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

| MICHIGAN                                      |   | 38-3516922                                |
|-----------------------------------------------|--------|-------------------------------------------|
| (State      of Incorporation)                 |   | (I.R.S.      Employer Identification No.) |
|                                          |   |                                      |
| 102      E. Front St.                         |   |                                      |
| Monroe,      Michigan                         |   | 48161                                     |
| (Address      of Principal Executive Offices) |   | (Zip      Code)                           |

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

----

|   | · | operating,      legal, and regulatory risks, including risks relating to further      deteriorations in credit quality, our allowance for loan losses, potential      losses on dispositions of non-performing assets, and impairment of      goodwill; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      use of estimates in determining fair value of certain of our assets, which      estimates may prove to be incorrect and result in significant declines in      valuation; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | legislative      or regulatory changes that adversely affect our business including changes      in regulatory polices and principles, including the interpretation of      regulatory capital or other rules; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      results of examinations of us by the Federal Reserve and our bank      subsidiary by the Federal Deposit Insurance Corporation, or other      regulatory authorities, who could require us to increase our reserve for      loan losses, write-down assets, change our regulatory capital position or      affect our ability to borrow funds or maintain or increase deposits, which      could adversely affect our liquidity and  earnings; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | compliance      with regulatory enforcement actions, including the MOUs; legislative or      regulatory changes that adversely affect our business including changes in      regulatory policies and principles, or the interpretation of regulatory      capital or other rules; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      availability of resources to address changes in laws, rules, or      regulations or to respond to regulatory actions; adverse changes in the      securities markets; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | economic,      political, and competitive forces affecting our banking, securities, asset      management, insurance, and credit services  businesses; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      impact on net interest income from changes in monetary policy and general      economic conditions; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | the      risk that our analyses of these risks and forces could be incorrect and/or      that the strategies developed to address them could be      unsuccessful. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | the      federal "Truth-In-Lending Act," governing disclosures of credit terms to      consumer borrowers; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | • | the      "Home Mortgage Disclosure Act of 1975," requiring financial institutions      to provide information to enable the public and public officials to      determine whether a financial institution is fulfilling its obligation to      help meet the housing needs of the community it  serves; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      "Equal Credit Opportunity Act," prohibiting discrimination on the basis of      race, creed or other prohibited factors in extending    credit; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      "Fair Credit Reporting Act of 1978," governing the use and provision of      information to credit reportingagencies; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      "Fair Debt Collection Act," governing the manner in which consumer debts      may be collected by collection agencies;and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      rules and regulations of the various federal agencies charged with the      responsibility of implementing these federal  laws. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      "Right to Financial Privacy Act," which imposes a duty to maintain      confidentiality of consumer financial records and prescribes procedures      for complying with administrative subpoenas of financial records;      and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      "Electronic Funds Transfer Act" and Regulation E issued by the      Federal Reserve to implement that act, which govern automatic deposits to      and withdrawals from deposit accounts and customers' rights and      liabilities arising from the use of automated teller machines and other      electronic banking services. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| NAME                    |   | AGE |   | POSITION                                                                                                                             |
|-------------------------|--------|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------|
| H.      Douglas Chaffin |   | 54  |   | President      & Chief Executive Officer                                                                                         |
| Scott      E. McKelvey  |   | 50  |   | Executive      Vice President, Senior Wealth Management Officer, Monroe Bank &      Trust                                        |
| James      E. Morr      |   | 63  |   | Executive      Vice President, General Counsel, and Chief Risk Officer, Monroe Bank &      Trust; Secretary, MBT Financial Corp. |
| Thomas      G. Myers    |   | 53  |   | Executive      Vice President & Chief Lending Manager, Monroe Bank &      Trust                                              |
| John      L. Skibski    |   | 45  |   | Executive      Vice President & Chief Financial Officer, Monroe Bank & Trust;      Treasurer, MBT FinancialCorp.             |

----

----

The Bank’s tier 1leverage ratio is calculated by dividing its tier 1 capital (the numerator ofthe ratio) by its average total consolidated assets (the denominator of theratio).  Tier I capital of the Bank is the Bank’s core capital(qualifying stockholders’ equity and retained earnings).  TheCorporation’s plan to improve its tier I leverage ratio and otherwise enhanceits overall financial health was approved by the Corporation's Board ofDirectors and timely submitted to the FDIC and the Michigan OFIR.  Asof December 31, 2009, the Bank’s Tier I Leverage Capital ratio was 6.21% andtherefore the Bank has not yet achieved the target Tier 1 Leverage ratio adoptedin connection with the MOU.  As a result of this, the FDIC and/or theMichigan OFIR may take formal regulatory action against the Bank, including theissuance of a formal agreement or consent order.

|   | · | The      duration of the loan; |
|--------|--------|--------------------------------|

|   | · | Credit      risks of a particular borrower; |
|--------|--------|---------------------------------------------|

|   | · | Changes      in unemployment, economic and industry conditions;  and |
|--------|--------|----------------------------------------------------------------------|

|   | · | in      the case of a collateralized loan, the potential inadequacy of the value      of the collateral in the event of default, such as has resulted from the      deterioration in commercial and residential real estate      values. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Actual      or anticipated variations in quarterly results of    operations; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | Recommendations      by securities analysts; |
|--------|--------|----------------------------------------------|

|   | · | Operating      and stock price performance of other companies that investors deem      comparable to the Corporation; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | News      reports relating to trends, concerns, and other issues in the financial      services industry; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Perceptions      in the marketplace regarding the Corporation and/or its      competitors; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | New      technology used or services offered by  competitors; |
|--------|--------|---------------------------------------------------------------|

|   | · | Significant      acquisitions or business combinations, strategic partnerships, joint      venture, or capital commitments by or involving the Corporation or its      competitors; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Failure      to integrate acquisitions or realize anticipated benefits from      acquisitions; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | Changes      in government regulations; and |
|--------|--------|---------------------------------------------|

----

|   | · | Geopolitical      conditions such as acts or threats of terrorism or military      conflicts. |
|--------|--------|-----------------------------------------------------------------------------------------------|

----

----

|             |   | 2009 |   |   | 2008   |   |
|------------------|--------|------|--------|--------|--------|--------|
|             |   | High |   |   | Low    |   |   | High |   |   | Low |   |
| 1st      quarter |   | $    | 3.15   |   |   | $      | 1.32 |   |   | $ | 9.87 |   |   | $ | 7.93 |   |
| 2nd      quarter |   | $    | 3.05   |   |   | $      | 1.83 |   |   | $ | 9.49 |   |   | $ | 5.36 |   |
| 3rd      quarter |   | $    | 2.40   |   |   | $      | 2.00 |   |   | $ | 6.00 |   |   | $ | 4.27 |   |
| 4th      quarter |   | $    | 2.11   |   |   | $      | 1.25 |   |   | $ | 4.83 |   |   | $ | 2.40 |   |

|             |   | 2009 |   |   | 2008   |   |   | 2007   |   |
|------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| 1st      quarter |   | $    | 0.01   |   |   | $      | 0.18   |   |   | $ | 0.18 |   |
| 2nd      quarter |   | $    | 0.01   |   |   | $      | 0.18   |   |   | $ | 0.18 |   |
| 3rd      quarter |   | $    | -      |   |   | $      | 0.09   |   |   | $ | 0.18 |   |
| 4th      quarter |   | $    | -      |   |   | $      | 0.09   |   |   | $ | 0.18 |   |

----

|                                |   | Period Ending |   |
|-------------------------------------|--------|--------------------|--------|
| Index                               |   | 12/31/04           |   |   | 12/31/05 |   |   | 12/31/06 |   |   | 12/31/07 |   |   | 12/31/08 |   |   | 12/31/09 |   |
| MBT      Financial Corp.            |   |               | 100.00 |   |   |   | 72.18 |   |   |   | 71.32 |   |   |   | 43.59 |   |   |   | 16.58 |   |   |   | 8.26 |   |
| NASDAQ      Composite               |   |               | 100.00 |   |   |   | 101.37 |   |   |   | 111.03 |   |   |   | 121.92 |   |   |   | 72.49 |   |   |   | 104.31 |   |
| NASDAQ      Bank                    |   |               | 100.00 |   |   |   | 95.67 |   |   |   | 106.20 |   |   |   | 82.76 |   |   |   | 62.96 |   |   |   | 51.31 |   |
| MBT      Financial 2009 Peer Group* |   |               | 100.00 |   |   |   | 85.85 |   |   |   | 91.73 |   |   |   | 50.22 |   |   |   | 21.53 |   |   |   | 12.84 |   |

----

----

| Dollar      amounts are in thousands,                    |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |
|----------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|
| except      per share data                               |   | 2009   |       |   | 2008   |   |       | 2007   |   |   | 2006       |   |   | 2005   |       |
| Consolidated      Statements of Income                   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |
| Interest      Income                                     |   | $      | 71,004     |   |   | $      | 84,903     |   |   | $      | 93,551     |   |   | $      | 95,923     |   |   | $ | 89,695 |   |
| Interest      Expense                                    |   |   | 29,989     |   |   |   | 42,514     |   |   |   | 50,782     |   |   |   | 49,288     |   |   |   | 38,583 |   |
| Net      Interest Income                                 |   |   | 41,015     |   |   |   | 42,389     |   |   |   | 42,769     |   |   |   | 46,635     |   |   |   | 51,112 |   |
| Provision      for Loan Losses                           |   |   | 36,000     |   |   |   | 18,000     |   |   |   | 11,407     |   |   |   | 16,475     |   |   |   | 6,906 |   |
| Net      Interest Income after Provision for Loan Losses |   |   | 5,015      |   |   |   | 24,389     |   |   |   | 31,362     |   |   |   | 30,160     |   |   |   | 44,206 |   |
| Other      Income                                        |   |   | 10,480     |   |   |   | 15,985     |   |   |   | 15,634     |   |   |   | 9,542      |   |   |   | 14,449 |   |
| Other      Expenses                                      |   |   | 49,774     |   |   |   | 39,999     |   |   |   | 37,234     |   |   |   | 36,308     |   |   |   | 33,818 |   |
| Income      before Provision for Income Taxes            |   |   | (34,279    | )      |   |   | 375        |   |   |   | 9,762      |   |   |   | 3,394      |   |   |   | 24,837 |   |
| Provision      for Income Taxes                          |   |   | (102       | )      |   |   | (1,317     | )      |   |   | 2,049      |   |   |   | (379       | ) |   |   | 6,858 |   |
| Net      Income                                          |   | $      | (34,177    | )      |   | $      | 1,692      |   |   | $      | 7,713      |   |   | $      | 3,773      |   |   | $ | 17,979 |   |
| Net      Income available to Common Shareholders         |   | $      | (34,177    | )      |   | $      | 1,692      |   |   | $      | 7,713      |   |   | $      | 3,773      |   |   | $ | 17,979 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Per      Common Share                                    |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic      Net Income                                    |   | $      | (2.11      | )      |   | $      | 0.10       |   |   | $      | 0.47       |   |   | $      | 0.22       |   |   | $ | 1.04 |   |
| Diluted      Net Income                                  |   |   | (2.11      | )      |   |   | 0.10       |   |   |   | 0.47       |   |   |   | 0.22       |   |   |   | 1.03 |   |
| Cash      Dividends Declared                             |   |   | 0.02       |   |   |   | 0.54       |   |   |   | 0.72       |   |   |   | 0.70       |   |   |   | 0.66 |   |
| Book      Value at Year End                              |   |   | 5.04       |   |   |   | 7.49       |   |   |   | 7.90       |   |   |   | 8.14       |   |   |   | 8.82 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Average      Common Shares Outstanding                   |   |   | 16,186,478 |   |   |   | 16,134,570 |   |   |   | 16,415,425 |   |   |   | 16,941,432 |   |   |   | 17,334,376 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Consolidated      Balance Sheets (Year End)              |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Total      Assets                                        |   | $      | 1,383,369  |   |   | $      | 1,562,401  |   |   | $      | 1,556,806  |   |   | $      | 1,566,819  |   |   | $ | 1,638,356 |   |
| Total      Securities                                    |   |   | 356,865    |   |   |   | 466,043    |   |   |   | 438,058    |   |   |   | 439,025    |   |   |   | 533,709 |   |
| Loans,      Net of Deferred Loan Fees                    |   |   | 849,910    |   |   |   | 941,732    |   |   |   | 1,002,259  |   |   |   | 998,998    |   |   |   | 989,311 |   |
| Allowance      for Loan Losses                           |   |   | 24,063     |   |   |   | 18,528     |   |   |   | 20,222     |   |   |   | 13,764     |   |   |   | 13,625 |   |
| Deposits                                                 |   |   | 1,031,791  |   |   |   | 1,136,078  |   |   |   | 1,109,980  |   |   |   | 1,116,057  |   |   |   | 1,184,710 |   |
| Borrowings                                               |   |   | 258,500    |   |   |   | 291,500    |   |   |   | 304,800    |   |   |   | 300,000    |   |   |   | 291,500 |   |
| Total      Shareholders' Equity                          |   |   | 81,764     |   |   |   | 120,977    |   |   |   | 127,447    |   |   |   | 136,062    |   |   |   | 151,619 |   |
|                                                     |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Selected      Financial Ratios                           |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Return      on Average Assets                            |   |   | -2.36      | %      |   |   | 0.11       | %      |   |   | 0.50       | %      |   |   | 0.24       | % |   |   | 1.13 | % |
| Return      on Average Equity                            |   |   | -29.53     | %      |   |   | 1.36       | %      |   |   | 5.77       | %      |   |   | 2.60       | % |   |   | 11.57 | % |
| Net      Interest Margin                                 |   |   | 3.06       | %      |   |   | 2.96       | %      |   |   | 2.99       | %      |   |   | 3.12       | % |   |   | 3.42 | % |
| Dividend      Payout Ratio                               |   | -0.95  | %          |   |   | 514.78 | %          |   |   | 152.40 | %          |   |   | 313.16 | %          |   |   | 63.52 | % |
| Allowance      for Loan Losses to Period End Loans       |   |   | 2.83       | %      |   |   | 1.97       | %      |   |   | 2.02       | %      |   |   | 1.38       | % |   |   | 1.38 | % |
| Allowance      for Loan Losses to Non Performing Loans   |   |   | 27.94      | %      |   |   | 34.45      | %      |   |   | 59.60      | %      |   |   | 61.06      | % |   |   | 51.49 | % |
| Non      Performing Loans to Period End Loans            |   |   | 10.13      | %      |   |   | 5.71       | %      |   |   | 3.39       | %      |   |   | 2.26       | % |   |   | 2.67 | % |
| Net      Charge Offs to Average Loans                    |   |   | 3.36       | %      |   |   | 2.00       | %      |   |   | 0.49       | %      |   |   | 1.62       | % |   |   | 0.71 | % |

----

----

----

----

----

|                                  |   | 2009   |   |   | 2008   |   |   | 2007 |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Return      on Average Assets         |   |   | -2.36  | %      |   |   | 0.11   | %    |   |   | 0.50 | % |
| Return      on Average Equity         |   |   | -29.53 | %      |   |   | 1.36   | %    |   |   | 5.77 | % |
| Dividend      Payout Ratio            |   |   | -0.95  | %      |   |   | 514.78 | %    |   |   | 152.40 | % |
| Average      Equity to Average Assets |   |   | 8.00   | %      |   |   | 8.07   | %    |   |   | 8.68 | % |

----

|                           |   | December 31, 2009 |   |   | December 31, 2008 |   |   | Minimum to be WellCapitalized |   |
|--------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|----------------------------------------------|--------|
| Tier      1 Leverage Ratio     |   |                        | 6.3    | %      |                        |   | 7.8    | %                                            |   |   | 5.0 | % |
| Tier      1 Risk based Capital |   |                        | 8.9    | %      |                        |   | 11.5   | %                                            |   |   | 6.0 | % |
| Total      Risk Based Capital  |   |                        | 10.2   | %      |                        |   | 12.7   | %                                            |   |   | 10.0 | % |

----

|                                           |   | Held to Maturity  |   |
|------------------------------------------------|--------|-----------------------------|--------|
|                                           |   | December 31, 2009 |   |   | December 31, 2008 |   |   | December 31, 2007 |   |
|                                           |   |                        |   |   | Estimated |   |   |   |   |   | Estimated |   |   |   |   |   | Estimated |   |
|                                           |   | Amortized                   |   |   | Market |   |   | Amortized |   |   | Market |   |   | Amortized |   |   | Market |   |
|                                           |   | Cost                        |   |   | Value |   |   | Cost |   |   | Value |   |   | Cost |   |   | Value |   |
| U.S.      Government agency and corporation    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| obligations                                    |   | $                           | 6      |   |   | $ | 6 |   |   | $ | 7 |   |   | $ | 7 |   |   | $ | 7 |   |   | $ | 8 |   |
|                                           |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      issued by states and political |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions      in the U.S.                  |   |                        | 36,427 |   |   |   | 36,411 |   |   |   | 46,833 |   |   |   | 46,036 |   |   |   | 44,727 |   |   |   | 45,036 |   |
|                                           |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                          |   | $                           | 36,433 |   |   | $ | 36,417 |   |   | $ | 46,840 |   |   | $ | 46,043 |   |   | $ | 44,734 |   |   | $ | 45,044 |   |
|                                           |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pledged      securities                        |   | $                           | 5,089  |   |   | $ | 5,129 |   |   | $ | 6,406 |   |   | $ | 6,405 |   |   | $ | 6,650 |   |   | $ | 6,695 |   |

|                                                    |   | Available for Sale |    |
|---------------------------------------------------------|--------|------------------------------|---------|
|                                                    |   | December 31, 2009  |    |   | December 31, 2008 |   |   | December 31, 2007 |   |
|                                                    |   |                         |    |   | Estimated |   |   |   |   |   | Estimated |   |   |   |   |   | Estimated |   |
|                                                    |   | Amortized                    |    |   | Market |   |   | Amortized |   |   | Market |   |   | Amortized |   |   | Market |   |
|                                                    |   | Cost                         |    |   | Value |   |   | Cost |   |   | Value |   |   | Cost |   |   | Value |   |
| U.S.      Government agency and corporation             |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| obligations      (excluding mortgage-backed securities) |   | $                            | 256,483 |   |   | $ | 254,628 |   |   | $ | 322,767 |   |   | $ | 329,671 |   |   | $ | 330,505 |   |   | $ | 330,178 |   |
|                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      issued by states and political          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions      in the U.S.                           |   |                         | 35,117  |   |   |   | 35,637 |   |   |   | 40,999 |   |   |   | 41,114 |   |   |   | 27,046 |   |   |   | 27,134 |   |
|                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust      Preferred CDO Securities                     |   |                         | 13,485  |   |   |   | 7,215 |   |   |   | 25,132 |   |   |   | 19,371 |   |   |   | 20,044 |   |   |   | 19,865 |   |
|                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate      Debt Securities                          |   |                         | 8,383   |   |   |   | 7,509 |   |   |   | 15,170 |   |   |   | 13,516 |   |   |   | 1,024 |   |   |   | 1,026 |   |
|                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      domestic securities (debt and equity)        |   |                         | 2,553   |   |   |   | 2,357 |   |   |   | 2,386 |   |   |   | 2,445 |   |   |   | 2,013 |   |   |   | 2,035 |   |
|                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                   |   | $                            | 316,021 |   |   | $ | 307,346 |   |   | $ | 406,454 |   |   | $ | 406,117 |   |   | $ | 380,632 |   |   | $ | 380,238 |   |
|                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pledged      securities                                 |   | $                            | 232,220 |   |   | $ | 231,182 |   |   | $ | 251,525 |   |   | $ | 257,054 |   |   | $ | 345,255 |   |   | $ | 344,975 |   |

