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

|            |                                                                                          |
|------------|------------------------------------------------------------------------------------------|
| (Mark One) |
| x          | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934     |
|       | For the fiscal year ended December 31, 2010                                              |
|       |                                                                                     |
|       | or                                                                                       |
|       |                                                                                     |
| o          | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|       | For the transition period from __________ to __________                                  |

|                                                        |                                      |
|--------------------------------------------------------|--------------------------------------|
| WEST BANCORPORATION, INC.                              |
| (Exact name of registrant as specified in its charter) |
|                                                   |
| IOWA                                                   | 42-1230603                           |
| (State of incorporation or organization)               | (I.R.S. Employer Identification No.) |
|                                                   |                                 |
| 1601 22nd STREET, WEST DES MOINES, IOWA           | 50266                                |
| (Address of principal executive offices)               | (Zip code)                           |

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|                         |   |                           |   |
|-------------------------|---|---------------------------|---|
| Large accelerated filer | o | Accelerated filer         | x |
| Non-accelerated filer   | o | Smaller reporting company | o |

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|                                                     |                                                                                                               |        |
|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------|
|                                                | FORM 10-K                                                                                                     |   |
| TABLE OF CONTENTS                                   |
|                                                |                                                                                                          |   |
|                                                |                                                                                                          |   |
| "SAFE HARBOR" CONCERNING FORWARD-LOOKING STATEMENTS | 4                                                                                                             |
|                                                |                                                                                                          |   |
| PART I                                              |
|                                                |                                                                                                          |   |
| ITEM 1.                                             | BUSINESS                                                                                                      | 4      |
|                                                |                                                                                                          |   |
| ITEM 1A.                                            | RISK FACTORS                                                                                                  | 9      |
|                                                |                                                                                                          |   |
| ITEM 1B.                                            | UNRESOLVED STAFF COMMENTS                                                                                     | 15     |
|                                                |                                                                                                          |   |
| ITEM 2.                                             | PROPERTIES                                                                                                    | 15     |
|                                                |                                                                                                          |   |
| ITEM 3.                                             | LEGAL PROCEEDINGS                                                                                             | 15     |
|                                                |                                                                                                          |   |
| ITEM 4.                                             | RESERVED                                                                                                      | 15     |
|                                                |                                                                                                          |   |
| PART II                                             |
|                                                |                                                                                                          |   |
| ITEM 5.                                             | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES | 15     |
|                                                |                                                                                                          |   |
| ITEM 6.                                             | SELECTED FINANCIAL DATA                                                                                       | 17     |
|                                                |                                                                                                          |   |
| ITEM 7.                                             | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                         | 18     |
|                                                |                                                                                                          |   |
| ITEM 7A.                                            | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                    | 45     |
|                                                |                                                                                                          |   |
| ITEM 8.                                             | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                   | 47     |
|                                                |                                                                                                          |   |
| ITEM 9.                                             | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                          | 90     |
|                                                |                                                                                                          |   |
| ITEM 9A.                                            | CONTROLS AND PROCEDURES                                                                                       | 90     |
|                                                |                                                                                                          |   |
| ITEM 9B.                                            | OTHER INFORMATION                                                                                             | 90     |
|                                                |                                                                                                          |   |
| PART III                                            |
|                                                |                                                                                                          |   |
| ITEM 10.                                            | DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE                                                       | 90     |
|                                                |                                                                                                          |   |
| ITEM 11.                                            | EXECUTIVE COMPENSATION                                                                                        | 91     |
|                                                |                                                                                                          |   |
| ITEM 12.                                            | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                | 92     |
|                                                |                                                                                                          |   |
| ITEM 13.                                            | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                                     | 92     |
|                                                |                                                                                                          |   |
| ITEM 14.                                            | PRINCIPAL ACCOUNTING FEES AND SERVICES                                                                        | 92     |
|                                                |                                                                                                          |   |
| PART IV                                             |
|                                                |                                                                                                          |   |
| ITEM 15.                                            | EXHIBITS, FINANCIAL STATEMENT SCHEDULES                                                                       | 93     |

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|                                 |        |        |        |        |           |        |         |        |   |         |        |
|---------------------------------|--------|--------|--------|--------|-----------|--------|---------|--------|---|---------|--------|
| Market and Dividend Information |   |   |   |   |      |
|                            | High   |   | Low    |   | Dividends |
| 2010                            |   |   |   |   |      |
| 1st quarter                     | $      | 6.64   |   |   | $         | 4.80   |    |   | $ | — |   |
| 2nd quarter                     | 9.04   |   |   | 6.32   |      |   | — |   |
| 3rd quarter                     | 7.28   |   |   | 5.51   |      |   | — |   |
| 4th quarter                     | 8.19   |   |   | 6.13   |      |   | 0.05    |   |
| 2009                            |   |   |   |   |      |   |    |   |
| 1st quarter                     | $      | 12.40  |   |   | $         | 4.36   |    |   | $ | 0.08    |   |
| 2nd quarter                     | 9.50   |   |   | 5.00   |      |   | 0.01    |   |
| 3rd quarter                     | 6.38   |   |   | 4.61   |      |   | — |   |
| 4th quarter                     | 5.50   |   |   | 4.28   |      |   | — |   |

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|                                                         |        |                         |           |        |           |         |           |           |        |        |           |        |        |           |           |        |        |   |           |        |
|---------------------------------------------------------|--------|-------------------------|-----------|--------|-----------|---------|-----------|-----------|--------|--------|-----------|--------|--------|-----------|-----------|--------|--------|---|-----------|--------|
| West Bancorporation, Inc. and Subsidiary                |   |                    |      |   |      |    |      |      |   |   |
| Selected Financial Data                                 |   |                    |      |   |      |    |      |      |   |   |
|                                                    |   | Years Ended December 31 |
| (in thousands, except per share amounts)                |   | 2010                    |      | 2009   |      | 2008    |      | 2007      |   | 2006   |
| Operating Results                                       |   |                    |      |   |      |    |      |      |   |   |
| Interest income                                         |   | $                       | 61,143    |   |      | $       | 67,730    |      |   | $      | 72,532    |   |   | $         | 82,027    |   |   | $ | 79,738    |   |
| Interest expense                                        |   | 19,023                  |      |   | 26,636    |    |      | 31,431    |   |   | 43,823    |   |   | 40,639    |      |
| Net interest income                                     |   | 42,120                  |      |   | 41,094    |    |      | 41,101    |   |   | 38,204    |   |   | 39,099    |      |
| Provision for loan losses                               |   | 6,050                   |      |   | 24,500    |    |      | 16,600    |   |   | 2,350     |   |   | 1,725     |      |
| Net interest income after provision for loan losses     |   | 36,070                  |      |   | 16,594    |    |      | 24,501    |   |   | 35,854    |   |   | 37,374    |      |
| Noninterest income, including securities gains (losses) |   | 10,387                  |      |   | 8,904     |    |      | 4,301     |   |   | 8,430     |   |   | 8,128     |      |
| Noninterest expense                                     |   | 27,744                  |      |   | 37,905    |    |      | 20,105    |   |   | 17,870    |   |   | 17,425    |      |
| Income (loss) before income taxes                       |   | 18,713                  |      |   | (12,407   | )       |      | 8,697     |   |   | 26,414    |   |   | 28,077    |      |
| Income taxes (benefits)                                 |   | 5,330                   |      |   | (7,356    | )       |      | 1,386     |   |   | 8,062     |   |   | 8,935     |      |
| Income (loss) from continuing operations                |   | 13,383                  |      |   | (5,051    | )       |      | 7,311     |   |   | 18,352    |   |   | 19,142    |      |
| Income (loss) from discontinued operations              |   |                    |      |   |      |    |      |      |   |   |
| before income taxes                                     |   | —                 |      |   | (10,262   | )       |      | 563       |   |   | 982       |   |   | 458       |      |
| Income taxes (benefits)                                 |   | —                 |      |   | (696      | )       |      | 238       |   |   | 414       |   |   | 193       |      |
| Income (loss) from discontinued operations              |   | —                 |      |   | (9,566    | )       |      | 325       |   |   | 568       |   |   | 265       |      |
| Net income (loss)                                       |   | 13,383                  |      |   | (14,617   | )       |      | 7,636     |   |   | 18,920    |   |   | 19,407    |      |
| Preferred stock dividends and accretion of discount     |   | (2,284                  | )         |   | (2,276    | )       |      | —   |   |   | —   |   |   | —   |      |
| Net income (loss) available to common stockholders      |   | $                       | 11,099    |   |      | $       | (16,893   | )         |   | $      | 7,636     |   |   | $         | 18,920    |   |   | $ | 19,407    |   |
|                                                    |   |                    |      |   |      |    |      |      |   |   |
| Dividends and Per Share Data                            |   |                    |      |   |      |    |      |      |   |   |
| Cash dividends                                          |   | $                       | 870       |   |      | $       | 1,566     |      |   | $      | 11,138    |   |   | $         | 11,224    |   |   | $ | 10,956    |   |
| Cash dividends per common share                         |   | 0.050                   |      |   | 0.090     |    |      | 0.640     |   |   | 0.640     |   |   | 0.625     |      |
| Basic and diluted earnings (loss) per common share      |   |                    |      |   |      |    |      |      |   |   |
| from continuing operations                              |   | 0.64                    |      |   | (0.42     | )       |      | 0.42      |   |   | 1.05      |   |   | 1.09      |      |
| Basic and diluted earnings (loss) per common share      |   |                    |      |   |      |    |      |      |   |   |
| from discontinued operations                            |   | —                 |      |   | (0.55     | )       |      | 0.02      |   |   | 0.03      |   |   | 0.02      |      |
| Basic and diluted earnings (loss) per common share      |   | 0.64                    |      |   | (0.97     | )       |      | 0.44      |   |   | 1.08      |   |   | 1.11      |      |
| Average common shares outstanding                       |   | 17,404                  |      |   | 17,404    |    |      | 17,405    |   |   | 17,536    |   |   | 17,537    |      |
|                                                    |   |                    |      |   |      |    |      |      |   |   |
| Year End Balances                                       |   |                    |      |   |      |    |      |      |   |   |
| Total assets                                            |   | $                       | 1,305,463 |   |      | $       | 1,575,054 |      |   | $      | 1,554,276 |   |   | $         | 1,341,289 |   |   | $ | 1,270,013 |   |
| Average assets                                          |   | 1,558,461               |      |   | 1,618,557 |    |      | 1,371,401 |   |   | 1,309,119 |   |   | 1,298,410 |      |
| Investment securities                                   |   | 267,537                 |      |   | 351,269   |    |      | 189,558   |   |   | 237,378   |   |   | 261,578   |      |
| Loans, including held for sale                          |   | 893,101                 |      |   | 1,021,042 |    |      | 1,101,753 |   |   | 985,423   |   |   | 904,422   |      |
| Allowance for loan losses                               |   | (19,087                 | )         |   | (19,126   | )       |      | (15,441   | )      |   | (8,935    | )      |   | (8,494    | )         |
| Deposits                                                |   | 972,072                 |      |   | 1,246,617 |    |      | 1,155,132 |   |   | 911,371   |   |   | 926,251   |      |
| Long-term borrowings                                    |   | 125,619                 |      |   | 145,619   |    |      | 145,619   |   |   | 123,619   |   |   | 105,519   |      |
| Stockholders' equity                                    |   | 145,436                 |      |   | 133,059   |    |      | 150,063   |   |   | 121,606   |   |   | 113,812   |      |
| Average stockholders' equity                            |   | 141,079                 |      |   | 143,163   |    |      | 118,090   |   |   | 116,683   |   |   | 107,345   |      |
|                                                    |   |                    |      |   |      |    |      |      |   |   |
| Performance Ratios                                      |   |                    |      |   |      |    |      |      |   |   |
| Equity to assets ratio (average equity divided          |   |                    |      |   |      |    |      |      |   |   |
| by average assets)                                      |   | 9.05                    | %         |   | 8.85      |  % |      | 8.61      | %      |   | 8.91      | %      |   | 8.27      | %         |
| Return on assets (net income (loss) divided             |   |                    |      |   |      |    |      |      |   |   |
| by average assets)                                 |   | 0.86                    | %         |   | (0.90     | )%      |      | 0.56      | %      |   | 1.45      | %      |   | 1.49      | %         |
| Return on equity (net income (loss) divided             |   |                    |      |   |      |    |      |      |   |   |
| by average equity)                                      |   | 9.49                    | %         |   | (10.21    | )%      |      | 6.47      | %      |   | 16.21     | %      |   | 18.08     | %         |
| Efficiency ratio (noninterest expense divided by        |   |                    |      |   |      |    |      |      |   |   |
| noninterest income plus tax-equivalent                  |   |                    |      |   |      |    |      |      |   |   |
| net interest income)                                    |   | 50.40                   | %         |   | 45.99     |  % |      | 38.56     | %      |   | 37.08     | %      |   | 35.47     | %         |
| Dividend payout ratio (common dividends paid divided by |   |                    |      |   |      |    |      |      |   |   |
| net income (loss) available to common stockholders)     |   | 7.84                    | %         |   | NM        |    |      | 145.86    | %      |   | 59.32     | %      |   | 56.45     | %         |
| NM - not meaningful                                     |   |                    |      |   |      |    |      |      |   |   |

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|                                                     |                         |        |        |         |        |        |          |        |        |        |         |        |        |         |
|-----------------------------------------------------|-------------------------|--------|--------|---------|--------|--------|----------|--------|--------|--------|---------|--------|--------|---------|
|                                                | Years ended December 31 |
| Noninterest income:                                 | 2010                    |   | 2009   |    | Change |   | Change % |
| Service charges on deposit accounts                 | $                       | 3,361  |   |    | $      | 4,021  |     |   | $      | (660   | )       |   | (16.41 | )%      |
| Debit card usage fees                               | 1,329                   |   |   | 1,123   |   |   | 206      |   |   | 18.34  |  % |
| Service fee from SmartyPig, LLC                     | 1,314                   |   |   | — |   |   | 1,314    |   |   | N/A    |    |
| Trust services                                      | 818                     |   |   | 786     |   |   | 32       |   |   | 4.07   |  % |
| Gains and fees on sales of residential mortgages    | 1,533                   |   |   | 1,114   |   |   | 419      |   |   | 37.61  |  % |
| Increase in cash value of bank-owned life insurance | 869                     |   |   | 776     |   |   | 93       |   |   | 11.98  |  % |
| Gain from bank-owned life insurance                 | 422                     |   |   | 840     |   |   | (418     | )      |   | (49.76 | )%      |
| Other income:                                       |                    |   |   |    |   |   |     |   |   |   |    |
| Visa/Mastercard income                              | 201                     |   |   | 177     |   |   | 24       |   |   | 13.56  |  % |
| Wire transfer fees                                  | 165                     |   |   | 147     |   |   | 18       |   |   | 12.24  |  % |
| All other income                                    | 640                     |   |   | 648     |   |   | (8       | )      |   | (1.23  | )%      |
| Total other income                                  | 1,006                   |   |   | 972     |   |   | 34       |   |   | 3.50   |  % |
| Total noninterest income                            | $                       | 10,652 |   |    | $      | 9,632  |     |   | $      | 1,020  |    |   | 10.59  |  % |

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|                                 |                         |        |        |        |        |        |          |        |        |          |         |        |        |         |
|---------------------------------|-------------------------|--------|--------|--------|--------|--------|----------|--------|--------|----------|---------|--------|--------|---------|
|                            | Years ended December 31 |
| Noninterest expense:            | 2010                    |   | 2009   |   | Change |   | Change % |
| Salaries and employee benefits  | $                       | 10,996 |   |   | $      | 9,938  |     |   | $      | 1,058    |    |   | 10.65  |  % |
| Occupancy                       | 3,207                   |   |   | 3,451  |   |   | (244     | )      |   | (7.07    | )%      |
| Data processing                 | 1,815                   |   |   | 1,761  |   |   | 54       |   |   | 3.07     |  % |
| FDIC insurance expense          | 3,082                   |   |   | 2,736  |   |   | 346      |   |   | 12.65    |  % |
| Other real estate owned expense | 1,716                   |   |   | 368    |   |   | 1,348    |   |   | 366.30   |  % |
| Professional fees               | 959                     |   |   | 964    |   |   | (5       | )      |   | (0.52    | )%      |
| Miscellaneous losses            | 1,330                   |   |   | 70     |   |   | 1,260    |   |   | 1,800.00 |  % |
| Goodwill impairment             | —                 |   |   | 13,376 |   |   | (13,376  | )      |   | (100.00  | )%      |
| Other expenses:                 |                    |   |   |   |   |   |     |   |   |     |
| Insurance expense               | 382                     |   |   | 285    |   |   | 97       |   |   | 34.04    |  % |
| Marketing                       | 424                     |   |   | 504    |   |   | (80      | )      |   | (15.87   | )%      |
| Consulting fees                 | 235                     |   |   | 413    |   |   | (178     | )      |   | (43.10   | )%      |
| Director fees                   | 355                     |   |   | 274    |   |   | 81       |   |   | 29.56    |  % |
| Deposit operations expense      | 336                     |   |   | 821    |   |   | (485     | )      |   | (59.07   | )%      |
| Bank service charges and fees   | 551                     |   |   | 411    |   |   | 140      |   |   | 34.06    |  % |
| Postage, courier, and freight   | 311                     |   |   | 339    |   |   | (28      | )      |   | (8.26    | )%      |
| All other                       | 2,045                   |   |   | 2,194  |   |   | (149     | )      |   | (6.79    | )%      |
| Total other                     | 4,639                   |   |   | 5,241  |   |   | (602     | )      |   | (11.49   | )%      |
| Total noninterest expense       | $                       | 27,744 |   |   | $      | 37,905 |     |   | $      | (10,161  | )       |   | (26.81 | )%      |

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|                                                     |                         |        |        |         |        |        |          |        |        |        |         |        |        |         |
|-----------------------------------------------------|-------------------------|--------|--------|---------|--------|--------|----------|--------|--------|--------|---------|--------|--------|---------|
|                                                | Years ended December 31 |
| Noninterest income:                                 | 2009                    |   | 2008   |    | Change |   | Change % |
| Service charges on deposit accounts                 | $                       | 4,021  |   |    | $      | 4,832  |     |   | $      | (811   | )       |   | (16.78 | )%      |
| Debit card usage fees                               | 1,123                   |   |   | 880     |   |   | 243      |   |   | 27.61  |  % |
| Trust services                                      | 786                     |   |   | 789     |   |   | (3       | )      |   | (0.38  | )%      |
| Gains and fees on sales of residential mortgages    | 1,114                   |   |   | 544     |   |   | 570      |   |   | 104.78 |  % |
| Increase in cash value of bank-owned life insurance | 776                     |   |   | 936     |   |   | (160     | )      |   | (17.09 | )%      |
| Gain from bank-owned lifed insurance                | 840                     |   |   | — |   |   | 840      |   |   | N/A    |    |
| All other income                                    | 972                     |   |   | 986     |   |   | (14      | )      |   | (1.42  | )%      |
| Total noninterest income                            | $                       | 9,632  |   |    | $      | 8,967  |     |   | $      | 665    |    |   | 7.42   |  % |

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|                                 |                         |        |        |         |        |        |          |        |        |        |         |        |       |         |
|---------------------------------|-------------------------|--------|--------|---------|--------|--------|----------|--------|--------|--------|---------|--------|-------|---------|
|                            | Years ended December 31 |
| Noninterest expense:            | 2009                    |   | 2008   |    | Change |   | Change % |
| Salaries and employee benefits  | $                       | 9,938  |   |    | $      | 9,257  |     |   | $      | 681    |    |   | 7.36  |  % |
| Occupancy                       | 3,451                   |   |   | 2,992   |   |   | 459      |   |   | 15.34  |  % |
| Data processing                 | 1,761                   |   |   | 1,748   |   |   | 13       |   |   | 0.74   |  % |
| FDIC insurance expense          | 2,736                   |   |   | 606     |   |   | 2,130    |   |   | 351.49 |  % |
| Other real estate owned expense | 368                     |   |   | 166     |   |   | 202      |   |   | 121.69 |  % |
| Professional fees               | 964                     |   |   | 941     |   |   | 23       |   |   | 2.44   |  % |
| Goodwill impairment             | 13,376                  |   |   | — |   |   | 13,376   |   |   | N/A    |    |
| Miscellaneous losses            | 70                      |   |   | 22      |   |   | 48       |   |   | 218.18 |  % |
| Other expenses:                 |                    |   |   |    |   |   |     |
| Insurance                       | 285                     |   |   | 224     |   |   | 61       |   |   | 27.23  |  % |
| Marketing                       | 504                     |   |   | 719     |   |   | (215     | )      |   | (29.90 | )%      |
| Consulting fees                 | 413                     |   |   | 210     |   |   | 203      |   |   | 96.67  |  % |
| Director fees                   | 274                     |   |   | 278     |   |   | (4       | )      |   | (1.44  | )%      |
| Deposit operations expense      | 821                     |   |   | 171     |   |   | 650      |   |   | 380.12 |  % |
| Bank service charges and fees   | 411                     |   |   | 221     |   |   | 190      |   |   | 85.97  |  % |
| Nonreimbursed loan expenses     | 191                     |   |   | 48      |   |   | 143      |   |   | 297.92 |  % |
| Training                        | 91                      |   |   | 179     |   |   | (88      | )      |   | (49.16 | )%      |
| Charitable contributions        | 200                     |   |   | 113     |   |   | 87       |   |   | 76.99  |  % |
| Intangible amortization         | 205                     |   |   | 238     |   |   | (33      | )      |   | (13.87 | )%      |
| All other                       | 1,846                   |   |   | 1,972   |   |   | (126     | )      |   | (6.39  | )%      |
| Total other                     | 5,241                   |   |   | 4,373   |   |   | 868      |   |   | 19.85  |  % |
| Total noninterest expense       | $                       | 37,905 |   |    | $      | 20,105 |     |   | $      | 17,800 |    |   | 88.54 |  % |

