----

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|  FOR QUARTER ENDED SEPTEMBER 30, 2010 | 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 NOVEMBER 12, 2010 |
|----------------------------|----------------------------------|
| COMMON STOCK, $1 PAR VALUE | 8,444,308                        |

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TABLE 

|                                 |                                 |                                                                                       | Page   |
|--------------------------------------|--------------------------------------|--------------------------------------------------------------------------------------------|--------|
|                                 |                                 |                                                                                       |   |   |
| PART I – Financial Information |                                 |                                                                                       |
|                                 |                                 |                                                                                       |   |   |
|                                 | Forward Looking Statement Disclosure | 3                                                                                          |   |
|                                 |                                 |                                                                                       |   |
|                                 | Item 1.                              | Financial Statements                                                                       | 4      |   |
|                                 | Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operation | 33     |   |
|                                 | Item 3.                              | Quantitative and Qualitative Disclosures About Market Risk                                 | 58     |   |
|                                 | Item 4.                              | Controls and Procedures                                                                    | 61     |   |
|                                 |                                 |                                                                                       |   |   |
| PART II – Other Information    |                                 |                                                                                       |
|                                 |                                 |                                                                                       |   |   |
|                                 | Item 1.                              | Legal Proceedings                                                                          | 62     |   |
|                                 | Item 1A.                             | Risk Factors                                                                               | 62     |   |
|                                 | Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds                                | 62     |   |
|                                 | Item 3.                              | Defaults Upon Senior Securities                                                            | 62     |   |
|                                 | Item 4.                              | (Removed and Reserved)                                                                     | 62     |   |
|                                 | Item 5.                              | Other Information                                                                          | 62     |   |
|                                 | Item 6.                              | Exhibits                                                                                   | 63     |   |
|                                 | Signatures                           |                                                                                       | 65     |   |

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Table of Contents

Forward 

|   | · | 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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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FINANCIAL 

|   | A. | CONSOLIDATED BALANCE SHEETS – SEPTEMBER 30, 2010 AND DECEMBER 31, 2009. |
|--------|----|-------------------------------------------------------------------------------|

|   | B. | CONSOLIDATED STATEMENTS OF INCOME – FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME – FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | CONSOLIDATED STATEMENTS OF CASH FLOWS – FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009. |
|--------|----|-----------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                 |   | September 30, 2010 |      |   | December 31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
| ASSETS                                                                                                                                                               |   |  (Unaudited)       |      |   | (Audited)              |   |
|                                                                                                                                                                 |   |                    |      |   |                   |   |
| Cash and Cash Equivalents                                                                                                                                            |   |                    |      |   |                   |   |
| Cash and Due from Banks                                                                                                                                              |   | $                       | 21,243    |   |                   | $      | 25,996 |   |
| Federal Funds Sold                                                                                                                                                   |   |                    | 13,327    |   |                   |   | 16,433 |   |
|                                                                                                                                                                 |   |                    | 34,570    |   |                   |   | 42,429 |   |
| Interest-Bearing Deposits                                                                                                                                            |   |                    | 21,285    |   |                   |   | 6,479 |   |
| Investment Securities                                                                                                                                                |   |                    |      |   |                   |   |   |   |
| Available for Sale, at Fair Value                                                                                                                                    |   |                    | 270,793   |   |                   |   | 267,247 |   |
| Held to Maturity, at Cost (Fair Value of $52 and $57, as of September 30, 2010 and December 31, 2009, Respectively)                                                  |   |                    | 50        |   |                   |   | 54 |   |
|                                                                                                                                                                 |   |                    | 270,843   |   |                   |   | 267,301 |   |
|                                                                                                                                                                 |   |                    |      |   |                   |   |   |   |
| Federal Home Loan Bank Stock, at Cost                                                                                                                                |   |                    | 6,300     |   |                   |   | 6,345 |   |
| Loans                                                                                                                                                                |   |                    | 849,983   |   |                   |   | 931,392 |   |
| Allowance for Loan Losses                                                                                                                                            |   |                    | (27,754   | )      |                   |   | (31,401 | ) |
| Unearned Interest and Fees                                                                                                                                           |   |                    | (68       | )      |                   |   | (140 | ) |
|                                                                                                                                                                 |   |                    | 822,161   |   |                   |   | 899,851 |   |
| Premises and Equipment                                                                                                                                               |   |                    | 27,578    |   |                   |   | 28,826 |   |
| Other Real Estate                                                                                                                                                    |   |                    | 20,738    |   |                   |   | 19,705 |   |
| Other Intangible Assets                                                                                                                                              |   |                    | 304       |   |                   |   | 331 |   |
| Other Assets                                                                                                                                                         |   |                    | 27,710    |   |                   |   | 35,822 |   |
| Total Assets                                                                                                                                                         |   | $                       | 1,231,489 |   |                   | $      | 1,307,089 |   |
|                                                                                                                                                                 |   |                    |      |   |                   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                 |   |                    |      |   |                   |   |   |   |
| Deposits                                                                                                                                                             |   |                    |      |   |                   |   |   |   |
| Noninterest-Bearing                                                                                                                                                  |   | $                       | 76,149    |   |                   | $      | 84,239 |   |
| Interest-Bearing                                                                                                                                                     |   |                    | 929,083   |   |                   |   | 973,348 |   |
|                                                                                                                                                                 |   |                    | 1,005,232 |   |                   |   | 1,057,587 |   |
| Borrowed Money                                                                                                                                                       |   |                    |      |   |                   |   |   |   |
| Securities Sold Under Agreements to Repurchase                                                                                                                       |   |                    | 25,000    |   |                   |   | 40,000 |   |
| Subordinated Debentures                                                                                                                                              |   |                    | 24,229    |   |                   |   | 24,229 |   |
| Other Borrowed Money                                                                                                                                                 |   |                    | 76,469    |   |                   |   | 91,000 |   |
|                                                                                                                                                                 |   |                    | 125,698   |   |                   |   | 155,229 |   |
|                                                                                                                                                                 |   |                    |      |   |                   |   |   |   |
| Other Liabilities                                                                                                                                                    |   |                    | 4,600     |   |                   |   | 4,999 |   |
| Commitments and Contingencies                                                                                                                                        |   |                    |      |   |                   |   |   |   |
| Stockholders' Equity                                                                                                                                                 |   |                    |      |   |                   |   |   |   |
| Preferred Stock, No Par Value; Authorized 10,000,000 Shares, Issued 28,000 Shares                                                                                    |   |                    | 27,468    |   |                   |   | 27,357 |   |
| Common Stock, Par Value $1 a Share; Authorized 20,000,000 Shares, Issued 8,444,308 and 7,229,163 Shares as of September 30, 2010 and December 31, 2009, Respectively |   |                    | 8,444     |   |                   |   | 7,229 |   |
| Paid-In Capital                                                                                                                                                      |   |                    | 29,186    |   |                   |   | 25,393 |   |
| Retained Earnings                                                                                                                                                    |   |                    | 28,564    |   |                   |   | 29,554 |   |
| Restricted Stock - Unearned Compensation                                                                                                                             |   |                    | (70       | )      |                   |   | (159 | ) |
| Accumulated Other Comprehensive Income (Loss), Net of Tax                                                                                                            |   |                    | 2,367     |   |                   |   | (100 | ) |
|                                                                                                                                                                 |   |                    | 95,959    |   |                   |   | 89,274 |   |
| Total Liabilities and Stockholders' Equity                                                                                                                           |   | $                       | 1,231,489 |   |                   | $      | 1,307,089 |   |

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|                                                |   | Three Months Ended |      |   | Nine Months Ended |   |
|-----------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                |   | 9/30/2010          |      |   | 9/30/2009         |   |   | 9/30/2010 |   |   | 9/30/2009 |   |
| Interest Income                                     |   |               |      |   |              |   |   |   |   |   |   |   |
| Loans, Including Fees                               |   | $                  | 12,899    |   |              | $      | 14,569 |   |   | $ | 39,370 |   |   | $ | 43,342 |   |
| Federal Funds Sold                                  |   |               | 28        |   |              |   | 3 |   |   |   | 68 |   |   |   | 14 |   |
| Deposits with Other Banks                           |   |               | 10        |   |              |   | -- |   |   |   | 27 |   |   |   | -- |   |
| Investment Securities                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies                            |   |               | 1,448     |   |              |   | 1,932 |   |   |   | 5,119 |   |   |   | 5,886 |   |
| State, County and Municipal                         |   |               | 26        |   |              |   | 59 |   |   |   | 74 |   |   |   | 207 |   |
| Corporate Obligations and Asset-Backed Securities   |   |               | 23        |   |              |   | 74 |   |   |   | 113 |   |   |   | 287 |   |
| Dividends on Other Investments                      |   |               | 7         |   |              |   | 13 |   |   |   | 15 |   |   |   | 13 |   |
|                                                |   |               | 14,441    |   |              |   | 16,650 |   |   |   | 44,786 |   |   |   | 49,749 |   |
| Interest Expense                                    |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                            |   |               | 4,309     |   |              |   | 5,202 |   |   |   | 13,179 |   |   |   | 16,928 |   |
| Federal Funds Purchased                             |   |               | 182       |   |              |   | 222 |   |   |   | 549 |   |   |   | 658 |   |
| Borrowed Money                                      |   |               | 888       |   |              |   | 922 |   |   |   | 2,722 |   |   |   | 2,860 |   |
|                                                |   |               | 5,379     |   |              |   | 6,346 |   |   |   | 16,450 |   |   |   | 20,446 |   |
|                                                |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                                 |   |               | 9,062     |   |              |   | 10,304 |   |   |   | 28,336 |   |   |   | 29,303 |   |
| Provision for Loan Losses                           |   |               | 4,200     |   |              |   | 4,000 |   |   |   | 10,850 |   |   |   | 21,580 |   |
| Net Interest Income After Provision for Loan Losses |   |               | 4,862     |   |              |   | 6,304 |   |   |   | 17,486 |   |   |   | 7,723 |   |
|                                                |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest Income                                  |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Service Charges on Deposits                         |   |               | 879       |   |              |   | 1,125 |   |   |   | 2,722 |   |   |   | 3,155 |   |
| Other Service Charges, Commissions and Fees         |   |               | 291       |   |              |   | 259 |   |   |   | 849 |   |   |   | 747 |   |
| Mortgage Fee Income                                 |   |               | 89        |   |              |   | 129 |   |   |   | 229 |   |   |   | 352 |   |
| Securities Gains                                    |   |               | 922       |   |              |   | 609 |   |   |   | 1,800 |   |   |   | 3,147 |   |
| Other                                               |   |               | 483       |   |              |   | 210 |   |   |   | 1,623 |   |   |   | 889 |   |
|                                                |   |               | 2,664     |   |              |   | 2,332 |   |   |   | 7,223 |   |   |   | 8,290 |   |
| Noninterest Expenses                                |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and Employee Benefits                      |   |               | 3,474     |   |              |   | 3,556 |   |   |   | 10,538 |   |   |   | 10,946 |   |
| Occupancy and Equipment                             |   |               | 1,149     |   |              |   | 1,132 |   |   |   | 3,355 |   |   |   | 3,182 |   |
| Other                                               |   |               | 4,492     |   |              |   | 3,416 |   |   |   | 11,231 |   |   |   | 9,632 |   |
|                                                |   |               | 9,115     |   |              |   | 8,104 |   |   |   | 25,124 |   |   |   | 23,760 |   |
|                                                |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Before Income Taxes                   |   |               | (1,589    | )      |              |   | 532 |   |   |   | (415 | ) |   |   | (7,747 | ) |
| Income Tax (Benefits) Expense                       |   |               | (555      | )      |              |   | 164 |   |   |   | (586 | ) |   |   | (2,796 | ) |
| Net Income (Loss)                                   |   |               | (1,034    | )      |              |   | 368 |   |   |   | 171 |   |   |   | (4,951 | ) |
| Preferred Stock Dividends                           |   |               | 350       |   |              |   | 350 |   |   |   | 1,050 |   |   |   | 1,015 |   |
| Net Income (Loss) Available to Common Stockholders  |   | $                  | (1,384    | )      |              | $      | 18 |   |   | $ | ( 879 | ) |   | $ | (5,966 | ) |
| Net Income (Loss) Per Share of Common Stock         |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   | $                  | (0.16     | )      |              | $      | 0.00 |   |   | $ | (0.11 | ) |   | $ | (0.83 | ) |
| Diluted                                             |   | $                  | (0.16     | )      |              | $      | 0.00 |   |   | $ | (0.11 | ) |   | $ | (0.83 | ) |
| Cash Dividends Declared Per Share of Common Stock   |   | $                  | .00       |   |              | $      | 0.00 |   |   | $ | 0.00 |   |   | $ | 0.15 |   |
| Weighted Average Basic Shares Outstanding           |   |               | 8,447,855 |   |              |   | 7,217,006 |   |   |   | 8,049,267 |   |   |   | 7,209,852 |   |
| Weighted Average Diluted Shares Outstanding         |   |               | 8,447,855 |   |              |   | 7,217,006 |   |   |   | 8,049,267 |   |   |   | 7,209,852 |   |