----

|                                                 |   | Years Ended December 31, |      |
|------------------------------------------------------|--------|-----------------------------------------|-----------|
|                                                 |   | 2009                                    |      |   | 2008 |   |   | 2007 |   |
|                                                 |   | Average                                 |      |   | Interest |   |   |   |   |   | Average |   |   | Interest |   |   |   |   |   | Average |   |   | Interest |   |   |   |   |
|                                                 |   | Daily                                   |      |   | Earned |   |   | Average |   |   | Daily |   |   | Earned |   |   | Average |   |   | Daily |   |   | Earned |   |   | Average |   |
| (Dollars in Thousands)                     |   | Balance                                 |      |   | or Paid |   |   | Yield |   |   | Balance |   |   | or Paid |   |   | Yield |   |   | Balance |   |   | or Paid |   |   | Yield |   |
| Investments                                          |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Bearing Balances                       |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due      From Banks                                  |   | $                                       | 30,161    |   |   | $ | 89 |   |   |   | 0.30 | % |   | $ | 3,368 |   |   | $ | 29 |   |   |   | 0.86 | % |   | $ | 182 |   |   | $ | 9 |   |   |   | 4.95 | % |
| Obligations      of US                               |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government      Agencies                             |   |                                    | 283,030   |   |   |   | 12,572 |   |   |   | 4.44 | % |   |   | 313,283 |   |   |   | 16,073 |   |   |   | 5.13 | % |   |   | 315,338 |   |   |   | 16,918 |   |   |   | 5.37 | % |
| Obligations      of States &                     |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Political      Subdivisions1                         |   |                                    | 82,523    |   |   |   | 3,358 |   |   |   | 4.07 | % |   |   | 76,862 |   |   |   | 3,390 |   |   |   | 4.41 | % |   |   | 77,391 |   |   |   | 3,177 |   |   |   | 4.11 | % |
| Other      Securities                                |   |                                    | 39,549    |   |   |   | 2,076 |   |   |   | 5.25 | % |   |   | 48,459 |   |   |   | 2,903 |   |   |   | 5.99 | % |   |   | 33,955 |   |   |   | 2,058 |   |   |   | 6.06 | % |
| Total      Investments                               |   |                                    | 435,263   |   |   |   | 18,095 |   |   |   | 4.16 | % |   |   | 441,972 |   |   |   | 22,395 |   |   |   | 5.07 | % |   |   | 426,866 |   |   |   | 22,162 |   |   |   | 5.19 | % |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                           |   |                                    | 619,198   |   |   |   | 35,217 |   |   |   | 5.69 | % |   |   | 670,473 |   |   |   | 41,757 |   |   |   | 6.23 | % |   |   | 662,176 |   |   |   | 48,058 |   |   |   | 7.26 | % |
| Mortgage                                             |   |                                    | 192,881   |   |   |   | 10,944 |   |   |   | 5.67 | % |   |   | 210,427 |   |   |   | 12,679 |   |   |   | 6.03 | % |   |   | 221,594 |   |   |   | 13,405 |   |   |   | 6.05 | % |
| Consumer                                             |   |                                    | 93,274    |   |   |   | 6,748 |   |   |   | 7.23 | % |   |   | 102,682 |   |   |   | 8,036 |   |   |   | 7.83 | % |   |   | 116,569 |   |   |   | 9,782 |   |   |   | 8.39 | % |
| Total Loans2                                         |   |                                    | 905,353   |   |   |   | 52,909 |   |   |   | 5.84 | % |   |   | 983,582 |   |   |   | 62,472 |   |   |   | 6.35 | % |   |   | 1,000,339 |   |   |   | 71,245 |   |   |   | 7.12 | % |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      Funds Sold                              |   |                                    | 0         |   |   |   | 0 |   |   |   | n/a |   |   |   | 4,333 |   |   |   | 36 |   |   |   | 0.83 | % |   |   | 2,774 |   |   |   | 144 |   |   |   | 5.19 | % |
| Total      Interest Earning Assets                   |   |                                    | 1,340,616 |   |   |   | 71,004 |   |   |   | 5.30 | % |   |   | 1,429,887 |   |   |   | 84,903 |   |   |   | 5.94 | % |   |   | 1,429,979 |   |   |   | 93,551 |   |   |   | 6.54 | % |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      & Non Interest Bearing                 |   |                                    | 17,748    |   |   |   |   |   |   |   |   |   |   |   | 20,420 |   |   |   |   |   |   |   |   |   |   |   | 23,171 |   |   |   |   |   |   |   |   |   |
| Due      From Banks                                  |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Receivable and Other Assets            |   |                                    | 105,067   |   |   |   |   |   |   |   |   |   |   |   | 97,412 |   |   |   |   |   |   |   |   |   |   |   | 86,853 |   |   |   |   |   |   |   |   |   |
| Total      Assets                                    |   | $                                       | 1,463,431 |   |   |   |   |   |   |   |   |   |   | $ | 1,547,719 |   |   |   |   |   |   |   |   |   |   | $ | 1,540,003 |   |   |   |   |   |   |   |   |   |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      Accounts                                |   | $                                       | 106,446   |   |   | $ | 343 |   |   |   | 0.32 | % |   | $ | 95,546 |   |   | $ | 183 |   |   |   | 0.19 | % |   | $ | 95,646 |   |   | $ | 214 |   |   |   | 0.22 | % |
| NOW      Accounts                                    |   |                                    | 92,544    |   |   |   | 637 |   |   |   | 0.69 | % |   |   | 82,031 |   |   |   | 668 |   |   |   | 0.81 | % |   |   | 68,637 |   |   |   | 252 |   |   |   | 0.37 | % |
| Money      Market Deposits                           |   |                                    | 279,329   |   |   |   | 1,962 |   |   |   | 0.70 | % |   |   | 293,797 |   |   |   | 6,115 |   |   |   | 2.08 | % |   |   | 286,655 |   |   |   | 9,830 |   |   |   | 3.43 | % |
| Certificates      of Deposit                         |   |                                    | 450,056   |   |   |   | 15,044 |   |   |   | 3.34 | % |   |   | 494,962 |   |   |   | 19,870 |   |   |   | 4.01 | % |   |   | 498,952 |   |   |   | 22,126 |   |   |   | 4.43 | % |
| Federal      Funds Purchased     |   |                                    | 381       |   |   |   | 1 |   |   |   | 0.26 | % |   |   | 18,364 |   |   |   | 466 |   |   |   | 2.54 | % |   |   | 10,019 |   |   |   | 518 |   |   |   | 5.17 | % |
| Repurchase      Agreements                           |   |                                    | 30,000    |   |   |   | 1,388 |   |   |   | 4.63 | % |   |   | 32,008 |   |   |   | 1,474 |   |   |   | 4.61 | % |   |   | 36,959 |   |   |   | 1,644 |   |   |   | 4.45 | % |
| FHLB      Advances                                   |   |                                    | 248,837   |   |   |   | 10,614 |   |   |   | 4.27 | % |   |   | 258,303 |   |   |   | 13,738 |   |   |   | 5.32 | % |   |   | 256,500 |   |   |   | 16,198 |   |   |   | 6.32 | % |
| Total      Interest Bearing Liabilities              |   |                                    | 1,207,593 |   |   |   | 29,989 |   |   |   | 2.48 | % |   |   | 1,275,011 |   |   |   | 42,514 |   |   |   | 3.33 | % |   |   | 1,253,368 |   |   |   | 50,782 |   |   |   | 4.05 | % |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      Bearing Deposits                   |   |                                    | 129,789   |   |   |   |   |   |   |   |   |   |   |   | 136,918 |   |   |   |   |   |   |   |   |   |   |   | 141,269 |   |   |   |   |   |   |   |   |   |
| Other      Liabilities                               |   |                                    | 11,490    |   |   |   |   |   |   |   |   |   |   |   | 10,921 |   |   |   |   |   |   |   |   |   |   |   | 11,676 |   |   |   |   |   |   |   |   |   |
| Total      Liabilities                               |   |                                    | 1,348,872 |   |   |   |   |   |   |   |   |   |   |   | 1,422,850 |   |   |   |   |   |   |   |   |   |   |   | 1,406,313 |   |   |   |   |   |   |   |   |   |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders'      Equity                            |   |                                    | 114,559   |   |   |   |   |   |   |   |   |   |   |   | 124,869 |   |   |   |   |   |   |   |   |   |   |   | 133,690 |   |   |   |   |   |   |   |   |   |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Liabilities & Stockholders' Equity    |   | $                                       | 1,463,431 |   |   |   |   |   |   |   |   |   |   | $ | 1,547,719 |   |   |   |   |   |   |   |   |   |   | $ | 1,540,003 |   |   |   |   |   |   |   |   |   |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Interest Income                             |   |                                    |      |   |   | $ | 41,015 |   |   |   |   |   |   |   |   |   |   | $ | 42,389 |   |   |   |   |   |   |   |   |   |   | $ | 42,769 |   |   |   |   |   |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Rate Spread                            |   |                                    |      |   |   |   |   |   |   |   | 2.82 | % |   |   |   |   |   |   |   |   |   |   | 2.61 | % |   |   |   |   |   |   |   |   |   |   | 2.49 | % |
|                                                 |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Interest Income as a percent of             |   |                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| average      earning assets                          |   |                                    |      |   |   |   |   |   |   |   | 3.06 | % |   |   |   |   |   |   |   |   |   |   | 2.96 | % |   |   |   |   |   |   |   |   |   |   | 2.99 | % |

| 1 | Interest      income on Obligations of States and Political Subdivisions is not on a      taxable equivalent basis. |
|---|---------------------------------------------------------------------------------------------------------------------|

| 2 | Total      Loans excludes Overdraft Loans, which are non-interest earning. These      loans are included in Other Assets. Total Loans includes nonaccrual loans.      When a loan is placed in nonaccrual status, all accrued and unpaid      interest is charged against interest income. Loans on nonaccrual status do      not earn any interest. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                             |   | Years Ended December 31, |   |
|----------------------------------|--------|-----------------------------------------|--------|
|                             |   | 2009 versus 2008              |   |   | 2008 versus 2007 |   |   | 2007 versus 2006 |   |
|                             |   | Changes due to                |   |   | Changes due to |   |   | Changes due to |   |
|                             |   | increased (decreased)              |   |   | increased (decreased) |   |   | increased (decreased) |   |
| (Dollars in Thousands) |   | Rate                                    |   |   | Volume |   |   | Net |   |   | Rate |   |   | Volume |   |   | Net |   |   | Rate |   |   | Volume |   |   | Net |   |
| Interest      Income             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments                      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Bearing Balances   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due      From Banks              |   | $                                       | (169   | ) |   | $ | 229 |   |   | $ | 60 |   |   | $ | (141 | ) |   | $ | 161 |   |   | $ | 20 |   |   | $ | - |   |   | $ | 4 |   |   | $ | 4 |   |
| Obligations      of US           |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government      Agencies         |   |                                    | (1,949 | ) |   |   | (1,552 | ) |   |   | (3,501 | ) |   |   | (735 | ) |   |   | (110 | ) |   |   | (845 | ) |   |   | 963 |   |   |   | (823 | ) |   |   | 140 |   |
| Obligations      of States & |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Political      Subdivisions      |   |                                    | (282   | ) |   |   | 250 |   |   |   | (32 | ) |   |   | 235 |   |   |   | (22 | ) |   |   | 213 |   |   |   | (567 | ) |   |   | (612 | ) |   |   | (1,179 | ) |
| Other      Securities            |   |                                    | (293   | ) |   |   | (534 | ) |   |   | (827 | ) |   |   | (34 | ) |   |   | 879 |   |   |   | 845 |   |   |   | (24 | ) |   |   | (1,681 | ) |   |   | (1,705 | ) |
| Total      Investments           |   |                                    | (2,693 | ) |   |   | (1,607 | ) |   |   | (4,300 | ) |   |   | (675 | ) |   |   | 908 |   |   |   | 233 |   |   |   | 372 |   |   |   | (3,112 | ) |   |   | (2,740 | ) |
|                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                            |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                       |   |                                    | (3,355 | ) |   |   | (3,185 | ) |   |   | (6,540 | ) |   |   | (6,928 | ) |   |   | 602 |   |   |   | (6,326 | ) |   |   | 618 |   |   |   | 478 |   |   |   | 1,096 |   |
| Mortgage                         |   |                                    | (678   | ) |   |   | (1,057 | ) |   |   | (1,735 | ) |   |   | (27 | ) |   |   | (674 | ) |   |   | (701 | ) |   |   | 76 |   |   |   | (442 | ) |   |   | (366 | ) |
| Consumer                         |   |                                    | (552   | ) |   |   | (736 | ) |   |   | (1,288 | ) |   |   | (580 | ) |   |   | (1,166 | ) |   |   | (1,746 | ) |   |   | 335 |   |   |   | (770 | ) |   |   | (435 | ) |
| Total      Loans                 |   |                                    | (4,585 | ) |   |   | (4,978 | ) |   |   | (9,563 | ) |   |   | (7,535 | ) |   |   | (1,238 | ) |   |   | (8,773 | ) |   |   | 1,029 |   |   |   | (734 | ) |   |   | 295 |   |
|                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      Funds Sold          |   |                                    | 0      |   |   |   | (36 | ) |   |   | (36 | ) |   |   | (189 | ) |   |   | 81 |   |   |   | (108 | ) |   |   | 19 |   |   |   | 54 |   |   |   | 73 |   |
| Total      Interest Income       |   |                                    | (7,278 | ) |   |   | (6,621 | ) |   |   | (13,899 | ) |   |   | (8,399 | ) |   |   | (249 | ) |   |   | (8,648 | ) |   |   | 1,420 |   |   |   | (3,792 | ) |   |   | (2,372 | ) |
|                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Expense            |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      Accounts            |   |                                    | 139    |   |   |   | 21 |   |   |   | 160 |   |   |   | (30 | ) |   |   | 0 |   |   |   | (30 | ) |   |   | (25 | ) |   |   | (26 | ) |   |   | (51 | ) |
| NOW      Accounts                |   |                                    | (117   | ) |   |   | 86 |   |   |   | (31 | ) |   |   | 366 |   |   |   | 49 |   |   |   | 415 |   |   |   | 81 |   |   |   | 6 |   |   |   | 87 |   |
| Money      Market Deposits       |   |                                    | (3,852 | ) |   |   | (301 | ) |   |   | (4,153 | ) |   |   | (3,960 | ) |   |   | 245 |   |   |   | (3,715 | ) |   |   | 93 |   |   |   | (109 | ) |   |   | (16 | ) |
| Certificates      of Deposit     |   |                                    | (3,023 | ) |   |   | (1,803 | ) |   |   | (4,826 | ) |   |   | (2,080 | ) |   |   | (177 | ) |   |   | (2,257 | ) |   |   | 2,107 |   |   |   | (555 | ) |   |   | 1,552 |   |
| Federal      Funds Purchased     |   |                                    | (8     | ) |   |   | (457 | ) |   |   | (465 | ) |   |   | (483 | ) |   |   | 431 |   |   |   | (52 | ) |   |   | (2 | ) |   |   | (461 | ) |   |   | (463 | ) |
| Repurchase      agreements       |   |                                    | 6      |   |   |   | (92 | ) |   |   | (86 | ) |   |   | 50 |   |   |   | (220 | ) |   |   | (170 | ) |   |   | 117 |   |   |   | (36 | ) |   |   | 81 |   |
| FHLB      Advances               |   |                                    | (2,621 | ) |   |   | (503 | ) |   |   | (3,124 | ) |   |   | (2,573 | ) |   |   | 114 |   |   |   | (2,459 | ) |   |   | 304 |   |   |   | 0 |   |   |   | 304 |   |
| Total      Interest Expense      |   |                                    | (9,476 | ) |   |   | (3,049 | ) |   |   | (12,525 | ) |   |   | (8,710 | ) |   |   | 442 |   |   |   | (8,268 | ) |   |   | 2,675 |   |   |   | (1,181 | ) |   |   | 1,494 |   |
|                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Interest Income         |   | $                                       | 2,198  |   |   | $ | (3,572 | ) |   | $ | (1,374 | ) |   | $ | 311 |   |   | $ | (691 | ) |   | $ | (380 | ) |   | $ | (1,255 | ) |   | $ | (2,611 | ) |   | $ | (3,866 | ) |