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|                                             |                |           |                 |        |            |        |                |        |                 |           |            |           |                |        |                 |        |            |        |           |        |        |           |        |         |        |        |        |        |        |        |      |   |
|---------------------------------------------|----------------|-----------|-----------------|--------|------------|--------|----------------|--------|-----------------|-----------|------------|-----------|----------------|--------|-----------------|--------|------------|--------|-----------|--------|--------|-----------|--------|---------|--------|--------|--------|--------|--------|--------|------|---|
|                                        | 2010           |      | 2009            |   | 2008       |
|                                        | AverageBalance |      | Revenue/Expense |   | Yield/Rate |   | AverageBalance |   | Revenue/Expense |      | Yield/Rate |      | AverageBalance |   | Revenue/Expense |   | Yield/Rate |
| Assets                                      |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |
| Interest-earning assets:                    |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |
| Loans: (2) (3)                              |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |
| Commercial                                  | $              | 336,979   |            |   | $          | 16,758 |           |   | 4.97            | %         |       | $         | 399,696        |   |            | $      | 19,436     |   |      | 4.86   | %      |      | $      | 387,426 |   |   | $      | 22,175 |   |   | 5.72 | % |
| Real estate (1)                             | 614,585        |      |            | 36,733 |       |   | 5.98           | %      |            | 690,159   |       |      | 40,001         |   |            | 5.80   | %          |   | 653,381   |   |   | 40,944    |   |    | 6.27   | %      |
| Consumer and other loans                    | 10,413         |      |            | 521    |       |   | 5.00           | %      |            | 10,190    |       |      | 643            |   |            | 6.31   | %          |   | 13,751    |   |   | 867       |   |    | 6.30   | %      |
| Total loans                                 | 961,977        |      |            | 54,012 |       |   | 5.61           | %      |            | 1,100,045 |       |      | 60,080         |   |            | 5.46   | %          |   | 1,054,558 |   |   | 63,986    |   |    | 6.07   | %      |
| Investment securities:                      |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |   |      |   |   |      |   |    |
| Taxable                                     | 228,666        |      |            | 4,330  |       |   | 1.89           | %      |            | 135,962   |       |      | 3,937          |   |            | 2.90   | %          |   | 96,560    |   |   | 4,763     |   |    | 4.93   | %      |
| Tax-exempt (1)                              | 72,458         |      |            | 4,534  |       |   | 6.26           | %      |            | 94,859    |       |      | 5,797          |   |            | 6.11   | %          |   | 92,646    |   |   | 5,393     |   |    | 5.82   | %      |
| Total investment securities                 | 301,124        |      |            | 8,864  |       |   | 2.94           | %      |            | 230,821   |       |      | 9,734          |   |            | 4.22   | %          |   | 189,206   |   |   | 10,156    |   |    | 5.37   | %      |
| Federal funds sold and other                |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |
| short-term investments                      | 196,609        |      |            | 541    |       |   | 0.28           | %      |            | 198,043   |       |      | 521            |   |            | 0.26   | %          |   | 33,113    |   |   | 467       |   |    | 1.41   | %      |
| Total interest-earning assets (1)           | 1,459,710      |      |            | 63,417 |       |   | 4.34           | %      |            | 1,528,909 |       |      | 70,335         |   |            | 4.60   | %          |   | 1,276,877 |   |   | 74,609    |   |    | 5.84   | %      |
| Noninterest-earning assets:                 |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |   |      |   |   |      |   |    |   |   |
| Cash and due from banks                     | 34,518         |      |            |   |       |   |           |   |            | 31,918    |       |      |           |   |            |   |       |   | 29,343    |   |   |      |   |    |   |   |
| Premises and equipment, net                 | 5,257          |      |            |   |       |   |           |   |            | 5,201     |       |      |           |   |            |   |       |   | 4,976     |   |   |      |   |    |   |   |
| Other, less allowance for                   |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |
| loan losses                                 | 58,976         |      |            |   |       |   |           |   |            | 52,529    |       |      |           |   |            |   |       |   | 60,205    |   |   |      |   |    |   |   |
| Total noninterest-earning assets            | 98,751         |      |            |   |       |   |           |   |            | 89,648    |       |      |           |   |            |   |       |   | 94,524    |   |   |      |   |    |   |   |
| Total assets                                | $              | 1,558,461 |            |   |       |   |           |   |            |      | $          | 1,618,557 |           |   |            |   |       |   |      |   | $      | 1,371,401 |   |    |   |   |   |   |   |
|                                        |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |
| Liabilities and Stockholders' Equity        |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |   |      |   |   |      |   |    |
| Interest-bearing liabilities:               |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |   |      |   |   |      |   |    |   |   |
| Deposits:                                   |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |   |      |   |   |      |   |    |   |   |
| Savings, interest-bearing                   |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |
| demand, and money markets              | $              | 568,043   |            |   | 6,168      |   |           | 1.09   | %               |      | $          | 503,279   |           |   | 6,638           |   |       | 1.32   | %         |   | $      | 325,850   |   |    | 5,035  |   |   | 1.55   | %      |
| Time deposits                               | 421,015        |      |            | 7,049  |       |   | 1.67           | %      |            | 527,075   |       |      | 12,910         |   |            | 2.45   | %          |   | 447,959   |   |   | 16,486    |   |    | 3.68   | %      |
| Total deposits                              | 989,058        |      |            | 13,217 |       |   | 1.34           | %      |            | 1,030,354 |       |      | 19,548         |   |            | 1.90   | %          |   | 773,809   |   |   | 21,521    |   |    | 2.78   | %      |
| Other borrowed funds                        | 191,098        |      |            | 5,806  |       |   | 3.04           | %      |            | 232,894   |       |      | 7,088          |   |            | 3.04   | %          |   | 285,249   |   |   | 9,910     |   |    | 3.47   | %      |
| Total interest-bearing liabilities          | 1,180,156      |      |            | 19,023 |       |   | 1.61           | %      |            | 1,263,248 |       |      | 26,636         |   |            | 2.11   | %          |   | 1,059,058 |   |   | 31,431    |   |    | 2.97   | %      |
| Noninterest-bearing liabilities:            |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |   |      |   |   |      |   |    |   |   |
| Demand deposits                             | 229,939        |      |            |   |       |   |           |   |            | 201,243   |       |      |           |   |            |   |       |   | 180,614   |   |   |      |   |    |   |   |
| Other liabilities                           | 7,287          |      |            |   |       |   |           |   |            | 10,903    |       |      |           |   |            |   |       |   | 13,639    |   |   |      |   |    |   |   |
| Stockholders' equity                        | 141,079        |      |            |   |       |   |           |   |            | 143,163   |       |      |           |   |            |   |       |   | 118,090   |   |   |      |   |    |   |   |
| Total liabilities and                       |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |
| stockholders' equity                        | $              | 1,558,461 |            |   |       |   |           |   |            |      | $          | 1,618,557 |           |   |            |   |       |   |      |   | $      | 1,371,401 |   |    |   |   |   |   |   |
|                                        |           |      |            |   |       |   |           |   |            |      |       |      |           |   |            |   |       |
| Net interest income/net interest spread (1) |           | $         | 44,394          |   |       | 2.73   | %              |   |            |      | $          | 43,699    |           |   | 2.49            | %      |       |   |      |   | $      | 43,178    |   |    | 2.87   | %      |
| Net interest margin (1)                     |           |      |            |   |       |   | 3.04           | %      |            |      |       |      |           |   |            | 2.86   | %          |   |      |   |   |      |   |    | 3.38   | %      |

|                             |                                                                                                                                                                                                                                                               |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Tax-exempt income has been adjusted to a tax-equivalent basis using an incremental rate of 35% and is adjusted to reflect the effect of the nondeductible  interest expense associated with owning tax-exempt investments and loans.      |

|                             |                                                                                                                              |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------|
| (2)     | Average loan balances include nonaccrual loans.  Interest income recognized on nonaccrual loans has been included. |

|                             |                                                                                                |
|-----------------------------|------------------------------------------------------------------------------------------------|
| (3)     | Interest income on loans includes amortization of loan fees and costs, which are not material. |

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Table of Contents

|                                |                       |        |                       |         |        |        |        |        |        |        |        |        |        |        |        |        |        |        |   |        |   |        |        |
|--------------------------------|-----------------------|--------|-----------------------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|--------|---|--------|--------|
|                           | 2010 Compared to 2009 |   | 2009 Compared to 2008 |
|                           | Volume                |   | Rate                  |    | Total  |   | Volume |   | Rate   |   | Total  |
| Interest Income                |                  |   |                  |    |   |   |   |   |   |   |   |
| Loans: (1)                     |                  |   |                  |    |   |   |   |   |   |   |   |
| Commercial                     | $                     | (3,110 | )                     |    | $      | 432    |   |   | $      | (2,678 | )      |   | $      | 684    |   |   | $      | (3,423 | ) |   | $ | (2,739 | )      |
| Real estate (2)                | (4,487                | )      |                  | 1,219   |   |   | (3,268 | )      |   | 2,231  |   |   | (3,174 | )      |   | (943   | )      |
| Consumer and other loans       | 14                    |   |                  | (136    | )      |   | (122   | )      |   | (225   | )      |   | 1      |   |   | (224   | )      |
| Total loans (including fees)   | (7,583                | )      |                  | 1,515   |   |   | (6,068 | )      |   | 2,690  |   |   | (6,596 | )      |   | (3,906 | )      |
| Investment securities:         |                  |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                        | 2,068                 |   |                  | (1,675  | )      |   | 393    |   |   | 1,545  |   |   | (2,371 | )      |   | (826   | )      |
| Tax-exempt (2)                 | (1,399                | )      |                  | 136     |   |   | (1,263 | )      |   | 131    |   |   | 273    |   |   | 404    |   |
| Total investment securities    | 669                   |   |                  | (1,539  | )      |   | (870   | )      |   | 1,676  |   |   | (2,098 | )      |   | (422   | )      |
| Federal funds sold and other   |                  |   |                  |    |   |   |   |   |   |   |   |
| short-term investments         | (4                    | )      |                  | 24      |   |   | 20     |   |   | 700    |   |   | (646   | )      |   | 54     |   |
| Total interest income (2)      | (6,918                | )      |                  | — |   |   | (6,918 | )      |   | 5,066  |   |   | (9,340 | )      |   | (4,274 | )      |
| Interest Expense               |                  |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                      |                  |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings, interest-bearing      |                  |   |                  |    |   |   |   |   |   |   |   |
| demand, and money markets | 791                   |   |                  | (1,261  | )      |   | (470   | )      |   | 2,425  |   |   | (822   | )      |   | 1,603  |   |
| Time deposits                  | (2,278                | )      |                  | (3,583  | )      |   | (5,861 | )      |   | 2,575  |   |   | (6,151 | )      |   | (3,576 | )      |
| Total deposits                 | (1,487                | )      |                  | (4,844  | )      |   | (6,331 | )      |   | 5,000  |   |   | (6,973 | )      |   | (1,973 | )      |
| Other borrowed funds           | (1,270                | )      |                  | (12     | )      |   | (1,282 | )      |   | (1,684 | )      |   | (1,138 | )      |   | (2,822 | )      |
| Total interest expense         | (2,757                | )      |                  | (4,856  | )      |   | (7,613 | )      |   | 3,316  |   |   | (8,111 | )      |   | (4,795 | )      |
| Net interest income (2)        | $                     | (4,161 | )                     |    | $      | 4,856  |   |   | $      | 695    |   |   | $      | 1,750  |   |   | $      | (1,229 | ) |   | $ | 521    |   |

|                             |                                                                             |
|-----------------------------|-----------------------------------------------------------------------------|
| (1)     | Balances of nonaccrual loans have been included for computational purposes. |

|                             |                                                                                                                                                                                                                                                             |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | Tax-exempt income has been converted to a tax-equivalent basis using a federal income tax rate of 35% and is adjusted for the effect of the nondeductible interest expense associated with owning tax-exempt investments and loans.     |

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Table of Contents

|                                                        |                   |         |        |        |        |         |         |        |   |         |        |
|--------------------------------------------------------|-------------------|---------|--------|--------|--------|---------|---------|--------|---|---------|--------|
|                                                   | As of December 31 |
|                                                   | 2010              |    | 2009   |   | 2008   |
| U.S. Treasury and government agencies and corporations | $                 | 47,798  |   |   | $      | 177,890 |    |   | $ | 61,050  |   |
| State and political subdivisions                       | 59,137            |    |   | 87,935 |   |    | 107,175 |   |
| Mortgage-backed securities                             | 141,220           |    |   | 64,578 |   |    | 1,234   |   |
| Trust preferred securities                             | 1,976             |    |   | 2,067  |   |    | 5,269   |   |
| Corporate notes and other investments                  | 6,195             |    |   | 8,008  |   |    | 6,656   |   |
| Total                                                  | $                 | 256,326 |   |   | $      | 340,478 |    |   | $ | 181,384 |   |

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Table of Contents

|                                           |                |         |                                    |         |                                     |        |                 |        |        |         |        |        |         |         |        |        |   |         |        |
|-------------------------------------------|----------------|---------|------------------------------------|---------|-------------------------------------|--------|-----------------|--------|--------|---------|--------|--------|---------|---------|--------|--------|---|---------|--------|
|                                      | Within oneyear |    | After one yearbut within fiveyears |    | After five yearsbut within tenyears |   | After ten years |   | Total  |
| U.S. government agencies and corporations | $              | — |                               |    | $                                   | 44,967 |            |   | $      | 2,831   |   |   | $       | — |   |   | $ | 47,798  |   |
| State and political subdivisions          | 1,887          |    |                               | 9,777   |                                |   | 16,832          |   |   | 30,641  |   |   | 59,137  |    |
| Mortgage-backed securities                | 450            |    |                               | 2,020   |                                |   | 17,703          |   |   | 121,047 |   |   | 141,220 |    |
| Trust preferred securities                | —        |    |                               | — |                                |   | —         |   |   | 1,976   |   |   | 1,976   |    |
| Corporate notes and other investments     | 1,619          |    |                               | 4,276   |                                |   | —         |   |   | 300     |   |   | 6,195   |    |
| Total                                     | $              | 3,956   |                               |    | $                                   | 61,040 |            |   | $      | 37,366  |   |   | $       | 153,964 |   |   | $ | 256,326 |   |
|                                      |           |    |                               |    |                                |   |            |   |   |
| Weighted average yield:                   |           |    |                               |    |                                |   |            |   |   |    |   |   |    |    |
| U.S. government agencies and corporations | —        |    |                               | 1.69    | %                                   |   | 3.90            | %      |   | — |   |   |    |
| State and political subdivisions (1)      | 5.87           | %       |                               | 5.72    | %                                   |   | 5.72            | %      |   | 6.64    | %      |   |    |
| Mortgage-backed securities                | 4.32           | %       |                               | 3.25    | %                                   |   | 2.99            | %      |   | 2.52    | %      |   |    |
| Trust preferred securities                | —        |    |                               | — |                                |   | —         |   |   | 2.22    | %      |   |    |
| Corporate notes and other investments     | 1.45           | %       |                               | 4.13    | %                                   |   | —         |   |   | — |   |   |    |
| Total                                     | 3.89           | %       |                               | 2.56    | %                                   |   | 4.29            | %      |   | 3.32    | %      |   |    |

|                             |                                                                                                                                                                                                                                                |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Yields on tax-exempt obligations have been computed on a tax-equivalent basis using an incremental tax rate of 35% and are adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt investments. |

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Table of Contents

|                                          |                   |         |        |           |        |           |           |        |        |           |        |        |         |         |        |        |   |         |        |
|------------------------------------------|-------------------|---------|--------|-----------|--------|-----------|-----------|--------|--------|-----------|--------|--------|---------|---------|--------|--------|---|---------|--------|
|                                     | As of December 31 |
|                                     | 2010              |    | 2009   |      | 2008   |      | 2007      |   | 2006   |
| Commercial                               | $                 | 310,376 |   |      | $      | 356,885   |      |   | $      | 391,926   |   |   | $       | 364,994 |   |   | $ | 327,985 |   |
| Real estate:                             |              |    |   |      |   |      |      |   |   |      |   |   |    |
| Construction, land, and land development | 116,601           |    |   | 148,505   |   |      | 152,704   |   |   | 153,184   |   |   | 143,928 |    |
| 1-4 family residential first mortgages   | 51,760            |    |   | 64,288    |   |      | 67,630    |   |   | 58,833    |   |   | 57,919  |    |
| Home equity                              | 26,111            |    |   | 30,110    |   |      | 35,504    |   |   | 32,881    |   |   | 31,059  |    |
| Commercial                               | 372,404           |    |   | 413,063   |   |      | 441,444   |   |   | 360,255   |   |   | 328,514 |    |
| Consumer and other loans                 | 11,514            |    |   | 8,163     |   |      | 11,884    |   |   | 13,790    |   |   | 15,752  |    |
| Total loans                              | 888,766           |    |   | 1,021,014 |   |      | 1,101,092 |   |   | 983,937   |   |   | 905,157 |    |
| Deferred loan fees, net                  | 117               |    |   | 304       |   |      | 357       |   |   | 372       |   |   | 871     |    |
| Total loans, net of deferred fees        | $                 | 888,649 |   |      | $      | 1,020,710 |      |   | $      | 1,100,735 |   |   | $       | 983,565 |   |   | $ | 904,286 |   |

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Table of Contents

|                                                    |             |         |        |        |        |        |        |        |         |        |        |     |   |
|----------------------------------------------------|-------------|---------|--------|--------|--------|--------|--------|--------|---------|--------|--------|-----|---|
| Commercial loans:                                  |        |    |   |   |   |   |   |
|                                               | December 31 |
|                                               | 2010        |    | 2009   |
|                                               | $           |    | %      |   | $      |   | %      |
| Finance and insurance                              | $           | 82,473  |   |   | 27     | %      |   | $      | 88,960  |   |   | 25  | % |
| Real estate and rental/leasing                     | 36,071      |    |   | 12     | %      |   | 42,747 |   |    | 12     | %      |
| Manufacturing                                      | 34,550      |    |   | 11     | %      |   | 41,112 |   |    | 12     | %      |
| Publishing, broadcasting, and information services | 28,192      |    |   | 9      | %      |   | 28,987 |   |    | 8      | %      |
| Construction                                       | 5,115       |    |   | 2      | %      |   | 5,019  |   |    | 1      | %      |
| Wholesale trade                                    | 16,094      |    |   | 5      | %      |   | 10,946 |   |    | 3      | %      |
| Building trades                                    | 14,107      |    |   | 4      | %      |   | 20,121 |   |    | 6      | %      |
| Transportation and warehousing                     | 12,742      |    |   | 4      | %      |   | 12,367 |   |    | 3      | %      |
| Retail                                             | 9,297       |    |   | 3      | %      |   | 10,125 |   |    | 3      | %      |
| Arts, entertainment, and recreation                | 12,517      |    |   | 4      | %      |   | 11,091 |   |    | 3      | %      |
| Other                                              | 59,218      |    |   | 19     | %      |   | 85,410 |   |    | 24     | %      |
|                                               | $           | 310,376 |   |   | 100    | %      |   | $      | 356,885 |   |   | 100 | % |

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Table of Contents

|                                    |             |         |        |        |         |        |        |        |         |        |        |     |   |
|------------------------------------|-------------|---------|--------|--------|---------|--------|--------|--------|---------|--------|--------|-----|---|
| Construction loans:                |        |    |   |   |    |   |   |
|                               | December 31 |
|                               | 2010        |    | 2009   |
|                               |  $     |    | %      |   |  $ |   | %      |
| Land development:                  |        |    |   |   |    |   |   |   |
| 1-4 family                         | $           | 19,941  |   |   | 17      | %      |   | $      | 19,092  |   |   | 13  | % |
| Other construction and development | 31,611      |    |   | 27     | %       |   | 38,863 |   |    | 26     | %      |
| Land:                              |        |    |   |   |    |   |   |
| Agricultural                       | 18,177      |    |   | 16     | %       |   | 12,798 |   |    | 8      | %      |
| Construction:                      |        |    |   |   |    |   |   |
| 1-4 family:                        |        |    |   |   |    |   |   |
| Owner occupied                     | 5,398       |    |   | 5      | %       |   | 4,325  |   |    | 3      | %      |
| Nonowner occupied                  | 8,662       |    |   | 7      | %       |   | 20,466 |   |    | 14     | %      |
| Multifamily                        | 1,050       |    |   | 1      | %       |   | 8,899  |   |    | 6      | %      |
| Industrial, commercial, and other  | 31,762      |    |   | 27     | %       |   | 44,062 |   |    | 30     | %      |
|                               | $           | 116,601 |   |   | 100     | %      |   | $      | 148,505 |   |   | 100 | % |

|                               |             |         |        |        |         |        |         |        |         |        |        |     |   |
|-------------------------------|-------------|---------|--------|--------|---------|--------|---------|--------|---------|--------|--------|-----|---|
| Commercial real estate loans: |        |    |   |   |    |   |    |
|                          | December 31 |
|                          | 2010        |    | 2009   |
|                          |  $     |    | %      |   |  $ |   | %       |
| Owner occupied                | $           | 199,993 |   |   | 54      | %      |    | $      | 203,432 |   |   | 49  | % |
| Nonowner occupied:            |        |    |   |   |    |   |    |
| Medical/retirement            | 51,078      |    |   | 14     | %       |   | 51,731  |   |    | 13     | %      |
| Retail                        | 45,828      |    |   | 12     | %       |   | 47,225  |   |    | 12     | %      |
| Multifamily                   | 26,767      |    |   | 7      | %       |   | 34,321  |   |    | 8      | %      |
| Office                        | 16,611      |    |   | 4      | %       |   | 38,424  |   |    | 9      | %      |
| Warehouse                     | 3,165       |    |   | 1      | %       |   | 15,123  |   |    | 4      | %      |
| Hotel                         | 10,185      |    |   | 3      | %       |   | 8,440   |   |    | 2      | %      |
| Other                         | 18,777      |    |   | 5      | %       |   | 14,367  |   |    | 3      | %      |
| Total nonowner occupied       | 172,411     |    |   | 46     | %       |   | 209,631 |   |    | 51     | %      |
|                          | $           | 372,404 |   |   | 100     | %      |    | $      | 413,063 |   |   | 100 | % |

