Exhibit 13.1

NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

NEWNAN, GEORGIA

CONSOLIDATED FINANCIAL STATEMENTS AS OF

DECEMBER 31, 2007 AND 2006 AND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



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NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

CONTENTS



|                                                           |  |  
|---------------------------------------------------------- |  | -
|Report of Independent Registered Public Accounting Firm    |  | 1
|                                                           | 
|Consolidated Balance Sheets                                |  | 2
|                                                           | 
|Consolidated Statements of Income                          |  | 4
|                                                           | 
|Consolidated Statements of Comprehensive Income            |  | 5
|                                                           | 
|Consolidated Statements of Changes in Stockholders Equity |  | 6
|                                                           | 
|Consolidated Statements of Cash Flows                      |  | 7
|                                                           | 
|Notes to Consolidated Financial Statements                 |  | 9



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MCNAIR, MCLEMORE,
MIDDLEBROOKS & CO., LLP

CERTIFIED PUBLIC ACCOUNTANTS

389 Mulberry Street  Post Office Box One  Macon, GA 31202

Telephone (478) 746-6277  Facsimile (478) 743-6858

www.mmmcpa.com

RALPH S. McLEMORE, SR., CPA (1902-1981)

SIDNEY B. McNAIR, CPA
(1913-1992)



|                                |  |  |  |                              
|------------------------------- |  |  |  | -----------------------------
|SIDNEY E. MIDDLEBROOKS, CPA, PC |  |  |  | RICHARD A. WHITTEN, JR., CPA 
|RAY C. PEARSON, CPA             |  |  |  | ELIZABETH WARE HARDIN, CPA   
|J. RANDOLPH NICHOLS, CPA        |  |  |  | CAROLINE E. GRIFFIN, CPA     
|WILLIAM H. EPPS, JR., CPA       |  |  |  | RONNIE K. GILBERT, CPA       
|RAYMOND A. PIPPIN, JR., CPA     |  |  |  | RON C. DOUTHIT, CPA          
|JERRY A. WOLFE, CPA             |  |  |  | CHARLES A. FLETCHER, CPA     
|W. E. BARFIELD, JR., CPA        |  |  |  | MARJORIE HUCKABEE CARTER, CPA
|HOWARD S. HOLLEMAN, CPA         |  |  |  | BRYAN A. ISGETT, CPA         
|F. GAY McMICHAEL, CPA           |  |  |  | DAVID PASCHAL MUSE, JR., CPA 

March 28, 2008

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors

Newnan Coweta Bancshares, Inc.

We have audited the accompanying consolidated
balance sheets of Newnan Coweta Bancshares, Inc. and Subsidiary as of December 31, 2007 and 2006, and the related consolidated statements of income, comprehensive income, changes in stockholders equity and cash flows for each of
the years in the three-year period ended December 31, 2007. These consolidated financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these consolidated financial statements
based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of Newnan Coweta Bancshares, Inc. and Subsidiary as of December 31, 2007 and 2006 and the results of operations and cash flows for each of the years in the three-year period ended December 31, 2007, in
conformity with accounting principles generally accepted in the United States of America.

We were not engaged to examine managements assertion about
the effectiveness of Newnan Coweta Bancshares, Inc.s internal control over financial reporting as of December 31, 2007 included in the accompanying Managements Report on Internal Control Over Financial Reporting and, accordingly, we
do not express an opinion thereon.



LOGOMcNAIR, McLEMORE, MIDDLEBROOKS & CO., LLP




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NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