----

|                                       |   | Maturing                |   |
|--------------------------------------------|--------|-------------------------|--------|
|                                       |   | Within 1 year |   |   | 1 - 5 years |   |   | 5 - 10 Years |   |   | Over 10 Years |   |   | Total |   |
|                                       |   | Amount                  |   |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |
| (Dollars      in Thousands)                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations      of US                     |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government      Agencies                   |   | $                       | -      |   |   |   | 0.00 | % |   | $ | 15,016 |   |   |   | 2.27 | % |   | $ | 82,882 |   |   |   | 3.62 | % |   | $ | 156,743 |   |   |   | 4.27 | % |   | $ | 254,641 |   |   |   | 3.94 | % |
| Obligations      of States & Political |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subdivisions                               |   |                    | 9,955  |   |   |   | 3.67 | % |   |   | 26,443 |   |   |   | 4.12 | % |   |   | 20,568 |   |   |   | 4.01 | % |   |   | 15,091 |   |   |   | 3.94 | % |   |   | 72,057 |   |   |   | 3.99 | % |
| Trust      Preferred CDO Securities        |   |                    | -      |   |   |   | 0.00 | % |   |   | - |   |   |   | 0.00 | % |   |   | - |   |   |   | 0.00 | % |   |   | 7,215 |   |   |   | 2.48 | % |   |   | 7,215 |   |   |   | 2.48 | % |
| Corporate      Debt Securities             |   |                    | -      |   |   |   | 0.00 | % |   |   | - |   |   |   | 0.00 | % |   |   | 7,509 |   |   |   | 6.24 | % |   |   | - |   |   |   | 0.00 | % |   |   | 7,509 |   |   |   | 6.24 | % |
| Other      Securities                      |   |                    | -      |   |   |   | 0.00 | % |   |   | - |   |   |   | 0.00 | % |   |   | - |   |   |   | 0.00 | % |   |   | 2,357 |   |   |   | 3.17 | % |   |   | 2,357 |   |   |   | 3.17 | % |
| Total                                      |   | $                       | 9,955  |   |   |   | 3.67 | % |   | $ | 41,459 |   |   |   | 3.45 | % |   | $ | 110,959 |   |   |   | 3.87 | % |   | $ | 181,406 |   |   |   | 4.16 | % |   | $ | 343,779 |   |   |   | 3.96 | % |

|                                       |   | Assets/Liabilities at December 31, 2009, Maturing or Repricing in: |     |
|--------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|----------|
|                                       |   | 0 - 6                                                                                            |     |   | 6 - 12 |   |   | 1 - 2 |   |   | 2 - 5 |   |   | Over 5 |   |   | Total |   |
| (Dollars in Thousands)           |   | Months                                                                                                     |     |   | Months |   |   | Years |   |   | Years |   |   | Years |   |   | Amount |   |
| Interest      Earning Assets               |   |                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US      Treas Secs & Obligations of    |   |                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US      Gov't Agencies                     |   | $                                                                                                          | 36,835   |   |   | $ | 15,391 |   |   | $ | 19,417 |   |   | $ | 63,196 |   |   | $ | 114,120 |   |   | $ | 248,959 |   |
| Obligations      of States & Political |   |                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subdivisions                               |   |                                                                                                       | 15,808   |   |   |   | 8,620 |   |   |   | 5,451 |   |   |   | 26,704 |   |   |   | 16,729 |   |   |   | 73,312 |   |
| Other      Securities                      |   |                                                                                                       | 20,500   |   |   |   | - |   |   |   | - |   |   |   | 5,066 |   |   |   | 8,900 |   |   |   | 34,466 |   |
| Commercial      Loans                      |   |                                                                                                       | 189,229  |   |   |   | 32,701 |   |   |   | 78,650 |   |   |   | 233,381 |   |   |   | 1,295 |   |   |   | 535,256 |   |
| Mortgage      Loans                        |   |                                                                                                       | 24,844   |   |   |   | 37,647 |   |   |   | 26,434 |   |   |   | 56,254 |   |   |   | 29,446 |   |   |   | 174,625 |   |
| Consumer      Loans                        |   |                                                                                                       | 35,435   |   |   |   | 5,509 |   |   |   | 13,830 |   |   |   | 26,865 |   |   |   | 3,252 |   |   |   | 84,891 |   |
| Intereset      Bearing DFB                 |   |                                                                                                       | 51,398   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 51,398 |   |
| Total      Interest Earning Assets         |   | $                                                                                                          | 374,049  |   |   | $ | 99,868 |   |   | $ | 143,782 |   |   | $ | 411,466 |   |   | $ | 173,742 |   |   | $ | 1,202,907 |   |
|                                       |   |                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Bearing Liabilities          |   |                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      Deposits                      |   | $                                                                                                          | 284,438  |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 284,438 |   |
| Other      Time Deposits                   |   |                                                                                                       | 114,908  |   |   |   | 49,757 |   |   |   | 137,442 |   |   |   | 94,253 |   |   |   | 5,366 |   |   |   | 401,726 |   |
| FHLB      Advances                         |   |                                                                                                       | 110,000  |   |   |   | 115,000 |   |   |   | 3,500 |   |   |   | - |   |   |   | - |   |   |   | 228,500 |   |
| Repurchase      Agreements                 |   |                                                                                                       | -        |   |   |   | - |   |   |   | 10,000 |   |   |   | 5,000 |   |   |   | 15,000 |   |   |   | 30,000 |   |
| Total      Interest Bearing Liabilities    |   | $                                                                                                          | 509,346  |   |   | $ | 164,757 |   |   | $ | 150,942 |   |   | $ | 99,253 |   |   | $ | 20,366 |   |   | $ | 944,664 |   |
|                                       |   |                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gap                                        |   | $                                                                                                          | (135,297 | ) |   | $ | (64,889 | ) |   | $ | (7,160 | ) |   | $ | 312,213 |   |   | $ | 153,376 |   |   | $ | 258,243 |   |
| Cumulative      Gap                        |   | $                                                                                                          | (135,297 | ) |   | $ | (200,186 | ) |   | $ | (207,346 | ) |   | $ | 104,867 |   |   | $ | 258,243 |   |   | $ | 258,243 |   |
|                                       |   |                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sensitivity      Ratio                     |   |                                                                                                       | 0.73     |   |   |   | 0.61 |   |   |   | 0.95 |   |   |   | 4.15 |   |   |   | 8.53 |   |   |   | 1.27 |   |
| Cumulative      Sensitivity Ratio          |   |                                                                                                       | 0.73     |   |   |   | 0.70 |   |   |   | 0.75 |   |   |   | 1.11 |   |   |   | 1.27 |   |   |   | 1.27 |   |

----

|                                    |   | Assets/Liabilities at December 31, 2008, Maturing or Repricing in: |     |
|-----------------------------------------|--------|------------------------------------------------------------------------------------------------------------|----------|
|                                    |   | 0-6                                                                                                        |     |   | 6-12 |   |   | 1-2 |   |   | 2-5 |   |   | Over 5 |   |   |   |   |
|                                    |   | Months                                                                                                     |     |   | Months |   |   | Years |   |   | Years |   |   | Years |   |   | Total |   |
| Total      Interest Earning Assets      |   | $                                                                                                          | 374,049  |   |   | $ | 99,868 |   |   | $ | 143,782 |   |   | $ | 411,466 |   |   | $ | 173,742 |   |   | $ | 1,202,907 |   |
| Total      Interest Bearing Liabilities |   | $                                                                                                          | 719,935  |   |   | $ | 164,757 |   |   | $ | 150,942 |   |   | $ | 99,253 |   |   | $ | 20,366 |   |   | $ | 1,155,253 |   |
|                                    |   |                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gap                                     |   | $                                                                                                          | (345,886 | ) |   | $ | (64,889 | ) |   | $ | (7,160 | ) |   | $ | 312,213 |   |   | $ | 153,376 |   |   | $ | 47,654 |   |
| Cumulative      Gap                     |   | $                                                                                                          | (345,886 | ) |   | $ | (410,775 | ) |   | $ | (417,935 | ) |   | $ | (105,722 | ) |   | $ | 47,654 |   |   | $ | 47,654 |   |
|                                    |   |                                                                                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sensitivity      Ratio                  |   |                                                                                                       | 0.52     |   |   |   | 0.61 |   |   |   | 0.95 |   |   |   | 4.15 |   |   |   | 8.53 |   |   |   | 1.04 |   |
| Cumulative      Sensitivity Ratio       |   |                                                                                                       | 0.52     |   |   |   | 0.54 |   |   |   | 0.60 |   |   |   | 0.91 |   |   |   | 1.04 |   |   |   | 1.04 |   |

|                             |   | Years Ended December 31, |    |
|----------------------------------|--------|-----------------------------------------|---------|
| (Dollars in Thousands) |   | 2009                                    |    |   | 2008 |   |   | 2007 |   |
| Maturing      Within             |   |                                    |    |   |   |   |   |   |   |
| 3      Months                    |   | $                                       | 31,376  |   |   | $ | 50,991 |   |   | $ | 62,901 |   |
| 3 -      6 Months                |   |                                    | 12,039  |   |   |   | 18,888 |   |   |   | 35,370 |   |
| 6 -      12 Months               |   |                                    | 13,637  |   |   |   | 24,775 |   |   |   | 18,218 |   |
| Over      12 Months              |   |                                    | 60,507  |   |   |   | 38,595 |   |   |   | 38,830 |   |
| Total                            |   | $                                       | 117,559 |   |   | $ | 133,249 |   |   | $ | 155,319 |   |

----

|                                                                        |   | Book Value at December 31, |    |
|-----------------------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                                        |   | 2009 (a)                                  |    |   | 2008 (a) |   |   | 2007 (a) |   |   | 2006 (a) |   |   | 2005 (a) |   |
| Loans      secured by real estate:                                          |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction      and land development                                      |   | $                                              | 64,520  |   |   | $ | 98,104 |   |   | $ | 149,271 |   |   | $ | 160,566 |   |   | $ | 150,179 |   |
| Secured      by farmland (including farm residential                        |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and      other improvements)                                                |   |                                           | 10,349  |   |   |   | 10,459 |   |   |   | 9,792 |   |   |   | 10,057 |   |   |   | 9,891 |   |
| Secured      by 1-4 family residential properties                           |   |                                           | 275,557 |   |   |   | 304,834 |   |   |   | 317,327 |   |   |   | 331,775 |   |   |   | 309,061 |   |
| Secured      by multifamily (5 or more) residential properties              |   |                                           | 23,730  |   |   |   | 25,002 |   |   |   | 11,953 |   |   |   | 10,124 |   |   |   | 6,718 |   |
| Secured      by nonfarm nonresidential properties                           |   |                                           | 351,027 |   |   |   | 352,934 |   |   |   | 357,622 |   |   |   | 328,145 |   |   |   | 337,408 |   |
|                                                                        |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      to finance agricultural production and other loans to    farmers |   |                                           | 7,121   |   |   |   | 9,763 |   |   |   | 5,981 |   |   |   | 3,738 |   |   |   | 3,519 |   |
|                                                                        |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      and industrial loans to U.S. addresses (domicile)           |   |                                           | 93,865  |   |   |   | 109,337 |   |   |   | 107,156 |   |   |   | 97,512 |   |   |   | 99,220 |   |
|                                                                        |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      to individuals for household, family, and other                  |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| personal      expenditures (includes purchased paper):                      |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Credit      cards and related plans                                         |   |                                           | 362     |   |   |   | 403 |   |   |   | 374 |   |   |   | 377 |   |   |   | 393 |   |
| Other                                                                       |   |                                           | 21,873  |   |   |   | 29,728 |   |   |   | 40,620 |   |   |   | 55,510 |   |   |   | 70,853 |   |
|                                                                        |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonrated      industrial development obligations (other than                |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities)      of states and political subdivisions in the U.S.           |   |                                           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                        |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      loans:                                                           |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      for purchasing or carrying securities (secured and    unsecured) |   |                                           | -       |   |   |   | - |   |   |   | 25 |   |   |   | - |   |   |   | 73 |   |
| All      other loans                                                        |   |                                           | 575     |   |   |   | 384 |   |   |   | 707 |   |   |   | 473 |   |   |   | 1,562 |   |
| Less:      Any unearned income on loans                                     |   |                                           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                        |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      loans and leases, net of unearned income                         |   | $                                              | 848,979 |   |   | $ | 940,948 |   |   | $ | 1,000,828 |   |   | $ | 998,277 |   |   | $ | 988,877 |   |
|                                                                        |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual      loans                                                       |   | $                                              | 56,992  |   |   | $ | 47,872 |   |   | $ | 30,459 |   |   | $ | 19,152 |   |   | $ | 16,212 |   |
| Loans      90 days or more past due and accruing                            |   | $                                              | 20      |   |   | $ | 93 |   |   | $ | 102 |   |   | $ | 69 |   |   | $ | 101 |   |
| Troubled      debt restructurings                                           |   | $                                              | 29,102  |   |   | $ | 5,811 |   |   | $ | 3,367 |   |   | $ | 888 |   |   | $ | 1,813 |   |

| (a) | Loan      categories are presented net of deferred loan fees. The presentation in      Note 4 to the consolidated financial statements differs from this      schedule’s presentation by presenting the loan categories, gross, before      deferred loan fees have beensubtracted. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                             |   | Years Ended December 31, |   |
|------------------------------------------------------------------|--------|-----------------------------------------|--------|
| (Dollars in Thousands)                                 |   | 2009                                    |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Balance      Beginning of Period                                 |   | $                                       | 18,528 |   |   | $ | 20,222 |   |   | $ | 13,764 |   |   | $ | 13,625 |   |   | $ | 13,800 |   |
|                                                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      Charged Off (Domestic)                                |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,      Financial, and Agricultural                     |   |                                    | 7,093  |   |   |   | 7,591 |   |   |   | 1,052 |   |   |   | 1,600 |   |   |   | 313 |   |
| Secured      by Real Estate                                      |   |                                    | 24,266 |   |   |   | 12,036 |   |   |   | 4,284 |   |   |   | 14,910 |   |   |   | 6,800 |   |
| Loans      to Individuals                                        |   |                                    | 635    |   |   |   | 1,021 |   |   |   | 1,050 |   |   |   | 1,867 |   |   |   | 2,227 |   |
| Recoveries      (Domestic)                                       |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,      Financial, and Agricultural                     |   |                                    | 607    |   |   |   | 201 |   |   |   | 730 |   |   |   | 815 |   |   |   | 1,358 |   |
| Secured      by Real Estate                                      |   |                                    | 594    |   |   |   | 250 |   |   |   | 48 |   |   |   | 421 |   |   |   | 211 |   |
| Loans      to Individuals                                        |   |                                    | 328    |   |   |   | 503 |   |   |   | 659 |   |   |   | 805 |   |   |   | 965 |   |
| Net      Loans Charged Off                                       |   |                                    | 30,465 |   |   |   | 19,694 |   |   |   | 4,949 |   |   |   | 16,336 |   |   |   | 6,806 |   |
| Transfer      to establish reserve for unfunded loan commitments |   |                                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 275 |   |
| Provision      Charged to Operations                             |   |                                    | 36,000 |   |   |   | 18,000 |   |   |   | 11,407 |   |   |   | 16,475 |   |   |   | 6,906 |   |
| Balance      End of Period                                       |   | $                                       | 24,063 |   |   | $ | 18,528 |   |   | $ | 20,222 |   |   | $ | 13,764 |   |   | $ | 13,625 |   |
|                                                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of Net Loans Charged Off to                           |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      Total Loans Outstanding                             |   |                                    | 3.36   | % |   |   | 2.00 | % |   |   | 0.49 | % |   |   | 1.62 | % |   |   | 0.69 | % |

|                                         |   | Years Ended December 31, |   |
|----------------------------------------------|--------|-----------------------------------------|--------|
|                                         |   | 2009                                    |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                         |   | $                                       |   |   | % of loans |   |   | $ |   |   | % of loans |   |   | $ |   |   | % of loans |   |   | $ |   |   | % of loans |   |   | $ |   |   | % of loans |   |
| (Dollars in Thousands)             |   | Amount                                  |   |   | to total loans |   |   | Amount |   |   | to total loans |   |   | Amount |   |   | to total loans |   |   | Amount |   |   | to total loans |   |   | Amount |   |   | to total loans |   |
| Balance      at end of period applicable to: |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic                                     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,      Financial, and Agricultural |   | $                                       | 6,502  |   |   |   | 13.1 | % |   | $ | 3,586 |   |   |   | 13.8 | % |   | $ | 2,436 |   |   |   | 12.3 | % |   | $ | 1,524 |   |   |   | 11.1 | % |   | $ | 2,209 |   |   |   | 11.4 | % |
| Real      Estate - Construction              |   |                                    | 2,351  |   |   |   | 7.6 | % |   |   | 2,915 |   |   |   | 10.4 | % |   |   | 3,610 |   |   |   | 14.9 | % |   |   | 2,181 |   |   |   | 16.1 | % |   |   | 1,959 |   |   |   | 15.2 | % |
| Real      Estate - Mortgage                  |   |                                    | 14,888 |   |   |   | 76.6 | % |   |   | 11,673 |   |   |   | 72.6 | % |   |   | 13,618 |   |   |   | 68.7 | % |   |   | 9,056 |   |   |   | 67.1 | % |   |   | 8,504 |   |   |   | 66.0 | % |
| Loans      to Individuals                    |   |                                    | 322    |   |   |   | 2.7 | % |   |   | 354 |   |   |   | 3.2 | % |   |   | 558 |   |   |   | 4.1 | % |   |   | 1,003 |   |   |   | 5.7 | % |   |   | 953 |   |   |   | 7.4 | % |
| Foreign                                      |   |                                    | -      |   |   |   | 0.0 | % |   |   | - |   |   |   | 0.0 | % |   |   | - |   |   |   | 0.0 | % |   |   | - |   |   |   | 0.0 | % |   |   | - |   |   |   | 0.0 | % |
| Total                                        |   | $                                       | 24,063 |   |   |   | 100.0 | % |   | $ | 18,528 |   |   |   | 100.0 | % |   | $ | 20,222 |   |   |   | 100.0 | % |   | $ | 13,764 |   |   |   | 100.0 | % |   | $ | 13,625 |   |   |   | 100.0 | % |

----

|                                 |   | Payment Due by Period |    |
|--------------------------------------|--------|--------------------------------------|---------|
|                                 |   |                                 |    |   | Less than |   |   | 1 - 3 |   |   | 3 - 5 |   |   | Over 5 |   |
| (Dollars in Thousands)     |   | Total                                |    |   | 1 year |   |   | Years |   |   | Years |   |   | Years |   |
| Long      Term Debt Obligations      |   | $                                    | 258,500 |   |   | $ | 115,000 |   |   | $ | 21,500 |   |   | $ | 107,000 |   |   | $ | 15,000 |   |
| Operating      Lease Obligations     |   |                                 | 706     |   |   |   | 266 |   |   |   | 331 |   |   |   | 91 |   |   |   | 18 |   |
| Salary      Continuation Obligations |   |                                 | 1,045   |   |   |   | 58 |   |   |   | 116 |   |   |   | 116 |   |   |   | 755 |   |
| Total      Contractual Obligations   |   | $                                    | 260,251 |   |   | $ | 115,324 |   |   | $ | 21,947 |   |   | $ | 107,207 |   |   | $ | 15,773 |   |

|                                     |   | Base       |   |   | Rates      |   |   | Rates      |   |   | Rates      |   |   | Rates        |   |   | Rates        |   |   | Rates        |   |
|------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|
| (Dollars in Thousands)         |   | Projection |   |   | Up 1% |   |   | Up 2% |   |   | Up 3% |   |   | Down 1% |   |   | Down 2% |   |   | Down 3% |   |
| Year-End      2009 12 Month Projection   |   |       |   |   |       |   |   |       |   |   |       |   |   |         |   |   |         |   |   |         |   |
| Interest      Income                     |   | $          | 63,190 |   |       | $      | 64,713 |       |   | $      | 66,324     |   |   | $            | 68,025 |   |         | $      | 62,290 |         |   | $ | 60,970 |   |   | $ | 59,610 |   |
| Interest      Expense                    |   |       | 23,254 |   |       |   | 23,998 |       |   |   | 24,749     |   |   |         | 25,494 |   |         |   | 23,027 |         |   |   | 22,970 |   |   |   | 22,939 |   |
| Net      Interest Income                 |   | $          | 39,936 |   |       | $      | 40,715 |       |   | $      | 41,575     |   |   | $            | 42,531 |   |         | $      | 39,263 |         |   | $ | 38,000 |   |   | $ | 36,671 |   |
|                                     |   |       |   |   |       |   |   |       |   |   |       |   |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Percent      Change From Base Projection |   |       |   | 2.0    | %          |   |   | 4.1        | %      |   |       | 6.5    | %      |         |   | -1.7   | %            |   |   | -4.8         | %      |   |   | -8.2 | % |
| ALCO      Policy Limit (+/-)             |   |       |   |   |       |   | 5.0    | %          |   |   | 7.5        | %      |   |         | 10.0   | %      |         |   | 5.0    | %            |   |   | 7.5 | % |   |   | 10.0 | % |