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|                                                                                                                        |   | Three Months Ended |       |   | Nine Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                                                                        |   | 09/30/10           |       |   | 09/30/09          |   |   | 09/30/10 |   |   | 09/30/09 |   |
|                                                                                                                        |   |               |       |   |              |   |   |   |   |   |   |   |
| Net Income (Loss)                                                                                                           |   | $                  | (1,034     | )      |              | $      | 368 |   |   | $ | 171 |   |   | $ | (4,951 | ) |
|                                                                                                                        |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive Income (Loss), Net of Tax                                                                               |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Gains (Losses) on Securities Arising During the Year                                                                        |   |               | (161       | )      |              |   | 710 |   |   |   | 3,654 |   |   |   | 1,858 |   |
| Reclassification Adjustment                                                                                                 |   |               | ( 609      | )      |              |   | (402 | ) |   |   | (1,188 | ) |   |   |  (2,077 | )  |
|                                                                                                                        |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effect |   |               |  (770 | )      |              |   |  308 |   |   |   |  2,466 |   |   |   |  (219 | ) |
|                                                                                                                        |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income (Loss)                                                                                                 |   | $                  | (1,804     | )      |              | $      | 676 |   |   | $ | 2,637 |   |   | $ | (5,170 | ) |

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|                                                          |   | 2010   |     |   | 2009   |   |
|---------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                          |   |   |     |   |   |   |
| Net Income (Loss)                                             |   | $      | 171      |   |   | $      | (4,951 | ) |
| Adjustments to Reconcile Net Income to Net Cash               |   |   |     |   |   |   |   |   |
| Provided by Operating Activities:                             |   |   |     |   |   |   |   |   |
| Depreciation                                                  |   |   | 1,631    |   |   |   | 1,561 |   |
| Provision for Loan Losses                                     |   |   | 10,850   |   |   |   | 21,580 |   |
| Securities Gains                                              |   |   | (1,800   | )      |   |   | (3,147 | ) |
| Amortization and Accretion                                    |   |   | 2,982    |   |   |   | 2,743 |   |
| Loss on Sale of Other Real Estate and Repossessions           |   |   | 1,691    |   |   |   | 104 |   |
| Unrealized Loss on Other Real Estate                          |   |   | 824      |   |   |   | 282 |   |
| Gain on Sale of Property/Equipment                            |   |   | 2        |   |   |   | (79 | ) |
| (Increase) Decrease in Cash Surrender Value of Life Insurance |   |   | 1        |   |   |   | (124 | ) |
| Other Prepaids, Deferrals and Accruals, Net                   |   |   | 6,255    |   |   |   | (2,115 | ) |
|                                                          |   |   | 22,607   |   |   |   | 15,854 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                          |   |   |     |   |   |   |   |   |
| Federal Home Loan Bank Stock                                  |   |   | 45       |   |   |   | (73 | ) |
| Purchases of Investment Securities Available for Sale         |   |   | (250,973 | )      |   |   | (450,470 | ) |
| Proceeds from Maturities, Calls, and Paydowns of              |   |   |     |   |   |   |   |   |
| Investment Securities:                                        |   |   |     |   |   |   |   |   |
| Available for Sale                                            |   |   | 38,636   |   |   |   | 42,945 |   |
| Held to Maturity                                              |   |   | 8        |   |   |   | 5 |   |
| Proceeds from Sale of Investment Securities                   |   |   |     |   |   |   |   |   |
| Available for Sale                                            |   |   | 211,597  |   |   |   | 368,576 |   |
| Increase in Interest-Bearing Deposits in Other Banks          |   |   | (14,806  | )      |   |   | (15 | ) |
| (Increase) Decrease in Net Loans to Customers                 |   |   | 54,488   |   |   |   | (39,008 | ) |
| Purchase of Premises and Equipment                            |   |   | (384     | )      |   |   | (953 | ) |
| Proceeds from Sale of Other Real Estate and Repossessions     |   |   | 8,794    |   |   |   | 7,673 |   |
| Proceeds from Sale of Premises & Equipment                |   |   | --       |   |   |   | 122 |   |
| Other Additions and Adjustments                               |   |   |  -- |   |   |   | (32 | ) |
|                                                          |   |   | 47,405   |   |   |   | (71,230 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                          |   |   |     |   |   |   |   |   |
| Noninterest-Bearing Customer Deposits                         |   |   | (8,103   | )      |   |   | (7,152 | ) |
| Interest-Bearing Customer Deposits                            |   |   | (44,265  | )      |   |   | 15,574 |   |
| Federal Funds Purchased                                       |   |   | --       |   |   |   | 3,423 |   |
| Securities Sold Under Agreements to Repurchase                |   |   | (15,000  | )      |   |   | 5,232 |   |
| Dividends Paid On Common Stock                                |   |   | --       |   |   |   | (1,760 | ) |
| Dividends Paid On Preferred Stock                             |   |   | (1,050   | )      |   |   | (840 | ) |
| Proceeds from Issuance of Common Stock                        |   |   | 5,078    |   |   |   | -- |   |
| Proceeds from Other Borrowed Money                            |   |   | 19,000   |   |   |   | 19,000 |   |
| Principal Payments on Other Borrowed Money                    |   |   | (39,000  | )      |   |   | (19,000 | ) |
| Proceeds from Secured Borrowings                              |   |   | 5,469    |   |   |   | -- |   |
| Proceeds Allocated to Issuance of Preferred Stock             |   |   | --       |   |   |   | 27,215 |   |
| Proceeds Allocated to Warrants Issued                         |   |   |  -- |   |   |   | 785 |   |
|                                                          |   |   | (77,871  | )      |   |   | 42,477 |   |
|                                                          |   |   |     |   |   |   |   |   |
| Net (Decrease) in Cash and Cash Equivalents                   |   |   | (7,859   | )      |   |   | (12,899 | ) |
| Cash and Cash Equivalents at Beginning of Period              |   |   | 42,429   |   |   |   | 29,458 |   |
| Cash and Cash Equivalents at End of Period                    |   | $      | 34,570   |   |   | $      | 16,559 |   |

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| Description             |   | Life in Years |   | Method                        |   |
|-------------------------|--------|---------------|--------|-------------------------------|--------|
| Banking Premises        |   | 15-40         |   | Straight-Line and Accelerated |   |
| Furniture and Equipment |   | 5-10          |   | Straight-Line and Accelerated |   |
| Leasehold Improvements  |   | 5-20          |   | Straight-Line                 |   |

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|                                          |   | September 30, 2010 |         |   | December 31, 2009 |   |
|-----------------------------------------------|--------|-------------------------|--------------|--------|------------------------|--------|
| Cash on Hand and Cash Items                   |   | $                       | 9,128        |   |                   | $      | 8,773 |   |
| Noninterest-Bearing Deposits with Other Banks |   |                    |  12,115 |   |                   |   | 17,223 |   |
|                                          |   | $                       | 21,243       |   |                   | $      | 25,996 |   |

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|                           |   |      |    |   | Gross      |   |     | Gross      |   |   |   |   |
|--------------------------------|--------|-----------|---------|--------|------------|--------|----------|------------|--------|--------|--------|--------|
|                           |   | Amortized |    |   | Unrealized |   |     | Unrealized |   |   | Fair   |   |
|                           |   | Cost      |    |   | Gains      |   |     | Losses     |   |   | Value  |   |
| Securities Available for Sale: |   |      |    |   |       |   |     |       |   |   |   |   |
| U.S. Government Agencies       |   |      |    |   |       |   |     |       |   |   |   |   |
| Mortgage-Backed                |   | $         | 261,463 |   |       | $      | 3,899    |       |   | $      | (170   | )      |   | $ | 265,192 |   |
| State, County & Municipal  |   |      | 3,265   |   |       |   | 76       |       |   |   | --     |   |   |   | 3,341 |   |
| Corporate Obligations          |   |      | 2,000   |   |       |   | 147      |       |   |   | (19    | )      |   |   | 2,128 |   |
| Asset-Backed Securities        |   |      | 479     |   |       |   |  -- |       |   |   | (347   | )      |   |   | 132 |   |
|                           |   | $         | 267,207 |   |       | $      | 4,122    |       |   | $      | (536   | )      |   | $ | 270,793 |   |
|                           |   |      |    |   |       |   |     |       |   |   |   |   |   |   |   |   |
| Securities Held to Maturity:   |   |      |    |   |       |   |     |       |   |   |   |   |   |   |   |   |
| State, County and Municipal    |   | $         | 50      |   |       | $      | 2        |       |   | $      | --     |   |   | $ | 52 |   |

|                                   |   | Securities          |    |
|----------------------------------------|--------|---------------------|---------|
|                                   |   | Available for Sale  |    |   | Held to Maturity |   |
|                                   |   | Amortized Cost |    |   | Fair Value |   |   | Amortized Cost |   |   | Fair Value |   |
|                                   |   |                |    |   |   |   |   |   |   |   |   |   |
| Due After One Year Through Five Years  |   | $                   | 501     |   |   | $ | 527 |   |   |   | -- |   |   |   | -- |   |
| Due After Five Years Through Ten Years |   |                | 2,753   |   |   |   | 2,947 |   |   | $ | 50 |   |   | $ | 52 |   |
| Due After Ten Years                    |   |                | 2,490   |   |   |   | 2,127 |   |   |   | -- |   |   |   | -- |   |
|                                   |   |                | 5,744   |   |   |   | 5,601 |   |   |   | 50 |   |   |   | 52 |   |
|                                   |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed Securities             |   |                | 261,463 |   |   |   | 265,192 |   |   |   | -- |   |   |   | -- |   |
|                                   |   | $                   | 267,207 |   |   | $ | 270,793 |   |   | $ | 50 |   |   | $ | 52 |   |

|                           |   |      |    |   | Gross      |   |     | Gross      |   |   |   |   |
|--------------------------------|--------|-----------|---------|--------|------------|--------|----------|------------|--------|--------|--------|--------|
|                           |   | Amortized |    |   | Unrealized |   |     | Unrealized |   |   | Fair   |   |
|                           |   | Cost      |    |   | Gains      |   |     | Losses     |   |   | Value  |   |
| Securities Available for Sale: |   |      |    |   |       |   |     |       |   |   |   |   |
| U.S. Government Agencies       |   |      |    |   |       |   |     |       |   |   |   |   |
| Mortgage-Backed                |   | $         | 258,433 |   |       | $      | 1,536    |       |   | $      | (1,059 | )      |   | $ | 258,910 |   |
| State, County & Municipal  |   |      | 4,027   |   |       |   | 75       |       |   |   | (35    | )      |   |   | 4,067 |   |
| Corporate Obligations          |   |      | 4,458   |   |       |   | 65       |       |   |   | (385   | )      |   |   | 4,138 |   |
| Asset-Backed Securities        |   |      | 479     |   |       |   |  -- |       |   |   | (347   | )      |   |   | 132 |   |
|                           |   | $         | 267,397 |   |       | $      | 1,676    |       |   | $      | (1,826 | )      |   | $ | 267,247 |   |
|                           |   |      |    |   |       |   |     |       |   |   |   |   |   |   |   |   |
| Securities Held to Maturity:   |   |      |    |   |       |   |     |       |   |   |   |   |   |   |   |   |
| State, County and Municipal    |   | $         | 54      |   |       | $      | 3        |       |   | $      | --     |   |   | $ | 57 |   |