DECEMBER
31

ASSETS



|                                                        |  |      |             |   |      |   |             |  
|------------------------------------------------------- |  | ---- | ----------- | - | ---- | - | ----------- | -
|                                                        |  | 2007 |             |   | 2006 |  
|Cash and Cash Equivalents                               |  |      |             |   |      |   |             |  
|Cash and Due from Banks                                 |  | $    | 5,076,258   |   |      | $ | 3,328,257   |  
|Federal Funds Sold                                      |  |      | 6,059,000   |   |      |   | 9,579,000   |  
|                                                        |  |      |             |   |      |   |             |  
|                                                        |  |      | 11,135,258  |   |      |   | 12,907,257  |  
|                                                        |  |      |             |   |      |   |             |  
|Investment Securities Available for Sale, at Fair Value |  |      | 19,781,231  |   |      |   | 12,987,200  |  
|                                                        |  |      |             |   |      |   |             |  
|Restricted Investments, at Cost                         |  |      | 1,450,900   |   |      |   | 731,600     |  
|                                                        |  |      |             |   |      |   |             |  
|Loans                                                   |  |      | 178,177,884 |   |      |   | 189,774,408 |  
|Allowance for Loan Losses                               |  |      | (2,426,269  | ) |      |   | (2,328,393  | )
|Deferred Loan Fees                                      |  |      | (44,093     | ) |      |   | (93,752     | )
|                                                        |  |      |             |   |      |   |             |  
|                                                        |  |      | 175,707,522 |   |      |   | 187,352,263 |  
|                                                        |  |      |             |   |      |   |             |  
|Premises and Equipment                                  |  |      | 9,447,989   |   |      |   | 5,846,040   |  
|                                                        |  |      |             |   |      |   |             |  
|Other Real Estate                                       |  |      | 12,642,856  |   |      |   |            |  
|                                                        |  |      |             |   |      |   |             |  
|Other Assets                                            |  |      | 7,802,930   |   |      |   | 4,282,923   |  
|                                                        |  |      |             |   |      |   |             |  
|Total Assets                                            |  | $    | 237,968,686 |   |      | $ | 224,107,283 |  
|                                                        |  |      |             |   |      |   |             |  

The accompanying notes are an integral part of these consolidated balance sheets.



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NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

DECEMBER
31

LIABILITIES AND STOCKHOLDERS EQUITY



|                                                                                                                                                            |  |      |             |      |   |             |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ----------- | ---- | - | ----------- | -
|                                                                                                                                                            |  | 2007 |             | 2006 |  
|Deposits                                                                                                                                                    |  |      |             |      |   |             |  
|Noninterest-Bearing                                                                                                                                         |  | $    | 13,000,719  |      | $ | 14,800,879  |  
|Interest-Bearing                                                                                                                                            |  |      | 182,538,387 |      |   | 186,414,876 |  
|                                                                                                                                                            |  |      |             |      |   |             |  
|                                                                                                                                                            |  |      | 195,539,106 |      |   | 201,215,755 |  
|                                                                                                                                                            |  |      |             |      |   |             |  
|Borrowed Money                                                                                                                                              |  |      |             |      |   |             |  
|Subordinated Debentures                                                                                                                                     |  |      | 3,093,000   |      |   | 3,093,000   |  
|Other Borrowed Money                                                                                                                                        |  |      | 18,000,000  |      |   |            |  
|                                                                                                                                                            |  |      |             |      |   |             |  
|                                                                                                                                                            |  |      | 21,093,000  |      |   | 3,093,000   |  
|                                                                                                                                                            |  |      |             |      |   |             |  
|Other Liabilities                                                                                                                                           |  |      | 1,735,691   |      |   | 2,117,632   |  
|                                                                                                                                                            |  |      |             |      |   |             |  
|Stockholders Equity                                                                                                                                        |  |      |             |      |   |             |  
|Common Stock, No Par Value, 5,000,000 Shares Authorized; 1,006,070 and 967,644 Shares Issued and Outstanding as of December 31, 2007 and
2006, Respectively |  |      | 12,193,435  |      |   | 11,369,100  |  
|Retained Earnings                                                                                                                                           |  |      | 7,319,552   |      |   | 6,319,153   |  
|Accumulated Other Comprehensive Income                                                                                                                      |  |      | 87,902      |      |   | (7,357      | )
|                                                                                                                                                            |  |      |             |      |   |             |  
|                                                                                                                                                            |  |      | 19,600,889  |      |   | 17,680,896  |  
|                                                                                                                                                            |  |      |             |      |   |             |  
|Total Liabilities and Stockholders Equity                                                                                                                  |  | $    | 237,968,686 |      | $ | 224,107,283 |  
|                                                                                                                                                            |  |      |             |      |   |             |  

The accompanying notes are an integral part of these consolidated balance sheets.