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Table of Contents

|                                           |                |         |                               |         |                 |         |         |        |        |         |        |        |   |         |        |
|-------------------------------------------|----------------|---------|-------------------------------|---------|-----------------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|
| Loans as of December 31, 2010   | Within oneyear |    | After one butwithin fiveyears |    | After fiveyears |    | Total   |
| Commercial                                | $              | 227,729 |                          |    | $               | 72,653  |    |   | $      | 9,994   |   |   | $ | 310,376 |   |
| Real estate:                              |           |    |                          |    |            |    |    |   |
| Construction, land, and land development  | 66,189         |    |                          | 50,412  |            |    | — |   |   | 116,601 |   |
| 1-4 family residential first mortgages    | 17,752         |    |                          | 31,682  |            |    | 2,326   |   |   | 51,760  |   |
| Home equity                               | 5,573          |    |                          | 8,725   |            |    | 11,813  |   |   | 26,111  |   |
| Commercial                                | 29,572         |    |                          | 271,860 |            |    | 70,972  |   |   | 372,404 |   |
| Consumer and other loans                  | 6,975          |    |                          | 4,062   |            |    | 477     |   |   | 11,514  |   |
| Total loans                               | $              | 353,790 |                          |    | $               | 439,394 |    |   | $      | 95,582  |   |   | $ | 888,766 |   |
|                                      |           |    |                          |    |            |    |    |   |   |    |   |
|                                      |           |    | After one butwithin fiveyears |    | After fiveyears |    |    |   |
| Loan maturities after one year with:      |           |    |                          |    |            |    |    |   |   |    |
| Fixed rates                               |           |    | $                             | 423,364 |            |    | $       | 57,027 |   |    |   |   |
| Variable rates                            |           |    | 16,030                        |    |            | 38,555  |    |   |   |    |
|                                      |           |    | $                             | 439,394 |            |    | $       | 95,582 |   |    |   |   |

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Table of Contents

|                                                     |                         |        |        |         |        |        |         |        |        |         |        |        |         |        |        |        |   |       |        |
|-----------------------------------------------------|-------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|---|-------|--------|
|                                                | Years Ended December 31 |
|                                                | 2010                    |   | 2009   |    | 2008   |   | 2007    |   | 2006   |
| Nonaccrual loans:                                   |                    |   |   |    |   |   |    |   |   |
| Commercial                                          | $                       | 4,011  |   |    | $      | 9,846  |    |   | $      | 15,149  |   |   | $       | 2,078  |   |   | $ | 61    |   |
| Real estate:                                        |                    |   |   |    |   |   |    |   |   |
| Construction, land, and land development            | 60                      |   |   | 1,399   |   |   | 4,093   |   |   | 1,510   |   |   | — |   |
| 1-4 family residential first mortgages              | 1,001                   |   |   | 597     |   |   | 1,043   |   |   | 833     |   |   | 313     |   |
| Home equity                                         | 59                      |   |   | 266     |   |   | 265     |   |   | 58      |   |   | 103     |   |
| Commercial                                          | 2,814                   |   |   | 214     |   |   | 799     |   |   | 990     |   |   | 6       |   |
| Consumer and other loans                            | —                 |   |   | 28      |   |   | 18      |   |   | — |   |   | 12      |   |
| Total nonaccrual loans                              | 7,945                   |   |   | 12,350  |   |   | 21,367  |   |   | 5,469   |   |   | 495     |   |
| Loans past due 90 days and still accruing interest: |                    |   |   |    |   |   |    |   |   |
| Commercial                                          | —                 |   |   | — |   |   | — |   |   | 215     |   |   | — |   |
| Real estate:                                        |                    |   |   |    |   |   |    |   |   |
| Construction, land, and land development            | —                 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| 1-4 family residential first mortgages              | 198                     |   |   | — |   |   | 92      |   |   | 178     |   |   | — |   |
| Home equity                                         | —                 |   |   | — |   |   | — |   |   | 15      |   |   | 17      |   |
| Commercial                                          | —                 |   |   | — |   |   | — |   |   | — |   |   | 131     |   |
| Consumer and other loans                            | —                 |   |   | 1,150   |   |   | — |   |   | — |   |   | 7       |   |
| Total past due 90 days and still accruing interest  | 198                     |   |   | 1,150   |   |   | 92      |   |   | 408     |   |   | 155     |   |
| Troubled debt restructured loans*:                  |                    |   |   |    |   |   |    |   |   |
| Commercial                                          | —                 |   |   | 6,168   |   |   | 596     |   |   | — |   |   | — |   |
| Real estate:                                        |                    |   |   |    |   |   |    |   |   |
| Construction, land, and land development            | 1,195                   |   |   | 84      |   |   | — |   |   | — |   |   | — |   |
| 1-4 family residential first mortgages              | —                 |   |   | 523     |   |   | — |   |   | — |   |   | — |   |
| Home equity                                         | —                 |   |   | — |   |   | 6,780   |   |   | — |   |   | — |   |
| Commercial                                          | 3,578                   |   |   | 6,024   |   |   | — |   |   | — |   |   | — |   |
| Consumer and other loans                            | 14                      |   |   | 18      |   |   | — |   |   | — |   |   | — |   |
| Total troubled debt restructured loans              | 4,787                   |   |   | 12,817  |   |   | 7,376   |   |   | — |   |   | — |   |
| Total nonperforming loans                           | 12,930                  |   |   | 26,317  |   |   | 28,835  |   |   | 5,877   |   |   | 650     |   |
| Other real estate owned                             | 19,193                  |   |   | 25,350  |   |   | 4,352   |   |   | 155     |   |   | 2,002   |   |
| Nonaccrual investment securities                    | 1,339                   |   |   | 1,282   |   |   | 2,575   |   |   | — |   |   | — |   |
| Total nonperforming assets                          | $                       | 33,462 |   |    | $      | 52,949 |    |   | $      | 35,762  |   |   | $       | 6,032  |   |   | $ | 2,652 |   |
|                                                |                    |   |   |    |   |   |    |   |   |
| Nonperforming loans to total loans                  | 1.46                    | %      |   | 2.58    | %      |   | 2.62    | %      |   | 0.60    | %      |   | 0.07    | %      |
| Nonperforming assets to total assets                | 2.56                    | %      |   | 3.36    | %      |   | 2.30    | %      |   | 0.45    | %      |   | 0.21    | %      |

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Table of Contents

|                                |            |        |                                                    |         |                            |        |                           |        |                         |         |                                  |        |                            |        |        |         |        |        |         |        |   |       |        |        |   |        |        |
|--------------------------------|------------|--------|----------------------------------------------------|---------|----------------------------|--------|---------------------------|--------|-------------------------|---------|----------------------------------|--------|----------------------------|--------|--------|---------|--------|--------|---------|--------|---|-------|--------|--------|---|--------|--------|
|                           | Nonaccrual |   | Loans Past Due 90 Days and Still Accruing Interest |    | Troubled Debt Restructured |   | Total Nonperforming Loans |   | Other Real Estate Owned |    | Nonaccrual lnvestment Securities |   | Total Nonperforming Assets |
| Balance at beginning of period | $          | 12,350 |                                               |    | $                          | 1,150  |                      |   | $                       | 12,817  |                             |   | $                          | 26,317 |   |    | $      | 25,350 |    |   | $ | 1,282 |   |   | $ | 52,949 |   |
| Increase in fair market value  | —    |   |                                               | — |                       |   | —                   |   |                    | — |                             |   | —                    |   |   | 321     |   |   | 321     |   |
| Additions                      | 5,694      |   |                                               | 7,853   |                       |   | 5,111                     |   |                    | 18,658  |                             |   | 5,528                      |   |   | 625     |   |   | 24,811  |   |
| Transfers:                     |       |   |                                               |    |                       |   |                      |   |                    |    |                             |   |                       |
| Past due to nonaccrual         | 1,738      |   |                                               | (1,738  | )                          |   | —                   |   |                    | — |                             |   | —                    |   |   | — |   |   | — |   |
| Troubled debt to nonaccrual    | 2,891      |   |                                               | — |                       |   | (2,891                    | )      |                    | — |                             |   | —                    |   |   | — |   |   | — |   |
| Troubled debt to past due      | —    |   |                                               | 16      |                       |   | (16                       | )      |                    | — |                             |   | —                    |   |   | — |   |   | — |   |
| Nonaccrual to OREO             | (1,660     | )      |                                               | — |                       |   | —                   |   |                    | (1,660  | )                                |   | 1,660                      |   |   | — |   |   | — |   |
| Upgrade in classification      | (2,303     | )      |                                               | (6,734  | )                          |   | (9,955                    | )      |                    | (18,992 | )                                |   | —                    |   |   | — |   |   | (18,992 | )      |
| Sales                          | —    |   |                                               | — |                       |   | —                   |   |                    | — |                             |   | (11,666                    | )      |   | (584    | )      |   | (12,250 | )      |
| Subsequent writedowns/         |       |   |                                               |    |                       |   |                      |   |                    |    |                             |   |                       |
| impairments                    | —    |   |                                               | — |                       |   | —                   |   |                    | — |                             |   | (1,621                     | )      |   | (305    | )      |   | (1,926  | )      |
| Charge-offs                    | (6,115     | )      |                                               | (11     | )                          |   | (24                       | )      |                    | (6,150  | )                                |   | (58                        | )      |   | — |   |   | (6,208  | )      |
| Payments                       | (4,650     | )      |                                               | (338    | )                          |   | (255                      | )      |                    | (5,243  | )                                |   | —                    |   |   | — |   |   | (5,243  | )      |
| Balance at end of period       | $          | 7,945  |                                               |    | $                          | 198    |                      |   | $                       | 4,787   |                             |   | $                          | 12,930 |   |    | $      | 19,193 |    |   | $ | 1,339 |   |   | $ | 33,462 |   |

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Table of Contents

|                                          |          |        |             |         |         |        |
|------------------------------------------|----------|--------|-------------|---------|---------|--------|
|                                     | Number   |   | Amount      |
|                                     | of Loans |   | Outstanding |
| Concessions made:                        |     |   |        |
| Lengthened amortization:                 |     |   |        |
| Commercial                               | —  |   |        | $       | — |   |
| Real estate:                             |     |   |        |
| Construction, land, and land development | 1        |   |        | 80      |    |
| 1-4 family residential first mortgages   | —  |   |        | — |    |
| Home equity                              | —  |   |        | — |    |
| Commercial                               | 2        |   |        | 3,578   |    |
| Consumer and other loans                 | 1        |   |        | 14      |    |
|                                     | 4        |   |        | 3,672   |    |
| Reduced interest rate:                   |     |   |        |
| Commercial                               | —  |   |        | — |    |
| Real estate:                             |     |   |        |
| Construction, land, and land development | 1        |   |        | 1,115   |    |
| 1-4 family residential first mortgages   | —  |   |        | — |    |
| Home equity                              | —  |   |        | — |    |
| Commercial                               | —  |   |        | — |    |
| Consumer and other loans                 | —  |   |        | — |    |
|                                     | 1        |   |        | 1,115   |    |
| Total                                    | 5        |   |        | $       | 4,787   |   |

|                                                |       |        |        |
|------------------------------------------------|-------|--------|--------|
| Construction, land development, and other land | $     | 12,953 |   |
| 1-4 family residential properties              | 1,038 |   |
| Multifamily                                    | 1,374 |   |
| Commercial properties                          | 3,828 |   |
|                                           | $     | 19,193 |   |

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Table of Contents

|                                                 |                                                         |         |        |         |        |           |         |        |        |           |        |        |         |         |        |        |   |         |        |
|-------------------------------------------------|---------------------------------------------------------|---------|--------|---------|--------|-----------|---------|--------|--------|-----------|--------|--------|---------|---------|--------|--------|---|---------|--------|
|                                            | Analysis of the Allowance for Loan Losses for the Years |
|                                            | Ended December 31                                       |
|                                            | 2010                                                    |    | 2009   |    | 2008   |      | 2007    |   | 2006   |
| Balance at beginning of period                  | $                                                       | 19,126  |   |    | $      | 15,441    |    |   | $      | 8,935     |   |   | $       | 8,494   |   |   | $ | 7,615   |   |
| Charge-offs:                                    |                                                    |    |   |    |   |      |    |   |   |      |   |   |    |    |
| Commercial                                      | 5,785                                                   |    |   | 8,495   |   |      | 8,993   |   |   | 1,741     |   |   | 776     |    |
| Real estate:                                    |                                                    |    |   |    |   |      |    |   |   |      |   |   |    |    |
| Construction, land, and land development        | 209                                                     |    |   | 2,859   |   |      | 952     |   |   | —   |   |   | 295     |    |
| 1-4 family residential first mortgages          | 371                                                     |    |   | 1,087   |   |      | 38      |   |   | 113       |   |   | 9       |    |
| Home equity                                     | 266                                                     |    |   | 598     |   |      | 92      |   |   | 243       |   |   | — |    |
| Commercial                                      | 53                                                      |    |   | 3,551   |   |      | 36      |   |   | —   |   |   | — |    |
| Consumer and other loans                        | 234                                                     |    |   | 4,790   |   |      | 259     |   |   | 45        |   |   | 60      |    |
|                                            | 6,918                                                   |    |   | 21,380  |   |      | 10,370  |   |   | 2,142     |   |   | 1,140   |    |
| Recoveries:                                     |                                                    |    |   |    |   |      |    |   |   |      |   |   |    |    |
| Commercial                                      | 716                                                     |    |   | 493     |   |      | 236     |   |   | 191       |   |   | 270     |    |
| Real estate:                                    |                                                    |    |   |    |   |      |    |   |   |      |   |   |    |    |
| Construction, land, and land development        | 10                                                      |    |   | 20      |   |      | — |   |   | —   |   |   | 6       |    |
| 1-4 family residential first mortgages          | 33                                                      |    |   | 8       |   |      | 22      |   |   | 20        |   |   | 1       |    |
| Home equity                                     | 16                                                      |    |   | 11      |   |      | — |   |   | —   |   |   | — |    |
| Commercial                                      | 10                                                      |    |   | — |   |      | — |   |   | —   |   |   | — |    |
| Consumer and other loans                        | 44                                                      |    |   | 33      |   |      | 18      |   |   | 22        |   |   | 17      |    |
|                                            | 829                                                     |    |   | 565     |   |      | 276     |   |   | 233       |   |   | 294     |    |
| Net charge-offs                                 | 6,089                                                   |    |   | 20,815  |   |      | 10,094  |   |   | 1,909     |   |   | 846     |    |
| Provision for loan losses charged to operations | 6,050                                                   |    |   | 24,500  |   |      | 16,600  |   |   | 2,350     |   |   | 1,725   |    |
| Balance at end of period                        | $                                                       | 19,087  |   |    | $      | 19,126    |    |   | $      | 15,441    |   |   | $       | 8,935   |   |   | $ | 8,494   |   |
| Average loans outstanding                       | $                                                       | 961,977 |   |    | $      | 1,100,045 |    |   | $      | 1,054,558 |   |   | $       | 945,669 |   |   | $ | 918,992 |   |
| Ratio of net charge-offs during the period      |                                                    |    |   |    |   |      |    |   |   |
| to average loans outstanding               | 0.63                                                    | %       |   | 1.89    | %      |      | 0.96    | %      |   | 0.20      | %      |   | 0.09    | %       |
| Ratio of allowance for loan losses to           |                                                    |    |   |    |   |      |    |   |   |
| average loans outstanding                  | 1.98                                                    | %       |   | 1.74    | %      |      | 1.46    | %      |   | 0.94      | %      |   | 0.92    | %       |

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|                          |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |   |       |        |        |        |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|-------|--------|--------|--------|---|
|                     | 2010   |   | 2009   |   | 2008   |   | 2007   |   | 2006   |
|                     | Amount |   | %*     |   | Amount |   | %*     |   | Amount |   | %*     |   | Amount |   | %*     |   | Amount |   | %*     |
| Balance at end of        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| period applicable to:    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial               | $      | 7,940  |   |   | 34.92  | %      |   | $      | 7,988  |   |   | 34.95  | %      |   | $      | 9,177  |   |   | 35.59  | %      |   | $      | 2,762  |   |   | 37.10  | %      |   | $ | 2,068 |   |   | 36.23  | % |
| Real estate:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction, land,      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and land development     | 3,787  |   |   | 13.12  | %      |   | 3,260  |   |   | 14.54  | %      |   | 2,310  |   |   | 13.87  | %      |   | 1,267  |   |   | 15.57  | %      |   | 1,168  |   |   | 15.90  | % |
| 1-4 family residential   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| first mortgages          | 647    |   |   | 5.82   | %      |   | 649    |   |   | 6.30   | %      |   | 296    |   |   | 6.14   | %      |   | 436    |   |   | 5.98   | %      |   | 427    |   |   | 6.40   | % |
| Home equity              | 658    |   |   | 2.94   | %      |   | 654    |   |   | 2.95   | %      |   | 270    |   |   | 3.23   | %      |   | 909    |   |   | 3.34   | %      |   | 714    |   |   | 3.44   | % |
| Commercial               | 5,823  |   |   | 41.90  | %      |   | 6,438  |   |   | 40.46  | %      |   | 3,227  |   |   | 40.09  | %      |   | 3,475  |   |   | 36.61  | %      |   | 3,985  |   |   | 36.29  | % |
| Consumer and other loans | 232    |   |   | 1.30   | %      |   | 137    |   |   | 0.80   | %      |   | 161    |   |   | 1.08   | %      |   | 86     |   |   | 1.40   | %      |   | 132    |   |   | 1.74   | % |
|                     | $      | 19,087 |   |   | 100.00 | %      |   | $      | 19,126 |   |   | 100.00 | %      |   | $      | 15,441 |   |   | 100.00 | %      |   | $      | 8,935  |   |   | 100.00 | %      |   | $ | 8,494 |   |   | 100.00 | % |

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Table of Contents

|                          |        |         |        |
|--------------------------|--------|---------|--------|
| 3 months or less         | $      | 70,619  |   |
| Over 3 through 6 months  | 56,954 |    |
| Over 6 through 12 months | 35,106 |    |
| Over 12 months           | 15,709 |    |
|                     | $      | 178,388 |   |

|                               |                         |           |        |        |         |        |         |        |           |        |        |         |         |        |        |         |        |        |         |        |
|-------------------------------|-------------------------|-----------|--------|--------|---------|--------|---------|--------|-----------|--------|--------|---------|---------|--------|--------|---------|--------|--------|---------|--------|
|                          | Years ended December 31 |
|                          | 2010                    |      | 2009   |   | 2008    |
|                          | Amount                  |      | Rate   |   | Amount  |   | Rate    |   | Amount    |   | Rate   |
| Noninterest-bearing demand    | $                       | 229,939   |   |   | — |   |    | $      | 201,243   |   |   | — |    |   | $      | 180,614 |   |   | — |   |
| Interest-bearing demand:      |                    |      |   |   |    |   |    |   |      |   |   |    |    |   |   |    |   |
| Reward Me checking            | 82,254                  |      |   | 2.40   | %       |   | 69,779  |   |      | 3.29   | %      |    | 14,643  |   |   | 3.97    | %      |
| Other interest-bearing demand | 78,163                  |      |   | 0.25   | %       |   | 66,925  |   |      | 0.27   | %      |    | 72,621  |   |   | 0.88    | %      |
| Money market                  | 253,351                 |      |   | 0.63   | %       |   | 227,014 |   |      | 0.72   | %      |    | 200,569 |   |   | 1.74    | %      |
| Savings:                      |                    |      |   |   |    |   |    |   |      |   |   |    |    |   |   |    |   |
| SmartyPig® savings   | 113,290                 |      |   | 2.01   | %       |   | 102,144 |   |      | 2.33   | %      |    | 3,040   |   |   | 3.89    | %      |
| Other savings                 | 40,985                  |      |   | 0.33   | %       |   | 37,417  |   |      | 0.36   | %      |    | 34,977  |   |   | 0.61    | %      |
| Time certificates             | 421,015                 |      |   | 1.67   | %       |   | 527,075 |   |      | 2.45   | %      |    | 447,959 |   |   | 3.68    | %      |
|                          | $                       | 1,218,997 |   |   |    |   |    | $      | 1,231,597 |   |   |    |    |   | $      | 954,423 |   |   |    |   |

|                                          |                   |         |        |         |         |        |         |        |         |         |        |        |         |        |        |         |        |        |      |   |
|------------------------------------------|-------------------|---------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---------|--------|--------|------|---|
|                                     | As of December 31 |
|                                     | 2010              |    | 2009   |    | 2008    |
|                                     | Balance           |    | Rate   |    | Balance |   | Rate    |   | Balance |    | Rate   |
| Subordinated notes                       | $                 | 20,619  |   |    | 3.45    | %      |    | $      | 20,619  |    |   | 7.14   | %       |   | $      | 20,619  |   |   | 7.14 | % |
| FHLB advances                            | 105,000           |    |   | 3.84    | %       |   | 125,000 |   |    | 4.18    | %      |   | 125,000 |   |   | 4.18    | %      |
| Federal funds purchased and securities   |              |    |   |    |    |   |    |   |    |    |   |
| sold under agreements to repurchase | 52,095            |    |   | 0.28    | %       |   | 40,342  |   |    | 0.45    | %      |   | 93,111  |   |   | 0.48    | %      |
| Other short-term borrowings              | 2,914             |    |   | — |    |   | 2,553   |   |    | — |   |   | 245     |   |   | — |   |
|                                     | $                 | 180,628 |   |    | 2.71    | %      |    | $      | 188,514 |    |   | 3.65   | %       |   | $      | 238,975 |   |   | 2.99 | % |

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|                                        |                         |         |             |         |                |        |             |        |                |         |             |        |         |        |        |         |        |        |      |   |
|----------------------------------------|-------------------------|---------|-------------|---------|----------------|--------|-------------|--------|----------------|---------|-------------|--------|---------|--------|--------|---------|--------|--------|------|---|
|                                   | Years Ended December 31 |
|                                   | 2010                    |    | 2009        |    | 2008           |
|                                   | AverageBalance          |    | AverageRate |    | AverageBalance |   | AverageRate |   | AverageBalance |    | AverageRate |
| Subordinated notes                     | $                       | 20,619  |        |    | 6.21           | %      |        | $      | 20,619         |    |        | 7.14   | %       |   | $      | 20,619  |   |   | 7.14 | % |
| FHLB advances                          | 108,726                 |    |        | 3.97    | %              |   | 125,000     |   |           | 4.24    | %           |   | 138,203 |   |   | 4.06    | %      |
| Federal funds purchased and securities |                    |    |        |    |           |   |        |   |           |    |        |
| sold under agreements to repurchase    | 59,697                  |    |        | 0.35    | %              |   | 85,987      |   |           | 0.37    | %           |   | 125,110 |   |   | 2.23    | %      |
| Other short-term borrowings            | 2,056                   |    |        | — |           |   | 1,288       |   |           | — |        |   | 1,317   |   |   | 2.98    | %      |
|                                   | $                       | 191,098 |        |    | 3.04           | %      |        | $      | 232,894        |    |        | 3.04   | %       |   | $      | 285,249 |   |   | 3.47 | % |

|                                          |         |        |        |        |        |         |        |        |        |        |         |        |        |        |        |        |        |
|------------------------------------------|---------|--------|--------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                     | 2010    |   |   |   | 2009   |    |   |   | 2008   |   |    |
| Maximum amount outstanding during        |    |   |   |   |   |    |   |   |   |   |    |
| the year:                                |    |   |   |   |   |    |   |   |   |   |    |
| Subordinated notes                       | $       | 20,619 |   |   |   |    | $      | 20,619 |   |   |    |   | $      | 20,619 |   |   |   |
| FHLB advances                            | 125,000 |   |   |   |   | 125,000 |   |   |   |   | 153,000 |   |   |   |
| Federal funds purchased and securities   |    |   |   |   |   |    |   |   |   |   |    |
| sold under agreements to repurchase | 91,431  |   |   |   |   | 136,613 |   |   |   |   | 198,917 |   |   |   |
| Other short-term borrowings              | 3,544   |   |   |   |   | 4,047   |   |   |   |   | 21,769  |   |   |   |