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|                        |   | Less Than 12 Months |    |   | 12 Months or Greater |   |   | Total  |   |
|-----------------------------|--------|---------------------|---------|--------|----------------------|--------|--------|--------|--------|
|                        |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   |                |    |   | Gross                |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|                        |   | Fair                |    |   | Unrealized           |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                        |   | Value               |    |   | Losses               |   |   | Value  |   |   | Losses |   |   | Value |   |   | Losses |   |
|                        |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September 30, 2010          |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies    |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed             |   | $                   | 31,652  |   |                 | $      | (170   | )      |   | $ | -- |   |   | $ | -- |   |   | $ | 31,652 |   |   | $ | (170 | ) |
| State, County and Municipal |   |                | --      |   |                 |   | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Corporate Obligations       |   |                | --      |   |                 |   | --     |   |   |   | 981 |   |   |   | (19 | ) |   |   | 981 |   |   |   | (19 | ) |
| Asset-Backed Securities     |   |                | --      |   |                 |   | --     |   |   |   | 132 |   |   |   | (347 | ) |   |   | 132 |   |   |   | (347 | ) |
|                        |   | $                   | 31,652  |   |                 | $      | (170   | )      |   | $ | 1,113 |   |   | $ | (366 | ) |   | $ | 32,765 |   |   | $ | (536 | ) |
|                        |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009           |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies    |   |                |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-Backed             |   | $                   | 114,223 |   |                 | $      | (1,056 | )      |   | $ | 419 |   |   | $ | (3 | ) |   | $ | 114,642 |   |   | $ | (1,059 | ) |
| State, County and Municipal |   |                | --      |   |                 |   | --     |   |   |   | 1,425 |   |   |   | (35 | ) |   |   | 1,425 |   |   |   | (35 | ) |
| Corporate Obligations       |   |                | --      |   |                 |   | --     |   |   |   | 3,073 |   |   |   | (385 | ) |   |   | 3,073 |   |   |   | (385 | ) |
| Asset-Backed Securities     |   |                | --      |   |                 |   | --     |   |   |   | 132 |   |   |   | (347 | ) |   |   | 132 |   |   |   | (347 | ) |
|                        |   | $                   | 114,223 |   |                 | $      | (1,056 | )      |   | $ | 5,049 |   |   | $ | (770 | ) |   | $ | 119,272 |   |   | $ | (1,826 | ) |

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Table of Contents

|                                   |   | September 30, 2010 |    |   | December 31, 2009 |   |
|----------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
|                                   |   |                    |    |   |                   |   |
| Commercial, Financial and Agricultural |   | $                       | 79,585  |   |                   | $      | 80,984 |   |
| Real Estate – Construction       |   |                    | 88,361  |   |                   |   | 113,117 |   |
| Real Estate – Farmland           |   |                    | 51,958  |   |                   |   | 54,965 |   |
| Real Estate – Other              |   |                    | 572,890 |   |                   |   | 626,993 |   |
| Installment Loans to Individuals       |   |                    | 35,667  |   |                   |   | 38,383 |   |
| All Other Loans                        |   |                    | 21,522  |   |                   |   | 16,950 |   |
|                                   |   | $                       | 849,983 |   |                   | $      | 931,392 |   |

|                                    |   | September 30, 2010 |    |   | September 30, 2009 |   |
|-----------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|                                    |   |                    |    |   |                    |   |
| Balance, Beginning                      |   | $                       | 31,401  |   |                    | $      | 17,016 |   |
| Provision Charged to Operating Expenses |   |                    | 10,850  |   |                    |   | 21,580 |   |
| Loans Charged Off                       |   |                    | (15,510 | )      |                    |   | (17,549 | ) |
| Loan Recoveries                         |   |                    | 1,013   |   |                    |   | 312 |   |
|                                    |   |                    |    |   |                    |   |   |   |
| Balance, Ending                         |   | $                       | 27,754  |   |                    | $      | 21,359 |   |

|                              |   | September 30, 2010 |    |   | December 31, 2009 |   |
|-----------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
|                              |   |                    |    |   |                   |   |
| Land                              |   | $                       | 7,813   |   |                   | $      | 7,805 |   |
| Building                          |   |                    | 23,768  |   |                   |   | 23,642 |   |
| Furniture, Fixtures and Equipment |   |                    | 14,604  |   |                   |   | 14,365 |   |
| Leasehold Improvements            |   |                    | 993     |   |                   |   | 993 |   |
| Construction in Progress          |   |                    | 6       |   |                   |   | 7 |   |
|                              |   |                    | 47,184  |   |                   |   | 46,812 |   |
|                              |   |                    |    |   |                   |   |   |   |
| Accumulated Depreciation          |   |                    | (19,606 | )      |                   |   | (17,986 | ) |
|                              |   | $                       | 27,578  |   |                   | $      | 28,826 |   |

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Table of Contents

|                         | Nine Months EndedSeptember 30, 2010 |   | Nine Months EndedSeptember 30, 2009 |
|------------------------------|-------------------------------------|--------|-------------------------------------|
|                         |
|                         |                                |   |                                |   |   |   |   |
| Goodwill                     |                                |   |                                |   |   |   |   |   |
| Balance, Beginning           |                                |   | --                                  |   |   | $ | 2,412 |   |
| Goodwill Acquired            |                                |   | --                                  |   |   |   | -- |   |
| Balance, Ending              |                                |   | --                                  |   |   | $ | 2,412 |   |
|                         |                                |   |                                |   |   |   |   |   |
| Net Core Deposit, Intangible |                                |   |                                |   |   |   |   |   |
| Balance, Beginning           |                                | $      | 331                                 |   |   | $ | 367 |   |
| Amortization Expense         |                                |   | (27)                                |   |   |   | (27) |   |
| Balance, Ending              |                                | $      | 304                                 |   |   | $ | 340 |   |

| 2010                |   | $      | 9   |   |
|---------------------|--------|--------|-----|--------|
| 2011                |   |   | 36  |   |
| 2012                |   |   | 36  |   |
| 2013                |   |   | 36  |   |
| 2014 and thereafter |   |   | 187 |   |
|                |   | $      | 304 |   |

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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. |
|--------|--------|---------|-----------------------------------------------------------------------------------------------------|

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Table of Contents

|                          |   |                    |      |   | Fair Value Measurements at Reporting Date Using               |   |
|-------------------------------|--------|-------------------------|-----------|--------|---------------------------------------------------------------|--------|
|                          |   |                    |      |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other ObservableInputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|                          |   | September 30, 2010 |      |
| Recurring                     |   |                    |      |   |                                                          |   |   |   |   |   |   |   |
| Securities Available for Sale |   |                    |      |   |                                                          |   |   |   |   |   |   |   |
| Mortgage-backed               |   | $                       | 265,192   |   |                                                          | $      | --- |   |   | $ | 265,192 |   |   | $ | --- |   |
| State,County & Municipal  |   |                    | 3,341     |   |                                                          |   | --- |   |   |   | 3,341 |   |   |   | --- |   |
| Corporate Obligations         |   |                    | 2,128     |   |                                                          |   | --- |   |   |   | 1,147 |   |   |   | 981 |   |
| Asset-Backed Securities       |   |                    |  132 |   |                                                          |   |  --- |   |   |   |  --- |   |   |   |  132 |   |
|                          |   | $                       | 270,793   |   |                                                          | $      | --- |   |   | $ | 269,680 |   |   | $ | 1,113 |   |
|                          |   |                    |      |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Nonrecurring                  |   |                    |      |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Impaired Loans                |   | $                       | 26,477    |   |                                                          | $      | --- |   |   | $ | --- |   |   | $ | 26,477 |   |
|                          |   |                    |      |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Other Real Estate             |   | $                       | 20,738    |   |                                                          | $      | --- |   |   | $ | --- |   |   | $ | 20,738 |   |

| Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | Available for |
|------------------------------------------------------------------------|---------------|
|                                                                   |          | Sale Securities |
|                                                                   |          | (In Thousands) |
|                                                                   |          |   |   |   |
| Balance, Beginning                                                     |          | $ | 982 |   |
| Total Unrealized Gains (Losses) Included In                            |          |   |   |   |
| Net Income                                                             |          |   | --- |   |
| Other Comprehensive Income                                             |          |   | 131 |   |
| Purchases, Sales, Issuances and Settlements, Net                       |          |   | --- |   |
| Transfers In and (Out) of Level 3                                      |          |   | --- |   |
|                                                                   |          |   |   |   |
| Balance, Ending                                                        |          | $ | 1,113 |   |

|                    |   | September 30, 2010 |    |   | December 31, 2009 |   |
|-------------------------|--------|-------------------------|---------|--------|------------------------|--------|
|                    |   |                    |    |   |                   |   |   |   |
| Interest-Bearing Demand |   | $                       | 204,059 |   |                   | $      | 220,168 |   |
| Savings                 |   |                    | 36,352  |   |                   |   | 34,851 |   |
| Time, $100,000 and Over |   |                    | 294,016 |   |                   |   | 364,064 |   |
| Other Time              |   |                    | 394,656 |   |                   |   | 354,265 |   |
|                    |   | $                       | 929,083 |   |                   | $      | 973,348 |   |

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Table of Contents

| Maturity             |   | September 30, 2010 |         |   | December 31, 2009 |   |
|----------------------|--------|-------------------------|--------------|--------|------------------------|--------|
| One Year and Under   |   | $                       | 484,147      |   |                   | $      | 620,165 |   |
| One to Three Years   |   |                    | 193,670      |   |                   |   | 94,055 |   |
| Three Years and Over |   |                    |  10,855 |   |                   |   |  4,109 |   |
|                 |   | $                       | 688,672      |   |                   | $      | 718,329 |   |

|                                              |   | September 30, 2010 |         |   | December 31, 2009 |   |
|---------------------------------------------------|--------|-------------------------|--------------|--------|------------------------|--------|
|  Secured Borrowings                     |   | $                       | 5,469        |   |                   | $      | -- |   |
|  Federal Home Loan Bank Advances   |   |                    |  71,000 |   |                   |   |  91,000 |   |
|                                              |   | $                       | 76,469       |   |                   | $      | 91,000 |   |

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Table of Contents

|                          |   |   |   |
|-------------------------------|--------|--------|--------|
| Year                          |   | Amount |   |
| 2010                          |   | $      | 5,469  |   |
| 2011                          |   |   | --     |   |
| 2012                          |   |   | 41,000 |   |
| 2013 and Thereafter |   |   | 30,000 |   |
|                          |   | $      | 76,469 |   |

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Table of Contents

|                      |   | Contract Amount         |   |
|---------------------------|--------|-------------------------|--------|
|                      |   | September 30, 2010 |   |   | December 31, 2009 |   |
|                      |   |                    |   |   |   |   |
| Loan Commitments          |   | $                       | 37,464 |   |   | $ | 56,100 |   |
| Standby Letters of Credit |   |                    | 1,492  |   |   |   | 1,475 |   |

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Table of Contents

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Table of Contents

|                                           |   | September 30, 2010 |      |   | December 31, 2009   |   |
|------------------------------------------------|--------|--------------------|-----------|--------|---------------------|--------|
|                                           |   | CarryingAmount     |      |   | EstimatedFair Value |   |   | CarryingAmount |   |   | EstimatedFair Value |   |
|                                           |
|                                           |   | (in thousands)     |      |
|                                           |   |               |      |   |                |   |   |   |   |   |   |   |
| Assets                                         |   |               |      |   |                |   |   |   |   |   |   |   |
| Cash and Short-Term Investments                |   | $                  | 55,855    |   |                | $      | 55,855 |   |   | $ | 48,908 |   |   | $ | 48,908 |   |
| Investment Securities Available for Sale       |   |               | 270,793   |   |                |   | 270,793 |   |   |   | 267,247 |   |   |   | 267,247 |   |
| Investment Securities Held to Maturity         |   |               | 50        |   |                |   | 52 |   |   |   | 54 |   |   |   | 57 |   |
| Federal Home Loan Bank Stock                   |   |               | 6,300     |   |                |   | 6,300 |   |   |   | 6,345 |   |   |   | 6,345 |   |
| Loans, Net                                     |   |               | 822,161   |   |                |   | 827,013 |   |   |   | 899,851 |   |   |   | 908,638 |   |
|                                           |   |               |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                    |   |               |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                       |   |               | 1,005,232 |   |                |   | 1,009,662 |   |   |   | 1,057,586 |   |   |   | 1,059,037 |   |
| Subordinated Debentures                        |   |               | 24,229    |   |                |   | 24,229 |   |   |   | 24,229 |   |   |   | 24,229 |   |
| Securities Sold Under Agreements to Repurchase |   |               | 25,000    |   |                |   | 25,457 |   |   |   | 40,000 |   |   |   | 40,671 |   |
| Other Borrowed Money                           |   |               | 76,469    |   |                |   | 81,284 |   |   |   | 91,000 |   |   |   | 91,703 |   |
|                                           |   |               |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |               |      |   |                |   |   |   |   |   |   |   |   |   |   |   |