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NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31



|                                                    |  |      |            |      |   |            |  |   |           
|--------------------------------------------------- |  | ---- | ---------- | ---- | - | ---------- |  | - | ----------
|                                                    |  | 2007 |            | 2006 |   | 2005      
|Interest Income                                     |  |      |            |      |   |            |  |   |           
|Loans, Including Fees                               |  | $    | 16,693,090 |      | $ | 15,998,734 |  | $ | 11,160,434
|Taxable Securities                                  |  |      | 917,967    |      |   | 588,214    |  |   | 227,389   
|Federal Funds Sold                                  |  |      | 690,781    |      |   | 586,478    |  |   | 224,607   
|                                                    |  |      |            |      |   |            |  |   |           
|                                                    |  |      | 18,301,838 |      |   | 17,173,426 |  |   | 11,612,430
|                                                    |  |      |            |      |   |            |  |   |           
|Interest Expense                                    |  |      |            |      |   |            |  |   |           
|Deposits                                            |  |      | 9,728,031  |      |   | 7,730,202  |  |   | 4,339,885 
|Other Borrowings                                    |  |      | 229,616    |      |   | 258,703    |  |   | 160,906   
|                                                    |  |      |            |      |   |            |  |   |           
|                                                    |  |      | 9,957,647  |      |   | 7,988,905  |  |   | 4,500,791 
|                                                    |  |      |            |      |   |            |  |   |           
|Net Interest Income                                 |  |      | 8,344,191  |      |   | 9,184,521  |  |   | 7,111,639 
|Provision for Loan Losses                           |  |      | 906,053    |      |   | 384,841    |  |   | 548,225   
|                                                    |  |      |            |      |   |            |  |   |           
|Net Interest Income After Provision for Loan Losses |  |      | 7,438,138  |      |   | 8,799,680  |  |   | 6,563,414 
|                                                    |  |      |            |      |   |            |  |   |           
|Noninterest Income                                  |  |      |            |      |   |            |  |   |           
|Service Charges on Deposit Accounts                 |  |      | 261,540    |      |   | 251,069    |  |   | 266,934   
|Mortgage Origination Fees                           |  |      | 382,289    |      |   | 352,336    |  |   | 279,867   
|Securities Gain, Net                                |  |      | 43,197     |      |   |           |  |   |          
|Other                                               |  |      | 238,454    |      |   | 217,783    |  |   | 201,076   
|                                                    |  |      |            |      |   |            |  |   |           
|                                                    |  |      | 925,480    |      |   | 821,188    |  |   | 747,877   
|                                                    |  |      |            |      |   |            |  |   |           
|Noninterest Expenses                                |  |      |            |      |   |            |  |   |           
|Salaries and Employee Benefits                      |  |      | 3,873,295  |      |   | 3,240,306  |  |   | 2,346,464 
|Equipment and Occupancy Expenses                    |  |      | 762,956    |      |   | 722,754    |  |   | 611,850   
|Losses on Sale of Assets, Net                       |  |      | 24,989     |      |   |           |  |   |          
|Securities Losses, Net                              |  |      |           |      |   | 1,026      |  |   |          
|Other                                               |  |      | 1,820,835  |      |   | 1,584,303  |  |   | 1,531,278 
|                                                    |  |      |            |      |   |            |  |   |           
|                                                    |  |      | 6,482,075  |      |   | 5,548,389  |  |   | 4,489,592 
|                                                    |  |      |            |      |   |            |  |   |           
|Income Before Income Taxes                          |  |      | 1,881,543  |      |   | 4,072,479  |  |   | 2,821,699 
|Income Taxes                                        |  |      | 700,052    |      |   | 1,566,537  |  |   | 1,112,881 
|                                                    |  |      |            |      |   |            |  |   |           
|Net Income                                          |  | $    | 1,181,491  |      | $ | 2,505,942  |  | $ | 1,708,818 
|                                                    |  |      |            |      |   |            |  |   |           
|Basic Earnings Per Share                            |  | $    | 1.18       |      | $ | 2.72       |  | $ | 1.90      
|                                                    |  |      |            |      |   |            |  |   |           
|Diluted Earnings Per Share                          |  | $    | 1.13       |      | $ | 2.55       |  | $ | 1.81      
|                                                    |  |      |            |      |   |            |  |   |           
|Dividends Per Share                                 |  | $    | 0.18       |      | $ | 0.15       |  | $ | 0.11      
|                                                    |  |      |            |      |   |            |  |   |           

The accompanying notes are an integral part of these consolidated statements.