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|                                             |         |           |                        |         |                   |         |                    |        |                     |         |        |        |         |        |        |        |   |         |        |
|---------------------------------------------|---------|-----------|------------------------|---------|-------------------|---------|--------------------|--------|---------------------|---------|--------|--------|---------|--------|--------|--------|---|---------|--------|
|                                        |    |      | Payments due by period |
|                                        | Total   |      | Less thanone year      |    | One tothree years |    | Three tofive years |   | More thanfive years |
| Deposits                                    | $       | 972,072   |                   |    | $                 | 905,593 |               |   | $                   | 51,088  |   |   | $       | 15,391 |   |   | $ | — |   |
| Federal funds purchased and securities sold |    |      |                   |    |              |    |               |   |                |
| under agreements to repurchase              | 52,095  |      |                   | 52,095  |              |    | —            |   |                | — |   |   | — |   |
| Other short-term borrowings                 | 2,914   |      |                   | 2,914   |              |    | —            |   |                | — |   |   | — |   |
| Subordinated notes                          | 20,619  |      |                   | — |              |    | —            |   |                | — |   |   | 20,619  |   |
| FHLB advances                               | 105,000 |      |                   | — |              |    | —            |   |                | — |   |   | 105,000 |   |
| Operating lease commitments                 | 16,029  |      |                   | 1,454   |              |    | 2,756              |   |                | 1,862   |   |   | 9,957   |   |
| Total                                       | $       | 1,168,729 |                   |    | $                 | 962,056 |               |   | $                   | 53,844  |   |   | $       | 17,253 |   |   | $ | 135,576 |   |

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|                         |          |        |
|-------------------------|----------|--------|
| Scenario                | % Change |
| 300 basis points rising | 4.43     | %      |
| 200 basis points rising | 2.92     | %      |
| 100 basis points rising | 0.60     | %      |
| Base                    | —  |   |

|                                             |                 |         |                        |         |                      |         |             |        |        |         |        |        |           |         |        |        |   |         |        |
|---------------------------------------------|-----------------|---------|------------------------|---------|----------------------|---------|-------------|--------|--------|---------|--------|--------|-----------|---------|--------|--------|---|---------|--------|
|                                        | 3 monthsor less |    | Over 3through 12months |    | Over 1through5 years |    | Over5 years |   | Total  |
| Interest-earning assets:                    |            |    |                   |    |                 |    |        |   |   |
| Loans                                       | $               | 447,163 |                   |    | $                    | 99,634  |        |   | $      | 317,597 |   |   | $         | 28,707  |   |   | $ | 893,101 |   |
| Securities available for sale               | 16,013          |    |                   | 33,629  |                 |    | 152,115     |   |   | 54,569  |   |   | 256,326   |    |
| Federal funds sold and other                |            |    |                   |    |                 |    |        |   |   |
| short-term investments                      | 67,885          |    |                   | — |                 |    | —     |   |   | — |   |   | 67,885    |    |
| Federal Home Loan Bank stock                | 11,211          |    |                   | — |                 |    | —     |   |   | — |   |   | 11,211    |    |
| Total interest-earning assets               | 542,272         |    |                   | 133,263 |                 |    | 469,712     |   |   | 83,276  |   |   | 1,228,523 |    |
| Interest-bearing liabilities:               |            |    |                   |    |                 |    |        |   |   |    |   |   |      |    |
| Interest-bearing deposits:                  |            |    |                   |    |                 |    |        |   |   |    |   |   |      |    |
| Savings, interest-bearing demand,           |            |    |                   |    |                 |    |        |   |   |
| and money markets                           | 455,881         |    |                   | — |                 |    | —     |   |   | — |   |   | 455,881   |    |
| Time                                        | 93,516          |    |                   | 126,026 |                 |    | 63,499      |   |   | 2,873   |   |   | 285,914   |    |
| Federal funds purchased and securities sold |            |    |                   |    |                 |    |        |   |   |
| under agreement to repurchase               | 52,095          |    |                   | — |                 |    | —     |   |   | — |   |   | 52,095    |    |
| Other short-term borrowings                 | 2,914           |    |                   | — |                 |    | —     |   |   | — |   |   | 2,914     |    |
| Long-term borrowings                        | 20,619          |    |                   | — |                 |    | —     |   |   | 105,000 |   |   | 125,619   |    |
| Total interest-bearing liabilities          | 625,025         |    |                   | 126,026 |                 |    | 63,499      |   |   | 107,873 |   |   | 922,423   |    |
| Interest sensitivity gap per period         | $               | (82,753 | )                      |    | $                    | 7,237   |        |   | $      | 406,213 |   |   | $         | (24,597 | )      |   | $ | 306,100 |   |
| Cumulative interest sensitivity gap         | $               | (82,753 | )                      |    | $                    | (75,516 | )           |   | $      | 330,697 |   |   | $         | 306,100 |   |   | $ | 306,100 |   |
| Interest sensitivity gap ratio              | 0.87            |    |                   | 1.06    |                 |    | 7.40        |   |   | 0.77    |   |   | 1.33      |    |
| Cumulative interest sensitivity gap ratio   | 0.87            |    |                   | 0.90    |                 |    | 1.41        |   |   | 1.33    |   |   | 1.33      |    |

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|                                                      |        |
|------------------------------------------------------|--------|
| /s/ David D. Nelson                                  |   |
| David D. Nelson                                      |   |
| Chief Executive Officer and President                |   |
|                                                 |   |
|                                                 |   |
| /s/ Douglas R. Gulling                               |   |
| Douglas R. Gulling                                   |   |
| Executive Vice President and Chief Financial Officer |

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|                                                                                      |        |           |           |        |           |        |           |        |
|--------------------------------------------------------------------------------------|--------|-----------|-----------|--------|-----------|--------|-----------|--------|
| (in thousands, except per share data)                                                |   | 2010      |      | 2009   |
| ASSETS                                                                               |   |      |      |   |
| Cash and due from banks                                                              |   | $         | 20,069    |   |      | $      | 27,923    |   |
| Federal funds sold and other short-term investments                                  |   | 67,885    |      |   | 103,572   |   |
| Cash and cash equivalents                                                            |   | 87,954    |      |   | 131,495   |   |
| Securities available for sale                                                        |   | 256,326   |      |   | 340,478   |   |
| Federal Home Loan Bank stock, at cost                                                |   | 11,211    |      |   | 10,791    |   |
| Loans held for sale                                                                  |   | 4,452     |      |   | 332       |   |
| Loans                                                                                |   | 888,649   |      |   | 1,020,710 |   |
| Allowance for loan losses                                                            |   | (19,087   | )         |   | (19,126   | )      |
| Loans, net                                                                           |   | 869,562   |      |   | 1,001,584 |   |
| Premises and equipment, net                                                          |   | 5,068     |      |   | 5,290     |   |
| Accrued interest receivable                                                          |   | 4,959     |      |   | 5,502     |   |
| Bank-owned life insurance                                                            |   | 25,395    |      |   | 25,400    |   |
| Other real estate owned                                                              |   | 19,193    |      |   | 25,350    |   |
| Deferred tax assets                                                                  |   | 11,164    |      |   | 12,823    |   |
| Other assets                                                                         |   | 10,179    |      |   | 16,009    |   |
| Total assets                                                                         |   | $         | 1,305,463 |   |      | $      | 1,575,054 |   |
|                                                                                 |   |      |      |   |      |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                 |   |      |      |   |      |   |
| LIABILITIES                                                                          |   |      |      |   |      |   |
| Deposits:                                                                            |   |      |      |   |      |   |
| Noninterest-bearing demand                                                           |   | $         | 230,277   |   |      | $      | 206,412   |   |
| Interest-bearing demand                                                              |   | 142,031   |      |   | 162,305   |   |
| Savings                                                                              |   | 313,850   |      |   | 442,137   |   |
| Time of $100,000 or more                                                             |   | 178,388   |      |   | 271,145   |   |
| Other time                                                                           |   | 107,526   |      |   | 164,618   |   |
| Total deposits                                                                       |   | 972,072   |      |   | 1,246,617 |   |
| Federal funds purchased and securities sold under agreements to repurchase           |   | 52,095    |      |   | 40,342    |   |
| Other short-term borrowings                                                          |   | 2,914     |      |   | 2,553     |   |
| Subordinated notes                                                                   |   | 20,619    |      |   | 20,619    |   |
| Federal Home Loan Bank advances                                                      |   | 105,000   |      |   | 125,000   |   |
| Accrued expenses and other liabilities                                               |   | 7,327     |      |   | 6,864     |   |
| Total liabilities                                                                    |   | 1,160,027 |      |   | 1,441,995 |   |
| COMMITMENTS AND CONTINGENCIES (Note 14)                                              |   |      |      |   |      |   |
| STOCKHOLDERS' EQUITY                                                                 |   |      |      |   |      |   |
| Preferred stock, $0.01 par value, with a liquidation preference of $1,000 per share; |   |      |      |   |
| authorized 50,000,000 shares; 36,000 shares issued and outstanding                   |   |      |      |   |
| at December 31, 2010 and 2009                                                        |   | 34,508    |      |   | 34,024    |   |
| Common stock, no par value; authorized 50,000,000 shares; 17,403,882 shares          |   |      |      |   |
| issued and outstanding at December 31, 2010 and 2009                                 |   | 3,000     |      |   | 3,000     |   |
| Additional paid-in capital                                                           |   | 34,387    |      |   | 34,387    |   |
| Retained earnings                                                                    |   | 76,188    |      |   | 65,959    |   |
| Accumulated other comprehensive loss                                                 |   | (2,647    | )         |   | (4,311    | )      |
| Total stockholders' equity                                                           |   | 145,436   |      |   | 133,059   |   |
| Total liabilities and stockholders' equity                                           |   | $         | 1,305,463 |   |      | $      | 1,575,054 |   |

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|                                                          |        |         |        |        |         |        |        |         |        |   |        |        |
|----------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|---|--------|--------|
| (in thousands, except per share data)                    |   | 2010    |   | 2009   |    | 2008   |
| Interest income:                                         |   |    |   |   |    |   |
| Loans, including fees                                    |   | $       | 53,215 |   |    | $      | 59,309 |    |   | $ | 63,525 |   |
| Securities:                                              |   |    |   |   |    |   |   |    |
| U.S. Treasury, government agencies and corporations      |   | 2,411   |   |   | 2,436   |   |   | 2,903   |   |
| State and political subdivisions                         |   | 3,124   |   |   | 4,322   |   |   | 4,152   |   |
| Corporate notes and other investments                    |   | 1,852   |   |   | 1,142   |   |   | 1,485   |   |
| Federal funds sold and other short-term investments      |   | 541     |   |   | 521     |   |   | 467     |   |
| Total interest income                                    |   | 61,143  |   |   | 67,730  |   |   | 72,532  |   |
| Interest expense:                                        |   |    |   |   |    |   |   |    |   |
| Demand deposits                                          |   | 2,165   |   |   | 2,481   |   |   | 1,223   |   |
| Savings deposits                                         |   | 4,003   |   |   | 4,157   |   |   | 3,812   |   |
| Time deposits                                            |   | 7,049   |   |   | 12,910  |   |   | 16,486  |   |
| Federal funds purchased and securities sold under        |   |    |   |   |    |   |
| agreements to repurchase                                 |   | 210     |   |   | 320     |   |   | 2,788   |   |
| Other short-term borrowings                              |   | — |   |   | — |   |   | 39      |   |
| Subordinated notes                                       |   | 1,280   |   |   | 1,472   |   |   | 1,476   |   |
| Long-term borrowings                                     |   | 4,316   |   |   | 5,296   |   |   | 5,607   |   |
| Total interest expense                                   |   | 19,023  |   |   | 26,636  |   |   | 31,431  |   |
| Net interest income                                      |   | 42,120  |   |   | 41,094  |   |   | 41,101  |   |
| Provision for loan losses                                |   | 6,050   |   |   | 24,500  |   |   | 16,600  |   |
| Net interest income after provision for loan losses      |   | 36,070  |   |   | 16,594  |   |   | 24,501  |   |
| Noninterest income:                                      |   |    |   |   |    |   |   |    |   |
| Service charges on deposit accounts                      |   | 3,361   |   |   | 4,021   |   |   | 4,832   |   |
| Debit card usage fees                                    |   | 1,329   |   |   | 1,123   |   |   | 880     |   |
| Service fee from SmartyPig, LLC                          |   | 1,314   |   |   | — |   |   | — |   |
| Trust services                                           |   | 818     |   |   | 786     |   |   | 789     |   |
| Gains and fees on sales of residential mortgages         |   | 1,533   |   |   | 1,114   |   |   | 544     |   |
| Increase in cash value of bank-owned life insurance      |   | 869     |   |   | 776     |   |   | 936     |   |
| Gain from bank-owned life insurance                      |   | 422     |   |   | 840     |   |   | — |   |
| Other income                                             |   | 1,006   |   |   | 972     |   |   | 986     |   |
| Total noninterest income                                 |   | 10,652  |   |   | 9,632   |   |   | 8,967   |   |
| Investment securities gains (losses), net:               |   |    |   |   |    |   |
| Total other than temporary impairment losses             |   | (305    | )      |   | (3,444  | )      |   | (4,739  | )      |
| Portion of loss recognized in other comprehensive income |   |    |   |   |    |   |
| (loss) before taxes                                      |   | — |   |   | 832     |   |   | — |   |
| Net impairment losses recognized in earnings             |   | (305    | )      |   | (2,612  | )      |   | (4,739  | )      |
| Realized securities gains, net                           |   | 40      |   |   | 1,884   |   |   | 73      |   |
| Investment securities (losses), net                      |   | (265    | )      |   | (728    | )      |   | (4,666  | )      |
| Noninterest expense:                                     |   |    |   |   |    |   |   |    |   |
| Salaries and employee benefits                           |   | 10,996  |   |   | 9,938   |   |   | 9,257   |   |
| Occupancy                                                |   | 3,207   |   |   | 3,451   |   |   | 2,992   |   |
| Data processing                                          |   | 1,815   |   |   | 1,761   |   |   | 1,748   |   |
| FDIC insurance expense                                   |   | 3,082   |   |   | 2,736   |   |   | 606     |   |
| Other real estate owned expense                          |   | 1,716   |   |   | 368     |   |   | 166     |   |
| Professional fees                                        |   | 959     |   |   | 964     |   |   | 941     |   |
| Miscellaneous losses                                     |   | 1,330   |   |   | 70      |   |   | 22      |   |
| Goodwill impairment                                      |   | — |   |   | 13,376  |   |   | — |   |
| Other expenses                                           |   | 4,639   |   |   | 5,241   |   |   | 4,373   |   |
| Total noninterest expense                                |   | 27,744  |   |   | 37,905  |   |   | 20,105  |   |

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|                                                                |        |         |         |        |         |        |         |         |        |   |       |        |
|----------------------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|---|-------|--------|
| (in thousands, except per share data)                          |   | 2010    |    | 2009   |    | 2008   |
| Income (loss) before income taxes                              |   | $       | 18,713  |   |    | $      | (12,407 | )       |   | $ | 8,697 |   |
| Income taxes (benefits)                                        |   | 5,330   |    |   | (7,356  | )      |    | 1,386   |   |
| Income (loss) from continuing operations                       |   | 13,383  |    |   | (5,051  | )      |    | 7,311   |   |
| Discontinued operations:                                       |   |    |    |   |    |   |    |    |
| Income (loss) from discontinued operations before income taxes |   | — |    |   | (10,262 | )      |    | 563     |   |
| Income taxes (benefits)                                        |   | — |    |   | (696    | )      |    | 238     |   |
| Income (loss) from discontinued operations                     |   | — |    |   | (9,566  | )      |    | 325     |   |
| Net income (loss)                                              |   | 13,383  |    |   | (14,617 | )      |    | 7,636   |   |
| Preferred stock dividends and accretion of discount            |   | (2,284  | )       |   | (2,276  | )      |    | — |   |
| Net income (loss) available to common stockholders             |   | $       | 11,099  |   |    | $      | (16,893 | )       |   | $ | 7,636 |   |
| Earnings (loss) per common share:                              |   |    |    |   |    |   |    |    |   |
| Basic and diluted earnings (loss) per common share             |   |    |    |   |    |   |
| from continuing operations                                     |   | $       | 0.64    |   |    | $      | (0.42   | )       |   | $ | 0.42  |   |
| Basic and diluted earnings (loss) per common share             |   |    |    |   |    |   |
| from discontinued operations                                   |   | $       | — |   |    | $      | (0.55   | )       |   | $ | 0.02  |   |
| Basic and diluted earnings (loss) per common share             |   | $       | 0.64    |   |    | $      | (0.97   | )       |   | $ | 0.44  |   |

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|                                                                       |        |         |        |        |        |        |         |         |        |   |       |        |
|-----------------------------------------------------------------------|--------|---------|--------|--------|--------|--------|---------|---------|--------|---|-------|--------|
| (in thousands, except per share data)                                 |   | 2010    |   | 2009   |   | 2008   |
| Net income (loss)                                                     |   | $       | 13,383 |   |   | $      | (14,617 | )       |   | $ | 7,636 |   |
| Other comprehensive income (loss):                                    |   |    |   |   |   |   |    |
| Securities for which a portion of an other than temporary impairment  |   |    |   |   |   |   |
| has been recorded in earnings:                                        |   |    |   |   |   |   |    |    |
| Unrealized holding gains (losses) arising during the period           |   | 15      |   |   | (1,142 | )      |    | — |   |
| Loss recognized in earnings                                           |   | 305     |   |   | 310    |   |    | — |   |
| Net unrealized gains (losses) on securities with other than temporary |   |    |   |   |   |   |
| impairment before tax (expense) benefit                               |   | 320     |   |   | (832   | )      |    | — |   |
| Tax (expense) benefit                                                 |   | (122    | )      |   | 316    |   |    | — |   |
| Net unrealized gains (losses) on securities with other than temporary |   |    |   |   |   |   |
| impairment, net of tax in other comprehensive income (loss)           |   | 198     |   |   | (516   | )      |    | — |   |
| Other securities:                                                     |   |    |   |   |   |   |    |    |   |
| Unrealized holding gains (losses) arising during the period           |   | 2,404   |   |   | 2,098  |   |    | (9,907  | )      |
| Realized net (gains) recognized into net income (loss)                |   | (40     | )      |   | (1,884 | )      |    | (73     | )      |
| Realized impairment losses reclassified into net income               |   | — |   |   | 2,302  |   |    | 4,739   |   |
| Net unrealized gains (losses) on other securities before              |   |    |   |   |   |   |
| tax (expense) benefit                                                 |   | 2,364   |   |   | 2,516  |   |    | (5,241  | )      |
| Tax (expense) benefit                                                 |   | (898    | )      |   | (956   | )      |    | 1,989   |   |
| Net unrealized gains (losses) on other securities, net of tax         |   |    |   |   |   |   |
| in other comprehensive income (loss)                                  |   | 1,466   |   |   | 1,560  |   |    | (3,252  | )      |
| Other comprehensive income (loss)                                     |   | $       | 15,047 |   |   | $      | (13,573 | )       |   | $ | 4,384 |   |