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Table of Contents

|                     |   | Actual |    |   | For Capital Adequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Provisions |   |
|--------------------------|--------|--------|---------|--------|------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|
|                     |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
|                     |   | Amount |    |   | Ratio                              |   |   | Amount                                                                     |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of September 30, 2010 |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| Total Capital            |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| to Risk-Weighted Assets  |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| Consolidated             |   | $      | 118,566 |   |                               |   | 14.69  | %                                                                          |   | $ | 64,580 |   |   |   | 8.00 | % |   | NA |   |   | NA |   |
| Colony Bank              |   |   | 114,077 |   |                               |   | 14.15  |                                                                       |   |   | 64,502 |   |   |   | 8.00 |   |   | $ | 80,628 |   |   |   | 10.00 | % |
|                     |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital           |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to Risk-Weighted Assets  |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated             |   |   | 108,258 |   |                               |   | 13.41  |                                                                       |   |   | 32,290 |   |   |   | 4.00 |   |   | NA |   |   | NA |   |
| Colony Bank              |   |   | 103,781 |   |                               |   | 12.87  |                                                                       |   |   | 32,251 |   |   |   | 4.00 |   |   |   | 48,377 |   |   |   | 6.00 |   |
|                     |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital           |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to Average Assets        |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated             |   |   | 108,258 |   |                               |   | 8.74   |                                                                       |   |   | 49,562 |   |   |   | 4.00 |   |   | NA |   |   | NA |   |
| Colony Bank              |   |   | 103,781 |   |                               |   | 8.39   |                                                                       |   |   | 49,501 |   |   |   | 4.00 |   |   |   | 61,876 |   |   |   | 5.00 |   |

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Table of Contents

|                    |   | Actual |    |   | For Capital Adequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Provisions |   |
|-------------------------|--------|--------|---------|--------|------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|
|                    |
|                    |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
|                    |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
|                    |   | Amount |    |   | Ratio                              |   |   | Amount                                                                     |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of December 31, 2009 |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| Total Capital           |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| to Risk-Weighted Assets |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| Consolidated            |   | $      | 118,848 |   |                               |   | 13.07  | %                                                                          |   | $ | 72,768 |   |   |   | 8.00 | % |   | NA |   |   | NA |   |
| Colony Bank             |   |   | 117,756 |   |                               |   | 12.97  |                                                                       |   |   | 72,622 |   |   |   | 8.00 |   |   | $ | 90,777 |   |   |   | 10.00 | % |
|                    |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital          |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to Risk-Weighted Assets |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated            |   |   | 107,231 |   |                               |   | 11.79  |                                                                       |   |   | 36,384 |   |   |   | 4.00 |   |   | NA |   |   | NA |   |
| Colony Bank             |   |   | 106,161 |   |                               |   | 11.69  |                                                                       |   |   | 36,311 |   |   |   | 4.00 |   |   |   | 54,466 |   |   |   | 6.00 |   |
|                    |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital          |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to Average Assets       |   |   |    |   |                               |   |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated            |   |   | 107,231 |   |                               |   | 8.30   |                                                                       |   |   | 51,708 |   |   |   | 4.00 |   |   | NA |   |   | NA |   |
| Colony Bank             |   |   | 106,161 |   |                               |   | 8.22   |                                                                       |   |   | 51,641 |   |   |   | 4.00 |   |   |   | 64,551 |   |   |   | 5.00 |   |

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| ASSETS                                                                                                                                                                          |   | September 30, 2010 |      |   | December 31, 2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
|                                                                                                                                                                            |   | (Unaudited)             |      |   | (Audited)              |   |
|                                                                                                                                                                            |   |                    |      |   |                   |   |
| Cash                                                                                                                                                                            |   | $                       | 3,837     |   |                   | $      | 556 |   |
| Premises and Equipment, Net                                                                                                                                                     |   |                    | 1,499     |   |                   |   | 1,554 |   |
| Investment in Subsidiaries, at Equity                                                                                                                                           |   |                    | 114,776   |   |                   |   | 111,451 |   |
| Other                                                                                                                                                                           |   |                    |  395 |   |                   |   | 257 |   |
|                                                                                                                                                                            |   |                    |      |   |                   |   |   |   |
| Totals Assets                                                                                                                                                                   |   | $                       | 120,507   |   |                   | $      | 113,818 |   |
|                                                                                                                                                                            |   |                    |      |   |                   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                      |   |                    |      |   |                   |   |   |   |
| Liabilities                                                                                                                                                                     |   |                    |      |   |                   |   |   |   |
| Dividends Payable                                                                                                                                                               |   |                    | 175       |   |                   | $      | 175 |   |
| Other                                                                                                                                                                           |   |                    | 144       |   |                   |   | 139 |   |
|                                                                                                                                                                            |   |                    | 319       |   |                   |   | 314 |   |
| Subordinated Debt                                                                                                                                                               |   |                    | 24,229    |   |                   |   | 24,229 |   |
|                                                                                                                                                                            |   |                    |      |   |                   |   |   |   |
|                                                                                                                                                                            |   |                    |      |   |                   |   |   |   |
| Stockholders’ Equity                                                                                                                                                      |   |                    |      |   |                   |   |   |   |
| Preferred Stock, Par Value $1,000 a Share; Authorized 10,000,000 Shares, Issued 28,000 Shares as of September 30, 2010                                                          |   |                    | 27,468    |   |                   |   | 27,357 |   |
| Common Stock, Par Value $1 a Share; Authorized 20,000,000  Shares, Issued 8,444,308 and 7,229,163 Shares as of September 30, 2010 and December 31, 2009, Respectively |   |                    | 8,444     |   |                   |   | 7,229 |   |
| Paid-In Capital                                                                                                                                                                 |   |                    | 29,186    |   |                   |   | 25,393 |   |
| Retained Earnings                                                                                                                                                               |   |                    | 28,564    |   |                   |   | 29,554 |   |
| Restricted Stock - Unearned Compensation                                                                                                                                        |   |                    | (70       | )      |                   |   | (158 | ) |
| Accumulated Other Comprehensive Loss, Net of Tax                                                                                                                                |   |                    | 2,367     |   |                   |   | (100 | ) |
|                                                                                                                                                                            |   |                    | 95,959    |   |                   |   | 89,275 |   |
|                                                                                                                                                                            |   |                    |      |   |                   |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                                                      |   | $                       | 120,507   |   |                   | $      | 113,818 |   |

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|                                                   |   | SEPTEMBER 30, 2010 |   |   | SEPTEMBER 30, 2009 |   |
|--------------------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                                   |   |                    |   |   |                    |   |
| Income                                                 |   |                    |   |   |                    |   |
| Dividends from Subsidiaries                            |   | $                       | 12     |   |                    | $      | 2,167 |   |
| Management Fees                                        |   |                    | 341    |   |                    |   | 114 |   |
| Other                                                  |   |                    | 91     |   |                    |   | 76 |   |
|                                                   |   |                    | 444    |   |                    |   | 2,357 |   |
| Expenses                                               |   |                    |   |   |                    |   |   |   |
| Interest                                               |   |                    | 389    |   |                    |   | 531 |   |
| Salaries and Employee Benefits                         |   |                    | 583    |   |                    |   | 638 |   |
| Other                                                  |   |                    | 572    |   |                    |   | 622 |   |
|                                                   |   |                    | 1,544  |   |                    |   | 1,791 |   |
|                                                   |   |                    |   |   |                    |   |   |   |
| Income (Loss) Before Taxes and Equity in Undistributed |   |                    |   |   |                    |   |   |   |
| Earnings of Subsidiaries                               |   |                    | (1,100 | )      |                    |   | 566 |   |
| Income Tax (Benefits)                                  |   |                    | (412   | )      |                    |   | (530 | ) |
|                                                   |   |                    |   |   |                    |   |   |   |
| Income (Loss) Before Equity in Undistributed           |   |                    |   |   |                    |   |   |   |
| Earnings of Subsidiaries                               |   |                    | (688   | )      |                    |   | 1,096 |   |
| Equity in Undistributed Earnings of Subsidiaries       |   |                    | 859    |   |                    |   | (6,047 | ) |
|                                                   |   |                    |   |   |                    |   |   |   |
| Net Income (Loss)                                      |   |                    | 171    |   |                    |   | (4,951 | ) |
|                                                   |   |                    |   |   |                    |   |   |   |
| Preferred Stock Dividends                              |   |                    | 1,050  |   |                    |   | 1,015 |   |
|                                                   |   |                    |   |   |                    |   |   |   |
| Net (Loss) Available to Common Shareholders            |   | $                       | (879   | )      |                    | $      | (5,966 | ) |

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Table of Contents

|                                                                                                                         |   | SEPTEMBER 30, 2010 |   |   | SEPTEMBER 30, 2009 |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                                                                                                         |   |                    |   |   |                    |   |
| Net Income (Loss)                                                                                                            |   | $                       | 171    |   |                    | $      | (4,951 | ) |
|                                                                                                                         |   |                    |   |   |                    |   |   |   |
| Other Comprehensive Income, Net of Tax                                                                                       |   |                    |   |   |                    |   |   |   |
| Gains on Securities Arising During Year                                                                                      |   |                    | 3,654  |   |                    |   | 1,858 |   |
| Reclassification Adjustment                                                                                                  |   |                    | (1,188 | )      |                    |   | (2,077 | ) |
|                                                                                                                         |   |                    |   |   |                    |   |   |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects |   |                    | 2,466  |   |                    |   | (219 | ) |
|                                                                                                                         |   |                    |   |   |                    |   |   |   |
| Comprehensive Income (Loss)                                                                                                  |   | $                       | 2,637  |   |                    | $      | (5,170 | ) |

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|                                                   |   | 2010   |     |   | 2009   |   |
|--------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                   |   |   |     |   |   |   |
| Cash Flows from Operating Activities                   |   |   |     |   |   |   |
| Net Income (Loss)                                      |   | $      | 171      |   |   | $      | (4,951 | ) |
| Adjustments to Reconcile Net Income (Loss) to Net Cash |   |   |     |   |   |   |   |   |
| Provided from Operating Activities                     |   |   |     |   |   |   |   |   |
| Depreciation and Amortization                          |   |   | 160      |   |   |   | 219 |   |
| Equity in Undistributed Earnings of Subsidiary         |   |   | (859     | )      |   |   | 6,047 |   |
| Other                                                  |   |   | (189     | )      |   |   | 63 |   |
|                                                   |   |   | (717     | )      |   |   | 1,378 |   |
| Cash Flows from Investing Activities                   |   |   |     |   |   |   |   |   |
| Capital Infusion in Subsidiary                         |   |   | --       |   |   |   | (25,500 | ) |
| Purchases of Premises and Equipment                    |   |   | (30      | )      |   |   | (100 | ) |
|                                                   |   |   | (30      | )      |   |   | (25,600 | ) |
| Cash Flows from Financing Activities                   |   |   |     |   |   |   |   |   |
| Dividends Paid Preferred Stock                         |   |   | (1,050   | )      |   |   | (840 | ) |
| Dividends Paid Common Stock                            |   |   | --       |   |   |   | (1,761 | ) |
| Proceeds from Issuance of Common Stock                 |   |   | 5,078    |   |   |   | -- |   |
| Proceeds Allocated to Issuance of Preferred Stock      |   |   | --       |   |   |   | 27,215 |   |
| Proceeds Allocated to Warrants Issued                  |   |   |  -- |   |   |   | 785 |   |
|                                                   |   |   | 4,028    |   |   |   | 25,399 |   |
|                                                   |   |   |     |   |   |   |   |   |
| Net Increase in Cash                                   |   |   | 3,281    |   |   |   | 1,177 |   |
|                                                   |   |   |     |   |   |   |   |   |
| Cash, Beginning                                        |   |   | 556      |   |   |   | 2 |   |
|                                                   |   |   |     |   |   |   |   |   |
| Cash, Ending                                           |   | $      | 3,837    |   |   | $      | 1,179 |   |