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NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31



|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|----------------------------------------------------------------------------------------------------------------------------- |  | ---- | --------- | - | ---- | - | --------- |  | - | --------- | -
|                                                                                                                              |  | 2007 |           |   | 2006 |   | 2005      | 
|Net Income                                                                                                                    |  | $    | 1,181,491 |   |      | $ | 2,505,942 |  | $ | 1,708,818 |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|Other Comprehensive Income (Loss)                                                                                             |  |      |           |   |      |   |           |  |   |           |  
|Gains (Losses) Arising During the Year                                                                                        |  |      | 122,041   |   |      |   | 34,732    |  |   | (65,163   | )
|Reclassification Adjustments                                                                                                  |  |      | (26,782   | ) |      |   | 635       |  |   |          |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustments and Tax Effects |  |      | 95,259    |   |      |   | 35,367    |  |   | (65,163   | )
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|Comprehensive Income                                                                                                          |  | $    | 1,276,750 |   |      | $ | 2,541,309 |  | $ | 1,643,655 |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  

The accompanying notes are an integral part of these consolidated statements.



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NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005



|                                                                                                                              |        |              |         |                  |            |  |                                     |           |   |                          |   |         |   |  |   |            |  
|----------------------------------------------------------------------------------------------------------------------------- | ------ | ------------ | ------- | ---------------- | ---------- |  | ----------------------------------- | --------- | - | ------------------------ | - | ------- | - |  | - | ---------- | -
|                                                                                                                              |        | Common
Stock |         | RetainedEarnings |            |  | AccumulatedOtherComprehensiveIncome |           |   | TotalStockholdersEquity |  
|                                                                                                                              | Shares |              | Paid-In |                  |            | 
|Balance, December 31, 2004                                                                                                    |        | 900,000      |         | $                | 8,979,916  |  | $                                   | 2,338,393 |   |                          | $ | 22,439  |   |  | $ | 11,340,748 |  
|                                                                                                                              |        |              |         |                  |           
|Net Income                                                                                                                    |        |             |         |                  |           |  |                                     | 1,708,818 |   |                          |   |        |   |  |   | 1,708,818  |  
|Cash Dividends                                                                                                                |        |             |         |                  |           |  |                                     | (99,000   | ) |                          |   |        |   |  |   | (99,000    | )
|Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustments and Tax Effects |        |             |         |                  |           |  |                                     |          |   |                          |   | (65,163 | ) |  |   | (65,163    | )
|                                                                                                                              |        |              |         |                  |            |  |                                     |           |   |                          |   |         |   |  |   |            |  
|Balance, December 31, 2005                                                                                                    |        | 900,000      |         |                  | 8,979,916  |  |                                     | 3,948,211 |   |                          |   | (42,724 | ) |  |   | 12,885,403 |  
|                                                                                                                              |        |              |         |                  |           
|Net Income                                                                                                                    |        |             |         |                  |           |  |                                     | 2,505,942 |   |                          |   |        |   |  |   | 2,505,942  |  
|Cash Dividends                                                                                                                |        |             |         |                  |           |  |                                     | (135,000  | ) |                          |   |        |   |  |   | (135,000   | )
|Shares Issued in Connection with Private Placement                                                                            |        | 66,644       |         |                  | 2,379,184  |  |                                     |          |   |                          |   |        |   |  |   | 2,379,184  |  
|Shares Issued in Connection with Exercise of Stock Options                                                                    |        | 1,000        |         |                  | 10,000     |  |                                     |          |   |                          |   |        |   |  |   | 10,000     |  
|Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustments and Tax Effects |        |             |         |                  |           |  |                                     |          |   |                          |   | 35,367  |   |  |   | 35,367     |  
|                                                                                                                              |        |              |         |                  |            |  |                                     |           |   |                          |   |         |   |  |   |            |  
|Balance, December 31, 2006                                                                                                    |        | 967,644      |         |                  | 11,369,100 |  |                                     | 6,319,153 |   |                          |   | (7,357  | ) |  |   | 17,680,896 |  
|                                                                                                                              |        |              |         |                  |           
|Net Income                                                                                                                    |        |             |         |                  |           |  |                                     | 1,181,491 |   |                          |   |        |   |  |   | 1,181,491  |  
|Cash Dividends                                                                                                                |        |             |         |                  |           |  |                                     | (181,092  | ) |                          |   |        |   |  |   | (181,092   | )
|Shares Issued in Connection with Private Placement                                                                            |        | 16,926       |         |                  | 609,335    |  |                                     |          |   |                          |   |        |   |  |   | 609,335    |  
|Shares Issued in Connection with Exercise of Stock Options                                                                    |        | 21,500       |         |                  | 215,000    |  |                                     |          |   |                          |   |        |   |  |   | 215,000    |  
|Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustments and Tax Effects |        |             |         |                  |           |  |                                     |          |   |                          |   | 95,259  |   |  |   | 95,259     |  
|                                                                                                                              |        |              |         |                  |            |  |                                     |           |   |                          |   |         |   |  |   |            |  
|Balance, December 31, 2007                                                                                                    |        | 1,006,070    |         | $                | 12,193,435 |  | $                                   | 7,319,552 |   |                          | $ | 87,902  |   |  | $ | 19,600,889 |  
|                                                                                                                              |        |              |         |                  |            |  |                                     |           |   |                          |   |         |   |  |   |            |  