----

|                                     |   | Base       |   |   | Rates      |   |   | Rates      |   |   | Rates      |   |   | Rates        |   |   | Rates        |   |   | Rates        |   |
|------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|
| (Dollars in Thousands)         |   | Projection |   |   | Up 1% |   |   | Up 2% |   |   | Up 3% |   |   | Down 1% |   |   | Down 2% |   |   | Down 3% |   |
| Year-End      2008 12 Month Projection   |   |       |   |   |       |   |   |       |   |   |       |   |   |         |   |   |         |   |   |         |   |
| Interest      Income                     |   | $          | 72,293 |   |       | $      | 74,504 |       |   | $      | 76,370     |   |   | $            | 78,165 |   |         | $      | 69,766 |         |   | $ | 67,637 |   |   | $ | 65,852 |   |
| Interest      Expense                    |   |       | 33,558 |   |       |   | 34,686 |       |   |   | 35,815     |   |   |         | 36,937 |   |         |   | 32,647 |         |   |   | 32,053 |   |   |   | 31,831 |   |
| Net      Interest Income                 |   | $          | 38,735 |   |       | $      | 39,818 |       |   | $      | 40,555     |   |   | $            | 41,228 |   |         | $      | 37,119 |         |   | $ | 35,584 |   |   | $ | 34,021 |   |
|                                     |   |       |   |   |       |   |   |       |   |   |       |   |   |         |   |   |         |   |   |         |   |   |   |   |   |   |   |   |
| Percent      Change From Base Projection |   |       |   | 2.8    | %          |   |   | 4.7        | %      |   |       | 6.4    | %      |         |   | -4.2   | %            |   |   | -8.1         | %      |   |   | -12.2 | % |
| ALCO      Policy Limit (+/-)             |   |       |   |   |       |   | 5.0    | %          |   |   | 7.5        | %      |   |         | 10.0   | %      |         |   | 5.0    | %            |   |   | 7.5 | % |   |   | 10.0 | % |

|                         |   | Fair Value at December 31,    2009 |      |
|------------------------------|--------|------------------------------------|-----------|
|                         |   | Rates                              |      |   |   |   |   |   |   |
| (Dollars      in Thousands)  |   | Base                               |      |   | Up      1% |   |   | Up      2% |   |   | Up      3% |   |   | Down      1% |   |   | Down      2% |   |   | Down      3% |   |
| Assets                       |   | $                                  | 1,421,690 |   |   | $ | 1,388,363 |   |   | $ | 1,353,971 |   |   | $ | 1,320,578 |   |   | $ | 1,438,463 |   |   | $ | 1,452,525 |   |   | $ | 1,468,502 |   |
| Liabilities                  |   |                               | 1,278,267 |   |   |   | 1,253,907 |   |   |   | 1,230,323 |   |   |   | 1,207,479 |   |   |   | 1,300,295 |   |   |   | 1,319,326 |   |   |   | 1,328,814 |   |
| Stockholders'      Equity    |   | $                                  | 143,423   |   |   | $ | 134,456 |   |   | $ | 123,648 |   |   | $ | 113,099 |   |   | $ | 138,168 |   |   | $ | 133,199 |   |   | $ | 139,688 |   |
|                         |   |                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in Equity        |   |                               |      |   |   |   | -6.3 | % |   |   | -13.8 | % |   |   | -21.1 | % |   |   | -3.7 | % |   |   | -7.1 | % |   |   | -2.6 | % |
| ALCO      Policy Limit (+/-) |   |                               |      |   |   |   | 10.0 | % |   |   | 20.0 | % |   |   | 30.0 | % |   |   | 10.0 | % |   |   | 20.0 | % |   |   | 30.0 | % |

|                         |   | Fair Value at December 31,    2008 |      |
|------------------------------|--------|------------------------------------|-----------|
|                         |   | Rates                              |      |   |   |   |   |   |   |
| (Dollars      in Thousands)  |   | Base                               |      |   | Up      1% |   |   | Up      2% |   |   | Up      3% |   |   | Down      1% |   |   | Down      2% |   |   | Down      3% |   |
| Assets                       |   | $                                  | 1,648,577 |   |   | $ | 1,622,272 |   |   | $ | 1,583,495 |   |   | $ | 1,542,477 |   |   | $ | 1,665,144 |   |   | $ | 1,682,319 |   |   | $ | 1,686,270 |   |
| Liabilities                  |   |                               | 1,462,001 |   |   |   | 1,433,144 |   |   |   | 1,405,320 |   |   |   | 1,378,475 |   |   |   | 1,490,965 |   |   |   | 1,509,692 |   |   |   | 1,510,395 |   |
| Stockholders'      Equity    |   | $                                  | 186,576   |   |   | $ | 189,128 |   |   | $ | 178,175 |   |   | $ | 164,002 |   |   | $ | 174,179 |   |   | $ | 172,627 |   |   | $ | 175,875 |   |
|                         |   |                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in Equity        |   |                               |      |   |   |   | 1.4 | % |   |   | -4.5 | % |   |   | -12.1 | % |   |   | -6.6 | % |   |   | -7.5 | % |   |   | -5.7 | % |
| ALCO      Policy Limit (+/-) |   |                               |      |   |   |   | 10.0 | % |   |   | 20.0 | % |   |   | 30.0 | % |   |   | 10.0 | % |   |   | 20.0 | % |   |   | 30.0 | % |

----

----

----

----

----

|                                                           |   | December      31, |      |
|----------------------------------------------------------------|--------|-------------------|-----------|
| Dollars      in thousands                                      |   | 2009              |      |   | 2008 |   |
|                                                           |   |              |      |   |   |   |
| Assets                                                         |   |              |      |   |   |   |
| Cash      and Cash Equivalents (Note 2)                        |   |              |      |   |   |   |
| Cash      and due from banks                                   |   |              |      |   |   |   |
| Non-interest      bearing                                      |   | $                 | 18,448    |   |   | $ | 24,463 |   |
| Interest      bearing                                          |   |              | 51,298    |   |   |   | 26,323 |   |
| Total      cash and cash equivalents                           |   |              | 69,746    |   |   |   | 50,786 |   |
|                                                           |   |              |      |   |   |   |   |   |
| Securities      - Held to Maturity (Note 3)                    |   |              | 36,433    |   |   |   | 46,840 |   |
| Securities      - Available for Sale (Note 3)                  |   |              | 307,346   |   |   |   | 406,117 |   |
| Federal      Home Loan Bank stock - at cost                    |   |              | 13,086    |   |   |   | 13,086 |   |
| Loans      held for sale                                       |   |              | 931       |   |   |   | 784 |   |
| Loans      - Net (Notes 4 and 5)                               |   |              | 824,916   |   |   |   | 922,420 |   |
| Accrued      interest receivable and other assets (Note 12)    |   |              | 50,580    |   |   |   | 43,973 |   |
| Bank      Owned Life Insurance (Note 9)                        |   |              | 47,953    |   |   |   | 45,488 |   |
| Premises      and Equipment - Net (Note 6)                     |   |              | 32,378    |   |   |   | 32,907 |   |
| Total      assets                                              |   | $                 | 1,383,369 |   |   | $ | 1,562,401 |   |
|                                                           |   |              |      |   |   |   |   |   |
| Liabilities                                                    |   |              |      |   |   |   |   |   |
| Deposits:                                                      |   |              |      |   |   |   |   |   |
| Non-interest      bearing                                      |   | $                 | 135,038   |   |   | $ | 144,585 |   |
| Interest-bearing      (Note 7)                                 |   |              | 896,753   |   |   |   | 991,493 |   |
| Total      deposits                                            |   |              | 1,031,791 |   |   |   | 1,136,078 |   |
|                                                           |   |              |      |   |   |   |   |   |
| Federal      Home Loan Bank advances (Note 8)                  |   |              | 228,500   |   |   |   | 261,500 |   |
| Securities      sold under repurchase agreements (Note 8)      |   |              | 30,000    |   |   |   | 30,000 |   |
| Interest      payable and other liabilities (Note 9)           |   |              | 11,314    |   |   |   | 13,846 |   |
| Total      liabilities                                         |   |              | 1,301,605 |   |   |   | 1,441,424 |   |
|                                                           |   |              |      |   |   |   |   |   |
| Stockholders' Equity      (Notes 10, 13 and 15)                |   |              |      |   |   |   |   |   |
| Common      stock (no par value; 30,000,000 shares authorized, |   |              |      |   |   |   |   |   |
| 16,210,110      and 16,148,482 shares issued and outstanding)  |   |              | 593       |   |   |   | 321 |   |
| Retained      Earnings                                         |   |              | 88,396    |   |   |   | 122,896 |   |
| Accumulated      other comprehensive loss                      |   |              | (7,225    | ) |   |   | (2,240 | ) |
| Total      stockholders' equity                                |   |              | 81,764    |   |   |   | 120,977 |   |
| Total      liabilities and stockholders' equity                |   | $                 | 1,383,369 |   |   | $ | 1,562,401 |   |

----

----

|                                                                                  |   | Years Ended December 31, |    |
|---------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
| Dollars in thousands                                                        |   | 2009                                    |    |   | 2008 |   |   | 2007 |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |
| Interest      Income                                                                  |   |                                    |    |   |   |   |   |   |   |
| Interest      and fees on loans                                                       |   | $                                       | 52,909  |   |   | $ | 62,472 |   |   | $ | 71,245 |   |
| Interest      on investment securities-                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Tax-exempt                                                                            |   |                                    | 3,358   |   |   |   | 3,390 |   |   |   | 3,177 |   |
| Taxable                                                                               |   |                                    | 14,648  |   |   |   | 18,976 |   |   |   | 18,976 |   |
| Interest      on balances due from banks                                              |   |                                    | 89      |   |   |   | 29 |   |   |   | 9 |   |
| Interest      on federal funds sold                                                   |   |                                    | -       |   |   |   | 36 |   |   |   | 144 |   |
| Total      interest income                                                            |   |                                    | 71,004  |   |   |   | 84,903 |   |   |   | 93,551 |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Interest      Expense                                                                 |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Interest      on deposits (Note 7)                                                    |   |                                    | 17,986  |   |   |   | 26,835 |   |   |   | 32,422 |   |
| Interest      on borrowed funds                                                       |   |                                    | 12,003  |   |   |   | 15,679 |   |   |   | 18,360 |   |
| Total      interest expense                                                           |   |                                    | 29,989  |   |   |   | 42,514 |   |   |   | 50,782 |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Net      Interest Income                                                              |   |                                    | 41,015  |   |   |   | 42,389 |   |   |   | 42,769 |   |
| Provision For Loan      Losses (Note      5)                                     |   |                                    | 36,000  |   |   |   | 18,000 |   |   |   | 11,407 |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Net      Interest Income After                                                        |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Provision      For Loan Losses                                                        |   |                                    | 5,015   |   |   |   | 24,389 |   |   |   | 31,362 |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Other      Income                                                                     |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Wealth      management income                                                         |   |                                    | 3,762   |   |   |   | 4,329 |   |   |   | 4,577 |   |
| Service      charges and other fees                                                   |   |                                    | 5,788   |   |   |   | 6,371 |   |   |   | 6,301 |   |
| Net      gain (loss) on sales of securities                                           |   |                                    | 7,421   |   |   |   | 422 |   |   |   | (80 | ) |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Other      Than Temporary Impairment losses on securities                             |   |                                    | (14,952 | ) |   |   | - |   |   |   | - |   |
| Non      credit related losses on securities not expected to be sold      (recognized |   |                                    |    |   |   |   |   |   |   |   |   |   |
| in      other comprehensive income)                                                   |   |                                    | 3,191   |   |   |   | - |   |   |   | - |   |
| Net      impairment losses                                                            |   |                                    | (11,761 | ) |   |   | - |   |   |   | - |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Origination      fees on mortgage loans sold                                          |   |                                    | 473     |   |   |   | 426 |   |   |   | 690 |   |
| Bank      owned life insurance income                                                 |   |                                    | 1,493   |   |   |   | 1,390 |   |   |   | 1,294 |   |
| Other                                                                                 |   |                                    | 3,304   |   |   |   | 3,047 |   |   |   | 2,852 |   |
| Total      other income                                                               |   |                                    | 10,480  |   |   |   | 15,985 |   |   |   | 15,634 |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Other      Expenses                                                                   |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits (Notes 9 and 15)                                  |   |                                    | 20,740  |   |   |   | 20,614 |   |   |   | 21,367 |   |
| Occupancy      expense (Note 6)                                                       |   |                                    | 3,260   |   |   |   | 3,591 |   |   |   | 3,466 |   |
| Equipment      expense                                                                |   |                                    | 3,069   |   |   |   | 3,290 |   |   |   | 3,261 |   |
| Marketing      expense                                                                |   |                                    | 1,034   |   |   |   | 1,253 |   |   |   | 1,455 |   |
| Professional      fees                                                                |   |                                    | 1,563   |   |   |   | 1,635 |   |   |   | 1,508 |   |
| Collection      expense                                                               |   |                                    | 750     |   |   |   | 601 |   |   |   | 234 |   |
| Net      loss on other real estate owned                                              |   |                                    | 10,533  |   |   |   | 2,737 |   |   |   | 822 |   |
| Other      real estate owned expense                                                  |   |                                    | 1,437   |   |   |   | 1,380 |   |   |   | 459 |   |
| FDIC      deposit insurance assessment                                                |   |                                    | 2,876   |   |   |   | 619 |   |   |   | 130 |   |
| Other                                                                                 |   |                                    | 4,512   |   |   |   | 4,279 |   |   |   | 4,532 |   |
| Total      other expenses                                                             |   |                                    | 49,774  |   |   |   | 39,999 |   |   |   | 37,234 |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Income      (Loss) Before Provision For Income Taxes                                  |   |                                    | (34,279 | ) |   |   | 375 |   |   |   | 9,762 |   |
| Provision For (Benefit From)      Income Taxes (Note 12)                              |   |                                    | (102    | ) |   |   | (1,317 | ) |   |   | 2,049 |   |
| Net      Income (Loss)                                                                |   | $                                       | (34,177 | ) |   | $ | 1,692 |   |   | $ | 7,713 |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Basic      Earnings (Loss) Per Common Share (Note 14)                                 |   | $                                       | (2.11   | ) |   | $ | 0.10 |   |   | $ | 0.47 |   |
|                                                                                  |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Diluted      Earnings (Loss) Per Common Share (Note 14)                               |   | $                                       | (2.11   | ) |   | $ | 0.10 |   |   | $ | 0.47 |   |

----

----

|                                                    |   |   |   |   |     |   |    | Accumulated        |   |   |   |   |
|---------------------------------------------------------|--------|--------|--------|--------|----------|--------|---------|--------------------|--------|--------|--------|--------|
|                                                    |   |   |   |   |     |   |    | Other              |   |   |   |   |
|                                                    |   | Common |   |   | Retained |   |    | Comprehensive      |   |   |   |   |
| Dollars in thousands                          |   | Stock  |   |   | Earnings |   |    | Income (Loss) |   |   | Total  |   |
| Balance      - January 1, 2007                          |   | $      | 6,979  |   |     | $      | 134,162 |               |   | $      | (5,079 | )      |   | $ | 136,062 |   |
|                                                    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Repurchase      of Common Stock (599,362 shares)        |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| (Note      10)                                          |   |   | (7,506 | )      |     |   | (203    | )                  |   |   | -      |   |   |   | (7,709 | ) |
| Issuance      of Common Stock (10,399 shares)           |   |   | 127    |   |     |   | -       |               |   |   | -      |   |   |   | 127 |   |
| Equity      Compensation                                |   |   | 400    |   |     |   | -       |               |   |   | -      |   |   |   | 400 |   |
| Dividends      declared ($0.72 per share)               |   |   | -      |   |     |   | (11,755 | )                  |   |   | -      |   |   |   | (11,755 | ) |
|                                                    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Comprehensive      income:                              |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Net      income                                         |   |   | -      |   |     |   | 7,713   |               |   |   | -      |   |   |   | 7,713 |   |
| Change      in net unrealized loss on securities        |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| available      for sale - Net of tax effect of $(1,217) |   |   | -      |   |     |   | -       |               |   |   | 2,260  |   |   |   | 2,260 |   |
| Reclassification      adjustment for gains included     |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| in      net income - Net of tax effect of $(28)         |   |   | -      |   |     |   | -       |               |   |   | 52     |   |   |   | 52 |   |
| Change      in postretirement liability - Net of tax    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| effect      of $(160)                                   |   |   | -      |   |     |   | -       |               |   |   | 297    |   |   |   | 297 |   |
| Total      Comprehensive Income                         |   |   |   |   |     |   |    |               |   |   |   |   |   |   | 10,322 |   |
|                                                    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Balance      - December 31, 2007                        |   | $      | -      |   |     | $      | 129,917 |               |   | $      | (2,470 | )      |   | $ | 127,447 |   |
|                                                    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Issuance      of Common Stock (23,485 shares)           |   |   | 131    |   |     |   | -       |               |   |   | -      |   |   |   | 131 |   |
| Equity      Compensation                                |   |   | 190    |   |     |   | -       |               |   |   | -      |   |   |   | 190 |   |
| Dividends      declared ($0.54 per share)               |   |   | -      |   |     |   | (8,713  | )                  |   |   | -      |   |   |   | (8,713 | ) |
|                                                    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Comprehensive      income:                              |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Net      income                                         |   |   | -      |   |     |   | 1,692   |               |   |   | -      |   |   |   | 1,692 |   |
| Change      in net unrealized loss on securities        |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| available      for sale - Net of tax effect of $(168)   |   |   | -      |   |     |   | -       |               |   |   | 312    |   |   |   | 312 |   |
| Reclassification      adjustment for losses included    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| in      net income - Net of tax effect of $148          |   |   | -      |   |     |   | -       |               |   |   | (274   | )      |   |   | (274 | ) |
| Change      in postretirement liability - Net of tax    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| effect      of $(103)                                   |   |   | -      |   |     |   | -       |               |   |   | 192    |   |   |   | 192 |   |
| Total      Comprehensive Income                         |   |   |   |   |     |   |    |               |   |   |   |   |   |   | 1,922 |   |
|                                                    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Balance      - December 31, 2008                        |   | $      | 321    |   |     | $      | 122,896 |               |   | $      | (2,240 | )      |   | $ | 120,977 |   |
|                                                    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Issuance      of Common Stock (61,628 shares)           |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Restricted      stock awards (15,000 shares)            |   |   | 45     |   |     |   | -       |               |   |   | -      |   |   |   | 45 |   |
| Other      stock issued (46,628 shares)                 |   |   | 102    |   |     |   | -       |               |   |   | -      |   |   |   | 102 |   |
| Equity      compensation                                |   |   | 125    |   |     |   | -       |               |   |   | -      |   |   |   | 125 |   |
| Dividends      declared ($0.02 per share)               |   |   | -      |   |     |   | (323    | )                  |   |   | -      |   |   |   | (323 | ) |
|                                                    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Comprehensive      income:                              |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Net      loss                                           |   |   | -      |   |     |   | (34,177 | )                  |   |   | -      |   |   |   | (34,177 | ) |
| Change      in net unrealized loss on securities        |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| available      for sale - Net of tax effect of $4,437   |   |   | -      |   |     |   | -       |               |   |   | (8,240 | )      |   |   | (8,240 | ) |
| Reclassification      adjustment for losses included    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| in      net income - Net of tax effect of $(1,519)      |   |   | -      |   |     |   | -       |               |   |   | 2,821  |   |   |   | 2,821 |   |
| Change      in postretirement liability - Net of tax    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| effect      of $(234)                                   |   |   | -      |   |     |   | -       |               |   |   | 434    |   |   |   | 434 |   |
| Total      Comprehensive Income                         |   |   |   |   |     |   |    |               |   |   |   |   |   |   | (39,162 | ) |
|                                                    |   |   |   |   |     |   |    |               |   |   |   |   |   |   |   |   |
| Balance      - December 31, 2009                        |   | $      | 593    |   |     | $      | 88,396  |               |   | $      | (7,225 | )      |   | $ | 81,764 |   |