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|                                           |   | Three Months EndedSeptember 30, 2010 |   |   | Three Months EndedSeptember 30, 2009 |   |
|------------------------------------------------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|
|                                           |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |  IncomeNumerator                |   |   | CommonSharesDenominator              |   |   | EPS |   |   | IncomeNumerator |   |   | CommonSharesDenominator |   |   | EPS |   |
|                                           |   |
|                                           |
|                                           |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS                                      |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders |   | $                                    | (1,384 | )      |                                 |   | 8,448 |   |   | $ | (0.16 | ) |   | $ | 18 |   |   |   | 7,217 |   |   | $ | 0.00 |   |
|                                           |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive Effect of Potential Common Stock      |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restricted Stock                               |   |                                 |   |   |                                 |   | 0 |   |   |   |   |   |   |   |   |   |   |   | 0 |   |   |   |   |   |
|                                           |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                    |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| After Assumed Conversions of                   |   |                                 |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive Securities                            |   | $                                    | (1,384 | )      |                                 |   | 8,448 |   |   | $ | (0.16 | ) |   | $ | 18 |   |   |   | 7,217 |   |   | $ | 0.00 |   |

|                                           |   | Nine Months EndedSeptember 30, 2010 |   |   | Nine Months EndedSeptember 30, 2009 |   |
|------------------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                           |   | IncomeNumerator                     |   |   |  CommonSharesDenominator       |   |   | EPS |   |   | IncomeNumerator |   |   |  CommonSharesDenominator |   |   | EPS |   |
|                                           |
|                                           |
|                                           |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS                                      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders |   | $                                   | (879   | )      |                                |   | 8,049 |   |   | $ | (0.11 | ) |   | $ | (5,966 | ) |   |   | 7,210 |   |   | $ | (0.83 | ) |
|                                           |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive Effect of Potential Common Stock      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restricted Stock                               |   |                                |   |   |                                |   | 0 |   |   |   |   |   |   |   |   |   |   |   | 0 |   |   |   |   |   |
|                                           |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                    |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| After Assumed Conversions of                   |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive Securities                            |   | $                                   | (879   | )      |                                |   | 8,049 |   |   | $ | (0.11 | ) |   | $ | (5,966 | ) |   |   | 7,210 |   |   | $ | (0.83 | ) |

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MANAGEMENT’S 

|   | · | 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. |
|--------|--------|-----------------------------------------------------------------------------------------------|

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|   | · | 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. |
|--------|--------|------------------------------------------------------------------------------------|

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|                                                |   |  Three Months EndedSeptember 30 |   |   | Nine Months EndedSeptember 30 |   |
|-----------------------------------------------------|--------|--------------------------------------|--------|--------|-------------------------------|--------|
|                                                |   | 2010                                 |   |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
|                                                |   |                                 |   |   |                          |   |   |   |   |   |   |   |
| Taxable-equivalent net interest income              |   | $                                    | 9,107  |   |                          | $      | 10,373 |   |   | $ | 28,470 |   |   | $ | 29,519 |   |
| Taxable-equivalent adjustment                       |   |                                 | 45     |   |                          |   | 69 |   |   |   | 134 |   |   |   | 216 |   |
|                                                |   |                                 |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                 |   |                                 | 9,062  |   |                          |   | 10,304 |   |   |   | 28,336 |   |   |   | 29,303 |   |
| Provision for possible loan losses                  |   |                                 | 4,200  |   |                          |   | 4,000 |   |   |   | 10,850 |   |   |   | 21,580 |   |
| Noninterest income                                  |   |                                 | 2,664  |   |                          |   | 2,332 |   |   |   | 7,223 |   |   |   | 8,290 |   |
| Noninterest expense                                 |   |                                 | 9,115  |   |                          |   | 8,104 |   |   |   | 25,124 |   |   |   | 23,760 |   |
|                                                |   |                                 |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                   |   |                                 | (1,589 | )      |                          |   | 532 |   |   |   | (415 | ) |   |   | (7,747 | ) |
| Income taxes                                        |   |                                 | (555   | )      |                          |   | 164 |   |   |   | (586 | ) |   |   | (2,796 | ) |
|                                                |   |                                 |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                   |   | $                                    | (1,034 | )      |                          | $      | 368 |   |   | $ | 171 |   |   | $ | (4,951 | ) |
|                                                |   |                                 |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock dividends                           |   |                                 | 350    |   |                          |   | 350 |   |   |   | 1,050 |   |   |   | 1,015 |   |
|                                                |   |                                 |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) available to common shareholders  |   | $                                    | (1,384 | )      |                          | $      | 18 |   |   | $ | (879 | ) |   | $ | (5,966 | ) |
|                                                |   |                                 |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) available to common shareholders: |   |                                 |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                               |   | $                                    | (0.16  | )      |                          | $      | 0.00 |   |   | $ | (0.11 | ) |   | $ | (0.83 | ) |
| Diluted                                             |   | $                                    | (0.16  | )      |                          | $      | 0.00 |   |   | $ | (0.11 | ) |   | $ | (0.83 | ) |
| Return on average assets                            |   |                                 | (0.44  | )%     |                          |   | 0.01 | % |   |   | (0.09 | )% |   |   | (0.62 | )% |
| Return on average common equity                     |   |                                 | (5.72  | )%     |                          |   | 0.07 | % |   |   | (1.25 | )% |   |   | (7.42 | )% |

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|                                     |   | Changes from September 30, 2009 to September 30, 2010 |   |
|------------------------------------------|--------|-----------------------------------------------------------------|--------|
| ($ in thousands)                         |   | Volume                                                          |   |   | Rate |   |   | Total |   |
|                                     |   |                                                            |   |   |   |   |   |   |   |
| Interest Income                          |   |                                                            |   |   |   |   |   |   |   |
| Loans, Net-taxable                       |   | $                                                               | (3,951 | ) |   | $ | (35 | ) |   | $ | (3,986 | ) |
|                                     |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Investment Securities                    |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Taxable                                  |   |                                                            | 894    |   |   |   | (1,836 | ) |   |   | (942 | ) |
| Tax-exempt                               |   |                                                            | (198   | ) |   |   | (2 | ) |   |   | (200 | ) |
| Total Investment Securities              |   |                                                            | 696    |   |   |   | (1,838 | ) |   |   | (1,142 | ) |
|                                     |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Deposits in other Banks |   |                                                            | 618    |   |   |   | (616 | ) |   |   | 2 |   |
|                                     |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Federal Funds Sold                       |   |                                                            | 56     |   |   |   | (2 | ) |   |   | 54 |   |
|                                     |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Other Interest - Earning Assets          |   |                                                            | ---    |   |   |   | 27 |   |   |   | 27 |   |
| Total Interest Income                    |   |                                                            | (2,581 | ) |   |   | (2,464 | ) |   |   | (5,045 | ) |
|                                     |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                         |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Demand and              |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Savings Deposits                         |   |                                                            | 75     |   |   |   | (98 | ) |   |   | (23 | ) |
| Time Deposits                            |   |                                                            | (8     | ) |   |   | (3,718 | ) |   |   | (3,726 | ) |
| Federal Funds Purchased and              |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Repurchase Agreements                    |   |                                                            | (226   | ) |   |   | 117 |   |   |   | (109 | ) |
| Subordinated Debentures                  |   |                                                            | ---    |   |   |   | (142 | ) |   |   | (142 | ) |
| Other Borrowed Money                     |   |                                                            | (35    | ) |   |   | 39 |   |   |   | 4 |   |
|                                     |   |                                                            |   |   |   |   |   |   |   |   |   |   |
| Total Interest Expense                   |   |                                                            | (194   | ) |   |   | (3,802 | ) |   |   | (3,996 | ) |
| Net Interest Income                      |   | $                                                               | (2,387 | ) |   | $ | 1,338 |   |   | $ | (1,049 | ) |

|  (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. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                |   |  Three Months EndedSeptember 30 |   |   | Nine Months EndedSeptember 30 |   |
|-------------------------------------|--------|--------------------------------------|--------|--------|-------------------------------|--------|
|                                |   | 2010                                 |   |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
|                                |   |                                 |   |   |                          |   |   |   |   |   |   |   |
| Service Charges on Deposit Accounts |   | $                                    | 879    |   |                          | $      | 1,125 |   |   | $ | 2,722 |   |   | $ | 3,155 |   |
| Other Charges, Commissions and Fees |   |                                 | 291    |   |                          |   | 259 |   |   |   | 849 |   |   |   | 747 |   |
| Other                               |   |                                 | 483    |   |                          |   | 210 |   |   |   | 1,623 |   |   |   | 889 |   |
| Mortgage Fee Income                 |   |                                 | 89     |   |                          |   | 129 |   |   |   | 229 |   |   |   | 352 |   |
| Securities Gains                    |   |                                 | 922    |   |                          |   | 609 |   |   |   | 1,800 |   |   |   | 3,147 |   |
|                                |   |                                 |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Total                               |   | $                                    | 2,664  |   |                          | $      | 2,332 |   |   | $ | 7,223 |   |   | $ | 8,290 |   |

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|                           |   |  Three Months EndedSeptember 30 |   |   | Nine Months EndedSeptember 30 |   |
|--------------------------------|--------|--------------------------------------|--------|--------|-------------------------------|--------|
|                           |   | 2010                                 |   |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
|                           |   |                                 |   |   |                          |   |   |   |   |   |   |   |
| Salaries and Employee Benefits |   | $                                    | 3,474  |   |                          | $      | 3,556 |   |   | $ | 10,538 |   |   | $ | 10,946 |   |
| Occupancy and Equipment        |   |                                 | 1,149  |   |                          |   | 1,132 |   |   |   | 3,355 |   |   |   | 3,182 |   |
| Other                          |   |                                 | 4,492  |   |                          |   | 3,416 |   |   |   | 11,231 |   |   |   | 9,632 |   |
|                           |   |                                 |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Total                          |   | $                                    | 9,115  |   |                          | $      | 8,104 |   |   | $ | 25,124 |   |   | $ | 23,760 |   |

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|                                        |   | Nine Months EndedSeptember 30, |      |
|---------------------------------------------|--------|--------------------------------|-----------|
| Sources of Funds:                           |   | 2010                           |      |   | 2009 |   |
| Deposits:                                   |   |                           |      |   |   |   |   |   |   |   |   |   |
| Noninterest-Bearing                         |   | $                              | 79,807    |   |   |   | 6.26 | % |   | $ | 69,601 |   |   |   | 5.43 | % |
| Interest-Bearing                            |   |                           | 954,580   |   |   |   | 74.88 |   |   |   | 941,655 |   |   |   | 73.43 |   |
| Federal Funds Purchased and Repo Agreements |   |                           | 27,768    |   |   |   | 2.18 |   |   |   | 42,341 |   |   |   | 3.30 |   |
| Long-term Debt and Other Borrowings         |   |                           | 113,880   |   |   |   | 8.93 |   |   |   | 115,229 |   |   |   | 8.99 |   |
| Other Noninterest-Bearing Liabilities       |   |                           | 4,674     |   |   |   | 0.37 |   |   |   | 6,321 |   |   |   | 0.49 |   |
| Equity Capital                              |   |                           | 94,067    |   |   |   | 7.38 |   |   |   | 107,249 |   |   |   | 8.36 |   |
| Total                                       |   | $                              | 1,274,776 |   |   |   | 100.00 | % |   | $ | 1,282,396 |   |   |   | 100.00 | % |
|                                        |   |                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Uses of Funds:                              |   |                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                       |   | $                              | 845,140   |   |   |   | 66.30 | % |   | $ | 945,128 |   |   |   | 73.70 | % |
| Securities                                  |   |                           | 264,999   |   |   |   | 20.79 |   |   |   | 236,298 |   |   |   | 18.43 |   |
| Federal Funds Sold                          |   |                           | 37,196    |   |   |   | 2.92 |   |   |   | 7,322 |   |   |   | 0.57 |   |
| Interest-Bearing Deposits in Other Banks    |   |                           | 19,791    |   |   |   | 1.55 |   |   |   | 408 |   |   |   | 0.03 |   |
| Other Interest-Earning Assets               |   |                           | 6,333     |   |   |   | 0.49 |   |   |   | 6,322 |   |   |   | 0.49 |   |
| Other Noninterest-Earning Assets            |   |                           | 101,317   |   |   |   | 7.95 |   |   |   | 86,918 |   |   |   | 6.78 |   |
| Total                                       |   | $                              | 1,274,776 |   |   |   | 100.00 | % |   | $ | 1,282,396 |   |   |   | 100.00 | % |

|                                   |   | September 30, 2010 |    |   | December 31, 2009 |   |
|----------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
|                                   |   |                    |    |   |                   |   |
| Commercial, Financial and Agricultural |   | $                       | 79,585  |   |                   | $      | 80,984 |   |
| Real Estate                            |   |                    |    |   |                   |   |   |   |
|    Construction         |   |                    | 88,361  |   |                   |   | 113,117 |   |
|    Mortgage, Farmland   |   |                    | 51,958  |   |                   |   | 54,965 |   |
|    Mortgage, Other      |   |                    | 572,890 |   |                   |   | 626,993 |   |
| Consumer                               |   |                    | 35,667  |   |                   |   | 38,383 |   |
| Other                                  |   |                    | 21,522  |   |                   |   | 16,950 |   |
|                                   |   |                    | 849,983 |   |                   |   | 931,392 |   |
| Unearned Interest and Fees             |   |                    | (68     | )      |                   |   | (140 | ) |
| Allowance for Loan Losses              |   |                    | (27,754 | )      |                   |   | (31,401 | ) |
|                                   |   |                    |    |   |                   |   |   |   |
| Loans                                  |   | $                       | 822,161 |   |                   | $      | 899,851 |   |