The accompanying notes are an integral part of these consolidated statements.



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NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31



|                                                                                 |  |      |             |   |      |   |             |      |  |   |             |  
|-------------------------------------------------------------------------------- |  | ---- | ----------- | - | ---- | - | ----------- | ---- |  | - | ----------- | -
|                                                                                 |  | 2007 |             |   | 2006 |   |             | 2005 | 
|Cash Flow from Operating Activities                                              |  |      |             |   |      |   |             |      |  |   |             |  
|Net Income                                                                       |  | $    | 1,181,491   |   |      | $ | 2,505,942   |      |  | $ | 1,708,818   |  
|Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities |  |      |             |   |      |   |             |      |  |   |             |  
|Depreciation                                                                     |  |      | 320,777     |   |      |   | 316,723     |      |  |   | 261,794     |  
|Provision for Loan Losses                                                        |  |      | 906,053     |   |      |   | 384,841     |      |  |   | 548,225     |  
|Amortization and Accretion                                                       |  |      | (18,889     | ) |      |   | (40,467     | )    |  |   | 35,142      |  
|Deferred Income Taxes                                                            |  |      | 452         |   |      |   | 36,807      |      |  |   | (188,117    | )
|(Gain) Loss on Sales of Securities                                               |  |      | (43,197     | ) |      |   | 1,026       |      |  |   |            |  
|Loss on Sales of Foreclosed Assets                                               |  |      | 24,989      |   |      |   |            |      |  |   |            |  
|Increase in Interest Receivable                                                  |  |      | (355,151    | ) |      |   | (432,710    | )    |  |   | (378,916    | )
|Increase (Decrease) in Interest Payable                                          |  |      | (186,829    | ) |      |   | 844,256     |      |  |   | 612,241     |  
|Increase (Decrease) in Income Taxes Payable                                      |  |      | (317,856    | ) |      |   | (107,003    | )    |  |   | 203,112     |  
|Net Other Operating Activities                                                   |  |      | (133,984    | ) |      |   | (160,657    | )    |  |   | (101,515    | )
|                                                                                 |  |      |             |   |      |   |             |      |  |   |             |  
|                                                                                 |  |      | 1,377,856   |   |      |   | 3,348,758   |      |  |   | 2,700,784   |  
|                                                                                 |  |      |             |   |      |   |             |      |  |   |             |  
|Cash Flow from Investing Activities                                              |  |      |             |   |      |   |             |      |  |   |             |  
|Purchases of Securities Available for Sale                                       |  |      | (24,897,787 | ) |      |   | (8,697,274  | )    |  |   | (6,438,287  | )
|Proceeds from Sale of Securities Available for Sale                              |  |      | 7,911,125   |   |      |   | 84,567      |      |  |   |            |  
|Proceeds from Calls and Maturities of Securities Available for Sale              |  |      | 10,408,363  |   |      |   | 6,062,824   |      |  |   | 64,867      |  
|Investment in Statutory Trust                                                    |  |      |            |   |      |   |            |      |  |   | (93,000     | )