----

----

|                                                                                           |   | Years Ended December 31, |     |
|------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------|
| Dollars in thousands                                                                 |   | 2009                                    |     |   | 2008 |   |   | 2007 |   |
|                                                                                           |   |                                    |     |   |   |   |   |   |   |
| Cash      Flows from Operating Activities                                                      |   |                                    |     |   |   |   |   |   |   |
| Net      Income (Loss)                                                                         |   | $                                       | (34,177  | ) |   | $ | 1,692 |   |   | $ | 7,713 |   |
| Adjustments      to reconcile net income (loss) to net cash from operating      activities     |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Provision      for loan losses                                                                 |   |                                    | 36,000   |   |   |   | 18,000 |   |   |   | 11,407 |   |
| Depreciation                                                                                   |   |                                    | 2,228    |   |   |   | 2,586 |   |   |   | 2,686 |   |
| (Increase)      decrease in net deferred federal income tax asset                              |   |                                    | 7,087    |   |   |   | (1,394 | ) |   |   | (1,836 | ) |
| Net      (accretion) amortization of investment premium anddiscount                            |   |                                    | 555      |   |   |   | (94 | ) |   |   | (418 | ) |
| Writedowns      on other real estate owned                                                     |   |                                    | 7,917    |   |   |   | 2,545 |   |   |   | 643 |   |
| Net      increase (decrease) in interest payable and other    liabilities                      |   |                                    | (1,863   | ) |   |   | (439 | ) |   |   | 336 |   |
| Net      increase in interest receivable and other assets                                      |   |                                    | (26,101  | ) |   |   | (11,742 | ) |   |   | (11,507 | ) |
| Equity      based compensation expense                                                         |   |                                    | 125      |   |   |   | 190 |   |   |   | 400 |   |
| Net      (gain) loss on sales of securities                                                    |   |                                    | (7,421   | ) |   |   | (422 | ) |   |   | 80 |   |
| Other      Than Temporary Impairment of investment securities                                  |   |                                    | 11,761   |   |   |   | - |   |   |   | - |   |
| Increase      in cash surrender value of life insurance                                        |   |                                    | (1,593   | ) |   |   | (1,390 | ) |   |   | (1,294 | ) |
| Net      cash provided by (used for) operating activities                                      |   | $                                       | (5,482   | ) |   | $ | 9,532 |   |   | $ | 8,210 |   |
|                                                                                           |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Cash      Flows from Investing Activities                                                      |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Proceeds      from maturities and redemptions of investment securities held to      maturity   |   | $                                       | 31,583   |   |   | $ | 12,613 |   |   | $ | 25,790 |   |
| Proceeds      from maturities and redemptions of investment securities available for      sale |   |                                    | 150,050  |   |   |   | 207,676 |   |   |   | 64,635 |   |
| Proceeds      from sales of investment securities available for sale                           |   |                                    | 289,274  |   |   |   | 65,762 |   |   |   | 77,691 |   |
| Net      (increase) decrease in loans                                                          |   |                                    | 61,357   |   |   |   | 40,833 |   |   |   | (8,210 | ) |
| Proceeds      from sales of other real estate owned                                            |   |                                    | 8,211    |   |   |   | 4,133 |   |   |   | 2,988 |   |
| Proceeds      from sales of other assets                                                       |   |                                    | 215      |   |   |   | 187 |   |   |   | 94 |   |
| Purchase      of investment securities held to maturity                                        |   |                                    | (21,170  | ) |   |   | (14,715 | ) |   |   | (5,607 | ) |
| Purchase      of bank owned life insurance                                                     |   |                                    | (1,439   | ) |   |   | (1,589 | ) |   |   | (1,584 | ) |
| Proceeds      from surrender of bank owned life insurance                                      |   |                                    | 568      |   |   |   | - |   |   |   | - |   |
| Purchase      of investment securities available for sale                                      |   |                                    | (353,471 | ) |   |   | (298,747 | ) |   |   | (144,561 | ) |
| Purchase      of bank premises and equipment                                                   |   |                                    | (1,819   | ) |   |   | (2,779 | ) |   |   | (1,516 | ) |
| Net      cash provided by investing activities                                                 |   | $                                       | 163,359  |   |   | $ | 13,374 |   |   | $ | 9,720 |   |
|                                                                                           |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Cash      Flows from Financing Activities                                                      |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in deposits                                                       |   | $                                       | (104,287 | ) |   | $ | 26,098 |   |   | $ | (6,077 | ) |
| Net      increase (decrease) in short term borrowings                                          |   |                                    | -        |   |   |   | (13,300 | ) |   |   | 9,800 |   |
| Net      increase in Federal Home Loan Bank borrowings                                         |   |                                    | -        |   |   |   | 5,000 |   |   |   | - |   |
| Net      decrease in Federal Home Loan Bank borrowings                                         |   |                                    | (33,000  | ) |   |   | - |   |   |   | - |   |
| Net      decrease in securities sold under repurchase agreements                               |   |                                    | -        |   |   |   | (5,000 | ) |   |   | (5,000 | ) |
| Issuance      of common stock                                                                  |   |                                    | 147      |   |   |   | 131 |   |   |   | 127 |   |
| Repurchase      of common stock                                                                |   |                                    | -        |   |   |   | - |   |   |   | (7,709 | ) |
| Dividends      paid                                                                            |   |                                    | (1,777   | ) |   |   | (10,162 | ) |   |   | (11,861 | ) |
| Net      cash provided by (used for) financing activities                                      |   | $                                       | (138,917 | ) |   | $ | 2,767 |   |   | $ | (20,720 | ) |
|                                                                                           |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents                                      |   | $                                       | 18,960   |   |   | $ | 25,673 |   |   | $ | (2,790 | ) |
|                                                                                           |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents at      Beginning of Year (Note 1)                                   |   |                                    | 50,786   |   |   |   | 25,113 |   |   |   | 27,903 |   |
| Cash and Cash Equivalents at      End of Year (Note 1)                                         |   | $                                       | 69,746   |   |   | $ | 50,786 |   |   | $ | 25,113 |   |
|                                                                                           |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Supplemental      Cash Flow Information                                                        |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Cash      paid for interest                                                                    |   | $                                       | 30,829   |   |   | $ | 42,336 |   |   | $ | 50,964 |   |
| Cash      paid for federal income taxes                                                        |   | $                                       | 240      |   |   | $ | 1,459 |   |   | $ | 5,600 |   |
|                                                                                           |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Supplemental      Schedule of Non Cash Investing Activities                                    |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Transfer      of loans to other real estate owned                                              |   | $                                       | 18,296   |   |   | $ | 13,306 |   |   | $ | 11,919 |   |
| Transfer      of loans to other assets                                                         |   | $                                       | 264      |   |   | $ | 393 |   |   | $ | 1,939 |   |

----

----

----

----

| Dollars in thousands                                         |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Unrealized      gains (losses) on securities available for sale        |   | $      | (13,014 | )      |   | $      | 85     |   |   | $ | (474 | ) |
| Reclassification      adjustment for losses (gains) realized in income |   |   | 4,340   |   |   |   | (422   | )      |   |   | 80 |   |
| Net      unrealized gains (losses)                                     |   | $      | (8,674  | )      |   | $      | (337   | )      |   | $ | (394 | ) |
| Post      retirement benefit obligations                               |   |   | (2,441  | )      |   |   | (3,109 | )      |   |   | (3,405 | ) |
| Tax      effect                                                        |   |   | 3,890   |   |   |   | 1,206  |   |   |   | 1,329 |   |
| Accumulated      other comprehensive income (loss)                     |   | $      | (7,225  | )      |   | $      | (2,240 | )      |   | $ | (2,470 | ) |

|   | Level      1 – inputs to the valuation methodology are quoted prices (unadjusted) for      identical assets or liabilities in active markets. The Corporation’s U.S.      government agency securities, government sponsored mortgage backed      securities, and mutual fund investments where quoted prices are available      in an active market generally are classified within Level 1 of the fair      value hierarchy. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      2 – Inputs to the valuation methodology include quoted prices for similar      assets and liabilities in active markets and inputs that are observable      for the asset or liability, either directly or indirectly, for      substantially the full term of the financial instrument. The Corporation’s      borrowed funds and investments in obligations of states and political      subdivisions are generally classified in Level 2 of the fair value      hierarchy. Fair values for these instruments are estimated using pricing      models, quoted prices of securities with similar characteristics, or      discounted cash flows. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      3 – Inputs to the valuation methodology are unobservable and significant      to the fair value measurement.  Private equity investments and      trust preferred collateralized debt obligations are classified within      Level 3 of the fair value hierarchy. Fair values are initially valued      based on transaction price and are adjusted to reflect exit      values. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|                                     |   | Held to Maturity  |   |
|------------------------------------------|--------|-----------------------------|--------|
|                                     |   | December 31, 2009 |   |
|                                     |   |                        |   |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                     |   | Amortized                   |   |   | Unrealized |   |   | Unrealized |   |   | Market |   |
|                                     |   | Cost                        |   |   | Gains |   |   | Losses |   |   | Value |   |
| Obligations      of U.S. Government      |   |                        |   |   |   |   |   |   |   |   |   |   |
| Agencies                                 |   | $                           | 6      |   |   | $ | - |   |   | $ | - |   |   | $ | 6 |   |
| Obligations      of States and Political |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subdivisions                             |   |                        | 36,427 |   |   |   | 336 |   |   |   | (352 | ) |   |   | 36,411 |   |
|                                |   | $                           | 36,433 |   |   | $ | 336 |   |   | $ | (352 | ) |   | $ | 36,417 |   |

|                                     |   | Available for Sale |    |
|------------------------------------------|--------|------------------------------|---------|
|                                     |   | December 31, 2009  |    |
|                                     |   |                         |    |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                     |   | Amortized                    |    |   | Unrealized |   |   | Unrealized |   |   | Market |   |
|                           |   | Cost                         |    |   | Gains |   |   | Losses |   |   | Value |   |
| Obligations      of U.S. Government      |   |                         |    |   |   |   |   |   |   |   |   |   |
| Agencies                                 |   | $                            | 256,483 |   |   | $ | 602 |   |   | $ | (2,457 | ) |   | $ | 254,628 |   |
| Obligations      of States and Political |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subdivisions                             |   |                         | 35,117  |   |   |   | 667 |   |   |   | (147 | ) |   |   | 35,637 |   |
| Trust      Preferred CDO Securities      |   |                         | 13,485  |   |   |   | - |   |   |   | (6,270 | ) |   |   | 7,215 |   |
| Corporate      Debt Securities           |   |                         | 8,383   |   |   |   | - |   |   |   | (874 | ) |   |   | 7,509 |   |
| Other      Securities                    |   |                         | 2,553   |   |   |   | 74 |   |   |   | (270 | ) |   |   | 2,357 |   |
|                                |   | $                            | 316,021 |   |   | $ | 1,343 |   |   | $ | (10,018 | ) |   | $ | 307,346 |   |

|                                     |   | Held to Maturity  |   |
|------------------------------------------|--------|-----------------------------|--------|
|                                     |   | December 31, 2008 |   |
|                                     |   |                        |   |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                     |   | Amortized                   |   |   | Unrealized |   |   | Unrealized |   |   | Market |   |
|                                     |   | Cost                        |   |   | Gains |   |   | Losses |   |   | Value |   |
| Obligations      of U.S. Government      |   |                        |   |   |   |   |   |   |   |   |   |   |
| Agencies                                 |   | $                           | 7      |   |   | $ | - |   |   | $ | - |   |   | $ | 7 |   |
| Obligations      of States and Political |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subdivisions                             |   |                        | 46,833 |   |   |   | 214 |   |   |   | (1,011 | ) |   |   | 46,036 |   |
|                                |   | $                           | 46,840 |   |   | $ | 214 |   |   | $ | (1,011 | ) |   | $ | 46,043 |   |

|                                     |   | Available for Sale |    |
|------------------------------------------|--------|------------------------------|---------|
|                                     |   | December 31, 2008  |    |
|                                     |   |                         |    |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                     |   | Amortized                    |    |   | Unrealized |   |   | Unrealized |   |   | Market |   |
|                           |   | Cost                         |    |   | Gains |   |   | Losses |   |   | Value |   |
| Obligations      of U.S. Government      |   |                         |    |   |   |   |   |   |   |   |   |   |
| Agencies                                 |   | $                            | 322,767 |   |   | $ | 6,915 |   |   | $ | (11 | ) |   | $ | 329,671 |   |
| Obligations      of States and Political |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subdivisions                             |   |                         | 40,999  |   |   |   | 541 |   |   |   | (426 | ) |   |   | 41,114 |   |
| Trust      Preferred CDO Securities      |   |                         | 25,132  |   |   |   | - |   |   |   | (5,761 | ) |   |   | 19,371 |   |
| Corporate      Debt Securities           |   |                         | 15,170  |   |   |   | - |   |   |   | (1,654 | ) |   |   | 13,516 |   |
| Other      Securities                    |   |                         | 2,386   |   |   |   | 59 |   |   |   | - |   |   |   | 2,445 |   |
|                                |   | $                            | 406,454 |   |   | $ | 7,515 |   |   | $ | (7,852 | ) |   | $ | 406,117 |   |

----

|                                    |   | Held      to Maturity |   |   | Available      for Sale |   |
|-----------------------------------------|--------|-----------------------|--------|--------|-------------------------|--------|
|                                    |   |                  |   |   | Estimated               |   |   | Weighted |   |   |   |   |   | Estimated |   |   | Weighted |   |
|                                    |   | Amortized             |   |   | Market                  |   |   | Average |   |   | Amortized |   |   | Market |   |   | Average |   |
|                                    |   | Cost                  |   |   | Value                   |   |   | Yield |   |   | Cost |   |   | Value |   |   | Yield |   |
| Maturing      within                    |   |                  |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1      year                             |   | $                     | 9,313  |   |                    | $      | 9,337 |   |   |   | 3.68 | % |   | $ | 637 |   |   | $ | 642 |   |   |   | 3.64 | % |
| 1      to 5 years                       |   |                  | 13,201 |   |                    |   | 13,428 |   |   |   | 4.57 | % |   |   | 27,897 |   |   |   | 28,258 |   |   |   | 2.90 | % |
| 5      to 10 years                      |   |                  | 8,289  |   |                    |   | 8,185 |   |   |   | 4.31 | % |   |   | 104,793 |   |   |   | 102,670 |   |   |   | 3.85 | % |
| Over      10 years                      |   |                  | 5,630  |   |                    |   | 5,467 |   |   |   | 4.85 | % |   |   | 180,141 |   |   |   | 173,419 |   |   |   | 4.09 | % |
| Securities      with no stated maturity |   |                  | -      |   |                    |   | - |   |   |   | 0.00 | % |   |   | 2,553 |   |   |   | 2,357 |   |   |   | 0.00 | % |
|                                    |   | $                     | 36,433 |   |                    | $      | 36,417 |   |   |   | 4.33 | % |   | $ | 316,021 |   |   | $ | 307,346 |   |   |   | 3.87 | % |

| December 31, 2009                                     |   |
|-------------------------------------------------------|--------|
|                                                  |   |
|                                                  |   | Less than 12 months |   |   | 12 months or longer |   |   | Total |   |
|                                                  |   | AggregateFair      Value |   |   | GrossUnrealizedLosses |   |   | AggregateFair      Value |   |   | GrossUnrealizedLosses |   |   | AggregateFair      Value |   |   | GrossUnrealizedLosses |   |
| Obligations      of United States Government Agencies |   | $ | 170,584 |   |   | $ | 2,457 |   |   | $ | - |   |   | $ | - |   |   | $ | 170,584 |   |   | $ | 2,457 |   |
| Obligations      of States and Political Subdivisions |   |   | 14,616 |   |   |   | 299 |   |   |   | 5,058 |   |   |   | 200 |   |   |   | 19,674 |   |   |   | 499 |   |
| Trust      Preferred CDO Securities                   |   |   | - |   |   |   | - |   |   |   | 1,662 |   |   |   | 3,078 |   |   |   | 1,662 |   |   |   | 3,078 |   |
| Corporate      Debt Securities                        |   |   | - |   |   |   | - |   |   |   | 7,509 |   |   |   | 874 |   |   |   | 7,509 |   |   |   | 874 |   |
| Equity      Securities                                |   |   | 270 |   |   |   | 270 |   |   |   | - |   |   |   | - |   |   |   | 270 |   |   |   | 270 |   |
|                                                  |   | $ | 185,470 |   |   | $ | 3,026 |   |   | $ | 14,229 |   |   | $ | 4,152 |   |   | $ | 199,699 |   |   | $ | 7,178 |   |

| December      31, 2008                                |   |
|-------------------------------------------------------|--------|
|                                                  |   |
|                                                  |   | Less than 12 months |   |   | 12 months or longer |   |   | Total |   |
|                                                  |   | AggregateFair      Value |   |   | GrossUnrealizedLosses |   |   | AggregateFair      Value |   |   | GrossUnrealizedLosses |   |   | AggregateFair      Value |   |   | GrossUnrealizedLosses |   |
| Obligations      of United States Government Agencies |   | $ | 8,791 |   |   | $ | 4 |   |   | $ | 1,500 |   |   | $ | 7 |   |   | $ | 10,291 |   |   | $ | 11 |   |
| Obligations      of States and Political Subdivisions |   |   | 20,707 |   |   |   | 1,211 |   |   |   | 3,878 |   |   |   | 226 |   |   |   | 24,585 |   |   |   | 1,437 |   |
| Trust      Preferred CDO Securities                   |   |   | 6,605 |   |   |   | 2,474 |   |   |   | 12,766 |   |   |   | 3,287 |   |   |   | 19,371 |   |   |   | 5,761 |   |
| Corporate      Debt Securities                        |   |   | 12,516 |   |   |   | 1,654 |   |   |   | - |   |   |   | - |   |   |   | 12,516 |   |   |   | 1,654 |   |
|                                             |   | $ | 48,619 |   |   | $ | 5,343 |   |   | $ | 18,144 |   |   | $ | 3,520 |   |   | $ | 66,763 |   |   | $ | 8,863 |   |