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| Maturity and Repricing Opportunity   |   | ($ in Thousands) |    |
|--------------------------------------|--------|------------------|---------|
|                                 |   |             |    |
| One Year or Less                     |   | $                | 541,099 |   |
| After One Year through Three Years   |   |             | 271,966 |   |
| After Three Years through Five Years |   |             | 27,500  |   |
| Over Five Years                      |   |             | 9,418   |   |
|                                 |   | $                | 849,983 |   |

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|                                   |   | September 30, 2010     |   |   | December 31, 2009   |   |
|----------------------------------------|--------|------------------------|--------|--------|---------------------|--------|
|                                   |   |                   |   |   |                |   |   |   |   |   |   |   |
|                                   |   |                   |   |   | Period End Balances |   |   |   |   |   | Period End Balances |   |
|                                   |   |                   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | Number ofRelationships |   |   | Committed           |   |   | Outstanding |   |   | Number ofRelationships |   |   | Committed |   |   | Outstanding |   |
|                                   |   |                   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Large Credit Relationships:            |   |                   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   $10 million and greater    |   |                   | 1      |   |                | $      | 15,048 |   |   | $ | 15,048 |   |   |   | 3 |   |   | $ | 43,142 |   |   | $ | 40,332 |   |
|   $5 million to $9.9 million |   |                   | 7      |   |                | $      | 47,074 |   |   | $ | 46,781 |   |   |   | 6 |   |   | $ | 39,159 |   |   | $ | 38,965 |   |

|                               |   | Due in One Year or Less |    |   | After One, but Within Three Years |   |    | After Three, but Within Five Years |   |   | After Five Years |   |   |  Total |   |
|------------------------------------|--------|------------------------------|---------|--------|-----------------------------------|--------|---------|------------------------------------|--------|--------|------------------|--------|--------|-------------|--------|
|                               |   |                         |    |   |                              |   |    |                               |   |   |             |   |   |        |   |
| Loans with fixed interest rates    |   | $                            | 292,367 |   |                              | $      | 270,939 |                               |   | $      | 27,038           |   |   | $           | 9,191  |   |   | $ | 599,535 |   |
| Loans with floating interest rates |   |                         | 248,732 |   |                              |   | 1,027   |                               |   |   | 462              |   |   |        | 227    |   |   |   | 250,448 |   |
|                               |   |                         |    |   |                              |   |    |                               |   |   |             |   |   |        |   |   |   |   |   |   |
| Total                              |   | $                            | 541,099 |   |                              | $      | 271,966 |                               |   | $      | 27,500           |   |   | $           | 9,418  |   |   | $ | 849,983 |   |

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|                                     |   | September 30, 2010 |   |   | December 31, 2009 |   |
|------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                     |   |                    |   |   |                   |   |
| Loans Accounted for on Nonaccrual        |   | $                       | 26,628 |   |                   | $      | 33,535 |   |
| Loans Past Due 90 Days or More           |   |                    | 0      |   |                   |   | 31 |   |
| Other Real Estate Foreclosed             |   |                    | 20,738 |   |                   |   | 19,705 |   |
| Securities Accounted for on Nonaccrual   |   |                    | 132    |   |                   |   | 132 |   |
| Total Nonperforming Assets               |   | $                       | 47,498 |   |                   | $      | 53,403 |   |
|                                     |   |                    |   |   |                   |   |   |   |
| Nonperforming Assets as a Percentage of: |   |                    |   |   |                   |   |   |   |
| Total Loans and Foreclosed Assets        |   |                    | 5.46   | %      |                   |   | 5.62 | % |
| Total Assets                             |   |                    | 3.86   | %      |                   |   | 4.09 | % |
| Supplemental Data:                       |   |                    |   |   |                   |   |   |   |
| Trouble Debt Restructured Loans          |   |                    |   |   |                   |   |   |   |
| In Compliance with Modified Terms        |   |                    | 26,523 |   |                   |   | 9,269 |   |
| Trouble Debt Restructured Loans          |   |                    |   |   |                   |   |   |   |
| Past Due 30-89 Days                      |   |                    | 0      |   |                   |   | 459 |   |
| Accruing Past Due Loans:                 |   |                    |   |   |                   |   |   |   |
| 30-89 Days Past Due                      |   | $                       | 10,605 |   |                   | $      | 25,547 |   |
| 90 or More Days Past Due                 |   |                    | 0      |   |                   |   | 31 |   |
| Total Accruing Past Due Loans            |   | $                       | 10,605 |   |                   | $      | 25,578 |   |
|                                     |   |                    |   |   |                   |   |   |   |

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|                                              |   | September 30, 2010 |   |   | December 31, 2009 |   |
|---------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                              |   |                    |   |   |                   |   |   |   |   |   |   |   |
|                                              |   | Reserve                 |   |   |                   | %      | * |   | Reserve |   |   |   | % | * |
|                                              |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |
| Commercial, Financial  and Agricultural |   | $                       | 4,163  |   |                   |   | 9 | % |   | $ | 4,710 |   |   |   | 9 | % |
| Real Estate – Construction                  |   |                    | 6,938  |   |                   |   | 10 | % |   |   | 7,850 |   |   |   | 12 | % |
| Real Estate – Farmland                      |   |                    | 832    |   |                   |   | 6 | % |   |   | 942 |   |   |   | 6 | % |
| Real Estate – Other                         |   |                    | 12,212 |   |                   |   | 68 | % |   |   | 13,816 |   |   |   | 67 | % |
| Loans to Individuals                              |   |                    | 2,498  |   |                   |   | 4 | % |   |   | 2,826 |   |   |   | 4 | % |
| All Other Loans                                   |   |                    | 1,111  |   |                   |   | 3 | % |   |   | 1,257 |   |   |   | 2 | % |
| Total                                             |   | $                       | 27,754 |   |                   |   | 100 | % |   | $ | 31,401 |   |   |   | 100 | % |

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

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| ($ in thousands)                                                                |   | Three Months EndedSeptember 30, 2010 |   |   | Three Months EndedSeptember 30, 2009 |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|-------------------------------------------|--------|
|                                                                            |   |                                      |   |   |                                      |   |
| Allowance for Loan Losses at Beginning of Quarter                               |   | $                                         | 28,536 |   |                                      | $      | 18,375 |   |
|                                                                            |   |                                      |   |   |                                      |   |   |   |
| Charge-Off                                                                      |   |                                      |   |   |                                      |   |   |   |
|     Commercial, Financial and Agricultural                  |   |                                      | 146    |   |                                      |   | 24 |   |
|     Real Estate – Construction & Land Development |   |                                      | 723    |   |                                      |   | 74 |   |
|     Real Estate – Residential                         |   |                                      | 310    |   |                                      |   | 769 |   |
|     Real Estate – Nonfarm Residential                 |   |                                      | 3,774  |   |                                      |   | 41 |   |
|     Consumer                                                |   |                                      | 114    |   |                                      |   | 188 |   |
|     All Other                                               |   |                                      | 162    |   |                                      |   | 32 |   |
|                                                                            |   |                                      | 5,229  |   |                                      |   | 1,128 |   |
| Recoveries                                                                      |   |                                      |   |   |                                      |   |   |   |
|     Commercial, Financial and Agricultural                  |   |                                      | 2      |   |                                      |   | 39 |   |
|     Real Estate – Construction & Land Development |   |                                      | 75     |   |                                      |   | 6 |   |
|     Real Estate – Residential                         |   |                                      | 73     |   |                                      |   | 9 |   |
|     Real Estate – Nonfarm Residential                 |   |                                      | 55     |   |                                      |   | 1 |   |
|     Consumer                                                |   |                                      | 35     |   |                                      |   | 55 |   |
|     All Other                                               |   |                                      | 7      |   |                                      |   | 2 |   |
|                                                                            |   |                                      | 247    |   |                                      |   | 112 |   |
|                                                                            |   |                                      |   |   |                                      |   |   |   |
| Net Charge-Offs                                                                 |   |                                      | 4,982  |   |                                      |   | 1,016 |   |
|                                                                            |   |                                      |   |   |                                      |   |   |   |
| Provision for Loan Losses                                                       |   |                                      | 4,200  |   |                                      |   | 4,000 |   |
|                                                                            |   |                                      |   |   |                                      |   |   |   |
| Allowance for Loan Losses at End of Quarter                                     |   | $                                         | 27,754 |   |                                      | $      | 21,359 |   |
|                                                                            |   |                                      |   |   |                                      |   |   |   |
| Ratio of Net Charge-Offs to Average Loans                                       |   |                                      | 0.58   | %      |                                      |   | 0.11 | % |

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|                                                                            |   | Nine Months EndedSeptember 30, 2010 |   |   | Nine Months EndedSeptember 30, 2009 |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
| ($ in thousands)                                                                |
|                                                                            |   |                                |   |   |                                |   |
| Allowance for Loan Losses at Beginning of Quarter                               |   | $                                   | 31,401 |   |                                | $      | 17,016 |   |
|                                                                            |   |                                |   |   |                                |   |   |   |
| Charge-Off                                                                      |   |                                |   |   |                                |   |   |   |
|     Commercial, Financial and Agricultural                  |   |                                | 679    |   |                                |   | 310 |   |
|     Real Estate – Construction & Land Development |   |                                | 4,511  |   |                                |   | 7,880 |   |
|     Real Estate – Farmland                            |   |                                | --     |   |                                |   | 43 |   |
|     Real Estate – Residential                         |   |                                | 3,293  |   |                                |   | 4,627 |   |
|     Real Estate – Nonfarm Residential                 |   |                                | 6,151  |   |                                |   | 3,978 |   |
|     Consumer                                                |   |                                | 365    |   |                                |   | 461 |   |
|     All Other                                               |   |                                | 511    |   |                                |   | 250 |   |
|                                                                            |   |                                | 15,510 |   |                                |   | 17,549 |   |
| Recoveries                                                                      |   |                                |   |   |                                |   |   |   |
|     Commercial, Financial and Agricultural                  |   |                                | 75     |   |                                |   | 54 |   |
|     Real Estate – Construction & Land Development |   |                                | 107    |   |                                |   | 33 |   |
|     Real Estate – Residential                         |   |                                | 443    |   |                                |   | 55 |   |
|     Real Estate – Nonfarm Residential                 |   |                                | 134    |   |                                |   | 4 |   |
|     Consumer                                                |   |                                | 230    |   |                                |   | 161 |   |
|     All Other                                               |   |                                | 24     |   |                                |   | 5 |   |
|                                                                            |   |                                | 1,013  |   |                                |   | 312 |   |
|                                                                            |   |                                |   |   |                                |   |   |   |
| Net Charge-Offs                                                                 |   |                                | 14,497 |   |                                |   | 17,237 |   |
|                                                                            |   |                                |   |   |                                |   |   |   |
| Provision for Loan Losses                                                       |   |                                | 10,850 |   |                                |   | 21,580 |   |
|                                                                            |   |                                |   |   |                                |   |   |   |
| Allowance for Loan Losses at End of Quarter                                     |   | $                                   | 27,754 |   |                                | $      | 21,359 |   |
|                                                                            |   |                                |   |   |                                |   |   |   |
| Ratio of Net Charge-Offs to Average Loans                                       |   |                                | 1.65   | %      |                                |   | 1.79 | % |