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|                                                                      |        |                |         |             |         |                           |        |                  |        |                                            |         |        |        |         |        |        |         |         |        |   |        |   |         |        |  |
|----------------------------------------------------------------------|--------|----------------|---------|-------------|---------|---------------------------|--------|------------------|--------|--------------------------------------------|---------|--------|--------|---------|--------|--------|---------|---------|--------|---|--------|---|---------|--------|--|
| (in thousands, except per share data)                                |   | PreferredStock |    | CommonStock |    | Additional Paid-inCapital |   | RetainedEarnings |   | AccumulatedOtherComprehensiveIncome (Loss) |    | Total  |
| Balance, December 31, 2007                                           |   | $              | — |        |    | $                         | 3,000  |             |   | $                                          | 32,000  |   |   | $       | 87,084 |   |    | $       | (478   | ) |   | $ | 121,606 |   |
| Net income                                                           |   | —        |    |        | — |                      |   | —          |   |                                       | 7,636   |   |   | — |   |   | 7,636   |    |
| Other comprehensive (loss), unrealized (losses) on securities,       |   |           |    |        |    |                      |   |             |   |                                       |    |   |
| net of reclassification adjustment, net of tax                       |   | —        |    |        | — |                      |   | —          |   |                                       | — |   |   | (3,252  | )      |   | (3,252  | )       |
| Preferred shares and common stock warrant issued                     |   | 33,548         |    |        | — |                      |   | 2,452            |   |                                       | — |   |   | — |   |   | 36,000  |    |
| Shares reacquired and retired under the common stock repurchase plan |   | —        |    |        | — |                      |   | —          |   |                                       | (789    | )      |   | — |   |   | (789    | )       |
| Cash dividends declared, $0.64 per common share                      |   | —        |    |        | — |                      |   | —          |   |                                       | (11,138 | )      |   | — |   |   | (11,138 | )       |
| Balance, December 31, 2008                                           |   | 33,548         |    |        | 3,000   |                      |   | 34,452           |   |                                       | 82,793  |   |   | (3,730  | )      |   | 150,063 |    |
| Cumulative effect accounting adjustment, net of tax (1)              |   | —        |    |        | — |                      |   | —          |   |                                       | 1,625   |   |   | (1,625  | )      |   | — |    |
| Net (loss)                                                           |   | —        |    |        | — |                      |   | —          |   |                                       | (14,617 | )      |   | — |   |   | (14,617 | )       |
| Other comprehensive income, unrealized gains on securities,          |   |           |    |        |    |                      |   |             |   |                                       |    |   |
| net of reclassification adjustment, net of tax                       |   | —        |    |        | — |                      |   | —          |   |                                       | — |   |   | 1,044   |   |   | 1,044   |    |
| Preferred stock discount accretion                                   |   | 476            |    |        | — |                      |   | —          |   |                                       | (476    | )      |   | — |   |   | — |    |
| Preferred stock issuance costs                                       |   | —        |    |        | — |                      |   | (65              | )      |                                       | — |   |   | — |   |   | (65     | )       |
| Cash dividends declared, $0.09 per common share                      |   | —        |    |        | — |                      |   | —          |   |                                       | (1,566  | )      |   | — |   |   | (1,566  | )       |
| Preferred stock dividends declared                                   |   | —        |    |        | — |                      |   | —          |   |                                       | (1,800  | )      |   | — |   |   | (1,800  | )       |
| Balance, December 31, 2009                                           | 7      |           | 34,024  |        |    | 3,000                     |   |             | 34,387 |                                       |    | 65,959 |   |    | (4,311 | )      |    | 133,059 |   |
| Net income                                                           |   | —        |    |        | — |                      |   | —          |   |                                       | 13,383  |   |   | — |   |   | 13,383  |    |
| Other comprehensive income, unrealized gains on securities,          |   |           |    |        |    |                      |   |             |   |                                       |    |   |
| net of reclassification adjustment, net of tax                       |   | —        |    |        | — |                      |   | —          |   |                                       | — |   |   | 1,664   |   |   | 1,664   |    |
| Preferred stock discount accretion                                   |   | 484            |    |        | — |                      |   | —          |   |                                       | (484    | )      |   | — |   |   | — |    |
| Cash dividends declared, $0.05 per common share                      |   | —        |    |        | — |                      |   | —          |   |                                       | (870    | )      |   | — |   |   | (870    | )       |
| Preferred stock dividends declared                                   |   | —        |    |        | — |                      |   | —          |   |                                       | (1,800  | )      |   | — |   |   | (1,800  | )       |
| Balance, December 31, 2010                                           |   | $              | 34,508  |        |    | $                         | 3,000  |             |   | $                                          | 34,387  |   |   | $       | 76,188 |   |    | $       | (2,647 | ) |   | $ | 145,436 |   |

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|                                                                             |        |          |        |        |          |        |         |          |        |   |       |        |
|-----------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|---------|----------|--------|---|-------|--------|
| (in thousands)                                                              |   | 2010     |   | 2009   |     | 2008   |
| Cash Flows from Operating Activities:                                       |   |     |   |   |     |   |
| Net income (loss)                                                           |   | $        | 13,383 |   |     | $      | (14,617 | )        |   | $ | 7,636 |   |
| Adjustments to reconcile net income (loss) to net cash provided by          |   |     |   |   |     |   |
| operating activities:                                                       |   |     |   |   |     |   |    |     |
| Provision for loan losses                                                   |   | 6,050    |   |   | 24,500   |   |    | 16,600   |   |
| Goodwill impairment of banking operations                                   |   | —  |   |   | 13,376   |   |    | —  |   |
| Goodwill impairment of discontinued operations                              |   | —  |   |   | 11,160   |   |    | —  |   |
| Net amortization and accretion                                              |   | 1,714    |   |   | 798      |   |    | 526      |   |
| (Gain) loss on disposition of premises and equipment                        |   | (2       | )      |   | 7        |   |    | 22       |   |
| Securities gains, net                                                       |   | (40      | )      |   | (1,884   | )      |    | (73      | )      |
| Investment securities impairment losses                                     |   | 305      |   |   | 2,612    |   |    | 4,739    |   |
| Proceeds from sales of loans held for sale                                  |   | 71,887   |   |   | 71,234   |   |    | 34,368   |   |
| Originations of loans held for sale                                         |   | (76,051  | )      |   | (70,548  | )      |    | (33,528  | )      |
| Gain on sale of other real estate owned                                     |   | (388     | )      |   | (27      | )      |    | (32      | )      |
| Writedown of other real estate owned                                        |   | 1,621    |   |   | 133      |   |    | 70       |   |
| Gain from bank-owned life insurance                                         |   | (422     | )      |   | (840     | )      |    | —  |   |
| Increase in value of bank-owned life insurance                              |   | (869     | )      |   | (776     | )      |    | (936     | )      |
| Depreciation                                                                |   | 582      |   |   | 688      |   |    | 686      |   |
| Deferred income taxes                                                       |   | 639      |   |   | (7,261   | )      |    | (3,140   | )      |
| Other                                                                       |   | —  |   |   | (1,594   | )      |    | (325     | )      |
| Change in assets and liabilities:                                           |   |     |   |   |     |   |    |     |
| Decrease in accrued interest receivable                                     |   | 543      |   |   | 913      |   |    | 1,414    |   |
| Decrease (increase) in other assets                                         |   | 5,669    |   |   | (9,026   | )      |    | 3,662    |   |
| Increase (decrease) in accrued expenses and other liabilities               |   | 463      |   |   | (2,142   | )      |    | (4,729   | )      |
| Net cash provided by operating activities - continuing operations           |   | 25,084   |   |   | 16,706   |   |    | 26,960   |   |
| Net cash provided by operating activities - discontinued operations         |   | —  |   |   | 905      |   |    | 1,045    |   |
| Net cash provided by operating activities                                   |   | 25,084   |   |   | 17,611   |   |    | 28,005   |   |
| Cash Flows from Investing Activities:                                       |   |     |   |   |     |   |    |     |   |
| Proceeds from sales, calls, and maturities of securities available for sale |   | 299,728  |   |   | 191,468  |   |    | 117,129  |   |
| Purchases of securities available for sale                                  |   | (214,710 | )      |   | (350,186 | )      |    | (77,268  | )      |
| Purchases of Federal Home Loan Bank stock                                   |   | (1,385   | )      |   | (2,617   | )      |    | (5,628   | )      |
| Proceeds from redemption of Federal Home Loan Bank stock                    |   | 965      |   |   | —  |   |    | 3,405    |   |
| Net change in loans                                                         |   | 125,541  |   |   | 35,022   |   |    | (135,396 | )      |
| Net proceeds from sales of other real estate owned                          |   | 5,400    |   |   | 5,083    |   |    | 3,898    |   |
| Proceeds from sales of premises and equipment                               |   | 9        |   |   | 2        |   |    | 10       |   |
| Purchases of premises and equipment                                         |   | (368     | )      |   | (1,348   | )      |    | (547     | )      |
| Proceeds of principal and earnings from bank-owned life insurance           |   | 1,296    |   |   | 1,493    |   |    | —  |   |
| Net cash provided by (used in) investing activities -                       |   |     |   |   |     |   |
| continuing operations                                                       |   | 216,476  |   |   | (121,083 | )      |    | (94,397  | )      |
| Net cash (used in) investing activities - discontinued operations           |   | —  |   |   | (20      | )      |    | (170     | )      |
| Net cash provided by (used in) investing activities                         |   | 216,476  |   |   | (121,103 | )      |    | (94,567  | )      |

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|                                                                        |        |          |          |        |         |        |         |         |        |   |         |        |
|------------------------------------------------------------------------|--------|----------|----------|--------|---------|--------|---------|---------|--------|---|---------|--------|
| (in thousands)                                                         |   | 2010     |     | 2009   |    | 2008   |
| Cash Flows from Financing Activities:                                  |   |     |     |   |    |   |
| Net change in deposits                                                 |   | $        | (274,545 | )      |    | $      | 91,485  |    |   | $ | 243,761 |   |
| Net change in federal funds purchased and securities sold under        |   |     |     |   |    |   |
| agreements to repurchase                                               |   | 11,753   |     |   | (52,769 | )      |    | (73,819 | )      |
| Net change in other short-term borrowings                              |   | 361      |     |   | 2,308   |   |    | (2,427  | )      |
| Proceeds from long-term borrowings                                     |   | —  |     |   | — |   |    | 75,000  |   |
| Principal payments on long-term borrowings                             |   | (20,000  | )        |   | — |   |    | (53,000 | )      |
| Proceeds from preferred shares and common stock warrant issued         |   | —  |     |   | — |   |    | 36,000  |   |
| Payment for shares reacquired under common stock repurchase plan       |   | —  |     |   | — |   |    | (789    | )      |
| Common stock cash dividends                                            |   | (870     | )        |   | (1,566  | )      |    | (11,138 | )      |
| Preferred stock dividends paid                                         |   | (1,800   | )        |   | (1,575  | )      |    | — |   |
| Preferred stock issuance costs                                         |   | —  |     |   | (65     | )      |    | — |   |
| Net cash (used in) provided by financing activities -                  |   |     |     |   |    |   |
| continuing operations                                                  |   | (285,101 | )        |   | 37,818  |   |    | 213,588 |   |
| Net cash provided by financing activities - discontinued operations    |   | —  |     |   | 200     |   |    | — |   |
| Net cash (used in) provided by financing activities                    |   | (285,101 | )        |   | 38,018  |   |    | 213,588 |   |
| Net (decrease) increase in cash and cash equivalents                   |   | (43,541  | )        |   | (65,474 | )      |    | 147,026 |   |
| Cash and Cash Equivalents:                                             |   |     |     |   |    |   |    |    |
| Beginning                                                              |   | 131,495  |     |   | 196,969 |   |    | 49,943  |   |
| Ending                                                                 |   | $        | 87,954   |   |    | $      | 131,495 |    |   | $ | 196,969 |   |
|                                                                   |   |     |     |   |    |   |
| Supplemental Disclosure of Cash Flow Information:                      |   |     |     |   |    |   |    |    |   |
| Cash payments for:                                                     |   |     |     |   |    |   |    |    |   |
| Interest                                                               |   | $        | 19,579   |   |    | $      | 28,879  |    |   | $ | 31,934  |   |
| Income taxes                                                           |   | 2,043    |     |   | 2,276   |   |    | 4,080   |   |
|                                                                   |   |     |     |   |    |   |
| Supplemental Disclosure of Noncash Investing and Financing Activities: |   |     |     |   |    |   |    |    |
| Transfer of loans to other real estate owned                           |   | $        | 7,188    |   |    | $      | 26,188  |    |   | $ | 8,132   |   |
| Transfer of other real estate owned to loans                           |   | 6,655    |     |   | — |   |    | — |   |
| Sale of WB Capital Management Inc. in exchange for a note receivable   |   | —  |     |   | 2,000   |   |    | — |   |

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|                                                                |         |         |        |         |        |         |        |        |   |         |        |
|----------------------------------------------------------------|---------|---------|--------|---------|--------|---------|--------|--------|---|---------|--------|
|                                                           | 2010    |    | 2009   |    | 2008   |
| Revenue from discontinued operations:                          |    |    |   |    |   |
| Interest income                                                | $       | — |   |    | $      | — |   |   | $ | — |   |
| Interest expense                                               | — |    |   | — |   |    | 1      |   |
| Net interest income                                            | — |    |   | — |   |    | (1     | )      |
| Noninterest income                                             | — |    |   | 6,184   |   |    | 7,596  |   |
| Noninterest expense                                            | — |    |   | 16,446  |   |    | 7,032  |   |
| Income (loss) from discontinued operations before income taxes | — |    |   | (10,262 | )      |    | 563    |   |
| Income taxes (benefits)                                        | — |    |   | (696    | )      |    | 238    |   |
| Income (loss) from discontinued operations                     | $       | — |   |    | $      | (9,566  | )      |   | $ | 325     |   |

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|                                           |               |         |                       |         |                          |        |           |        |        |         |        |        |   |         |        |
|-------------------------------------------|---------------|---------|-----------------------|---------|--------------------------|--------|-----------|--------|--------|---------|--------|--------|---|---------|--------|
|                                      | 2010          |
|                                      | AmortizedCost |    | Gross UnrealizedGains |    | Gross Unrealized(Losses) |   | FairValue |
| U.S. government agencies and corporations | $             | 47,685  |                  |    | $                        | 274    |      |   | $      | (161    | )      |   | $ | 47,798  |   |
| State and political subdivisions          | 59,512        |    |                  | 464     |                     |   | (839      | )      |   | 59,137  |   |
| Mortgage-backed securities (1)            | 140,699       |    |                  | 905     |                     |   | (384      | )      |   | 141,220 |   |
| Trust preferred securities                | 6,194         |    |                  | — |                     |   | (4,218    | )      |   | 1,976   |   |
| Corporate notes and other investments     | 6,507         |    |                  | 16      |                     |   | (328      | )      |   | 6,195   |   |
|                                      | $             | 260,597 |                  |    | $                        | 1,659  |      |   | $      | (5,930  | )      |   | $ | 256,326 |   |

|                                           |               |         |                       |         |                          |        |           |        |        |        |        |        |   |         |        |
|-------------------------------------------|---------------|---------|-----------------------|---------|--------------------------|--------|-----------|--------|--------|--------|--------|--------|---|---------|--------|
|                                      | 2009          |
|                                      | AmortizedCost |    | Gross UnrealizedGains |    | Gross Unrealized(Losses) |   | FairValue |
| U.S. government agencies and corporations | $             | 177,940 |                  |    | $                        | 190    |      |   | $      | (240   | )      |   | $ | 177,890 |   |
| State and political subdivisions          | 88,831        |    |                  | 823     |                     |   | (1,719    | )      |   | 87,935 |   |
| Mortgage-backed securities (1)            | 64,897        |    |                  | 141     |                     |   | (460      | )      |   | 64,578 |   |
| Trust preferred securities                | 6,926         |    |                  | — |                     |   | (4,859    | )      |   | 2,067  |   |
| Corporate notes and other investments     | 8,839         |    |                  | 28      |                     |   | (859      | )      |   | 8,008  |   |
|                                      | $             | 347,433 |                  |    | $                        | 1,182  |      |   | $      | (8,137 | )      |   | $ | 340,478 |   |

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|                                        |               |         |           |         |        |         |        |
|----------------------------------------|---------------|---------|-----------|---------|--------|---------|--------|
|                                   | 2010          |
|                                   | AmortizedCost |    | FairValue |
| Due in one year or less                | $             | 3,482   |      |    | $      | 3,506   |   |
| Due after one year through five years  | 59,351        |    |      | 59,021  |   |
| Due after five years through ten years | 19,490        |    |      | 19,663  |   |
| Due after ten years                    | 37,575        |    |      | 32,916  |   |
|                                   | 119,898       |    |      | 115,106 |   |
| Mortgage-backed securities             | 140,699       |    |      | 141,220 |   |
|                                   | $             | 260,597 |      |    | $      | 256,326 |   |

|                       |      |        |        |        |        |         |         |        |   |       |        |
|-----------------------|------|--------|--------|--------|--------|---------|---------|--------|---|-------|--------|
|                  | 2010 |   | 2009   |   | 2008   |
| Proceeds from sales   | $    | 78,704 |   |   | $      | 155,064 |    |   | $ | 9,854 |   |
| Gross gains on sales  | 411  |   |   | 2,726  |   |    | 73      |   |
| Gross losses on sales | 371  |   |   | 842    |   |    | — |   |

|                                       |                     |        |                          |         |           |        |                           |        |           |         |                          |        |        |         |        |        |   |         |        |        |   |        |   |
|---------------------------------------|---------------------|--------|--------------------------|---------|-----------|--------|---------------------------|--------|-----------|---------|--------------------------|--------|--------|---------|--------|--------|---|---------|--------|--------|---|--------|---|
|                                  | 2010                |
|                                  | Less than 12 months |   | 12 months or longer      |    | Total     |
|                                  | FairValue           |   | Gross Unrealized(Losses) |    | FairValue |   | Gross Unrealized (Losses) |   | FairValue |    | Gross Unrealized(Losses) |
| U.S. government agencies              |                |   |                     |    |      |   |                      |   |      |    |                     |
| and corporations                      | $                   | 19,853 |                     |    | $         | (161   | )                         |   | $         | — |                     |   | $      | — |   |   | $ | 19,853  |   |   | $ | (161   | ) |
| State and political subdivisions      | 25,374              |   |                     | (700    | )         |   | 2,003                     |   |      | (139    | )                        |   | 27,377 |    |   | (839   | ) |
| Mortgage-backed securities            | 47,289              |   |                     | (384    | )         |   | —                   |   |      | — |                     |   | 47,289 |    |   | (384   | ) |
| Trust preferred securities            | —             |   |                     | — |      |   | 1,976                     |   |      | (4,218  | )                        |   | 1,976  |    |   | (4,218 | ) |
| Corporate notes and other investments | —             |   |                     | — |      |   | 3,661                     |   |      | (328    | )                        |   | 3,661  |    |   | (328   | ) |
|                                  | $                   | 92,516 |                     |    | $         | (1,245 | )                         |   | $         | 7,640   |                     |   | $      | (4,685  | )      |   | $ | 100,156 |   |   | $ | (5,930 | ) |

|                                       |                     |         |                          |         |           |        |                          |        |           |         |                          |        |        |         |        |        |   |         |        |        |   |        |   |
|---------------------------------------|---------------------|---------|--------------------------|---------|-----------|--------|--------------------------|--------|-----------|---------|--------------------------|--------|--------|---------|--------|--------|---|---------|--------|--------|---|--------|---|
|                                  | 2009                |
|                                  | Less than 12 months |    | 12 months or longer      |    | Total     |
|                                  | FairValue           |    | Gross Unrealized(Losses) |    | FairValue |   | Gross Unrealized(Losses) |   | FairValue |    | Gross Unrealized(Losses) |
| U.S. government agencies              |                |    |                     |    |      |   |                     |   |      |    |                     |
| and corporations                      | $                   | 42,535  |                     |    | $         | (240   | )                        |   | $         | — |                     |   | $      | — |   |   | $ | 42,535  |   |   | $ | (240   | ) |
| State and political subdivisions      | 31,433              |    |                     | (1,159  | )         |   | 11,652                   |   |      | (560    | )                        |   | 43,085 |    |   | (1,719 | ) |
| Mortgage-backed securities            | 47,644              |    |                     | (460    | )         |   | —                  |   |      | — |                     |   | 47,644 |    |   | (460   | ) |
| Trust preferred securities            | —             |    |                     | — |      |   | 2,067                    |   |      | (4,859  | )                        |   | 2,067  |    |   | (4,859 | ) |
| Corporate notes and other investments | —             |    |                     | — |      |   | 3,128                    |   |      | (859    | )                        |   | 3,128  |    |   | (859   | ) |
|                                  | $                   | 121,612 |                     |    | $         | (1,859 | )                        |   | $         | 16,847  |                     |   | $      | (6,278  | )      |   | $ | 138,459 |   |   | $ | (8,137 | ) |

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|                                              |                         |        |        |        |            |        |            |        |                        |        |                   |        |                                             |        |                                   |        |                                     |        |                          |        |      |        |        |      |   |        |      |
|----------------------------------------------|-------------------------|--------|--------|--------|------------|--------|------------|--------|------------------------|--------|-------------------|--------|---------------------------------------------|--------|-----------------------------------|--------|-------------------------------------|--------|--------------------------|--------|------|--------|--------|------|---|--------|------|
| As of December 31, 2010:                     |                    |   |   |   |       |   |       |   |                   |   |              |   |                                        |   |                              |   |
|                                         | Single-issuer or pooled |   | Class  |   | Book value |   | Fair value |   | Unrealized gain/(loss) |   | Credit rating (1) |   | Number of entities currently performing (2) |   | Actual deferrals and defaults (3) |   | Expected deferrals and defaults (4) |   | Excess subordination (4) |
| ALESCO Preferred Funding X, Ltd.             | Pooled                  |   | C-2    |   | $          | 4,473  |       |   | $                      | 1,339  |              |   | $                                           | (3,134 | )                                 |   | Ca                                  |   | 51                       |   | 20.6 | %      |   | 19.3 | % |   | 0.0% |
| Heartland Financial Statutory Trust VII 144A | Single                  |   | n/a    |   | 1,721      |   |       | 637    |                   |   | (1,084            | )      |                                        | NR     |                              | n/a    |                                | n/a    |                     |   | n/a  |   |   | n/a  |

|                                              |                         |        |        |        |            |        |            |        |                        |        |                   |        |                                             |        |                                   |        |                                     |        |                          |        |      |        |        |      |   |        |      |
|----------------------------------------------|-------------------------|--------|--------|--------|------------|--------|------------|--------|------------------------|--------|-------------------|--------|---------------------------------------------|--------|-----------------------------------|--------|-------------------------------------|--------|--------------------------|--------|------|--------|--------|------|---|--------|------|
| As of December 31, 2009:                     |                    |   |   |   |       |   |       |   |                   |   |              |   |                                        |   |                              |   |
|                                         | Single-issuer or pooled |   | Class  |   | Book value |   | Fair value |   | Unrealized gain/(loss) |   | Credit rating (1) |   | Number of entities currently performing (2) |   | Actual deferrals and defaults (3) |   | Expected deferrals and defaults (4) |   | Excess subordination (4) |
| ALESCO Preferred Funding X, Ltd.             | Pooled                  |   | C-2    |   | $          | 4,591  |       |   | $                      | 1,136  |              |   | $                                           | (3,455 | )                                 |   | Ca                                  |   | 58                       |   | 18.2 | %      |   | 19.6 | % |   | 0.0% |
| Heartland Financial Statutory Trust VII 144A | Single                  |   | n/a    |   | 1,710      |   |       | 594    |                   |   | (1,116            | )      |                                        | NR     |                              | n/a    |                                | n/a    |                     |   | n/a  |   |   | n/a  |
| Old Second Capital Trust I                   | Single                  |   | n/a    |   | 625        |   |       | 337    |                   |   | (288              | )      |                                        | NR     |                              | n/a    |                                | n/a    |                     |   | n/a  |   |   | n/a  |

|                             |                        |
|-----------------------------|------------------------|
| (1)     | Lowest rating assigned |

|                             |                                                                      |
|-----------------------------|----------------------------------------------------------------------|
| (2)     | Pooled issue originally included 58 banks and 19 insurance companies |

|                             |                                            |
|-----------------------------|--------------------------------------------|
| (3)     | As a percentage of the original collateral |

|                             |                                                        |
|-----------------------------|--------------------------------------------------------|
| (4)     | As a percentage of the remaining performing collateral |

