other Interest-Bearing Assets                                                      |   |                                    | 6,063   |   |   |   | --- |   |   |   | 6,063 |   |   |   | --- |   |   |   | --- |   |   |   | 6,063 |   |
| Securities Purchased Under Agreements to Resell                                    |   |                                    | 5,000   |   |   |   |  --- |   |   |   | 5,000 |   |   |   | --- |   |   |   |  --- |   |   |   | 5,000 |   |
|                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Earning Assets                                                      |   |                                    | 424,659 |   |   |   | 185,109 |   |   |   | 609,768 |   |   |   | 479,266 |   |   |   | 82,834 |   |   |   | 1,171,868 |   |
|                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST-BEARING LIABILITIES:                                                      |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Demand Deposits (1)                                               |   |                                    | 233,299 |   |   |   | --- |   |   |   | 233,299 |   |   |   | --- |   |   |   | --- |   |   |   | 233,299 |   |
| Savings (1)                                                                        |   |                                    | 41,032  |   |   |   | --- |   |   |   | 41,032 |   |   |   | --- |   |   |   | --- |   |   |   | 41,032 |   |
| Time Deposits                                                                      |   |                                    | 99,432  |   |   |   | 379,161 |   |   |   | 478,593 |   |   |   | 183,000 |   |   |   | 180 |   |   |   | 661,773 |   |
| Other Borrowings (2)                                                               |   |                                    | 981     |   |   |   | 13,500 |   |   |   | 14,481 |   |   |   | 27,500 |   |   |   | 30,000 |   |   |   | 71,981 |   |
| Subordinated Debentures                                                            |   |                                    | 24,229  |   |   |   | --- |   |   |   | 24,229 |   |   |   | --- |   |   |   | --- |   |   |   | 24,229 |   |
| Repurchase Agreements                                                              |   |                                    | 20,000  |   |   |   |  --- |   |   |   | 20,000 |   |   |   | --- |   |   |   |  --- |   |   |   | 20,000 |   |
|                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Bearing Liabilities                                                 |   |                                    | 418,973 |   |   |   | 392,661 |   |   |   | 811,634 |   |   |   | 210,500 |   |   |   | 30,180 |   |   |   | 1,052,314 |   |
|                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Rate-Sensitivity Gap                                                      |   |                                    | 5,686   |   |   |   | (207,552 | ) |   |   | (201,866 | ) |   |   | 268,766 |   |   |   | 52,654 |   |   |   | 119,554 |   |
|                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative Interest-Sensitivity Gap                                                |   |                                    | 5,686   |   |   |   | (201,866 | ) |   |   | (201,866 | ) |   |   | 66,900 |   |   |   | 119,554 |   |   |   |   |   |
|                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Rate-Sensivitiy Gap as a Percentage of Interest-Earning Assets            |   |                                    | 0.48    | % |   |   | (17.71 | )% |   |   | (17.23 | )% |   |   | 22.94 | % |   |   | 4.49 | % |   |   |   |   |
|                                                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative Interest Rate-Sensitivity as as a Percentage of Interest-Earning Assets |   |                                    | 0.48    | % |   |   | (17.23 | )% |   |   | (17.23 | )% |   |   | 5.71 | % |   |   | 10.20 | % |   |   |   |   |

----

Table of Contents

----

Table of Contents

CONTROLS

----

Table of Contents

 LEGAL

 RISK 

UNREGISTERED 

DEFAULTS

REMOVED

OTHER

----

Table of Contents

EXHIBITS

----

Table of Contents

 31.1 

31.2 

32.1

----

Table of Contents

SIGNATURES

|                                            |   | /s/ Al D. Ross                        |   |
|-------------------------------------------------|--------|---------------------------------------|--------|
| Date:     May 13, 2011 |   | Al D. Ross,                           |   |
|                                            |   | President and Chief Executive Officer |   |

|                                            |   | /s/ Terry L. Hester                           |   |
|-------------------------------------------------|--------|-----------------------------------------------|--------|
| Date:     May 13, 2011 |   | Terry L. Hester, Executive Vice President and |   |
|                                            |   | Chief Financial Officer                       |   |

----