|Purchase of Federal Home Loan Bank Stock                                         |  |      | (841,100    | ) |      |   | (88,600     | )    |  |   |            |  
|Sale of Federal Home Loan Bank Stock                                             |  |      |            |   |      |   |            |      |  |   | 168,700     |  
|Sale of Federal Reserve Bank Stock                                               |  |      | 121,800     |   |      |   | (43,500     | )    |  |   | (46,500     | )
|Net Increase in Loans                                                            |  |      | (3,731,064  | ) |      |   | (34,709,628 | )    |  |   | (32,048,437 | )
|Purchase of Premises and Equipment                                               |  |      | (3,922,726  | ) |      |   | (73,274     | )    |  |   | (2,011,921  | )
|Purchase of Bank Owned Life Insurance                                            |  |      | (3,100,000  | ) |      |   |            |      |  |   |            |  
|Proceeds from Sale of Other Real Estate and Repossessions                        |  |      | 1,934,941   |   |      |   | 4,200       |      |  |   | 298,677     |  
|                                                                                 |  |      |             |   |      |   |             |      |  |   |             |  
|                                                                                 |  |      | (16,116,448 | ) |      |   | (37,460,685 | )    |  |   | (40,105,901 | )
|                                                                                 |  |      |             |   |      |   |             |      |  |   |             |  
|Cash Flow from Financing Activities                                              |  |      |             |   |      |   |             |      |  |   |             |  
|Net Increase in Deposits                                                         |  |      | (5,676,650  | ) |      |   | 32,336,705  |      |  |   | 43,827,614  |  
|Increase (Decrease) in Other Borrowings                                          |  |      | 18,000,000  |   |      |   |            |      |  |   | (5,000,000  | )
|Dividends Paid                                                                   |  |      | (181,092    | ) |      |   | (135,000    | )    |  |   | (99,000     | )
|Proceeds from Issuance of Subordinated Debentures                                |  |      |            |   |      |   |            |      |  |   | 3,093,000   |  
|Proceeds from the Sale of Stock                                                  |  |      | 609,335     |   |      |   | 2,379,184   |      |  |   |            |  
|Exercise of Stock Options                                                        |  |      | 215,000     |   |      |   | 10,000      |      |  |   |            |  
|                                                                                 |  |      |             |   |      |   |             |      |  |   |             |  
|                                                                                 |  |      | 12,966,593  |   |      |   | 34,590,889  |      |  |   | 41,821,614  |  
|                                                                                 |  |      |             |   |      |   |             |      |  |   |             |  
|Net Increase (Decrease) in Cash and Due from Banks                               |  |      | (1,771,999  | ) |      |   | 478,962     |      |  |   | 4,416,497   |  
|Cash and Cash Equivalents, Beginning                                             |  |      | 12,907,257  |   |      |   | 12,428,295  |      |  |   | 8,011,798   |  
|                                                                                 |  |      |             |   |      |   |             |      |  |   |             |  
|Cash and Cash Equivalents, Ending                                                |  | $    | 11,135,258  |   |      | $ | 12,907,257  |      |  | $ | 12,428,295  |  
|                                                                                 |  |      |             |   |      |   |             |      |  |   |             |  

The accompanying notes are an integral part of these consolidated statements.