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Table of Contents

|                                                                                   |         |        |        |         |        |         |        |
|-----------------------------------------------------------------------------------|---------|--------|--------|---------|--------|---------|--------|
|                                                                              | 2010    |   | 2009   |
| Balance at beginning of period                                                    | $       | 310    |   |    | $      | — |   |
| Current period credit loss recognized in earnings                                 | 117     |   |   | 310     |   |
| Reductions for securities sold during the period                                  | — |   |   | — |   |
| Reductions for securities where there is an intent to sell or requirement to sell | — |   |   | — |   |
| Reductions for increases in cash flows expected to be collected                   | — |   |   | — |   |
| Balance at end of period                                                          | $       | 427    |   |    | $      | 310     |   |

|                                                                               |        |        |        |        |   |        |   |
|-------------------------------------------------------------------------------|--------|--------|--------|--------|---|--------|---|
|                                                                          | 2010   |   | 2009   |
| Accumulated other comprehensive (loss):                                       |   |   |   |
| Unrealized (losses) on available for sale securities for which a portion of   |   |   |   |
| other than temporary impairment has been recorded in earnings, net of         |   |   |   |
| tax of $1,191 and $1,313, respectively                                        | $      | (1,943 | )      |   | $ | (2,142 | ) |
| Unrealized (losses) on available for sale securities which are not other than |   |   |   |
| temporarily impaired, net of tax of $432 and $1,330, respectively             | (704   | )      |   | (2,169 | ) |
|                                                                          | $      | (2,647 | )      |   | $ | (4,311 | ) |

|                                          |         |         |        |           |        |           |        |
|------------------------------------------|---------|---------|--------|-----------|--------|-----------|--------|
|                                     | 2010    |    | 2009   |
| Commercial                               | $       | 310,376 |   |      | $      | 356,885   |   |
| Real estate:                             |    |    |   |      |
| Construction, land, and land development | 116,601 |    |   | 148,505   |   |
| 1-4 family residential first mortgages   | 51,760  |    |   | 64,288    |   |
| Home equity                              | 26,111  |    |   | 30,110    |   |
| Commercial                               | 372,404 |    |   | 413,063   |   |
| Consumer and other loans                 | 11,514  |    |   | 8,163     |   |
|                                     | 888,766 |    |   | 1,021,014 |   |
| Net unamortized fees and costs           | 117     |    |   | 304       |   |
|                                     | $       | 888,649 |   |      | $      | 1,020,710 |   |

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Table of Contents

|                            |         |        |        |         |        |        |        |
|----------------------------|---------|--------|--------|---------|--------|--------|--------|
|                       | 2010    |   | 2009   |
| Balance, beginning of year | $       | 24,227 |   |    | $      | 22,446 |   |
| New loans                  | 7,210   |   |   | 31,921  |   |
| Repayments                 | (13,471 | )      |   | (29,958 | )      |
| Change in classification   | (32     | )      |   | (182    | )      |
| Balance, end of year       | $       | 17,934 |   |    | $      | 24,227 |   |

|                                                     |         |        |        |         |        |        |        |
|-----------------------------------------------------|---------|--------|--------|---------|--------|--------|--------|
|                                                | 2010    |   | 2009   |
| Nonaccrual loans:                                   |    |   |   |
| Commercial                                          | $       | 4,011  |   |    | $      | 9,846  |   |
| Real estate:                                        |    |   |   |
| Construction, land, and land development            | 60      |   |   | 1,399   |   |
| 1-4 family residential first mortgages              | 1,001   |   |   | 597     |   |
| Home equity                                         | 59      |   |   | 266     |   |
| Commercial                                          | 2,814   |   |   | 214     |   |
| Consumer and other loans                            | — |   |   | 28      |   |
| Total nonaccrual loans                              | 7,945   |   |   | 12,350  |   |
| Loans past due 90 days and still accruing interest: |    |   |   |
| Commercial                                          | — |   |   | — |   |
| Real estate:                                        |    |   |   |
| Construction, land, and land development            | — |   |   | — |   |
| 1-4 family residential first mortgages              | 198     |   |   | — |   |
| Home equity                                         | — |   |   | — |   |
| Commercial                                          | — |   |   | — |   |
| Consumer and other loans                            | — |   |   | 1,150   |   |
| Total past due 90 days and still accruing interest  | 198     |   |   | 1,150   |   |
| Troubled debt restructured loans*:                  |    |   |   |
| Commercial                                          | — |   |   | 6,168   |   |
| Real estate:                                        |    |   |   |
| Construction, land, and land development            | 1,195   |   |   | 84      |   |
| 1-4 family residential first mortgages              | — |   |   | 523     |   |
| Home equity                                         | — |   |   | — |   |
| Commercial                                          | 3,578   |   |   | 6,024   |   |
| Consumer and other loans                            | 14      |   |   | 18      |   |
| Total troubled debt restructured loans              | 4,787   |   |   | 12,817  |   |
| Total nonperforming loans                           | $       | 12,930 |   |    | $      | 26,317 |   |

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Table of Contents

|                                          |                    |        |                        |         |                  |        |           |        |           |       |        |
|------------------------------------------|--------------------|--------|------------------------|---------|------------------|--------|-----------|--------|-----------|-------|--------|
|                                     | RecordedInvestment |   | UnpaidPrincipalBalance |    | RelatedAllowance |
| With no related allowance recorded:      |               |   |                   |    |             |
| Commercial                               | $                  | 2,086  |                   |    | $                | 6,270  |      |   |  N/A |
| Real estate:                             |               |   |                   |    |             |
| Construction, land, and land development | 139                |   |                   | 143     |             |   |  N/A |
| 1-4 family residential first mortgages   | 836                |   |                   | 884     |             |   |  N/A |
| Home equity                              | 59                 |   |                   | 59      |             |   |  N/A |
| Commercial                               | 6,392              |   |                   | 6,392   |             |   |  N/A |
| Consumer and other                       | 14                 |   |                   | 14      |             |   |  N/A |
|                                     | 9,526              |   |                   | 13,762  |             |   |  N/A |
| With an allowance recorded:              |               |   |                   |    |             |
| Commercial                               | 7,026              |   |                   | 7,026   |             |   | $         | 1,742  |      |
| Real estate:                             |               |   |                   |    |             |
| Construction, land, and land development | 14,250             |   |                   | 14,250  |             |   | 1,900     |   |
| 1-4 family residential first mortgages   | 166                |   |                   | 166     |             |   | 25        |   |
| Home equity                              | —            |   |                   | — |             |   | —   |   |
| Commercial                               | —            |   |                   | — |             |   | —   |   |
| Consumer and other                       | 45                 |   |                   | 45      |             |   | 21        |   |
|                                     | 21,487             |   |                   | 21,487  |             |   | 3,688     |   |
| Total:                                   |               |   |                   |    |             |
| Commercial                               | 9,112              |   |                   | 13,296  |             |   | 1,742     |   |
| Real estate:                             |               |   |                   |    |             |
| Construction, land, and land development | 14,389             |   |                   | 14,393  |             |   | 1,900     |   |
| 1-4 family residential first mortgages   | 1,002              |   |                   | 1,050   |             |   | 25        |   |
| Home equity                              | 59                 |   |                   | 59      |             |   | —   |   |
| Commercial                               | 6,392              |   |                   | 6,392   |             |   | —   |   |
| Consumer and other                       | 59                 |   |                   | 59      |             |   | 21        |   |
|                                     | $                  | 31,013 |                   |    | $                | 35,249 |      |   | $         | 3,688 |   |

|                                              |        |        |        |        |        |        |        |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                         | 2010   |   | 2009   |
| Nonaccrual loans                             | $      | 7,945  |   |   | $      | 12,350 |   |
| Troubled debt restructured loans             | 4,787  |   |   | 12,817 |   |
| Other impaired loans still accruing interest | 18,281 |   |   | 16,387 |   |
| Total impaired loans                         | $      | 31,013 |   |   | $      | 41,554 |   |

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Table of Contents

|                           |                   |         |                    |         |                             |         |               |        |         |        |            |        |                          |        |        |         |        |         |         |        |   |         |        |        |     |         |        |
|---------------------------|-------------------|---------|--------------------|---------|-----------------------------|---------|---------------|--------|---------|--------|------------|--------|--------------------------|--------|--------|---------|--------|---------|---------|--------|---|---------|--------|--------|-----|---------|--------|
|                      | 30-59Days PastDue |    | 60-89 DaysPast Due |    | GreaterThan 90Days Past Due |    | TotalPast Due |   | Current |   | TotalLoans |   | 90 Daysand StillAccruing |
| Commercial                | $                 | 329     |               |    | $                           | 15      |          |   | $       | 3,661  |       |   | $                        | 4,005  |   |    | $      | 306,371 |    |   | $ | 310,376 |   |   | $   | — |   |
| Real estate:              |              |    |               |    |                        |    |          |   |    |   |       |   |                     |
| Construction, land, and   |              |    |               |    |                        |    |          |   |    |   |       |   |                     |
| land development          | 464               |    |               | — |                        |    | 60            |   |    | 524    |       |   | 116,077                  |   |   | 116,601 |   |    | — |   |
| 1-4 family residential    |              |    |               |    |                        |    |          |   |    |   |       |   |                     |
| first mortgages           | 521               |    |               | — |                        |    | 1,199         |   |    | 1,720  |       |   | 50,040                   |   |   | 51,760  |   |    | 198     |   |
| Home equity               | —           |    |               | — |                        |    | 59            |   |    | 59     |       |   | 26,052                   |   |   | 26,111  |   |    | — |   |
| Commercial                | 254               |    |               | — |                        |    | 2,679         |   |    | 2,933  |       |   | 369,471                  |   |   | 372,404 |   |    | — |   |
| Consumer and other        | 42                |    |               | 1       |                        |    | —       |   |    | 43     |       |   | 11,471                   |   |   | 11,514  |   |    | — |   |
| Total                     | $                 | 1,610   |               |    | $                           | 16      |          |   | $       | 7,658  |       |   | $                        | 9,284  |   |    | $      | 879,482 |    |   | $ | 888,766 |   |   | $   | 198     |   |
| Nonaccrual loans included |              |    |               |    |                        |    |          |   |    |   |       |   |                     |
| above                     | $                 | — |               |    | $                           | — |          |   | $       | 7,460  |       |   | $                        | 7,460  |   |    | $      | 485     |    |   | $ | 7,945   |   |   | N/A |    |

|                                          |         |         |        |        |             |        |          |        |        |         |        |        |         |         |        |        |   |         |        |
|------------------------------------------|---------|---------|--------|--------|-------------|--------|----------|--------|--------|---------|--------|--------|---------|---------|--------|--------|---|---------|--------|
|                                     | Pass    |    | Watch  |   | Substandard |   | Doubtful |   | Total  |
| Commercial                               | $       | 283,239 |   |   | $           | 5,990  |     |   | $      | 21,147  |   |   | $       | — |   |   | $ | 310,376 |   |
| Real estate:                             |    |    |   |   |        |   |     |   |   |
| Construction, land, and land development | 88,930  |    |   | 3,722  |        |   | 23,949   |   |   | — |   |   | 116,601 |    |
| 1-4 family residential first mortgages   | 48,152  |    |   | 1,217  |        |   | 2,391    |   |   | — |   |   | 51,760  |    |
| Home equity                              | 25,902  |    |   | 89     |        |   | 120      |   |   | — |   |   | 26,111  |    |
| Commercial                               | 343,869 |    |   | 12,894 |        |   | 15,641   |   |   | — |   |   | 372,404 |    |
| Consumer and other                       | 11,371  |    |   | 82     |        |   | 61       |   |   | — |   |   | 11,514  |    |
| Total                                    | $       | 801,463 |   |   | $           | 23,994 |     |   | $      | 63,309  |   |   | $       | — |   |   | $ | 888,766 |   |

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Table of Contents

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Table of Contents

|                        |            |        |                       |        |                        |        |             |        |            |        |                    |        |        |         |        |        |        |         |        |        |        |         |        |        |         |        |        |        |   |        |        |        |   |        |        |
|------------------------|------------|--------|-----------------------|--------|------------------------|--------|-------------|--------|------------|--------|--------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|---------|--------|--------|--------|---|--------|--------|--------|---|--------|--------|
|                   | 2010       |   |                  |   |                   |
|                   |       |   | Real Estate           |   |                   |   |        |   |       |   |               |
|                   | Commercial |   | Construction and Land |   | 1-4 Family Residential |   | Home Equity |   | Commercial |   | Consumer and Other |   | Total  |    | 2009   |   | 2008   |
| Beginning balance      | $          | 7,988  |                  |   | $                      | 3,260  |        |   | $          | 649    |               |   | $      | 654     |   |   | $      | 6,438   |   |   | $      | 137     |   |   | $       | 19,126 |   |   | $ | 15,441 |   |   | $ | 8,935  |   |
| Charge-offs            | (5,785     | )      |                  | (209   | )                      |   | (371        | )      |       | (266   | )                  |   | (53    | )       |   | (234   | )      |    | (6,918 | )      |   | (21,380 | )      |   | (10,370 | )      |
| Recoveries             | 716        |   |                  | 10     |                   |   | 33          |   |       | 16     |               |   | 10     |    |   | 44     |   |    | 829    |   |   | 565     |   |   | 276     |   |
| Provision              | 5,021      |   |                  | 726    |                   |   | 336         |   |       | 254    |               |   | (572   | )       |   | 285    |   |    | 6,050  |   |   | 24,500  |   |   | 16,600  |   |
| Ending balance         | $          | 7,940  |                  |   | $                      | 3,787  |        |   | $          | 647    |               |   | $      | 658     |   |   | $      | 5,823   |   |   | $      | 232     |   |   | $       | 19,087 |   |   | $ | 19,126 |   |   | $ | 15,441 |   |
| Ending balance:        |       |   |                  |   |                   |   |        |   |       |   |               |   |   |    |   |   |   |
| Individually evaluated |       |   |                  |   |                   |   |        |   |       |   |               |   |   |    |   |   |   |
| for impairment         | $          | 1,742  |                  |   | $                      | 1,900  |        |   | $          | 25     |               |   | $      | — |   |   | $      | — |   |   | $      | 21      |   |   | $       | 3,688  |   |   | $ | 4,935  |   |   | $ | 3,590  |   |
| Collectively evaluated |       |   |                  |   |                   |   |        |   |       |   |               |   |   |    |   |   |   |
| for impairment         | 6,198      |   |                  | 1,887  |                   |   | 622         |   |       | 658    |               |   | 5,823  |    |   | 211    |   |    | 15,399 |   |   | 14,191  |   |   | 11,851  |   |
| Total                  | $          | 7,940  |                  |   | $                      | 3,787  |        |   | $          | 647    |               |   | $      | 658     |   |   | $      | 5,823   |   |   | $      | 232     |   |   | $       | 19,087 |   |   | $ | 19,126 |   |   | $ | 15,441 |   |

|                        |            |         |                       |         |                        |         |             |        |            |        |                    |        |         |        |        |        |        |         |         |        |        |         |        |        |           |         |        |        |   |           |        |        |   |           |        |
|------------------------|------------|---------|-----------------------|---------|------------------------|---------|-------------|--------|------------|--------|--------------------|--------|---------|--------|--------|--------|--------|---------|---------|--------|--------|---------|--------|--------|-----------|---------|--------|--------|---|-----------|--------|--------|---|-----------|--------|
|                   | 2010       |    |                  |    |                   |
|                   |       |    | Real Estate           |    |                   |    |        |   |       |   |               |
|                   | Commercial |    | Construction and Land |    | 1-4 Family Residential |    | Home Equity |   | Commercial |   | Consumer and Other |   | Total   |   | 2009   |   | 2008   |
| Ending balance:        |       |    |                  |    |                   |    |        |   |       |   |               |   |    |   |   |   |   |
| Individually evaluated |       |    |                  |    |                   |    |        |   |       |   |               |   |    |   |   |   |   |
| for impairment         | $          | 9,112   |                  |    | $                      | 14,389  |        |   | $          | 1,002  |               |   | $       | 59     |   |   | $      | 6,392   |    |   | $      | 59      |   |   | $         | 31,013  |   |   | $ | 41,554    |   |   | $ | 41,111    |   |
| Collectively evaluated |       |    |                  |    |                   |    |        |   |       |   |               |   |    |   |   |   |   |
| for impairment         | 301,264    |    |                  | 102,212 |                   |    | 50,758      |   |       | 26,052 |               |   | 366,012 |   |   | 11,455 |   |    | 857,753 |   |   | 979,460 |   |   | 1,059,981 |    |
| Total                  | $          | 310,376 |                  |    | $                      | 116,601 |        |   | $          | 51,760 |               |   | $       | 26,111 |   |   | $      | 372,404 |    |   | $      | 11,514  |   |   | $         | 888,766 |   |   | $ | 1,021,014 |   |   | $ | 1,101,092 |   |

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Table of Contents

|                          |        |        |        |        |        |       |        |
|--------------------------|--------|--------|--------|--------|--------|-------|--------|
|                     | 2010   |   | 2009   |
| Land                     | $      | 1,251  |   |   | $      | 1,251 |   |
| Buildings                | 884    |   |   | 868    |   |
| Leasehold improvements   | 2,960  |   |   | 2,754  |   |
| Furniture and equipment  | 4,924  |   |   | 4,857  |   |
|                     | 10,019 |   |   | 9,730  |   |
| Accumulated depreciation | 4,951  |   |   | 4,440  |   |
|                     | $      | 5,068  |   |   | $      | 5,290 |   |

|        |        |         |        |
|--------|--------|---------|--------|
| 2011   | $      | 219,435 |   |
| 2012   | 23,338 |    |
| 2013   | 27,750 |    |
| 2014   | 2,347  |    |
| 2015   | 13,044 |    |
|   | $      | 285,914 |   |

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Table of Contents

|                                                |        |         |        |        |   |         |        |
|------------------------------------------------|--------|---------|--------|--------|---|---------|--------|
|                                           | 2010   |    | 2009   |
| Federal Home Loan Bank advances; interest due  |   |    |   |
| monthly with rates ranging from 2.70% to 4.32% | $      | 105,000 |   |   | $ | 125,000 |   |

|                     |   |         |        |
|---------------------|---|---------|--------|
| 2016 and thereafter | $ | 105,000 |   |
| Total               | $ | 105,000 |   |

|           |        |        |        |        |        |        |        |        |   |       |        |
|-----------|--------|--------|--------|--------|--------|--------|--------|--------|---|-------|--------|
|      | 2010   |   | 2009   |   | 2008   |
| Current:  |   |   |   |   |   |
| Federal   | $      | 4,036  |   |   | $      | (1,523 | )      |   | $ | 3,699 |   |
| State     | 655    |   |   | 430    |   |   | 827    |   |
| Deferred: |   |   |   |   |   |   |   |
| Federal   | 563    |   |   | (5,544 | )      |   | (3,047 | )      |
| State     | 76     |   |   | (719   | )      |   | (93    | )      |
|      | $      | 5,330  |   |   | $      | (7,356 | )      |   | $ | 1,386 |   |

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Table of Contents

|                                      |         |        |                        |         |        |         |                        |        |        |        |                        |        |         |        |        |         |        |        |      |         |
|--------------------------------------|---------|--------|------------------------|---------|--------|---------|------------------------|--------|--------|--------|------------------------|--------|---------|--------|--------|---------|--------|--------|------|---------|
|                                 | 2010    |   | 2009                   |    | 2008   |
|                                 | Amount  |   | Percentof PretaxIncome |    | Amount |    | Percentof PretaxIncome |   | Amount |   | Percentof PretaxIncome |
| Computed expected tax                |    |   |                   |    |   |    |                   |   |   |   |                   |
| expense (benefit)                    | $       | 6,550  |                   |    | 35.0   |  % |                   | $      | (4,342 | )      |                   | (35.0  | )%      |   | $      | 3,044   |   |   | 35.0 |  % |
| State income tax expense (benefit),  |    |   |                   |    |   |    |                   |   |   |   |                   |
| net of federal income tax benefit    | 502     |   |                   | 2.7     |   |    | (440                   | )      |   | (3.5   | )                      |   | 444     |   |   | 5.1     |   |
| Tax-exempt interest income           | (1,647  | )      |                   | (8.8    | )      |    | (1,971                 | )      |   | (15.9  | )                      |   | (1,700  | )      |   | (19.6   | )      |
| Nondeductible interest expense       |    |   |                   |    |   |    |                   |   |   |   |                   |
| to own tax-exempts                   | 90      |   |                   | 0.5     |   |    | 148                    |   |   | 1.2    |                   |   | 187     |   |   | 2.2     |   |
| Tax-exempt increase in cash value of |    |   |                   |    |   |    |                   |   |   |   |                   |
| life insurance and proceeds          | (452    | )      |                   | (2.4    | )      |    | (565                   | )      |   | (4.6   | )                      |   | (327    | )      |   | (3.8    | )      |
| Capital loss carryover due to sale   |    |   |                   |    |   |    |                   |   |   |   |                   |
| of WB Capital                        | — |   |                   | — |   |    | (3,296                 | )      |   | (26.6  | )                      |   | — |   |   | — |   |
| Valuation allowance                  | 666     |   |                   | 3.6     |   |    | 3,320                  |   |   | 26.8   |                   |   | 389     |   |   | 4.5     |   |
| New market tax credit                | (273    | )      |                   | (1.5    | )      |    | (228                   | )      |   | (1.8   | )                      |   | (228    | )      |   | (2.6    | )      |
| Other, net                           | (106    | )      |                   | (0.6    | )      |    | 18                     |   |   | 0.1    |                   |   | (423    | )      |   | (4.9    | )      |
|                                 | $       | 5,330  |                   |    | 28.5   |  % |                   | $      | (7,356 | )      |                   | (59.3  | )%      |   | $      | 1,386   |   |   | 15.9 |  % |

|                                                        |         |        |        |         |        |        |        |
|--------------------------------------------------------|---------|--------|--------|---------|--------|--------|--------|
|                                                   | 2010    |   | 2009   |
| Deferred tax assets:                                   |    |   |   |
| Allowance for loan losses                              | $       | 7,253  |   |    | $      | 7,268  |   |
| Net unrealized losses on securities available for sale | 1,623   |   |   | 2,643   |   |
| Investment security impairment                         | 291     |   |   | — |   |
| Equity security impairment                             | — |   |   | 144     |   |
| Intangibles                                            | 2,265   |   |   | 2,517   |   |
| Other real estate owned                                | 870     |   |   | 360     |   |
| Alternative minimum tax credit and other credits       | 21      |   |   | 909     |   |
| State net operating loss carryforward                  | 381     |   |   | 296     |   |
| Capital loss carryforward                              | 3,703   |   |   | 3,269   |   |
| Other                                                  | 569     |   |   | 419     |   |
|                                                   | 16,976  |   |   | 17,825  |   |
| Deferred tax liabilities:                              |    |   |   |    |   |
| Net deferred loan fees and costs                       | 255     |   |   | 324     |   |
| Premises and equipment                                 | 493     |   |   | 462     |   |
| Loans                                                  | 559     |   |   | 399     |   |
| Other                                                  | 130     |   |   | 108     |   |
|                                                   | 1,437   |   |   | 1,293   |   |
| Net deferred tax assets before valuation allowance     | 15,539  |   |   | 16,532  |   |
| Valuation allowance for deferred tax assets            | (4,375  | )      |   | (3,709  | )      |
| Net deferred tax assets                                | $       | 11,164 |   |    | $      | 12,823 |   |