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| ($ in thousands)                                   |   | September 30, 2010 |    |   | December 31, 2009 |   |
|----------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
|                                               |   |                    |    |   |                   |   |
| State, County and Municipal                        |   | $                       | 3,391   |   |                   | $      | 4,122 |   |
| Corporate Obligations                              |   |                    | 2,128   |   |                   |   | 4,138 |   |
| Asset-Backed Securities                            |   |                    | 132     |   |                   |   | 132 |   |
|                                               |   |                    |    |   |                   |   |   |   |
| Investment Securities                              |   |                    | 5,651   |   |                   |   | 8,392 |   |
| Mortgage-Backed Securities                         |   |                    | 265,192 |   |                   |   | 258,909 |   |
| Total Investment Securities and                    |   |                    |    |   |                   |   |   |   |
|     Mortgage Backed Securities |   | $                       | 270,843 |   |                   | $      | 267,301 |   |

|                         |   | 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   |   | $             | 8,239  |   |                           |   | 1.39   | %                                 |   | $      | 229,205        |   |   |   | 2.39 | % |   | $ | 7,965 |   |   |   | 3.55 | % |   | $ | 19,783 |   |   |   | 1.85 | % |
|                         |   |          |   |   |                           |   |   |                              |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State, County, and Municipal |   |          | 1,063  |   |                           |   | 4.06   |                              |   |   | 1,256          |   |   |   | 3.10 |   |   |   | 1,072 |   |   |   | 3.47 |   |   |   | --- |   |   |   | --- |   |
|                         |   |          |   |   |                           |   |   |                              |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate Obligations        |   |          | ---    |   |                           |   | ---    |                              |   |   | ---            |   |   |   | --- |   |   |   | 1,147 |   |   |   | 5.67 |   |   |   | 981 |   |   |   | 3.50 |   |
|                         |   |          |   |   |                           |   |   |                              |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset-Backed Securities      |   |          | ---    |   |                           |   | ---    |                              |   |   | ---            |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | 132 |   |   |   | 0.00 |   |
|                         |   |          |   |   |                           |   |   |                              |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Investment Portfolio   |   | $             | 9,302  |   |                           |   | 1.69   | %                                 |   | $      | 230,461        |   |   |   | 2.39 | % |   | $ | 10,184 |   |   |   | 3.76 | % |   | $ | 20,896 |   |   |   | 1.89 | % |

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|                                              |   | September 30, 2010 |      |   | September 30, 2009 |   |
|---------------------------------------------------|--------|--------------------|-----------|--------|--------------------|--------|
| ($ in thousands)                                  |   | AverageAmount      |      |   | AverageRate        |   |   | AverageAmount |   |   | AverageRate |   |
|                                              |   |               |      |   |               |   |   |   |   |   |   |   |
| Noninterest-Bearing Demand Deposits          |   | $                  | 79,807    |   |               |   |   |   | $ | 69,601 |   |   |   |   |
| Interest-Bearing Demand and Savings Deposits |   |               | 250,525   |   |               |   | 0.71 | % |   |   | 237,260 |   |   |   | 0.75 | % |
| Time Deposits                                     |   |               | 704,055   |   |               |   | 2.25 | % |   |   | 704,395 |   |   |   | 2.95 | % |
|                                              |   |               |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Total Deposits                                    |   | $                  | 1,034,387 |   |               |   | 1.70 | % |   | $ | 1,011,256 |   |   |   | 2.23 | % |

| ($ in thousands)                 |   | TimeDeposits$100,000or Greater |    |   | TimeDepositsLess Than$100,000 |   |    | Total  |   |
|----------------------------------|--------|--------------------------------|---------|--------|-------------------------------|--------|---------|--------|--------|
|                             |   |                           |    |   |                          |   |    |   |   |
| Months to Maturity               |   |                           |    |   |                          |   |    |   |   |
| 3 or Less                        |   | $                              | 72,006  |   |                          | $      | 80,546  |   |   | $ | 152,552 |   |
| Over 3 through 12 Months         |   |                           | 141,455 |   |                          |   | 190,140 |   |   |   | 331,595 |   |
| Over 12 Months through 36 Months |   |                           | 78,252  |   |                          |   | 115,418 |   |   |   | 193,670 |   |
| Over 36 Months                   |   |                           | 2,303   |   |                          |   | 8,552   |   |   |   | 10,855 |   |
|                             |   |                           |    |   |                          |   |    |   |   |   |   |   |
|                             |   | $                              | 294,016 |   |                          | $      | 394,656 |   |   | $ | 688,672 |   |

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|                                |   | Payments Due by Period |    |
|-------------------------------------|--------|------------------------|---------|
|                                |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   | 1 Year or Less         |    |   | More than 1Year but LessThan 3 Years |   |   | 3 Years orMore but LessThan 5 Years |   |   | 5 Years orMore |   |   | Total |   |
| Contractual obligations:            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Subordinated debentures             |   | $                      | ----    |   |   | $ | ---- |   |   | $ | ---- |   |   | $ | 24,229 |   |   | $ | 24,229 |   |
| Federal Funds purchased and         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| repurchase agreements               |   |                   | 25,000  |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 25,000 |   |
| Secured Borrowings                  |   |                   | 5,469   |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 5,469 |   |
| Federal Home Loan Bank advances     |   |                   | ----    |   |   |   | 41,000 |   |   |   | ---- |   |   |   | 30,000 |   |   |   | 71,000 |   |
| Operating leases                    |   |                   | 129     |   |   |   | 221 |   |   |   | 35 |   |   |   | ---- |   |   |   | 385 |   |
| Deposits with stated maturity dates |   |                   | 484,147 |   |   |   | 193,670 |   |   |   | 10,684 |   |   |   | 171 |   |   |   | 688,672 |   |
|                                |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |                   | 514,745 |   |   |   | 234,891 |   |   |   | 10,719 |   |   |   | 54,400 |   |   |   | 814,755 |   |
| Other commitments:                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan commitments                    |   |                   | 37,464  |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 37,464 |   |
| Standby letters of credit           |   |                   | 1,492   |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 1,492 |   |
| Standby letter of credit issued by  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank for Bank     |   |                   | 60      |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 60 |   |
|                                |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |                   | 39,016  |   |   |   | ---- |   |   |   | ---- |   |   |   | ---- |   |   |   | 39,016 |   |
| Total contractual obligations and   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other commitments                   |   | $                      | 553,761 |   |   | $ | 234,891 |   |   | $ | 10,719 |   |   | $ | 54,400 |   |   | $ | 853,771 |   |

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|                             |   | Three Months EndedSeptember 30 |   |   | Nine Months EndedSeptember 30 |   |
|----------------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
|                             |   | 2010                           |   |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
|                             |   |                           |   |   |                          |   |   |   |   |   |   |   |
| Return on Assets (1)             |   |                           | (0.44  | )%     |                          |   | 0.01 | % |   |   | (0.09 | )% |   |   | (0.62 | )% |
|                             |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Return on Avg. Total Equity (1)  |   |                           | (5.72  | )%     |                          |   | 0.07 | % |   |   | (1.25 | )% |   |   | (7.42 | )% |
|                             |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Avg. Total Equity to Avg. Assets |   |                           | 7.75   | %      |                          |   | 8.01 | % |   |   | 7.38 | % |   |   | 8.36 |   |
|                             |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Dividends Declared               |   | $                              | 0.00   |   |                          | $      | 0.00 |   |   | $ | 0.00 |   |   | $ | 0.15 |   |

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Item 

|                                              |   |            |      |   | Nine Months EndedSeptember 30, 2010 |   |   | Nine Months EndedSeptember 30, 2009 |   |
|---------------------------------------------------|--------|-----------------|-----------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                              |   | AverageBalances |      |   | Income/Expense                      |   |   | Yields/Rates                        |   |   | AverageBalances |   |   | Income/Expense |   |   | Yields/Rates |   |
| ($ in thousands)                                  |
| Assets                                            |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |
| Interest-Earning Assets                           |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |
| Loans, Net of Unearned Interest and fees          |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |
| Taxable (1)                                       |   | $               | 876,093   |   |                                | $      | 39,470 |                                |   |   | 6.01 | % |   | $ | 963,737 |   |   | $ | 43,456 |   |   |   | 6.01 | % |
| Investment Securities                             |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                           |   |            | 262,681   |   |                                |   | 5,240  |                                |   |   | 2.66 | % |   |   | 229,465 |   |   |   | 6,182 |   |   |   | 3.59 | % |
| Tax-Exempt (2)                                    |   |            | 2,318     |   |                                |   | 100    |                                |   |   | 5.75 | % |   |   | 6,833 |   |   |   | 300 |   |   |   | 5.85 | % |
| Total Investment Securities                       |   |            | 264,999   |   |                                |   | 5,340  |                                |   |   | 2.69 | % |   |   | 236,298 |   |   |   | 6,482 |   |   |   | 3.66 | % |
| Interest-Bearing Deposits                         |   |            | 19,791    |   |                                |   | 15     |                                |   |   | 0.10 | % |   |   | 408 |   |   |   | 13 |   |   |   | 4.25 | % |
| Federal Funds Sold                                |   |            | 37,196    |   |                                |   | 68     |                                |   |   | 0.24 | % |   |   | 7,322 |   |   |   | 14 |   |   |   | 0.25 | % |
| Interest-Bearing Other Assets                     |   |            | 6,333     |   |                                |   | 27     |                                |   |   | 0.57 | % |   |   | 6,322 |   |   |   | -- |   |   |   | -- |   |
| Total Interest-Earning Assets                     |   |            | 1,204,412 |   |                                | $      | 44,920 |                                |   |   | 4.97 | % |   |   | 1,214,087 |   |   | $ | 49,965 |   |   |   | 5.49 | % |
| Non-interest-Earning Assets                       |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents                         |   |            | 19,075    |   |                                |   |   |                                |   |   |   |   |   |   | 21,684 |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses                         |   |            | (30,953   | )      |                                |   |   |                                |   |   |   |   |   |   | (18,609 | ) |   |   |   |   |   |   |   |   |
| Other Assets                                      |   |            | 82,242    |   |                                |   |   |                                |   |   |   |   |   |   | 65,234 |   |   |   |   |   |   |   |   |   |
| Total Noninterest-Earning Assets                  |   |            | 70,364    |   |                                |   |   |                                |   |   |   |   |   |   | 68,309 |   |   |   |   |   |   |   |   |   |
| Total Assets                                      |   | $               | 1,274,776 |   |                                |   |   |                                |   |   |   |   |   | $ | 1,282,396 |   |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity              |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities                      |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Deposits                         |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Demand and Savings               |   | $               | 250,525   |   |                                | $      | 1,317  |                                |   |   | 0.70 | % |   | $ | 237,260 |   |   | $ | 1,340 |   |   |   | 0.75 | % |
| Other Time                                        |   |            | 704,055   |   |                                |   | 11,862 |                                |   |   | 2.25 | % |   |   | 704,395 |   |   |   | 15,588 |   |   |   | 2.95 | % |
| Total Interest-Bearing Deposits                   |   |            | 954,580   |   |                                |   | 13,179 |                                |   |   | 1.84 | % |   |   | 941,655 |   |   |   | 16,928 |   |   |   | 2.40 | % |
| Other Interest-Bearing Liabilities                |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Borrowed Money                              |   |            | 89,651    |   |                                |   | 2,333  |                                |   |   | 3.47 | % |   |   | 91,000 |   |   |   | 2,329 |   |   |   | 3.41 | % |
| Subordinated Debentures                           |   |            | 24,229    |   |                                |   | 389    |                                |   |   | 2.14 | % |   |   | 24,229 |   |   |   | 531 |   |   |   | 2.92 | % |
| Federal Funds Purchased and Repurchase Agreements |   |            | 27,768    |   |                                |   | 549    |                                |   |   | 2.64 | % |   |   | 42,341 |   |   |   | 658 |   |   |   | 2.07 | % |
| Total Other Interest-Bearing Liabilities          |   |            | 141,648   |   |                                |   | 3,271  |                                |   |   | 3.08 | % |   |   | 157,570 |   |   |   | 3,518 |   |   |   | 2.98 | % |
| Total Interest-Bearing Liabilities                |   |            | 1,096,228 |   |                                | $      | 16,450 |                                |   |   | 2.00 | % |   |   | 1,099,225 |   |   | $ | 20,446 |   |   |   | 2.48 | % |
| Noninterest-Bearing Liabilities and               |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' Equity                              |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand Deposits                                   |   |            | 79,807    |   |                                |   |   |                                |   |   |   |   |   |   | 69,601 |   |   |   |   |   |   |   |   |   |
| Other Liabilities                                 |   |            | 4,674     |   |                                |   |   |                                |   |   |   |   |   |   | 6,321 |   |   |   |   |   |   |   |   |   |
| Stockholders' Equity                              |   |            | 94,067    |   |                                |   |   |                                |   |   |   |   |   |   | 107,249 |   |   |   |   |   |   |   |   |   |
| Total Noninterest-Bearing Liabilities             |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and Stockholders' Equity                          |   |            | 178,548   |   |                                |   |   |                                |   |   |   |   |   |   | 183,171 |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders' Equity        |   | $               | 1,274,776 |   |                                |   |   |                                |   |   |   |   |   | $ | 1,282,396 |   |   |   |   |   |   |   |   |   |
|                                              |   |            |      |   |                                |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Rate Spread                              |   |            |      |   |                                |   |   |                                |   |   | 2.97 | % |   |   |   |   |   |   |   |   |   |   | 3.01 | % |
| Net Interest Income                               |   |            |      |   |                                | $      | 28,470 |                                |   |   |   |   |   |   |   |   |   | $ | 29,519 |   |   |   |   |   |
| Net Interest Margin                               |   |            |      |   |                                |   |   |                                |   |   | 3.15 | % |   |   |   |   |   |   |   |   |   |   | 3.24 | % |