- 7 -



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NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31



|                                                                  |  |      |            |   |      |   |           |      |  |   |          
|----------------------------------------------------------------- |  | ---- | ---------- | - | ---- | - | --------- | ---- |  | - | ---------
|                                                                  |  | 2007 |            |   | 2006 |   |           | 2005
|Supplemental Disclosures                                          |  |      |            |   |      |   |           |      |  |   |          
|Cash Paid During the Year for                                     |  |      |            |   |      |   |           |      |  |   |          
|Interest                                                          |  | $    | 10,144,476 |   |      | $ | 7,144,648 |      |  | $ | 3,888,550
|                                                                  |  |      |            |   |      |   |           |      |  |   |          
|Income Taxes                                                      |  | $    | 999,823    |   |      | $ | 1,851,316 |      |  | $ | 976,500  
|                                                                  |  |      |            |   |      |   |           |      |  |   |          
|Noncash Investing Activities                                      |  |      |            |   |      |   |           |      |  |   |          
|Change in Unrealized (Gain) Loss on Securities Available for Sale |  | $    | (153,645   | ) |      | $ | (57,043   | )    |  | $ | 105,102  
|                                                                  |  |      |            |   |      |   |           |      |  |   |          

The accompanying notes are an integral part of these consolidated statements.



- 8 -



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NEWNAN COWETA BANCSHARES, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1)
Summary of Significant Accounting Policies

Nature of Business

Newnan Coweta Bancshares, Inc. (the Company) is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, Neighborhood Community Bank (the Bank). The Bank is a
commercial bank with the main office and one branch located in Newnan, Coweta County, Georgia, one branch located in Peachtree City, Fayette County, Georgia, one branch located in Tyrone, Fayette County, Georgia, and a mortgage origination office
located in Winter Park, Orange County, Florida. The Bank provides a full range of banking services in its primary market area of Coweta County and the surrounding counties. The Bank is a state-chartered member of the Federal Reserve System.

Basis of Presentation and Accounting Estimates

The
consolidated financial statements include the accounts of the Company and its subsidiary. Significant intercompany transactions and balances have been eliminated in consolidation.

In preparing the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.

Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for
loan losses, deferred income taxes, and contingent assets and liabilities. The determination of the adequacy of the allowance for loan losses is based on estimates that are susceptible to significant changes in the economic environment and market
conditions.

Reclassifications

In certain instances,
amounts reported in prior years consolidated financial statements have been reclassified to conform to statement presentations selected for 2007. Such reclassification had no effect on previously reported stockholders equity or net
income.

Cash, Due From Banks and Cash Flows

For
purposes of reporting cash flows, cash and due from banks include cash on hand, cash items in process of collection and amounts due from banks. Cash flows from loans, deposits, federal funds purchased and other borrowings are reported net.

The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank, based on a percentage of deposits. There were no
reserve balance requirements at December 31, 2006. As of December 31, 2007, the Bank had a required deposit of approximately $497,000 with the Federal Reserve.



- 9 -



---

(1) Summary of Significant Accounting Policies (Continued)



Investment Securities

All debt securities are classified as available for sale and recorded at fair value with unrealized gains and losses excluded from earnings and reported in other comprehensive income, net of the related deferred tax effect.

The amortization of premiums and accretion of discounts are recognized in interest income using methods, which approximate the interest method over the life of the
securities. Realized gains and losses, determined on the basis of the cost of specific securities sold, are included in earnings on the settlement date. Declines in the fair value of securities below their cost that are deemed to be other than
temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial
condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Restricted Investments

Restricted investments consist of investments
in stocks of a Federal Home Loan Bank (FHLB) and a Federal Reserve Bank (FRB), required for every federally insured institution that utilizes their services. FHLB and FRB stocks are considered restricted, as defined in Statement of Financial
Accounting Standards (SFAS) No. 115; accordingly, the provisions of SFAS No. 115 are not applicable to these investments. The FHLB and FRB stocks are reported in the consolidated financial statements at cost. Dividend income is recognized
when earned.

Loans

Loans are reported at their
outstanding principal balances less deferred fees and the allowance for loan losses. Interest income is accrued on the outstanding principal balance.

Nonrefundable loan fees, net of direct loan origination costs, are deferred with the net amount recognized into interest income over the life of the loans using a method that approximates a level yield.

The accrual of interest on loans is discontinued when, in managements opinion, the borrower may be unable to meet payments as they become due, unless the loan is
well secured. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, unless management believes that the accrued interest is recoverable through the liquidation of
collateral. Interest income on nonaccrual loans is recognized on the cost-recovery method until the loans are returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts are brought current and future
payments are reasonably assured.