----

| (3) | Loans |
|-----|-------|

|                                                                                  |   | 2009   |    |   | 2008   |   |
|---------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Residential      real estate loans                                                    |   | $      | 374,970 |   |   | $      | 439,133 |   |
| Non      residential real estate loans                                                |   |   | 351,256 |   |   |   | 352,935 |   |
| Loans      to finance agricultural production and other loans to    farmers           |   |   | 7,113   |   |   |   | 9,763 |   |
| Commercial      and industrial loans                                                  |   |   | 93,786  |   |   |   | 109,495 |   |
| Loans      to individuals for household, family, and other personal      expenditures |   |   | 22,071  |   |   |   | 29,901 |   |
| All      other loans (including overdrafts)                                           |   |   | 574     |   |   |   | 384 |   |
| Total      loans, gross                                                               |   | $      | 849,770 |   |   | $      | 941,611 |   |
| Less: Deferred loan fees and      costs                                               |   |   | 791     |   |   |   | 663 |   |
| Total      loans, net of deferred loan fees and costs                                 |   | $      | 848,979 |   |   | $      | 940,948 |   |
| Less: Allowance for loan    losses                                                    |   |   | 24,063  |   |   |   | 18,528 |   |
|                                                                                  |   | $      | 824,916 |   |   | $      | 922,420 |   |

|                                                                              |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Year-end      impaired loans with no allowance for loan losses allocated     |   | $      | 28,810 |   |   | $      | 16,974 |   |   | $ | 2,603 |   |
| Year-end      impaired loans with allowance for loan losses allocated        |   |   | 48,154 |   |   |   | 39,272 |   |   |   | 27,102 |   |
| Year-end      allowance for loan losses allocated to impaired loans          |   |   | 6,881  |   |   |   | 6,135  |   |   |   | 5,108 |   |
| Average      investment in impaired loans                                    |   |   | 67,112 |   |   |   | 39,086 |   |   |   | 23,486 |   |
| Interest      income recognized on impaired loans                            |   |   | 739    |   |   |   | 1,183  |   |   |   | 1,254 |   |
| Cash basis interest income recognized on impaired      loans during the year |   |   | 756    |   |   |   | 1,183  |   |   |   | 1,254 |   |

----

| (5) | Allowance For Loan      Losses |
|-----|--------------------------------|

|                           |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|--------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Balance      beginning of year |   | $      | 18,528  |   |   | $      | 20,222  |   |   | $ | 13,764 |   |
| Provision      for loan losses |   |   | 36,000  |   |   |   | 18,000  |   |   |   | 11,407 |   |
| Loans      charged off         |   |   | (31,994 | )      |   |   | (20,648 | )      |   |   | (6,386 | ) |
| Recoveries                     |   |   | 1,529   |   |   |   | 954     |   |   |   | 1,437 |   |
| Balance end of year            |   | $      | 24,063  |   |   | $      | 18,528  |   |   | $ | 20,222 |   |

| (6)  | Bank      Premises and Equipment |
|-----------|----------------------------------|

|                                   |   | 2009   |   |   | 2008   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
| Land,      buildings and improvements  |   | $      | 43,839 |   |   | $      | 43,859 |   |
| Equipment, furniture and      fixtures |   |   | 21,875 |   |   |   | 21,088 |   |
| Total      Bank premises and equipment |   | $      | 65,714 |   |   | $      | 64,947 |   |
| Less accumulated    depreciation       |   |   | 33,336 |   |   |   | 32,040 |   |
| Bank premises and equipment,      net  |   | $      | 32,378 |   |   | $      | 32,907 |   |

| Year |   | MinimumPayment |    |
|------|--------|----------------|---------|
| 2010 |   | $              | 135,000 |   |
| 2011 |   |           | 138,000 |   |
| 2012 |   |           | 73,000  |   |
| 2013 |   |           | 57,000  |   |
| 2014 |   |           | 0       |   |

----

| (7)  | Deposits |
|-----------|----------|

|       |   | Under $100,000 |        |   | $100,000 andover |   |
|------------|--------|---------------------|-------------|--------|------------------|--------|
| 2010       |   | $                   | 104,283,000 |   |             | $      | 57,052,000 |   |
| 2011       |   |                | 106,661,000 |   |             |   | 35,652,000 |   |
| 2012       |   |                | 28,472,000  |   |             |   | 8,009,000 |   |
| 2013       |   |                | 21,164,000  |   |             |   | 5,077,000 |   |
| 2014       |   |                | 14,843,000  |   |             |   | 11,668,000 |   |
| Thereafter |   |                | 8,744,000   |   |             |   | 101,000 |   |
| Total      |   | $                   | 284,167,000 |   |             | $      | 117,559,000 |   |

| (8)  | Federal      Home Loan Bank Advances and Repurchase  Agreements |
|-----------|-----------------------------------------------------------------|

| December      31, 2009 |   |
|------------------------|--------|
|                   |   |
|                   |   | Floating      Rate |   |   | Fixed      Rate |   |
| Maturing in       |   | Amount |   |   | Rate |   |   | Amount |   |   | Rate |   |
| 2010                   |   | $ | - |   |   |   | - |   |   | $ | 115,000 |   |   |   | 5.40 | % |
| 2011                   |   |   | 3,000 |   |   |   | 0.40 | % |   |   | 3,500 |   |   |   | 5.08 | % |
| 2013                   |   |   | 95,000 |   |   |   | 2.54 | % |   |   | - |   |   |   | - |   |
| 2014                   |   |   | 12,000 |   |   |   | 0.41 | % |   |   | - |   |   |   | - |   |
|                   |   | $ | 110,000 |   |   |   | 2.25 | % |   | $ | 118,500 |   |   |   | 5.39 | % |

| December      31, 2008 |   |
|------------------------|--------|
|                   |   |
|                   |   | Floating      Rate |   |   | Fixed      Rate |   |
| Maturing in       |   | Amount |   |   | Rate |   |   | Amount |   |   | Rate |   |
| 2009                   |   | $ | 13,000 |   |   |   | 2.46 | % |   | $ | 20,000 |   |   |   | 4.91 | % |
| 2010                   |   |   | - |   |   |   | - |   |   |   | 115,000 |   |   |   | 5.40 | % |
| 2011                   |   |   | 3,000 |   |   |   | 2.02 | % |   |   | 3,500 |   |   |   | 5.08 | % |
| 2013                   |   |   | 95,000 |   |   |   | 4.94 | % |   |   | - |   |   |   | - |   |
| 2014                   |   |   | 12,000 |   |   |   | 2.03 | % |   |   | - |   |   |   | - |   |
|                   |   | $ | 123,000 |   |   |   | 4.32 | % |   | $ | 138,500 |   |   |   | 5.32 | % |

| Securities      Sold Under Agreements to Repurchase |   |
|-----------------------------------------------------|--------|
| December      31, 2009 and 2008                     |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | Floating      Rate |   | Fixed      Rate |   |
| Maturing in                                         |   | Amount |   |   | Rate |   |   | Amount |   |   | Rate |   |
| 2011                                                |   | $ | - |   |   |   | - |   |   | $ | 10,000 |   |   |   | 4.65 | % |
| 2012                                                |   |   | - |   |   |   | - |   |   |   | 5,000 |   |   |   | 4.12 | % |
| 2016                                                |   |   | - |   |   |   | - |   |   |   | 15,000 |   |   |   | 4.65 | % |
|                                                |   | $ | - |   |   |   | - |   |   | $ | 30,000 |   |   |   | 4.56 | % |

----

| (9) | Retirement      Plans and Postretirement BenefitPlans |
|-----|-------------------------------------------------------|

|                                         |   | 2009   |   |   | 2008   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|
| APBO                                         |   | $      | 2,078  |   |   | $      | 2,000 |   |
| Unrecognized      net transition obligation  |   |   | (161   | )      |   |   | (214 | ) |
| Unrecognized      prior service costs        |   |   | (17    | )      |   |   | (21 | ) |
| Unrecognized net gain                        |   |   | 373    |   |   |   | 356 |   |
| Accrued benefit cost at fiscal year      end |   | $      | 2,273  |   |   | $      | 2,121 |   |

|                                  |   | 2009   |   |   | 2008   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|
| APBO      at beginning of year        |   | $      | 2,000  |   |   | $      | 1,985 |   |
| Service      cost                     |   |   | 101    |   |   |   | 102 |   |
| Interest      cost                    |   |   | 112    |   |   |   | 116 |   |
| Actuarial      loss (gain)            |   |   | (27    | )      |   |   | (98 | ) |
| Plan      participants' contributions |   |   | 139    |   |   |   | 134 |   |
| Benefits paid during year             |   |   | (247   | )      |   |   | (239 | ) |
| APBO at end of year                   |   | $      | 2,078  |   |   | $      | 2,000 |   |

|                                       |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Service      cost                          |   | $      | 101    |   |   | $      | 102    |   |   | $ | 100 |   |
| Interest      cost                         |   |   | 112    |   |   |   | 116    |   |   |   | 110 |   |
| Amortization      of transition obligation |   |   | 53     |   |   |   | 54     |   |   |   | 54 |   |
| Prior      service costs                   |   |   | 4      |   |   |   | 4      |   |   |   | 4 |   |
| Amortization of gains                      |   |   | (10    | )      |   |   | (4     | )      |   |   | (4 | ) |
| Net postretirement benefit      expense    |   | $      | 260    |   |   | $      | 272    |   |   | $ | 264 |   |

----

|                                                |   | Postretirement Death BenefitObligations |   |   | Postretirement Health CareBenefits |   |
|-----------------------------------------------------|--------|-----------------------------------------|--------|--------|------------------------------------|--------|
|                                                |   | 2009                                    |   |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
|                                                |   |                                    |   |   |                               |   |   |   |   |   |   |   |
| Change      in benefit obligation                   |   |                                    |   |   |                               |   |   |   |   |   |   |   |
| Benefit      obligation at beginning of year        |   | $                                       | 4,414  |   |                               |   | 3,996 |   |   | $ | 2,000 |   |   | $ | 1,985 |   |
| Service      cost                                   |   |                                    | 60     |   |                               |   | 56 |   |   |   | 101 |   |   |   | 102 |   |
| Interest      cost                                  |   |                                    | 243    |   |                               |   | 234 |   |   |   | 112 |   |   |   | 116 |   |
| Plan      participants' contributions               |   |                                    | -      |   |                               |   | - |   |   |   | 139 |   |   |   | 134 |   |
| Actuarial      loss (gain)                          |   |                                    | (280   | )      |                               |   | 128 |   |   |   | (27 | ) |   |   | (98 | ) |
| Benefits paid                                       |   |                                    | -      |   |                               |   | - |   |   |   | (247 | ) |   |   | (239 | ) |
| Benefit obligation at end of      year              |   | $                                       | 4,437  |   |                               | $      | 4,414 |   |   | $ | 2,078 |   |   | $ | 2,000 |   |
|                                                |   |                                    |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Change      in accrued benefit cost                 |   |                                    |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Accrued      benefit cost at beginning of year      |   | $                                       | 1,184  |   |                               | $      | 579 |   |   | $ | 2,121 |   |   | $ | 1,954 |   |
| Service      cost                                   |   |                                    | 60     |   |                               |   | 56 |   |   |   | 101 |   |   |   | 102 |   |
| Interest      cost                                  |   |                                    | 243    |   |                               |   | 235 |   |   |   | 112 |   |   |   | 116 |   |
| Amortization                                        |   |                                    | 314    |   |                               |   | 314 |   |   |   | 47 |   |   |   | 54 |   |
| Employer      contributions                         |   |                                    | -      |   |                               |   | - |   |   |   | (108 | ) |   |   | (105 | ) |
| Net      gain                                       |   |                                    | -      |   |                               |   | - |   |   |   | - |   |   |   | - |   |
| Accrued benefit cost at end of      year            |   | $                                       | 1,801  |   |                               | $      | 1,184 |   |   | $ | 2,273 |   |   | $ | 2,121 |   |
|                                                |   |                                    |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Change      in plan assets                          |   |                                    |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Fair      value of plan assets at beginning of year |   | $                                       | -      |   |                               | $      | - |   |   | $ | - |   |   | $ | - |   |
| Employer      contributions                         |   |                                    | -      |   |                               |   | - |   |   |   | 108 |   |   |   | 105 |   |
| Plan      participants' contributions               |   |                                    | -      |   |                               |   | - |   |   |   | 139 |   |   |   | 134 |   |
| Benefits paid during year                           |   |                                    | -      |   |                               |   | - |   |   |   | (247 | ) |   |   | (239 | ) |
| Fair value of plan assets at end of      year       |   | $                                       | -      |   |                               | $      | - |   |   | $ | - |   |   | $ | - |   |
|                                                |   |                                    |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Funded status at end ofyear                         |   | $                                       | (2,636 | )      |                               | $      | (3,230 | ) |   | $ | 195 |   |   | $ | 121 |   |

|        |   | Postretirement Death BenefitObligations |   |   | Postretirement Health CareBenefits |   |
|-------------|--------|-----------------------------------------|--------|--------|------------------------------------|--------|
|        |   | 2009                                    |   |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
| Assets      |   | $                                       | -      |   |                               |   | - |   |   | $ | - |   |   | $ | - |   |
| Liabilities |   |                                    | 4,437  |   |                               |   | 4,414 |   |   |   | 2,078 |   |   |   | 2,000 |   |
| Total       |   | $                                       | 4,437  |   |                               | $      | 4,414 |   |   | $ | 2,078 |   |   | $ | 2,000 |   |

|                               |   | Postretirement Death BenefitObligations |   |   | Postretirement Health CareBenefits |   |
|------------------------------------|--------|-----------------------------------------|--------|--------|------------------------------------|--------|
|                               |   | 2009                                    |   |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
| Net      loss (gain)               |   | $                                       | (291   | )      |                               |   | (11 | ) |   | $ | (373 | ) |   | $ | (356 | ) |
| Transition      obligation (asset) |   |                                    | -      |   |                               |   | - |   |   |   | 161 |   |   |   | 214 |   |
| Prior      service cost (credit)   |   |                                    | 2,927  |   |                               |   | 3,241 |   |   |   | 17 |   |   |   | 21 |   |
|                               |   | $                                       | 2,636  |   |                               | $      | 3,230 |   |   | $ | (195 | ) |   | $ | (121 | ) |

| (10)  | Stockholders’      Equity |
|------------|---------------------------------|

----

|   |   | SharesRepurchased |    |   | Cost   |   |
|--------|--------|-------------------|---------|--------|--------|--------|
| 2007   |   |              | 599,362 |   |   |   | 7,709,000 |   |
| 2008   |   |              | -       |   |   |   | 0 |   |
| 2009   |   |              | -       |   |   |   | 0 |   |
| Total  |   |              | 599,362 |   |   | $      | 7,709,000 |   |

----

|                                                        |   | December 31, 2009 |    |   | December 31, 2008 |   |
|-------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                                        |   | Carrying          |    |   | Estimated         |   |   | Carrying |   |   | Estimated |   |
|                                                        |   | Value             |    |   | Fair Value        |   |   | Value |   |   | Fair Value |   |
| Financial      Assets:                                      |   |              |    |   |              |   |   |   |   |   |   |   |
| Cash      and due from banks                                |   | $                 | 69,746  |   |              | $      | 69,746 |   |   | $ | 50,786 |   |   | $ | 50,786 |   |
| Securities                                                  |   |              | 343,779 |   |              |   | 343,763 |   |   |   | 452,957 |   |   |   | 452,160 |   |
| Federal      Home Loan Bank Stock                           |   |              | 13,086  |   |              |   | 13,086 |   |   |   | 13,086 |   |   |   | 13,086 |   |
| Loans,      net                                             |   |              | 824,916 |   |              |   | 838,965 |   |   |   | 922,420 |   |   |   | 953,267 |   |
|                                                        |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Liabilities:                                 |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Demand,      NOW, savings and money market savings deposits |   |              | 630,065 |   |              |   | 630,065 |   |   |   | 621,762 |   |   |   | 621,762 |   |
| Other      time deposits                                    |   |              | 401,726 |   |              |   | 408,516 |   |   |   | 514,316 |   |   |   | 521,272 |   |
| Borrowed      funds                                         |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Variable      Rate FHLB Advances                            |   |              | 110,000 |   |              |   | 116,938 |   |   |   | 123,000 |   |   |   | 131,491 |   |
| Fixed      Rate FHLB Advances                               |   |              | 3,500   |   |              |   | 3,688 |   |   |   | 8,500 |   |   |   | 8,800 |   |
| Putable      FHLB Advances                                  |   |              | 115,000 |   |              |   | 119,700 |   |   |   | 130,000 |   |   |   | 138,870 |   |
| Repurchase      Agreements                                  |   |              | 30,000  |   |              |   | 34,896 |   |   |   | 30,000 |   |   |   | 33,840 |   |

| (12) | Federal      Income Taxes |
|------|---------------------------|

|                                                     |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Federal      income taxes currently payable (refundable) |   | $      | (7,189 | )      |   | $      | 77     |   |   | $ | 3,885 |   |
| Provision      (credit) for deferred taxes on:           |   |   |   |   |   |   |   |   |   |   |   |   |
| Book      (over) under tax loan loss provision           |   |   | (1,937 | )      |   |   | 584    |   |   |   | (2,260 | ) |
| Accretion      of bond discount                          |   |   | (46    | )      |   |   | 18     |   |   |   | (61 | ) |
| Net      deferred loan origination fees                  |   |   | (14    | )      |   |   | (21    | )      |   |   | 216 |   |
| Accrued      postretirement benefits                     |   |   | (293   | )      |   |   | (303   | )      |   |   | (100 | ) |
| Tax      over (under) book depreciation                  |   |   | 197    |   |   |   | 14     |   |   |   | 51 |   |
| Alternative      minimum tax                             |   |   | (264   | )      |   |   | (440   | )      |   |   | 680 |   |
| Non-accrual      loan interest                           |   |   | 294    |   |   |   | (352   | )      |   |   | (12 | ) |
| Write      down of other real estate owned               |   |   | (411   | )      |   |   | (799   | )      |   |   | (188 | ) |
| Other      than temporary impairment AFS securities      |   |   | (4,116 | )      |   |   | -      |   |   |   | - |   |
| Other,      net                                          |   |   | (173   | )      |   |   | (95    | )      |   |   | (162 | ) |
| Total      deferred provision (credit)                   |   |   | (6,763 | )      |   |   | (1,394 | )      |   |   | (1,836 | ) |
| Valuation allowance deferred tax      assets             |   |   | 13,850 |   |   |   | -      |   |   |   | - |   |
| Net deferred provision                                   |   |   | 7,087  |   |   |   | (1,394 | )      |   |   | (1,836 | ) |
| Tax expense                                              |   | $      | (102   | )      |   | $      | (1,317 | )      |   | $ | 2,049 |   |

|                           |   | 2009   |   |     | 2008   |   |   | 2007     |   |
|--------------------------------|--------|--------|--------|----------|--------|--------|--------|----------|--------|
| Statutory      rate            |   |   | (34.0  | )      % |   |   | 34.0   | %        |   |   | 34.0 | % |
| Municipal      interest income |   |   | (3.0   | )        |   |   | (266.7 | )        |   |   | (9.0 | ) |
| Other,      net                |   |   | (3.7   | )        |   |   | (118.5 | )        |   |   | (4.0 | ) |
| Valuation allowance            |   |   | 40.4   |     |   |   | -      |     |   |   | - |   |
| Effective tax rate             |   |   | (0.3   | )      % |   |   | (351.2 | )      % |   |   | 21.0 | % |