| (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 $100 and $114 for nine month periods ended September 30, 2010 and 2009, respectively, are included in tax-exempt interest on loans. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (2) | Taxable-equivalent adjustments totaling $34 and $102 for nine month periods ended September 30, 2010 and 2009, 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. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                       |   | Assets and Liabilities Repricing Within |    |
|--------------------------------------------|--------|-----------------------------------------|---------|
|                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | 3 Monthsor Less                         |    |   | 4 to 12Months |   |   | 1 Year |   |   | 1 to 5Years |   |   | Over 5Years |   |   | Total |   |
|                                       |
| ($ in Thousands)                           |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNING ASSETS:                            |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Deposits                  |   | $                                       | 21,285  |   |   | $ | --- |   |   | $ | 21,285 |   |   | $ | --- |   |   |   | --- |   |   | $ | 21,285 |   |
| Federal Funds Sold                         |   |                                    | 13,327  |   |   |   | --- |   |   |   | 13,327 |   |   |   | --- |   |   |   | --- |   |   |   | 13,327 |   |
| Investment Securities                      |   |                                    | 4,447   |   |   |   | 4,709 |   |   |   | 9,156 |   |   |   | 229,955 |   |   |   | 31,732 |   |   |   | 270,843 |   |
| Loans, Net of Unearned Income              |   |                                    | 341,793 |   |   |   | 199,272 |   |   |   | 541,065 |   |   |   | 299,432 |   |   |   | 9,418 |   |   |   | 849,915 |   |
| Other Interest-Bearing Assets              |   |                                    | 6,300   |   |   |   |  --- |   |   |   | 6,300 |   |   |   | --- |   |   |   |  --- |   |   |   | 6,300 |   |
|                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Earning Assets              |   |                                    | 387,152 |   |   |   | 203,981 |   |   |   | 591,133 |   |   |   | 529,387 |   |   |   | 41,150 |   |   |   | 1,161,670 |   |
|                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST-BEARING LIABILITIES:              |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Demand Deposits (1)       |   |                                    | 204,059 |   |   |   | --- |   |   |   | 204,059 |   |   |   | --- |   |   |   | --- |   |   |   | 204,059 |   |
| Savings (1)                                |   |                                    | 36,352  |   |   |   | --- |   |   |   | 36,352 |   |   |   | --- |   |   |   | --- |   |   |   | 36,352 |   |
| Time Deposits                              |   |                                    | 152,552 |   |   |   | 331,595 |   |   |   | 484,147 |   |   |   | 204,354 |   |   |   | 171 |   |   |   | 688,672 |   |
| Other Borrowings (2)                       |   |                                    | 5,469   |   |   |   | --- |   |   |   | 5,469 |   |   |   | 41,000 |   |   |   | 30,000 |   |   |   | 76,469 |   |
| Subordinated Debentures                    |   |                                    | 24,229  |   |   |   | --- |   |   |   | 24,229 |   |   |   | --- |   |   |   | --- |   |   |   | 24,229 |   |
| Federal Funds Purchased                    |   |                                    | ---     |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
| Repurchase Agreements                      |   |                                    | 5,000   |   |   |   | 20,000 |   |   |   | 25,000 |   |   |   | --- |   |   |   |  --- |   |   |   | 25,000 |   |
|                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Interest-Bearing Liabilities         |   |                                    | 427,661 |   |   |   | 351,595 |   |   |   | 779,256 |   |   |   | 245,354 |   |   |   | 30,171 |   |   |   | 1,054,781 |   |
|                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Rate-Sensitivity Gap              |   |                                    | (40,509 | ) |   |   | (147,614 | ) |   |   | (188,123 | ) |   |   | 284,033 |   |   |   | 10,979 |   |   |   | 106,889 |   |
|                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative Interest-Sensitivity Gap        |   |                                    | (40,509 | ) |   |   | (188,123 | ) |   |   | (188,123 | ) |   |   | 95,910 |   |   |   | 106,889 |   |   |   |   |   |
|                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Rate-Sensivitiy Gap as a          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percentage of Interest-Earning Assets      |   |                                    | (3.49   | )% |   |   | (12.70 | )% |   |   | (16.19 | )% |   |   | 24.45 | % |   |   | 0.94 | % |   |   |   |   |
|                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative Interest Rate-Sensitivity as    |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| as a Percentage of Interest-Earning Assets |   |                                    | (3.49   | )% |   |   | (16.19 | )% |   |   | (16.19 | )% |   |   | 8.26 | % |   |   | 9.20 | % |   |   |   |   |

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CONTROLS 

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LEGAL 

RISK 

UNREGISTERED 

DEFAULTS 

REMOVED 

OTHER 

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EXHIBITS

| 3.1  Articles of Incorporation                                                                                                                                                                                                               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                   |
| -filed as Exhibit 3(a) to the Registrant’s Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference                                                                |
|                                                                                                                                                                                                                                                   |
| 3.2  Bylaws, as Amended                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                   |
| -filed as Exhibit 3(b) to the Registrant’s Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference                                                                |
|                                                                                                                                                                                                                                                   |
| 3.3  Article of Amendment to the Company’s Articles of Incorporation Authorizing Additional Capital Stock in the Form of Ten Million Shares of Preferred Stock                                                                         |
|                                                                                                                                                                                                                                                   |
| -filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 000-12436) filed with the Commission on January 13, 2009 and incorporated herein by reference.                                                                    |
|                                                                                                                                                                                                                                                   |
| 3.4  Articles of Amendment to the Company’s Articles of Incorporation Establishing the Terms of the Series A Preferred Stock                                                                                                           |
|                                                                                                                                                                                                                                                   |
| -filed as Exhibit 3.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436) filed with the Commission on January 13, 2009 and incorporated herein by reference.                                                                    |
|                                                                                                                                                                                                                                                   |
| 4.1  Instruments Defining the Rights of Security Holders                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                   |
| -incorporated herein by reference to page 1 of the Company’s Definitive Proxy Statement for Annual Meeting of Stockholders to be held on April 27, 2004, filed with the Securities and Exchange Commission on March 3, 2004 (File No. 000-12436) |
|                                                                                                                                                                                                                                                   |
| 4.2    Warrant to Purchase up to 500,000 shares of Common Stock                                                                                                                                                                    |
|                                                                                                                                                                                                                                                   |
| -filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 13, 2009 and incorporated herein by reference.                                                                   |
|                                                                                                                                                                                                                                                   |
| 4.3    Form of Series A Preferred Stock Certificate                                                                                                                                                                                |
|                                                                                                                                                                                                                                                   |
| -filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 13, 2009 and incorporated herein by reference.                                                                   |
|                                                                                                                                                                                                                                                   |
| 10.1  Deferred Compensation Plan and Sample Director Agreement                                                                                                                                                                               |
|                                                                                                                                                                                                                                                   |
| -filed as Exhibit 10(a) to the Registrant’s Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference                                                               |
|                                                                                                                                                                                                                                                   |
| 10.2  Profit-Sharing Plan Dated January 1, 1979                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                   |
|  -filed as Exhibit 10(b) to the Registrant’s Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference                                                         |
|                                                                                                                                                                                                                                                   |
| 10.3  1999 Restricted Stock Grant Plan and Restricted Stock Grant Agreement                                                                                                                                                                  |
|                                                                                                                                                                                                                                                   |
| -filed as Exhibit 10(c) the Registrant’s Annual Report  on Form 10-K (File No. 000-12436), filed with the Commission on March 30, 2001 and incorporated herein by reference                                                            |

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Table of Contents

| 10.4  2004 Restricted Stock Grant Plan and Restricted Stock Grant Agreement                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                         |
| - filed as Exhibit C to the Registrant’s Definitive Proxy Statement for Annual Meeting of Shareholders held on April 27, 2004, filed with the Securities and Exchange Commission on March 3, 2004 (File No.  000-12436) and incorporated herein by reference |
|                                                                                                                                                                                                                                                                         |
| 10.5 Lease Agreement – Mobile Home Tracts, LLC c/o Stafford Properties, Inc. and Colony Bank Worth                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                         |
| - filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10Q (File No. 000-12436), filed with Securities and Exchange Commission on November 5, 2004 and incorporated herein by reference                                                                  |
|                                                                                                                                                                                                                                                                         |
| 10.6  Letter Agreement, Dated January 9, 2009, Including Securities Purchase Agreement – Standard Terms Incorporated by Reference Therein, Between the Company and the United States Department of the Treasury                                              |
|                                                                                                                                                                                                                                                                         |
| - filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 13, 2009 and incorporated herein by reference.                                                                                       |
|                                                                                                                                                                                                                                                                         |
| 10.7  Form of Waiver, Executed by Each of Messrs Al D. Ross, Terry L. Hester, Henry F. Brown, Jr., Walter P. Patten and Larry E. Stevenson                                                                                                                         |
|                                                                                                                                                                                                                                                                         |
| - filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the  Commission on January 13, 2009 and incorporated herein by reference.                                                                            |
|                                                                                                                                                                                                                                                                         |
| 11.1  Statement of Computation of Earnings Per Share                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                         |
| 31.1  Certificate of Chief Executive Officer Pursuant to Section 302 of Sarbanes-Oxley  Act of 2002                                                                                                                                                      |
|                                                                                                                                                                                                                                                                         |
| 31.2  Certificate of Chief Financial Officer Pursuant to Section 302 of Sarbanes – Oxley  Act of 2002                                                                                                                                              |
|                                                                                                                                                                                                                                                                         |
| 32.1  Certification of Chief Executive Officer and Chief Financial Officer Pursuant to  Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                    |

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SIGNATURES

| Date  November 12, 2010 |   | /s/ Al D. Ross                        |   |
|------------------------------|--------|---------------------------------------|--------|
|                         |   | Al D. Ross,                           |   |
|                         |   | President and Chief Executive Officer |   |
|                         |   |                                  |   |

| Date  November 12, 2010 |   | /s/ Terry L. Hester                                       |   |
|------------------------------|--------|-----------------------------------------------------------|--------|
|                         |   | Terry L. Hester,                                          |   |
|                         |   | Executive Vice President and Chief Financial Officer |   |

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