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|                                           |        |         |         |                              |        |                                                               |        |        |        |        |        |        |        |        |         |        |        |        |     |        |  |
|-------------------------------------------|--------|---------|---------|------------------------------|--------|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|-----|--------|--|
|                                      |   | Actual  |    | For CapitalAdequacy Purposes |   | To Be Well-CapitalizedUnder PromptCorrectiveAction Provisions |
|                                      |   | Amount  |    | Ratio                        |   | Amount                                                        |   | Ratio  |   | Amount |   | Ratio  |
| As of December 31, 2010:                  |   |    |    |                         |   |                                                          |   |   |   |   |   |   |
| Total Capital (to Risk-Weighted Assets)   |   |    |    |                         |   |                                                          |   |   |   |   |   |   |
| Consolidated                              |   | $       | 180,413 |                         |   | 17.7                                                          | %      |   | $      | 81,423 |   |   | 8.0    | %      |    | n/a    |   |   | n/a |   |
| West Bank (ratio required by MOU - 12.0%) |   | 162,682 |    |                         | 16.6   |                                                          |   | 78,482 |   |   | 8.0    |   |   | $      | 98,102  |   |   | 10.0   | %   |
|                                      |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Tier 1 Capital (to Risk-Weighted Assets)  |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Consolidated                              |   | 167,612 |    |                         | 16.5   |                                                          |   | 40,711 |   |   | 4.0    |   |   | n/a    |    |   | n/a    |   |
| West Bank                                 |   | 150,335 |    |                         | 15.3   |                                                          |   | 39,241 |   |   | 4.0    |   |   | 58,861 |    |   | 6.0    |   |
|                                      |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Tier 1 Capital (to Average Assets)        |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Consolidated                              |   | 167,612 |    |                         | 11.8   |                                                          |   | 56,979 |   |   | 4.0    |   |   | n/a    |    |   | n/a    |   |
| West Bank (ratio required by MOU - 8.0%)  |   | 150,335 |    |                         | 10.7   |                                                          |   | 56,335 |   |   | 4.0    |   |   | 70,419 |    |   | 5.0    |   |
|                                      |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| As of December 31, 2009:                  |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Total Capital (to Risk-Weighted Assets)   |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Consolidated                              |   | $       | 172,217 |                         |   | 14.3                                                          | %      |   | $      | 96,441 |   |   | 8.0    | %      |    | n/a    |   |   | n/a |   |
| West Bank                                 |   | 166,795 |    |                         | 13.9   |                                                          |   | 95,991 |   |   | 8.0    |   |   | $      | 119,989 |   |   | 10.0   | %   |
|                                      |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Tier 1 Capital (to Risk-Weighted Assets)  |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Consolidated                              |   | 157,098 |    |                         | 13.0   |                                                          |   | 48,220 |   |   | 4.0    |   |   | n/a    |    |   | n/a    |   |
| West Bank                                 |   | 141,745 |    |                         | 11.8   |                                                          |   | 47,995 |   |   | 4.0    |   |   | 71,993 |    |   | 6.0    |   |
|                                      |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Tier 1 Capital (to Average Assets)        |   |    |    |                         |   |                                                          |   |   |   |   |   |   |   |   |    |   |   |   |
| Consolidated                              |   | 157,098 |    |                         | 9.8    |                                                          |   | 64,180 |   |   | 4.0    |   |   | n/a    |    |   | n/a    |   |
| West Bank                                 |   | 141,745 |    |                         | 8.9    |                                                          |   | 64,013 |   |   | 4.0    |   |   | 80,016 |    |   | 5.0    |   |

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|                                       |        |                   |        |        |
|---------------------------------------|--------|-------------------|--------|--------|
| Warrant                               |   | December 31, 2008 |
| Expected volatility                   |   | 55.00             | %      |
| Expected term in years                |   | 5                 |   |
| Risk-free interest rate               |   | 2.21              | %      |
| Dividend yield                        |   | 5.28              | %      |
| Weighted average estimated fair value |   | $                 | 4.15   |   |

|                                                                       |         |         |        |         |        |         |         |        |   |       |        |
|-----------------------------------------------------------------------|---------|---------|--------|---------|--------|---------|---------|--------|---|-------|--------|
|                                                                  | 2010    |    | 2009   |    | 2008   |
| Income (loss) from continuing operations                              | $       | 13,383  |   |    | $      | (5,051  | )       |   | $ | 7,311 |   |
| Income (loss) from discontinued operations                            | — |    |   | (9,566  | )      |    | 325     |   |
| Net income (loss)                                                     | 13,383  |    |   | (14,617 | )      |    | 7,636   |   |
| Preferred stock dividends*                                            | (1,800  | )       |   | (1,800  | )      |    | — |   |
| Preferred stock discount accretion*                                   | (484    | )       |   | (476    | )      |    | — |   |
| Net income (loss) available to common stockholders                    | $       | 11,099  |   |    | $      | (16,893 | )       |   | $ | 7,636 |   |
|                                                                  |    |    |   |    |   |    |    |   |
| Weighted average common shares outstanding                            | 17,404  |    |   | 17,404  |   |    | 17,405  |   |
| Common stock warrant**                                                | — |    |   | — |   |    | — |   |
| Diluted weighted average common shares outstanding                    | 17,404  |    |   | 17,404  |   |    | 17,405  |   |
|                                                                  |    |    |   |    |   |    |    |   |
| Basic earnings (loss) per common share from continuing operations     | $       | 0.64    |   |    | $      | (0.42   | )       |   | $ | 0.42  |   |
| Basic earnings (loss) per common share from discontinued operations   | $       | — |   |    | $      | (0.55   | )       |   | $ | 0.02  |   |
| Basic earnings (loss) per common share                                | $       | 0.64    |   |    | $      | (0.97   | )       |   | $ | 0.44  |   |
|                                                                  |    |    |   |    |   |    |    |   |
| Diluted earnings (loss) per common share from continuing operations   | $       | 0.64    |   |    | $      | (0.42   | )       |   | $ | 0.42  |   |
| Diluted earnings (loss) per common share from discontinued operations | $       | — |   |    | $      | (0.55   | )       |   | $ | 0.02  |   |
| Diluted earnings (loss) per common share                              | $       | 0.64    |   |    | $      | (0.97   | )       |   | $ | 0.44  |   |

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|            |       |        |        |
|------------|-------|--------|--------|
| 2011       | $     | 1,454  |   |
| 2012       | 1,407 |   |
| 2013       | 1,349 |   |
| 2014       | 1,047 |   |
| 2015       | 815   |   |
| Thereafter | 9,957 |   |
|       | $     | 16,029 |   |

|                              |        |         |        |        |        |         |        |
|------------------------------|--------|---------|--------|--------|--------|---------|--------|
|                         | 2010   |    | 2009   |
| Commitments to extend credit | $      | 202,043 |   |   | $      | 202,217 |   |
| Standby letters of credit    | 14,709 |    |   | 18,350 |   |
|                         | $      | 216,752 |   |   | $      | 220,567 |   |

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|                                           |        |         |         |                                                           |         |                                           |         |                                        |        |        |         |        |        |   |         |        |
|-------------------------------------------|--------|---------|---------|-----------------------------------------------------------|---------|-------------------------------------------|---------|----------------------------------------|--------|--------|---------|--------|--------|---|---------|--------|
|                                      |   | 2010    |
| Description                               |   | Total   |    | Quoted Pricesin ActiveMarketsfor IdenticalAssets(Level 1) |    | SignificantOtherObservableInputs(Level 2) |    | SignificantUnobservableInputs(Level 3) |
| Assets:                                   |   |    |    |                                                      |    |                                      |    |                                   |
| U.S. government agencies and corporations |   | $       | 47,798  |                                                      |    | $                                         | — |                                   |   | $      | 47,798  |   |   | $ | — |   |
| State and political subdivisions          |   | 59,137  |    |                                                      | — |                                      |    | 59,137                                 |   |   | — |   |
| Mortgage-backed securities                |   | 141,220 |    |                                                      | — |                                      |    | 141,220                                |   |   | — |   |
| Trust preferred securities                |   | 1,976   |    |                                                      | — |                                      |    | 637                                    |   |   | 1,339   |   |
| Corporate notes and other investments     |   | 6,195   |    |                                                      | 5,280   |                                      |    | 915                                    |   |   | — |   |
| Total                                     |   | $       | 256,326 |                                                      |    | $                                         | 5,280   |                                   |   | $      | 249,707 |   |   | $ | 1,339   |   |

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|                                           |        |        |         |                                                           |         |                                           |         |                                        |        |        |         |        |        |   |         |        |
|-------------------------------------------|--------|--------|---------|-----------------------------------------------------------|---------|-------------------------------------------|---------|----------------------------------------|--------|--------|---------|--------|--------|---|---------|--------|
|                                      |   | 2009   |
| Description                               |   | Total  |    | Quoted Pricesin ActiveMarketsfor IdenticalAssets(Level 1) |    | SignificantOtherObservableInputs(Level 2) |    | SignificantUnobservableInputs(Level 3) |
| Assets:                                   |   |   |    |                                                      |    |                                      |    |                                   |
| U.S. government agencies and corporations |   | $      | 177,890 |                                                      |    | $                                         | — |                                   |   | $      | 177,890 |   |   | $ | — |   |
| State and political subdivisions          |   | 87,935 |    |                                                      | — |                                      |    | 87,935                                 |   |   | — |   |
| Mortgage-backed securities                |   | 64,578 |    |                                                      | — |                                      |    | 64,578                                 |   |   | — |   |
| Trust preferred securities                |   | 2,067  |    |                                                      | — |                                      |    | 931                                    |   |   | 1,136   |   |
| Corporate notes and other investments     |   | 8,008  |    |                                                      | — |                                      |    | 8,008                                  |   |   | — |   |
| Total                                     |   | $      | 340,478 |                                                      |    | $                                         | — |                                   |   | $      | 339,342 |   |   | $ | 1,136   |   |

|                                        |         |        |        |         |        |       |        |
|----------------------------------------|---------|--------|--------|---------|--------|-------|--------|
| Securities available for sale:         | 2010    |   | 2009   |
| Beginning balance                      | $       | 1,136  |   |    | $      | 2,325 |   |
| Transfer into level 3                  | 625     |   |   | 250     |   |
| Total gains or (losses):               |    |   |   |    |   |
| Included in earnings                   | (305    | )      |   | (560    | )      |
| Included in other comprehensive (loss) | 320     |   |   | (832    | )      |
| Sale of security                       | (437    | )      |   | — |   |
| Principal payments                     | — |   |   | (47     | )      |
| Ending balance                         | $       | 1,339  |   |    | $      | 1,136 |   |

|                         |        |        |        |                                                           |         |                                           |         |                                        |        |        |         |        |        |   |        |        |
|-------------------------|--------|--------|--------|-----------------------------------------------------------|---------|-------------------------------------------|---------|----------------------------------------|--------|--------|---------|--------|--------|---|--------|--------|
|                    | 2010   |
| Description             |   | Total  |   | Quoted Pricesin ActiveMarketsfor IdenticalAssets(Level 1) |    | SignificantOtherObservableInputs(Level 2) |    | SignificantUnobservableInputs(Level 3) |
| Assets:                 |   |   |   |                                                      |    |                                      |    |                                   |
| Loans                   |   | $      | 17,799 |                                                      |    | $                                         | — |                                   |   | $      | — |   |   | $ | 17,799 |   |
| Other real estate owned |   | 19,193 |   |                                                      | — |                                      |    | —                                |   |   | 19,193  |   |
| Total                   |   | $      | 36,992 |                                                      |    | $                                         | — |                                   |   | $      | — |   |   | $ | 36,992 |   |

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|                         |        |        |        |                                                           |         |                                           |         |                                        |        |        |         |        |        |   |        |        |
|-------------------------|--------|--------|--------|-----------------------------------------------------------|---------|-------------------------------------------|---------|----------------------------------------|--------|--------|---------|--------|--------|---|--------|--------|
|                    | 2009   |
| Description             |   | Total  |   | Quoted Pricesin ActiveMarketsfor IdenticalAssets(Level 1) |    | SignificantOtherObservableInputs(Level 2) |    | SignificantUnobservableInputs(Level 3) |
| Assets:                 |   |   |   |                                                      |    |                                      |    |                                   |
| Loans                   |   | $      | 19,810 |                                                      |    | $                                         | — |                                   |   | $      | — |   |   | $ | 19,810 |   |
| Other real estate owned |   | 25,350 |   |                                                      | — |                                      |    | —                                |   |   | 25,350  |   |
| Total                   |   | $      | 45,160 |                                                      |    | $                                         | — |                                   |   | $      | — |   |   | $ | 45,160 |   |

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|                                                     |                |        |                       |         |                |        |                       |        |        |           |        |        |   |        |        |
|-----------------------------------------------------|----------------|--------|-----------------------|---------|----------------|--------|-----------------------|--------|--------|-----------|--------|--------|---|--------|--------|
|                                                | 2010           |   | 2009                  |
|                                                | CarryingAmount |   | ApproximateFair Value |    | CarryingAmount |   | ApproximateFair Value |
| Financial assets:                                   |           |   |                  |    |           |   |                  |
| Cash and due from banks                             | $              | 20,069 |                  |    | $              | 20,069 |                  |   | $      | 27,923    |   |   | $ | 27,923 |   |
| Federal funds sold and other short-term investments | 67,885         |   |                  | 67,885  |           |   | 103,572               |   |   | 103,572   |   |
| Securities available for sale                       | 256,326        |   |                  | 256,326 |           |   | 340,478               |   |   | 340,478   |   |
| Federal Home Loan Bank stock                        | 11,211         |   |                  | 11,211  |           |   | 10,791                |   |   | 10,791    |   |
| Loans held for sale                                 | 4,452          |   |                  | 4,452   |           |   | 332                   |   |   | 332       |   |
| Loans, net                                          | 869,562        |   |                  | 873,568 |           |   | 1,001,584             |   |   | 1,006,217 |   |
| Accrued interest receivable                         | 4,959          |   |                  | 4,959   |           |   | 5,502                 |   |   | 5,502     |   |
| Financial liabilities:                              |           |   |                  |    |           |   |                  |   |   |      |   |
| Deposits                                            | 972,072        |   |                  | 975,197 |           |   | 1,246,617             |   |   | 1,250,163 |   |
| Federal funds purchased and securities sold under   |           |   |                  |    |           |   |                  |
| agreements to repurchase                            | 52,095         |   |                  | 52,095  |           |   | 40,342                |   |   | 40,342    |   |
| Other short-term borrowings                         | 2,914          |   |                  | 2,914   |           |   | 2,553                 |   |   | 2,553     |   |
| Accrued interest payable                            | 1,200          |   |                  | 1,200   |           |   | 1,756                 |   |   | 1,756     |   |
| Subordinated notes                                  | 20,619         |   |                  | 10,853  |           |   | 20,619                |   |   | 14,387    |   |
| FHLB advances                                       | 105,000        |   |                  | 108,449 |           |   | 125,000               |   |   | 122,177   |   |
| Off-balance-sheet financial instruments:            |           |   |                  |    |           |   |                  |   |   |      |   |
| Commitments to extend credit                        | —        |   |                  | — |           |   | —               |   |   | —   |   |
| Standby letters of credit                           | —        |   |                  | — |           |   | —               |   |   | —   |   |

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|                                                   |        |         |         |        |         |        |         |        |
|---------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|--------|
| Balance Sheets                                    |
| December 31, 2010 and 2009                        |
|                                              |   |    |    |   |
|                                              |   | 2010    |    | 2009   |
| ASSETS                                            |   |    |    |   |
| Cash                                              |   | $       | 226     |   |    | $      | 833     |   |
| Securities available for sale                     |   | 1,339   |    |   | 146     |   |
| Investment in West Bank                           |   | 150,860 |    |   | 137,705 |   |
| Investment in West Bancorporation Capital Trust I |   | 619     |    |   | 619     |   |
| Intercompany debentures from West Bank            |   | — |    |   | 10,000  |   |
| Notes receivable                                  |   | 2,000   |    |   | 2,200   |   |
| Other real estate owned                           |   | 9,797   |    |   | — |   |
| Other assets                                      |   | 1,626   |    |   | 2,663   |   |
| Total assets                                      |   | $       | 166,467 |   |    | $      | 154,166 |   |
|                                              |   |    |    |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY              |   |    |    |   |    |   |
| LIABILITIES                                       |   |    |    |   |    |   |
| Accrued expenses and other liabilities            |   | $       | 412     |   |    | $      | 488     |   |
| Subordinated notes                                |   | 20,619  |    |   | 20,619  |   |
| Total liabilities                                 |   | 21,031  |    |   | 21,107  |   |
| STOCKHOLDERS' EQUITY                              |   |    |    |   |    |   |
| Preferred stock                                   |   | 34,508  |    |   | 34,024  |   |
| Common stock                                      |   | 3,000   |    |   | 3,000   |   |
| Additional paid-in capital                        |   | 34,387  |    |   | 34,387  |   |
| Retained earnings                                 |   | 76,188  |    |   | 65,959  |   |
| Accumulated other comprehensive loss              |   | (2,647  | )       |   | (4,311  | )      |
| Total stockholders' equity                        |   | 145,436 |    |   | 133,059 |   |
| Total liabilities and stockholders' equity        |   | $       | 166,467 |   |    | $      | 154,166 |   |

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|                                                             |        |         |        |        |         |        |         |         |        |   |       |        |
|-------------------------------------------------------------|--------|---------|--------|--------|---------|--------|---------|---------|--------|---|-------|--------|
| Statements of Operations                                    |
| Years Ended December 31, 2010, 2009, and 2008               |
|                                                        |   |    |   |   |    |   |
|                                                        |   | 2010    |   | 2009   |    | 2008   |
| Operating income:                                           |   |    |   |   |    |   |
| Equity in net income (loss) of West Bank                    |   | $       | 15,436 |   |    | $      | (3,753  | )       |   | $ | 9,084 |   |
| Equity in net income (loss) of discontinued operations      |   | — |   |   | (9,566  | )      |    | 325     |   |
| Equity in net income of West Bancorporation Capital Trust I |   | 38      |   |   | 44      |   |    | 44      |   |
| Interest and dividend income                                |   | 587     |   |   | 719     |   |    | 738     |   |
| Securities gains, net                                       |   | 14      |   |   | — |   |    | 5       |   |
| Investment securities impairment losses                     |   | — |   |   | (35     | )      |    | (317    | )      |
|                                                        |   | 16,075  |   |   | (12,591 | )      |    | 9,879   |   |
| Operating expenses:                                         |   |    |   |   |    |   |
| Interest on notes payable                                   |   | — |   |   | — |   |    | 93      |   |
| Interest on subordinated notes                              |   | 1,280   |   |   | 1,472   |   |    | 1,476   |   |
| Salaries and employee benefits                              |   | 157     |   |   | 282     |   |    | 232     |   |
| Occupancy                                                   |   | 17      |   |   | 373     |   |    | 216     |   |
| Miscellaneous losses                                        |   | 963     |   |   | — |   |    | — |   |
| Other                                                       |   | 546     |   |   | 713     |   |    | 917     |   |
|                                                        |   | 2,963   |   |   | 2,840   |   |    | 2,934   |   |
| Income (loss) before income taxes                           |   | 13,112  |   |   | (15,431 | )      |    | 6,945   |   |
| Income taxes (benefits)                                     |   | (271    | )      |   | (814    | )      |    | (691    | )      |
| Net income (loss)                                           |   | $       | 13,383 |   |    | $      | (14,617 | )       |   | $ | 7,636 |   |