----

|                                                        |   | 2009   |    |   | 2008   |   |
|-------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred      Federal income tax assets:                    |   |   |    |   |   |   |
| Allowance      for loan losses                              |   | $      | 8,527   |   |   | $      | 6,590 |   |
| Net      deferred loan origination fees                     |   |   | 246     |   |   |   | 232 |   |
| Tax      versus book depreciation differences               |   |   | 79      |   |   |   | 276 |   |
| Net      unrealized losses on securities available for sale |   |   | 3,036   |   |   |   | 118 |   |
| Accrued      postretirement benefits                        |   |   | 2,587   |   |   |   | 2,530 |   |
| Alternative      minimum tax                                |   |   | 704     |   |   |   | 440 |   |
| Non-accrual      loan interest                              |   |   | 122     |   |   |   | 416 |   |
| Write      down of other real estate owned                  |   |   | 1,471   |   |   |   | 1,060 |   |
| Other      than temporary impairment AFS securities         |   |   | 4,116   |   |   |   | - |   |
| Other,      net                                             |   |   | 607     |   |   |   | 397 |   |
| Gross      deferred tax asset                               |   |   | 21,495  |   |   |   | 12,059 |   |
| Valuation allowance                                         |   |   | (13,850 | )      |   |   | - |   |
| Total Federal deferred tax      asset                       |   | $      | 7,645   |   |   | $      | 12,059 |   |
|                                                        |   |   |    |   |   |   |   |   |
| Deferred      Federal income tax liabilities:               |   |   |    |   |   |   |   |   |
| Accretion      of bond discount                             |   | $      | (98     | )      |   | $      | (144 | ) |
| Other                                                       |   |   | (474    | )      |   |   | (437 | ) |
|                                                        |   | $      | (572    | )      |   | $      | (581 | ) |
| Net deferred Federal income tax      asset                  |   | $      | 7,073   |   |   | $      | 11,478 |   |

|                                        |   | Actual |    |   | Minimum to Qualify asWell Capitalized |   |
|---------------------------------------------|--------|--------|---------|--------|---------------------------------------|--------|
|                                        |   | Amount |    |   | Ratio                                 |   |   | Amount |   |   | Ratio |   |
| As      of December 31, 2009:               |   |   |    |   |                                  |   |   |   |   |   |   |   |
| Total      Capital to Risk-Weighted Assets  |   |   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                |   | $      | 101,158 |   |                                  |   | 10.2 | % |   | $ | 99,065 |   |   |   | 10.0 | % |
| Monroe      Bank & Trust                |   |   | 100,329 |   |                                  |   | 10.1 | % |   |   | 98,984 |   |   |   | 10.0 | % |
| Tier      1 Capital to Risk-Weighted Assets |   |   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                |   |   | 88,627  |   |                                  |   | 8.9 | % |   |   | 59,439 |   |   |   | 6.0 | % |
| Monroe      Bank & Trust                |   |   | 87,775  |   |                                  |   | 8.9 | % |   |   | 59,390 |   |   |   | 6.0 | % |
| Tier      1 Capital to Average Assets       |   |   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                |   |   | 88,627  |   |                                  |   | 6.3 | % |   |   | 70,681 |   |   |   | 5.0 | % |
| Monroe      Bank & Trust                |   |   | 87,775  |   |                                  |   | 6.2 | % |   |   | 70,643 |   |   |   | 5.0 | % |

----

|                                        |   | Actual |    |   | Minimum to Qualify asWell Capitalized |   |
|---------------------------------------------|--------|--------|---------|--------|---------------------------------------|--------|
|                                        |   | Amount |    |   | Ratio                                 |   |   | Amount |   |   | Ratio |   |
| As      of December 31, 2008:               |   |   |    |   |                                  |   |   |   |   |   |   |   |
| Total      Capital to Risk-Weighted Assets  |   |   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                |   | $      | 136,286 |   |                                  |   | 12.7 | % |   | $ | 106,980 |   |   |   | 10.0 | % |
| Monroe      Bank & Trust                |   |   | 134,853 |   |                                  |   | 12.6 | % |   |   | 106,895 |   |   |   | 10.0 | % |
| Tier      1 Capital to Risk-Weighted Assets |   |   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                |   |   | 122,820 |   |                                  |   | 11.5 | % |   |   | 64,188 |   |   |   | 6.0 | % |
| Monroe      Bank & Trust                |   |   | 121,398 |   |                                  |   | 11.4 | % |   |   | 64,137 |   |   |   | 6.0 | % |
| Tier      1 Capital to Average Assets       |   |   |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                |   |   | 122,820 |   |                                  |   | 7.8 | % |   |   | 78,543 |   |   |   | 5.0 | % |
| Monroe      Bank & Trust                |   |   | 121,398 |   |                                  |   | 7.7 | % |   |   | 78,495 |   |   |   | 5.0 | % |

|                                              |   | 2009   |        |   | 2008   |   |       | 2007   |   |
|---------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| Basic                                             |   |   |        |   |   |   |       |   |   |
| Net      income (loss)                            |   | $      | (34,177,000 | )      |   | $      | 1,692,000  |   |   | $ | 7,713,000 |   |
| Less      preferred dividends                     |   |   | -           |   |   |   | -          |   |   |   | - |   |
| Net      income (loss) applicable to common stock |   | $      | (34,177,000 | )      |   | $      | 1,692,000  |   |   | $ | 7,713,000 |   |
| Average      common shares outstanding            |   |   | 16,186,478  |   |   |   | 16,134,570 |   |   |   | 16,415,425 |   |
| Earnings      (loss) per common share - basic     |   | $      | (2.11       | )      |   | $      | 0.10       |   |   | $ | 0.47 |   |
|                                              |   |   |        |   |   |   |       |   |   |   |   |   |
|                                              |   | 2009   |        |   | 2008   |   |       | 2007   |   |
| Diluted                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Net      income (loss)                            |   | $      | (34,177,000 | )      |   | $      | 1,692,000  |   |   | $ | 7,713,000 |   |
| Less      preferred dividends                     |   |   | -           |   |   |   | -          |   |   |   | - |   |
| Net      income (loss) applicable to common stock |   | $      | (34,177,000 | )      |   | $      | 1,692,000  |   |   | $ | 7,713,000 |   |
| Average      common shares outstanding            |   |   | 16,186,478  |   |   |   | 16,134,570 |   |   |   | 16,415,425 |   |
| Stock      option adjustment                      |   |   | -           |   |   |   | -          |   |   |   | - |   |
| Average      common shares outstanding - diluted  |   |   | 16,186,478  |   |   |   | 16,134,570 |   |   |   | 16,415,425 |   |
| Earnings      (loss) per common share - diluted   |   | $      | (2.11       | )      |   | $      | 0.10       |   |   | $ | 0.47 |   |

----

|                                                            |   | 2009   |    |   | 2008                         |   |   | 2007   |   |
|-----------------------------------------------------------------|--------|--------|---------|--------|------------------------------|--------|--------|--------|--------|
|                                                            |   | Shares |    |   | WeightedAverageExercisePrice |   |   | Shares |   |   | WeightedAverageExercisePrice |   |   | Shares |   |   | WeightedAverageExercisePrice |   |
| Options      Outstanding, January 1                             |   |   | 641,476 |   |                         | $      | 16.04  |   |   |   | 602,143 |   |   | $ | 17.36 |   |   |   | 510,143 |   |   | $ | 17.73 |   |
| Granted                                                         |   |   | 141,500 |   |                         |   | 3.03   |   |   |   | 99,500 |   |   |   | 8.53 |   |   |   | 94,500 |   |   |   | 15.33 |   |
| Exercised                                                       |   |   | -       |   |                         |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Forfeited/Expired                                               |   |   | 72,401  |   |                         |   | 14.89  |   |   |   | 60,167 |   |   |   | 16.84 |   |   |   | 2,500 |   |   |   | 16.24 |   |
| Options Outstanding, December      31                           |   |   | 710,575 |   |                         | $      | 13.57  |   |   |   | 641,476 |   |   | $ | 16.04 |   |   |   | 602,143 |   |   | $ | 17.36 |   |
| Options Exercisable, December      31                           |   |   | 613,757 |   |                         | $      | 14.97  |   |   |   | 549,491 |   |   | $ | 16.95 |   |   |   | 511,322 |   |   | $ | 17.68 |   |
|                                                            |   |   |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      Average Fair Value of Options Granted During Year |   |   |    |   |                         | $      | 0.52   |   |   |   |   |   |   | $ | 1.39 |   |   |   |   |   |   | $ | 2.76 |   |

|          |   |   | Outstanding Options |   |    | Exercisable Options      |   |
|---------------|--------|--------|---------------------|--------|---------|--------------------------|--------|
| ExercisePrice |   |   | Shares              |   |    | Remaining Life(in years) |   |   | Shares |   |   | Remaining Life(in years) |   |
| $             | 3.03   |   |                |   | 133,000 |                     |   |   | 9.01 |   |   |   | 65,660 |   |   |   | 9.01 |   |
| $             | 8.53   |   |                |   | 88,500  |                     |   |   | 8.60 |   |   |   | 59,022 |   |   |   | 8.60 |   |
| $             | 13.20  |   |                |   | 68,335  |                     |   |   | 3.01 |   |   |   | 68,335 |   |   |   | 3.01 |   |
| $             | 13.85  |   |                |   | 25,838  |                     |   |   | 2.01 |   |   |   | 25,838 |   |   |   | 2.01 |   |
| $             | 13.94  |   |                |   | 4,402   |                     |   |   | 1.01 |   |   |   | 4,402 |   |   |   | 1.01 |   |
| $             | 15.33  |   |                |   | 82,500  |                     |   |   | 7.01 |   |   |   | 82,500 |   |   |   | 7.01 |   |
| $             | 16.24  |   |                |   | 69,500  |                     |   |   | 6.01 |   |   |   | 69,500 |   |   |   | 6.01 |   |
| $             | 16.69  |   |                |   | 93,500  |                     |   |   | 4.01 |   |   |   | 93,500 |   |   |   | 4.01 |   |
| $             | 18.125 |   |                |   | 35,000  |                     |   |   | 0.50 |   |   |   | 35,000 |   |   |   | 0.50 |   |
| $             | 23.40  |   |                |   | 110,000 |                     |   |   | 5.01 |   |   |   | 110,000 |   |   |   | 5.01 |   |
|          |   |   |                |   | 710,575 |                     |   |   | 5.86 |   |   |   | 613,757 |   |   |   | 5.38 |   |

| Nonvested Shares                    |   | Shares |     |   | Weighted Average Grant Date Fair Value |   |
|-------------------------------------|--------|--------|----------|--------|-------------------------------------------------------|--------|
| Nonvested      at January 1, 2009   |   |   | 91,985   |   |                                                  | $      | 1.81 |   |
| Granted                             |   |   | 141,500  |   |                                                  |   | 0.52 |   |
| Vested                              |   |   | (122,668 | )      |                                                  |   | 1.23 |   |
| Forfeited                           |   |   | (13,999  | )      |                                                  |   | 0.94 |   |
| Nonvested      at December 31, 2009 |   |   | 96,818   |   |                                                  | $      | 0.78 |   |

----

| Three Year Cumulative FullyDiluted EPS for the Three Year Performance Period Ending December 31, 2010 |   |   | Percent RSUsVested |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|
| $                                                                                                               | 2.40   |   |               |   | 100 | % |
| $                                                                                                               | 2.34   |   |               |   | 90 | % |
| $                                                                                                               | 2.28   |   |               |   | 80 | % |
| $                                                                                                               | 2.24   |   |               |   | 70 | % |
| $                                                                                                               | 2.21   |   |               |   | 60 | % |
| $                                                                                                               | 2.16   |   |               |   | 50 | % |
| less      than $2.16                                                                                            |   |   |               | 0      | % |

|                                            |   | December      31, |   |
|-------------------------------------------------|--------|-------------------|--------|
|                                            |   | 2009              |   |   | 2008 |   |
|                                            |   |              |   |   |   |   |
| Assets                                          |   |              |   |   |   |   |
| Cash      and due from banks                    |   | $                 | 239    |   |   | $ | 2,055 |   |
| Securities                                      |   |              | 270    |   |   |   | - |   |
| Investment      in subsidiary bank              |   |              | 80,959 |   |   |   | 119,555 |   |
| Other      assets                               |   |              | 296    |   |   |   | 840 |   |
| Total      assets                               |   | $                 | 81,764 |   |   | $ | 122,450 |   |
|                                            |   |              |   |   |   |   |   |   |
| Liabilities                                     |   |              |   |   |   |   |   |   |
| Dividends      payable and other liabilities    |   | $                 | -      |   |   | $ | 1,473 |   |
| Total      liabilities                          |   |              | -      |   |   |   | 1,473 |   |
|                                            |   |              |   |   |   |   |   |   |
| Stockholders'      Equity                       |   |              |   |   |   |   |   |   |
| Total      stockholders' equity                 |   |              | 81,764 |   |   |   | 120,977 |   |
| Total      liabilities and stockholders' equity |   | $                 | 81,764 |   |   | $ | 122,450 |   |

|                                                                                                |   | Years      Ended December 31, |    |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                                                |   | 2009                          |    |   | 2008 |   |   | 2007 |   |
| Income                                                                                              |   |                          |    |   |   |   |   |   |   |
| Dividends      from subsidiary bank                                                                 |   | $                        | -       |   |   | $ | 10,549 |   |   | $ | 19,106 |   |
| Other      operating income                                                                         |   |                          | -       |   |   |   | 5 |   |   |   | 21 |   |
| Total      income                                                                                   |   |                          | -       |   |   |   | 10,554 |   |   |   | 19,127 |   |
|                                                                                                |   |                          |    |   |   |   |   |   |   |   |   |   |
| Expense                                                                                             |   |                          |    |   |   |   |   |   |   |   |   |   |
| Other      expense                                                                                  |   |                          | 592     |   |   |   | 493 |   |   |   | 146 |   |
| Total      expense                                                                                  |   |                          | 592     |   |   |   | 493 |   |   |   | 146 |   |
|                                                                                                |   |                          |    |   |   |   |   |   |   |   |   |   |
| Income      (loss) before tax and equity in undistributed net income (loss) of      subsidiary bank |   |                          | (592    | ) |   |   | 10,061 |   |   |   | 18,981 |   |
| Income      tax benefit                                                                             |   |                          | (202    | ) |   |   | (166 | ) |   |   | (43 | ) |
| Income      (loss) before equity in undistributed net income of subsidiary      bank                |   |                          | (390    | ) |   |   | 10,227 |   |   |   | 19,024 |   |
| Equity      in undistributed net income (loss) of subsidiary bank                                   |   |                          | (33,787 | ) |   |   | (8,535 | ) |   |   | (11,311 | ) |
| Net      Income (Loss)                                                                              |   | $                             | (34,177 | ) |   | $ | 1,692 |   |   | $ | 7,713 |   |

----

|                                                       |   | Years      Ended December 31, |    |
|------------------------------------------------------------|--------|-------------------------------|---------|
|                                                       |   | 2009                          |    |   | 2008 |   |   | 2007 |   |
| Cash      Flows Provided By Operating Activities:          |   |                          |    |   |   |   |   |   |   |
| Net      income (loss)                                     |   | $                             | (34,177 | ) |   | $ | 1,692 |   |   | $ | 7,713 |   |
| Equity      in undistributed net income of subsidiary bank |   |                          | 33,787  |   |   |   | 8,535 |   |   |   | 11,311 |   |
| Net      increase (decrease) in other liabilities          |   |                          | (19     | ) |   |   | (1,430 | ) |   |   | (106 | ) |
| Net      (increase) decrease in other assets               |   |                          | 223     |   |   |   | 190 |   |   |   | 112 |   |
| Net      cash provided by (used for) operating activities  |   | $                             | (186    | ) |   | $ | 8,987 |   |   | $ | 19,030 |   |
|                                                       |   |                          |    |   |   |   |   |   |   |   |   |   |
| Cash      Flows Used For Financing Activities:             |   |                          |    |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock                              |   | $                             | 147     |   |   | $ | 131 |   |   | $ | 127 |   |
| Repurchase      of common stock                            |   |                          | -       |   |   |   | - |   |   |   | (7,709 | ) |
| Dividends      paid                                        |   |                          | (1,777  | ) |   |   | (10,162 | ) |   |   | (11,861 | ) |
| Net      cash used for financing activities                |   | $                             | (1,630  | ) |   | $ | (10,031 | ) |   | $ | (19,443 | ) |
|                                                       |   |                          |    |   |   |   |   |   |   |   |   |   |
| Net      Decrease In                                       |   |                          |    |   |   |   |   |   |   |   |   |   |
| Cash      And Cash Equivalents                             |   | $                             | (1,816  | ) |   | $ | (1,044 | ) |   | $ | (413 | ) |
|                                                       |   |                          |    |   |   |   |   |   |   |   |   |   |
| Cash      And Cash Equivalents                             |   |                          |    |   |   |   |   |   |   |   |   |   |
| At      Beginning Of Year                                  |   |                          | 2,055   |   |   |   | 3,099 |   |   |   | 3,512 |   |
| Cash      And Cash Equivalents At End Of Year              |   | $                             | 239     |   |   | $ | 2,055 |   |   | $ | 3,099 |   |

|                                                            |   | Contractual      Amount |   |
|-----------------------------------------------------------------|--------|-------------------------|--------|
|                                                            |   | 2009                    |   |   | 2008 |   |
| Commitments      to extend credit:                              |   |                    |   |   |   |   |
| Unused      portion of commercial lines of credit               |   | $                       | 64,096 |   |   | $ | 62,537 |   |
| Unused      portion of credit card lines of credit              |   |                    | 4,286  |   |   |   | 5,872 |   |
| Unused      portion of home equity lines of credit              |   |                    | 16,034 |   |   |   | 20,200 |   |
| Standby      letters of credit and financial guarantees written |   |                    | 5,008  |   |   |   | 7,297 |   |
| All      other off-balance sheet assets                         |   |                    | 2,986  |   |   |   | 3,682 |   |