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|                                                                  |        |         |        |        |         |        |         |         |        |   |       |        |
|------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|---------|---------|--------|---|-------|--------|
| Statements of Cash Flows                                         |
| Years Ended December 31, 2010, 2009, and 2008                    |
|                                                             |   |    |   |   |    |   |
|                                                             |   | 2010    |   | 2009   |    | 2008   |
| Cash Flows from Operating Activities:                            |   |    |   |   |    |   |
| Net income (loss)                                                |   | $       | 13,383 |   |    | $      | (14,617 | )       |   | $ | 7,636 |   |
| Adjustments to reconcile net income (loss) to net cash           |   |    |   |   |    |   |    |    |
| provided by operating activities:                                |   |    |   |   |    |   |    |    |
| Equity in net (income) loss of West Bank                         |   | (15,436 | )      |   | 3,753   |   |    | (9,084  | )      |
| Equity in net (income) loss of discontinued operations           |   | — |   |   | 9,566   |   |    | (325    | )      |
| Equity in net income of West Bancorporation Capital Trust I      |   | (38     | )      |   | (44     | )      |    | (44     | )      |
| Dividends received from West Bank                                |   | 3,945   |   |   | 3,499   |   |    | 10,200  |   |
| Dividends received from West Bancorporation Capital Trust I      |   | 38      |   |   | 44      |   |    | 44      |   |
| Dividends received from WB Capital Management Inc.               |   | — |   |   | 1,081   |   |    | 875     |   |
| Securities gains, net                                            |   | (14     | )      |   | — |   |    | (5      | )      |
| Investment securities impairment losses                          |   | — |   |   | 35      |   |    | 317     |   |
| Amortization                                                     |   | 14      |   |   | 14      |   |    | 14      |   |
| Loss on disposition of premises and equipment                    |   | 4       |   |   | — |   |    | — |   |
| Writedown of other real estate owned                             |   | 25      |   |   | — |   |    | — |   |
| Deferred income taxes                                            |   | 243     |   |   | (180    | )      |    | 114     |   |
| Depreciation                                                     |   | 1       |   |   | 5       |   |    | — |   |
| Change in assets and liabilities:                                |   |    |   |   |    |   |    |    |
| Decrease (increase) in other assets                              |   | 776     |   |   | 191     |   |    | (91     | )      |
| (Decrease) increase in accrued expenses and other liabilities    |   | (76     | )      |   | 203     |   |    | (864    | )      |
| Net cash provided by operating activities                        |   | 2,865   |   |   | 3,550   |   |    | 8,787   |   |
| Cash Flows from Investing Activities:                            |   |    |   |   |    |   |    |    |   |
| Proceeds from sales of securities available for sale             |   | 159     |   |   | 3       |   |    | 473     |   |
| Purchases of securities available for sale                       |   | (1,339  | )      |   | — |   |    | (468    | )      |
| Net change in loans                                              |   | 200     |   |   | — |   |    | — |   |
| Additional capitalization of West Bank                           |   | — |   |   | — |   |    | (34,000 | )      |
| Repayment of debentures from West Bank                           |   | 10,000  |   |   | — |   |    | — |   |
| Purchase of other real estate owned from West Bank               |   | (9,822  | )      |   | — |   |    | — |   |
| Loan advance                                                     |   | — |   |   | (200    | )      |    | — |   |
| Net cash (used in) investing activities                          |   | (802    | )      |   | (197    | )      |    | (33,995 | )      |
| Cash Flows from Financing Activities:                            |   |    |   |   |    |   |    |    |   |
| Principal payments on long-term borrowings                       |   | — |   |   | — |   |    | (3,000  | )      |
| Proceeds from preferred shares and common stock warrant issued   |   | — |   |   | — |   |    | 36,000  |   |
| Payment for shares reacquired under common stock repurchase plan |   | — |   |   | — |   |    | (789    | )      |
| Common stock cash dividends                                      |   | (870    | )      |   | (1,566  | )      |    | (11,138 | )      |
| Preferred stock dividends paid                                   |   | (1,800  | )      |   | (1,575  | )      |    | — |   |
| Preferred stock issuance costs                                   |   | — |   |   | (65     | )      |    | — |   |
| Net cash (used in) provided by financing activities              |   | (2,670  | )      |   | (3,206  | )      |    | 21,073  |   |
| Net (decrease) increase in cash                                  |   | (607    | )      |   | 147     |   |    | (4,135  | )      |
| Cash:                                                            |   |    |   |   |    |   |    |    |   |
| Beginning                                                        |   | 833     |   |   | 686     |   |    | 4,821   |   |
| Ending                                                           |   | $       | 226    |   |    | $      | 833     |    |   | $ | 686   |   |

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|                                                         |        |          |         |         |         |              |         |             |        |        |         |        |        |   |         |        |
|---------------------------------------------------------|--------|----------|---------|---------|---------|--------------|---------|-------------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                    |   | 2010     |
| Three months ended                                      |   | March 31 |    | June 30 |    | September 30 |    | December 31 |
| Interest income                                         |   | $        | 15,829  |    |    | $            | 15,684  |        |   | $      | 15,184  |   |   | $ | 14,446  |   |
| Interest expense                                        |   | 5,695    |    |    | 5,421   |         |    | 4,487       |   |   | 3,420   |   |
| Net interest income                                     |   | 10,134   |    |    | 10,263  |         |    | 10,697      |   |   | 11,026  |   |
| Provision for loan losses                               |   | 2,000    |    |    | 1,400   |         |    | 2,000       |   |   | 650     |   |
| Net interest income after provision for loan losses     |   | 8,134    |    |    | 8,863   |         |    | 8,697       |   |   | 10,376  |   |
| Noninterest income                                      |   | 2,272    |    |    | 2,919   |         |    | 3,107       |   |   | 2,354   |   |
| Investment securities gains (losses), net               |   | 46       |    |    | (197    | )            |    | (101        | )      |   | (13     | )      |
| Noninterest expense                                     |   | 5,996    |    |    | 7,766   |         |    | 6,581       |   |   | 7,401   |   |
| Income before income taxes                              |   | 4,456    |    |    | 3,819   |         |    | 5,122       |   |   | 5,316   |   |
| Income taxes                                            |   | 1,117    |    |    | 1,216   |         |    | 1,181       |   |   | 1,816   |   |
| Income from continuing operations                       |   | 3,339    |    |    | 2,603   |         |    | 3,941       |   |   | 3,500   |   |
| Income from discontinued operations before income taxes |   | —  |    |    | — |         |    | —     |   |   | — |   |
| Income taxes                                            |   | —  |    |    | — |         |    | —     |   |   | — |   |
| Income from discontinued operations                     |   | —  |    |    | — |         |    | —     |   |   | — |   |
| Net income                                              |   | 3,339    |    |    | 2,603   |         |    | 3,941       |   |   | 3,500   |   |
| Preferred stock dividends and accretion of discount     |   | (569     | )       |    | (572    | )            |    | (572        | )      |   | (571    | )      |
| Net income available to common stockholders             |   | $        | 2,770   |    |    | $            | 2,031   |        |   | $      | 3,369   |   |   | $ | 2,929   |   |
|                                                    |   |     |    |    |    |         |    |        |
| Basic and diluted earnings per common share             |   |     |    |    |    |         |    |        |
| from continuing operations                              |   | $        | 0.16    |    |    | $            | 0.12    |        |   | $      | 0.19    |   |   | $ | 0.17    |   |
| Basic and diluted earnings per common share             |   |     |    |    |    |         |    |        |
| from discontinued operations                            |   | $        | — |    |    | $            | — |        |   | $      | — |   |   | $ | — |   |
| Basic and diluted earnings per common share             |   | $        | 0.16    |    |    | $            | 0.12    |        |   | $      | 0.19    |   |   | $ | 0.17    |   |

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|                                                            |        |          |         |         |         |              |         |             |        |        |        |        |        |   |         |        |
|------------------------------------------------------------|--------|----------|---------|---------|---------|--------------|---------|-------------|--------|--------|--------|--------|--------|---|---------|--------|
|                                                       |   | 2009     |
| Three months ended                                         |   | March 31 |    | June 30 |    | September 30 |    | December 31 |
| Interest income                                            |   | $        | 16,962  |    |    | $            | 17,271  |        |   | $      | 17,216 |   |   | $ | 16,281  |   |
| Interest expense                                           |   | 7,025    |    |    | 7,076   |         |    | 6,443       |   |   | 6,092  |   |
| Net interest income                                        |   | 9,937    |    |    | 10,195  |         |    | 10,773      |   |   | 10,189 |   |
| Provision for loan losses                                  |   | 3,500    |    |    | 15,000  |         |    | 3,000       |   |   | 3,000  |   |
| Net interest income (loss) after provision for loan losses |   | 6,437    |    |    | (4,805  | )            |    | 7,773       |   |   | 7,189  |   |
| Noninterest income                                         |   | 2,973    |    |    | 2,197   |         |    | 2,351       |   |   | 2,111  |   |
| Investment securities gains (losses), net                  |   | 38       |    |    | (275    | )            |    | (320        | )      |   | (171   | )      |
| Noninterest expense                                        |   | 6,094    |    |    | 20,204  |         |    | 5,908       |   |   | 5,699  |   |
| Income (loss) before income taxes                          |   | 3,354    |    |    | (23,087 | )            |    | 3,896       |   |   | 3,430  |   |
| Income taxes (benefits)                                    |   | 417      |    |    | (9,344  | )            |    | 906         |   |   | 665    |   |
| Income (loss) from continuing operations                   |   | 2,937    |    |    | (13,743 | )            |    | 2,990       |   |   | 2,765  |   |
| Income (loss) from discontinued operations before          |   |     |    |    |    |         |    |        |   |   |   |   |
| income taxes                                               |   | 7        |    |    | (9,353  | )            |    | (1,048      | )      |   | 132    |   |
| Income taxes (benefits)                                    |   | 3        |    |    | (817    | )            |    | 37          |   |   | 81     |   |
| Income (loss) from discontinued operations                 |   | 4        |    |    | (8,536  | )            |    | (1,085      | )      |   | 51     |   |
| Net income (loss)                                          |   | 2,941    |    |    | (22,279 | )            |    | 1,905       |   |   | 2,816  |   |
| Preferred stock dividends and accretion of discount        |   | (567     | )       |    | (570    | )            |    | (571        | )      |   | (568   | )      |
| Net income (loss) available to common stockholders         |   | $        | 2,374   |    |    | $            | (22,849 | )           |   | $      | 1,334  |   |   | $ | 2,248   |   |
|                                                       |   |     |    |    |    |         |    |        |
| Basic and diluted earnings (loss) per common share         |   |     |    |    |    |         |    |        |   |   |   |   |
| from continuing operations                                 |   | $        | 0.14    |    |    | $            | (0.83   | )           |   | $      | 0.14   |   |   | $ | 0.13    |   |
| Basic and diluted earnings (loss) per common share         |   |     |    |    |    |         |    |        |
| from discontinued operations                               |   | $        | — |    |    | $            | (0.49   | )           |   | $      | (0.06  | )      |   | $ | — |   |
| Basic and diluted earnings (loss) per common share         |   | $        | 0.14    |    |    | $            | (1.32   | )           |   | $      | 0.08   |   |   | $ | 0.13    |   |

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|                      |     |                                                                                                                                    |
|----------------------|-----|------------------------------------------------------------------------------------------------------------------------------------|
| Name                 | Age | Position with Company or West Bank                                                                                                 |
| Douglas R. Gulling   | 57  | Director, Executive Vice President, and Chief Financial Officer of Company;Director and Chief Financial Officer of West Bank  |
| David D. Nelson      | 50  | Director, Chief Executive Officer, and President of Company;Chairman and Chief Executive Office of West Bank                       |
| Harlee N. Olafson    | 53  | Executive Vice President and Chief Risk Officer of Company; Executive Vice President and Chief Risk Officer of West Bank           |
| Brad L. Winterbottom | 54  | Director and Executive Vice President of Company;Director and President of West Bank                                               |

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|                             |                          |
|-----------------------------|--------------------------|
| (a)     | 1.  Financial Statements |

|             |                                                                                                                                                                                                                                                                                                                             |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1         | Stock Purchase Agreement by and among Miles Capital Holdings, Inc. and West Bancorporation, Inc. and WB Capital Management Inc. dated October 1, 2009 (incorporated herein by reference to Exhibit 2.1 filed with the Form 8-K on October 6, 2009)                                                                          |
| 3.1         | Restated Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 filed with the Form 10 on March 11, 2002)                                                                                                                                                                           |
| 3.2         | Articles of Amendment to the Restated Articles of Incorporation filed with the Iowa Secretary of State on December 24, 2008 (incorporated herein by reference to Exhibit 3.1 filed with the Form 8-K on December 31, 2008)                                                                                                  |
| 3.3         | Articles of Amendment to the Restated Articles of Incorporation filed with the Iowa Secretary of State on December 24, 2008, designating the terms of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (incorporated herein by reference to Exhibit 3.2 filed with the Form 8-K on December 31, 2008)              |
| 3.4         | Bylaws of the Company as amended through October 17, 2007 (incorporated herein by reference to Exhibit 4.1 filed with the Form S-3 on January 30, 2009)                                                                                                                                                                     |
| 4.1         | Warrant for Purchase of Shares of Common Stock (incorporated herein by reference to Exhibit 4.1 filed with the Form 8-K on December 31, 2008)                                                                                                                                                                               |
| 4.2         | Letter Agreement, dated December 31, 2008, between the Company and the UST, which includes the Securities Purchase Agreement attached thereto, with respect to the issuance and sale of the Preferred Stock and the Warrant (incorporated herein by reference to Exhibit 10.1 filed with the Form 8-K on December 31, 2008) |
| 10.1        | Lease for Main Bank Facility (incorporated herein by reference to Exhibit 10.1 filed with the Form 10 on March 11, 2002)                                                                                                                                                                                                    |
| 10.2        | Supplemental Agreement to Lease for Main Bank Facility (incorporated herein by reference to Exhibit 10.2 filed with the Form 10 on March 11, 2002)                                                                                                                                                                          |
| 10.3        | Short-term Lease related to Main Bank Facility (incorporated herein by reference to Exhibit 10.3 filed with the Form 10 on March 11, 2002)                                                                                                                                                                                  |
| 10.4        | Assignment (incorporated herein by reference to Exhibit 10.4 filed with the Form 10 on March 11, 2002)                                                                                                                                                                                                                      |
| 10.5        | Lease Modification Agreement No. 1 for Main Bank Facility (incorporated herein by reference to Exhibit 10.5 filed with the Form 10 on March 11, 2002)                                                                                                                                                                       |
| 10.6        | Memorandum of Real Estate Contract (incorporated herein by reference to Exhibit 10.6 filed with the Form 10 on March 11, 2002)                                                                                                                                                                                              |
| 10.7        | Affidavit (incorporated herein by reference to Exhibit 10.7 filed with the Form 10 on March 11, 2002)                                                                                                                                                                                                                       |
| 10.8        | Addendum to Lease for Main Bank Facility (incorporated herein by reference to Exhibit 10.8 filed with the Form 10 on March 11, 2002)                                                                                                                                                                                        |
| 10.9        | Data Processing Contract (incorporated herein by reference to Exhibit 10.9 filed with the Form 10 on March 11, 2002)                                                                                                                                                                                                        |
| 10.10       | Data Processing Contract Amendment (incorporated herein by reference to Exhibit 10.12 filed with the Form 10-K on March 26, 2003)                                                                                                                                                                                           |
| 10.11       | The Employee Savings and Stock Ownership Plan, as amended (incorporated herein by reference to Exhibit 4.1 filed with the Form S-8 on October 29, 2004)                                                                                                                                                                     |
| 10.12  | Amendment to Lease Agreement (incorporated herein by reference to Exhibit 10.16 filed with the Form 10-K on March 3, 2005)                                                                                                                                                                                                  |
| 10.13  | Consulting Agreement with David L. Miller (incorporated herein by reference to Exhibit 10.18 filed with the Form 10-Q on May 6, 2005)                                                                                                                                                                                       |

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|                                                                            |                                                                                                                                                                                               |
|----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.14*                                                                | West Bancorporation, Inc. Restricted Stock Compensation Plan (incorporated herein by reference to Exhibit B of the definitive proxy statement 14A filed on March 10, 2005)                    |
| 10.15                                                                      | Assignment and Assumption of Lease and Consent to Assignment (incorporated herein by reference to Exhibit 10.21 filed with the Form 10-K on March 8, 2006)                                    |
| 10.16                                                                      | 2007 Amendment to Lease Agreement (incorporated herein by reference to Exhibit 10.22 filed with the Form 10-Q on May 4, 2007)                                                                 |
| 10.17*                                                                     | Employment Agreement with Thomas E. Stanberry (incorporated herein by reference to Exhibit 10.24 filed with the Form 8-K on May 23, 2008)                                                     |
| 10.18                                                                      | Data Processing Contract Amendment (incorporated herein by reference to Exhibit 10.23 filed with the Form 10-Q on October 30, 2008)                                                           |
| 10.19*                                                                     | Letter agreement dated July 15, 2009, between West Bancorporation, Inc. and David R. Milligan (incorporated herein by reference to Exhibit 10.24 filed with the Form 8-K on July 15, 2009)    |
| 10.20*                                                                     | Separation Agreement and Release with Thomas E. Stanberry (incorporated herein by reference to Exhibit 10.24 filed with the Form 10-Q on October 29, 2009)                                    |
| 10.21*                                                                     | Letter agreement dated March 5, 2010, between West Bancorporation, Inc. and David D. Nelson (incorporated herein by reference to Exhibit 10.1 filed with the Form 8-K on March 8, 2010)       |
| 10.22*                                                                     | Letter agreement dated March 31, 2010, between West Bancorporation, Inc. and Brad L. Winterbottom (incorporated herein by reference to Exhibit 10.1 filed with the Form 8-K on April 2, 2010) |
| 10.23*                                                                     | Letter agreement dated March 31, 2010, between West Bancorporation, Inc. and Douglas R. Gulling (incorporated herein by reference to Exhibit 10.2 filed with the Form 8-K on April 2, 2010)   |
| 10.24                                                                      | U.S. Bank Services Transition Agreement dated June 2, 2010 (incorporated herein by reference to Exhibit 99.1 filed with the Form 8-K on June 9, 2010)                                         |
| 10.25*                                                                     | Agreement dated July 9, 2010, between West Bancorporation, Inc. and Harlee Olafson (incorporated herein by reference to Exhibit 10.1 filed with the Form 8-K on July 12, 2010)                |
| 10.26*                                                                     | Amendment dated August 27, 2010, between West Bancorporation, Inc. and David D. Nelson (incorporated herein by reference to Exhibit 10.1 filed with the Form 8-K on August 27, 2010)          |
| 10.27*                                                                     | Amendment dated August 27, 2010, between West Bancorporation, Inc. and Douglas R. Gulling (incorporated herein by reference to Exhibit 10.2 filed with the Form 8-K on August 27, 2010)       |
| 10.28*                                                                     | Amendment dated August 27, 2010, between West Bancorporation, Inc. and Brad L. Winterbottom (incorporated herein by reference to Exhibit 10.3 filed with the Form 8-K on August 27, 2010)     |
| 12                                                                         | Computation of Ratios of Earnings (Loss) to Fixed Charges and Preferred Dividends                                                                                                             |
| 21                                                                         | Subsidiaries                                                                                                                                                                                  |
| 23                                                                         | Consent of Independent Registered Public Accounting Firm                                                                                                                                      |
| 31.1                                                                       | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                  |
| 31.2                                                                       | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                  |
| 32.1                                                                       | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                             |
| 32.2                                                                       | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                             |
| 99.1                                                                       | Certification of Chief Executive Officer under Section 111(b)(4) of the Emergency Economic Stabilization Act of 2008, as amended                                                              |
| 99.2                                                                       | Certification of Chief Financial Officer under Section 111(b)(4) of the Emergency Economic Stabilization Act of 2008, as amended                                                              |
|  * Indicates management contract or compensatory plan or arrangement. |

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|                     |                 |                                       |
|---------------------|-----------------|---------------------------------------|
| March 11, 2011 | By:   | /s/ David D. Nelson                   |
|                |            | David D. Nelson                       |
|                |            | Chief Executive Officer and President |

|                     |                 |                                                                |
|---------------------|-----------------|----------------------------------------------------------------|
| March 11, 2011 | By:   | /s/ David D. Nelson                                            |
|                |            | David D. Nelson                                                |
|                |            | Chief Executive Officer, Director and President                |
|                |            | (Principal Executive Officer)                                  |
|                |            |                                                           |
|                |            |                                                           |
| March 11, 2011 | By:   | /s/ Douglas R. Gulling                                         |
|                |            | Douglas R. Gulling                                             |
|                |            | Executive Vice President, Director and Chief Financial Officer |
|                |            | (Principal Financial Officer and Principal Accounting Officer) |
|                |            |                                                           |
|                |            |                                                           |
| March 11, 2011 | By:   | /s/ Marie I. Roberts                                           |
|                |            | Marie I. Roberts                                               |
|                |            | Vice President and Controller                                  |
|                |            |                                                           |
|                |            |                                                           |
| BOARD OF DIRECTORS  |            |                                                           |
|                |            |                                                           |
| March 11, 2011 | By:             | /s/ David R. Milligan                                          |
|                |            | David R. Milligan                                              |
|                |            | Chairman of the Board                                          |
|                |            |                                                           |
|                |            |                                                           |
| March 11, 2011 | By:             | /s/ Frank W. Berlin                                            |
|                |            | Frank W. Berlin                                                |
|                |            |                                                           |
|                |            |                                                           |
| March 11, 2011 | By:             | /s/ Thomas A. Carlstrom                                        |
|                |            | Thomas A. Carlstrom                                            |
|                |            |                                                           |
|                |            |                                                           |
| March 11, 2011 | By:             | /s/ Joyce A. Chapman                                           |
|                |            | Joyce A. Chapman                                               |

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|                     |        |                          |
|---------------------|--------|--------------------------|
| March 11, 2011 | By:    | /s/ Orville E. Crowley   |
|                |   | Orville E. Crowley       |
|                |   |                     |
|                |   |                     |
| March 11, 2011 | By:    | /s/ Kaye R. Lozier       |
|                |   | Kaye R. Lozier           |
|                |   |                     |
|                |   |                     |
| March 11, 2011 | By:    | /s/ George D. Milligan   |
|                |   | George D. Milligan       |
|                |   |                     |
|                |   |                     |
| March 11, 2011 | By:    | /s/ James W. Noyce       |
|                |   | James W. Noyce           |
|                |   |                     |
|                |   |                     |
| March 11, 2011 | By:    | /s/ Robert G. Pulver     |
|                |   | Robert G. Pulver         |
|                |   |                     |
|                |   |                     |
| March 11, 2011 | By:    | /s/ Jack G. Wahlig       |
|                |   | Jack G. Wahlig           |
|                |   |                     |
|                |   |                     |
| March 11, 2011 | By:    | /s/ Connie Wimer         |
|                |   | Connie Wimer             |
|                |   |                     |
|                |   |                     |
| March 11, 2011 | By:    | /s/ Brad L. Winterbottom |
|                |   | Brad L. Winterbottom     |

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|             |                                                                                                                                                   |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit No. | Description                                                                                                                                       |
| 12          | Computation of Ratios of Earnings (Loss) to Fixed Charges and Preferred Dividends                                                                 |
| 21          | Subsidiaries                                                                                                                                      |
| 23          | Consent of Independent Registered Public Accounting Firm                                                                                          |
| 31.1        | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                      |
| 31.2        | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002                                                      |
| 32.1        | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2        | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 99.1        | Certification of Chief Executive Officer under Section 111(b)(4) of the Emergency Economic Stabilization Act of 2008, as amended                  |
| 99.2        | Certification of Chief Financial Officer under Section 111(b)(4) of the Emergency Economic Stabilization Act of 2008, as amended                  |