----

| 2009                                          |   | First  |   |   | Second |   |   | Third  |   |   | Fourth |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Total      Interest Income                    |   | $      | 18,992 |   |   | $      | 17,870 |   |   | $      | 17,640 |   |   | $ | 16,502 |   |
| Total      Interest Expense                   |   |   | 8,779  |   |   |   | 7,685  |   |   |   | 7,124  |   |   |   | 6,401 |   |
| Net      Interest Income                      |   |   | 10,213 |   |   |   | 10,185 |   |   |   | 10,516 |   |   |   | 10,101 |   |
| Provision      for Loan Losses                |   |   | 4,200  |   |   |   | 8,000  |   |   |   | 6,800  |   |   |   | 17,000 |   |
| Other      Income                             |   |   | 3,331  |   |   |   | 3,630  |   |   |   | 3,559  |   |   |   | (40 | ) |
| Other      Expenses                           |   |   | 11,997 |   |   |   | 14,589 |   |   |   | 11,390 |   |   |   | 11,798 |   |
| Income      Before Provision For Income Taxes |   |   | (2,653 | )      |   |   | (8,774 | )      |   |   | (4,115 | )      |   |   | (18,737 | ) |
| Provision      For Income Taxes               |   |   | (1,286 | )      |   |   | (3,401 | )      |   |   | (1,790 | )      |   |   | 6,375 |   |
| Net      Income                               |   | $      | (1,367 | )      |   | $      | (5,373 | )      |   | $      | (2,325 | )      |   | $ | (25,112 | ) |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      Earnings Per Common Share          |   | $      | (0.08  | )      |   | $      | (0.33  | )      |   | $      | (0.14  | )      |   | $ | (1.56 | ) |
| Diluted      Earnings Per Common Share        |   | $      | (0.08  | )      |   | $      | (0.33  | )      |   | $      | (0.14  | )      |   | $ | (1.56 | ) |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      Declared Per Share             |   | $      | 0.01   |   |   | $      | 0.01   |   |   | $      | -      |   |   | $ | - |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2008                                          |   | First  |   |   | Second |   |   | Third  |   |   | Fourth |   |
| Total      Interest Income                    |   | $      | 22,200 |   |   | $      | 21,387 |   |   | $      | 21,113 |   |   | $ | 20,203 |   |
| Total      Interest Expense                   |   |   | 11,747 |   |   |   | 10,260 |   |   |   | 10,027 |   |   |   | 10,480 |   |
| Net      Interest Income                      |   |   | 10,453 |   |   |   | 11,127 |   |   |   | 11,086 |   |   |   | 9,723 |   |
| Provision      for Loan Losses                |   |   | 1,200  |   |   |   | 2,700  |   |   |   | 4,100  |   |   |   | 10,000 |   |
| Other      Income                             |   |   | 3,962  |   |   |   | 3,858  |   |   |   | 4,265  |   |   |   | 3,900 |   |
| Other      Expenses                           |   |   | 9,698  |   |   |   | 10,163 |   |   |   | 11,365 |   |   |   | 8,773 |   |
| Income      Before Provision For Income Taxes |   |   | 3,517  |   |   |   | 2,122  |   |   |   | (114   | )      |   |   | (5,150 | ) |
| Provision      For Income Taxes               |   |   | 870    |   |   |   | 404    |   |   |   | (438   | )      |   |   | (2,153 | ) |
| Net      Income                               |   | $      | 2,647  |   |   | $      | 1,718  |   |   | $      | 324    |   |   | $ | (2,997 | ) |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      Earnings Per Common Share          |   | $      | 0.16   |   |   | $      | 0.11   |   |   | $      | 0.02   |   |   | $ | (0.19 | ) |
| Diluted      Earnings Per Common Share        |   | $      | 0.16   |   |   | $      | 0.11   |   |   | $      | 0.02   |   |   | $ | (0.19 | ) |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      Declared Per Share             |   | $      | 0.18   |   |   | $      | 0.18   |   |   | $      | 0.09   |   |   | $ | 0.09 |   |

----

| Investment Securities - Available for      Sale                     |   | 2009   |    |   | 2008   |   |
|---------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Quoted      Prices in Active Markets for Identical Assets (Level 1) |   | $      | 264,224 |   |   | $      | 333,115 |   |
| Significant      Other Observable Inputs (Level 2)                  |   |   | 35,907  |   |   |   | 53,256 |   |
| Significant      Unobservable Inputs (Level 3)                      |   |   | 7,215   |   |   |   | 19,746 |   |
| Balance      at December 31                                         |   | $      | 307,346 |   |   | $      | 406,117 |   |

| Investment Securities - Available for      Sale                                  |   | 2009   |    |   | 2008   |   |
|----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Balance      at January 1                                                        |   | $      | 19,746  |   |   | $      | 585 |   |
| Total      realized and unrealized gains (losses) included in income             |   |   | (11,760 | )      |   |   | (17 | ) |
| Total      unrealized gains (losses) included in other comprehensive      income |   |   | (771    | )      |   |   | (5,759 | ) |
| Net      purchases, sales, calls and maturities                                  |   |   | -       |   |   |   | - |   |
| Net      transfers in/out of Level 3                                             |   |   | -       |   |   |   | 24,937 |   |
| Balance      at December 31                                                      |   | $      | 7,215   |   |   | $      | 19,746 |   |

|                         |   | Balance atDecember 31, 2009 |   |   | Quoted Prices inActive Markets for Identical Assets (Level 1) |   |   | Significant OtherObservable Inputs (Level 2) |   |   | SignificantUnobservableInputs (Level 3) |   |   | Total Losses for the year endedDecember 31,2009 |   |
|------------------------------|--------|----------------------------------|--------|--------|-------------------------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------------------------|--------|
|                         |   |                             |   |   |                                                                    |   |   |                                                   |   |   |                                    |   |   |                                                      |   |
| Impaired      loans          |   | $                                | 70,485 |   |                                                                    | $      | -      |                                                   |   | $      | -                                       |   |   | $                                                         | 70,485 |   |   | $ | 30,465 |   |
| Other      Real Estate Owned |   | $                                | 17,502 |   |                                                                    | $      | -      |                                                   |   | $      | 17,502                                  |   |   | $                                                         | -      |   |   | $ | 10,533 |   |

|                         |   | Balance atDecember 31, 2008 |   |   | Quoted Prices inActive Markets for Identical Assets (Level 1) |   |   | Significant OtherObservable Inputs (Level 2) |   |   | SignificantUnobservableInputs (Level 3) |   |   | Total Losses for the year endedDecember 31,2008 |   |
|------------------------------|--------|----------------------------------|--------|--------|-------------------------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------------------------|--------|
|                         |   |                             |   |   |                                                                    |   |   |                                                   |   |   |                                    |   |   |                                                      |   |
| Impaired      loans          |   | $                                | 50,111 |   |                                                                    | $      | -      |                                                   |   | $      | -                                       |   |   | $                                                         | 50,111 |   |   | $ | 3,805 |   |
| Other      Real Estate Owned |   | $                                | 17,156 |   |                                                                    | $      | -      |                                                   |   | $      | 17,156                                  |   |   | $                                                         | -      |   |   | $ | 2,545 |   |

----

----

| (a) | Executive Officers – See      “Executive Officers” in part I, Item 1hereof. |
|-----|-----------------------------------------------------------------------------------------------|

| (b) | Directors and Executive      Officers – information required by this item is incorporated by      reference from the sections entitled “Election of Directors” and “Section      16(a) Beneficial Ownership Reporting Compliance” in the Proxy Statement      for the Annual Meeting of Shareholders that is to be filed with the      Securities Exchange Commission. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Audit Committee Financial      Expert – The Board of Directors has determined that Peter H.      Carlton, member of the Audit Committee, is an “audit committee financial      expert” and “independent” as defined under applicable SEC and Nasdaq      rules. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | MBT      Financial Corp. has adopted its Code of Ethics, a code      of ethics that applies to all its directors, officers, and employees,      including its Chief Executive Officer, Chief Financial Officer, and      internal auditor. A copy of the Code of Ethics is posted on our website at      http://www.mbandt.com. In the event we make any amendment to, or grant any      waiver of, a provision of the Code of Ethics that applies to the principal      executive officers, principal financial officer, principal accounting      officer, or controller, or persons performing similar functions that      require disclosure under applicable SEC rules, we intend to disclose such      amendment or waiver, the reasons for it, and the nature of any waiver, the      name of the person to whom it was granted, and the date, on our internet      website. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                            |   | Number of securities to beissued upon exercise ofoutstanding options, warrants,and rights |    |   | Weighted averageexercise price ofoutstanding options,warrants, and rights |   |   | Number of securities remainingavailable for future      issuance underequity compensation      plans(excluding securities reflected      in thefirst column ) |   |
|-----------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity      Compensation plans approved by security holders     |   |                                                                                           | 710,575 |   |                                                                      | $      | 13.57  |                                                                                                                                                                    |   |   | 718,270 |   |
| Equity      Compensation plans not approved by security holders |   |                                                                                           | 0       |   |                                                                      |   | 0      |                                                                                                                                                                    |   |   | 0 |   |
| Total                                                           |   |                                                                                           | 710,575 |   |                                                                      | $      | 13.57  |                                                                                                                                                                    |   |   | 718,270 |   |

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| Financial      Statements                                                                 |   |
|------------------------------------------------------------------------------------------------|--------|
|                                                                                           |   |
| Reports      of Independent Registered Public Accounting Firm – Pages    44-45           |   |
|                                                                                           |   |
| Consolidated      Balance Sheets as of December 31, 2009 and 2008 – Page 46              |   |
|                                                                                           |   |
| Consolidated      Statements of Income for the Years Ended                                     |   |
| December      31, 2009, 2008, and 2007 – Page 47                                         |   |
|                                                                                           |   |
| Consolidated      Statements of Changes in Stockholders’ Equity for the Years      Ended |   |
| December      31, 2009, 2008, and 2007 – Page 48                                         |   |
|                                                                                           |   |
| Consolidated      Statements of Cash Flows for the Years Ended                                 |   |
| December      31, 2009, 2008, and 2007 – Page 49                                         |   |
|                                                                                           |   |
| Notes      to Consolidated Financial Statements – Pages 50 – 68                    |   |

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| 2    |         | Purchase      and Assumption Agreement dated October 10, 2008. Previously filed as      Exhibit 2 to MBT Financial Corp.’s Form 8-K filed on October 16,      2008.                                                                                                |
|------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1  |         | Restated      Articles of Incorporation of MBT Financial Corp. Previously filed as      Exhibit 3.1 to MBT Financial Corp.’s Form 10-K for its fiscal year ended      December 31, 2000.                                                                           |
| 3.2  |         | Amended      and Restated Bylaws of MBT Financial Corp. Previously filed as Exhibit 3.2      to MBT Financial Corp.’s Form 10-K for its fiscal year ended December 31,      2004.                                                                                  |
| 10.1 |         | MBT      Financial Corp. 2008 Stock Incentive Compensation Plan. Previously filed      as Exhibit 10 on Form 8-K filed by MBT Financial Corp. on June 5,      2008.                                                                                                      |
| 10.2 |         | Monroe      Bank & Trust Salary Continuation Agreement with Ronald D. LaBeau.      Previously filed as Exhibit 10.2 to MBT Financial Corp.’s Form 10-K for      its fiscal year ended December 31, 2000.                                                       |
| 10.3 |         | MBT      Financial Corp. Amended and Restated Change in Control Agreement with H.      Douglas Chaffin. Previously filed as Exhibit 10.5 to MBT Financial Corp.’s      Form 10-K for its fiscal year ended December 31, 2005.                                      |
| 10.4 |         | Monroe      Bank & Trust Group Director Death Benefit Only Plan. Previously filed      as Exhibit 10.4 to MBT Financial Corp.’s Form 10-K for its fiscal year      ended December 31, 2006.                                                                    |
| 10.5 |         | Monroe      Bank & Trust Group Executive Death Benefit Only Plan. Previously filed      as Exhibit 10.5 to MBT Financial Corp.’s Form 10-K for its fiscal year      ended December 31, 2006.                                                                   |
| 10.6 |         | Monroe      Bank & Trust Amended and Restated Supplemental Executive Retirement      Agreement with H. Douglas Chaffin. Previously filed as Exhibit 10.6 to MBT      Financial Corp.’s Form 10-K for its fiscal year ended December 31,      2007.             |
| 10.7 |         | MBT      Financial Corp. Severance Agreements with Donald M. Lieto, James E. Morr,      Thomas G. Myers, and John L. Skibski. Previously filed as Exhibit 10 on      Form 8-K filed by MBT Financial Corp. on January 26,  2006.                                         |
| 10.8 |         | MBT      Financial Corp. Severance Agreement with Scott E. McKelvey. Previously      filed as Exhibit 10.1 to MBT Financial Corp.’s Form 10-Q for its quarter      ended June 30, 2007.                                                                            |
| 10.9 |         | Real      estate purchase agreement dated August 27, 2009 between Registrant’s      wholly owned commercial bank subsidiary and D-M Investments, LLC.      Previously filed as Exhibit 10 to the Form 8-K filed by MBT Financial      Corp. on September 22, 2009. |
| 21   |         | Subsidiaries      of the Registrant. Previously filed as Exhibit 21 to MBT Financial Corp.’s      Form 10-K for its fiscal year ended December 31, 2000.                                                                                                           |
| 23   |         | Consent      of Independent Auditors                                                                                                                                                                                                                                     |
| 31.1 |         | Certification      by Chief Executive Officer required by Securities and Exchange Commission      Rule 13a-14.                                                                                                                                                           |
| 31.2 |         | Certification      by Chief Financial Officer required by Securities and Exchange Commission      Rule 13a-14.                                                                                                                                                           |
| 32.1 |         | Certification      by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as enacted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                                                            |
| 32.1 |    | Certification      by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as enacted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                                                            |

----

| Dated:      March 15, 2010 |   | MBT      FINANCIAL CORP.     |
|----------------------------|--------|------------------------------|
|                       |   |                         |
|                       | By:    | /s/ John L. Skibski          |
|                       |   | John      L. Skibski         |
|                       |   | Chief      Financial Officer |

| /s/ H. Douglas Chaffin          |   | /s/ John L. Skibski                |
|---------------------------------|--------|------------------------------------|
| H.      Douglas Chaffin         |   | John      L. Skibski               |
| President,      Chief Executive |   | Chief      Financial Officer & |
| Officer      & Director     |   | Director                           |
|                            |   |                               |
| /s/ William D. McIntyre,Jr.     |   | /s/ Peter H. Carlton               |
| William      D. McIntyre, Jr.   |   | Peter      H. Carlton              |
| Chairman                        |   | Director                           |
|                            |   |                               |
| /s/ Joseph S. Daly              |   | /s/ Edwin L. Harwood               |
| Joseph      S. Daly             |   | Edwin      L. Harwood              |
| Director                        |   | Director                           |
|                            |   |                               |
| /s/ Thomas M. Huner             |   | /s/ Rocque E. Lipford              |
| Thomas      M. Huner            |   | Rocque      E. Lipford             |
| Director                        |   | Director                           |
|                            |   |                               |
| /s/ Michael J. Miller           |   | /s/ Debra J. Shah                  |
| Michael      J. Miller          |   | Debra      J. Shah                 |
| Director                        |   | Director                           |
|                            |   |                               |
| /s/ Philip P. Swy               |   | /s/ Karen M. Wilson                |
| Philip      P. Swy              |   | Karen      M. Wilson               |
| Director                        |   | Director                           |

----

| Exhibit Number |         | Description of Exhibits                                                                                                                                                                                                                                                  |
|---------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2                   |         | Purchase      and Assumption Agreement dated October 10, 2008. Previously filed as      Exhibit 2 to MBT Financial Corp.’s Form 8-K filed on October 16,      2008.                                                                                                |
| 3.1                 |         | Restated      Articles of Incorporation of MBT Financial Corp. Previously filed as      Exhibit 3.1 to MBT Financial Corp.’s Form 10-K for its fiscal year ended      December 31, 2000.                                                                           |
| 3.2                 |         | Amended      and Restated Bylaws of MBT Financial Corp. Previously filed as Exhibit 3.2      to MBT Financial Corp.’s Form 10-K for its fiscal year ended December 31,      2004.                                                                                  |
| 10.1                |         | MBT      Financial Corp. 2008 Stock Incentive Compensation Plan. Previously filed      as Exhibit 10 on Form 8-K filed by MBT Financial Corp. on June 5,      2008.                                                                                                      |
| 10.2                |         | Monroe      Bank & Trust Salary Continuation Agreement with Ronald D. LaBeau.      Previously filed as Exhibit 10.2 to MBT Financial Corp.’s Form 10-K for      its fiscal year ended December 31, 2000.                                                       |
| 10.3                |         | MBT      Financial Corp. Amended and Restated Change in Control Agreement with H.      Douglas Chaffin. Previously filed as Exhibit 10.5 to MBT Financial Corp.’s      Form 10-K for its fiscal year ended December 31, 2005.                                      |
| 10.4                |         | Monroe      Bank & Trust Group Director Death Benefit Only Plan. Previously filed      as Exhibit 10.4 to MBT Financial Corp.’s Form 10-K for its fiscal year      ended December 31, 2006.                                                                    |
| 10.5                |         | Monroe      Bank & Trust Group Executive Death Benefit Only Plan. Previously filed      as Exhibit 10.5 to MBT Financial Corp.’s Form 10-K for its fiscal year      ended December 31, 2006.                                                                   |
| 10.6                |         | Monroe      Bank & Trust Amended and Restated Supplemental Executive Retirement      Agreement with H. Douglas Chaffin. Previously filed as Exhibit 10.6 to MBT      Financial Corp.’s Form 10-K for its fiscal year ended December 31,      2007.             |
| 10.7                |         | MBT      Financial Corp. Severance Agreements with Donald M. Lieto, James E. Morr,      Thomas G. Myers, and John L. Skibski. Previously filed as Exhibit 10 on      Form 8-K filed by MBT Financial Corp. on January 26,  2006.                                         |
| 10.8                |         | MBT      Financial Corp. Severance Agreement with Scott E. McKelvey. Previously      filed as Exhibit 10.1 to MBT Financial Corp.’s Form 10-Q for its quarter      ended June 30, 2007.                                                                            |
| 10.9                |         | Real      estate purchase agreement dated August 27, 2009 between Registrant’s      wholly owned commercial bank subsidiary and D-M Investments, LLC.      Previously filed as Exhibit 10 to the Form 8-K filed by MBT Financial      Corp. on September 22, 2009. |
| 21                  |         | Subsidiaries      of the Registrant. Previously filed as Exhibit 21 to MBT Financial Corp.’s      Form 10-K for its fiscal year ended December 31, 2000.                                                                                                           |
| 23                  |         | Consent      of Independent Auditors                                                                                                                                                                                                                                     |
| 31.1                |         | Certification      by Chief Executive Officer required by Securities and Exchange Commission      Rule 13a-14.                                                                                                                                                           |
| 31.2                |         | Certification      by Chief Financial Officer required by Securities and Exchange Commission      Rule 13a-14.                                                                                                                                                           |
| 32.1                |         | Certification      by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as enacted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                                                            |
| 32.1                |    | Certification      by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as enacted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                                                            |

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