- 10 -



---

(1) Summary of Significant Accounting Policies (Continued)



Allowance for Loan Losses

The allowance for loan losses is established through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the collectibility of the principal is unlikely. Subsequent
recoveries, if any, are credited to the allowance.

The allowance is an amount that management believes will be adequate to absorb estimated losses
relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio, based on an evaluation of the collectibility of existing loans and prior loss experience. This evaluation also takes into
consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, reviews of specific problem loans, concentrations and current economic conditions that may affect the borrowers ability to pay.
This evaluation does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions. While management uses the best information available to make its
evaluation, future adjustments to the allowance may be necessary if there are any significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Banks
allowance for loan losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations.

A loan is considered impaired when it is probable, based on current information and events, the Bank will be unable to collect all principal and interest payments due in accordance with the contractual terms of the
loan agreement. Impaired loans are measured by either the present value of expected future cash flows discounted at the loans effective interest rate, the loans obtainable market price or the fair value of the collateral if the loan is
collateral dependent. The amount of impairment, if any, and any subsequent changes are included in the allowance for loan losses.

Premises and
Equipment

Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed principally on
the straight-line method over the estimated useful lives of the assets.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the asset has been surrendered. Control over transferred assets is deemed to be surrendered
when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company
does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.



- 11 -



---

(1) Summary of Significant Accounting Policies (Continued)



Company-Owned Life Insurance

During 2004 and 2007, the Company purchased insurance on the lives of key employees. The policies accumulate asset values to meet future liabilities related to employee benefits. Increases in the cash surrender value
are recorded as other income in the consolidated statements of income. The cash surrender value of the company-owned life insurance is reflected in other assets on the consolidated balance sheets in the amount of $5,389,546 and $2,195,881 as of
December 31, 2007 and 2006, respectively.

Income Taxes

Deferred income tax assets and liabilities are determined using the balance sheet method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and
tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws.

Earnings Per Share

Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per
share are computed by dividing net income by the sum of the weighted average number of shares of common stock outstanding and potential common shares. Potential common shares consist of stock options and warrants.

Stock-Based Compensation Plans

In December 2004, the Financial
Accounting Standards Board (FASB) revised SFAS No. 123 (SFAS No. 123R). SFAS No. 123R, Share-Based Payment, requires all share-based payments to employees, including grants of employee stock options, to be recognized in the
financial statements based on fair values. Proforma disclosure is no longer an alternative to financial statement recognition. SFAS No. 123R was effective for periods beginning after December 15, 2005. The Company adopted the provisions of
SFAS No. 123R beginning January 1, 2006. Because all options and warrants granted by the Company had vested as of December 31, 2005, the implementation of SFAS No. 123R did not have an impact on the Company.

Prior to the implementation of SFAS No. 123R, the Company accounted for stock-based compensation plans under the recognition and measurement principles of APB
Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations. No stock-based compensation cost was reflected in net income, as all options and warrants granted under those plans had an exercise price equal to the
market value of the underlying stock on the date of grant. The following table illustrates the effect on net income and earnings per share if the Company had applied the fair value recognition provisions of SFAS Statement No. 123, Accounting
for Stock-Based Compensation, to stock-based compensation for the year ended December 31, 2005.



- 12 -



---

(1) Summary of Significant Accounting Policies (Continued)



Stock-Based Compensation Plans (Continued)



|                                                                                                                           |  |      |          
|-------------------------------------------------------------------------------------------------------------------------- |  | ---- | ---------
|                                                                                                                           |  | 2005
|Net Income, as Reported                                                                                                    |  | $    | 1,708,818
|Total Stock Based Compensation Expense Determined Under Fair Value Based Method for all Awards, Net of Related Tax Effects |  |      | 23,593   
|                                                                                                                           |  |      |          
|Proforma Net Income                                                                                                        |  | $    | 1,685,225
|                                                                                                                           |  |      |          
|Earnings Per Share                                                                                                         |  |      |          
|Basic, as Reported                                                                                                         |  | $    | 1.90     
|                                                                                                                           |  |      |          
|Basic, Proforma                                                                                                            |  | $    | 1.87     
|                                                                                                                           |  |      |          
|Diluted, as Reported                                                                                                       |  | $    | 1.81     
|                                                                                                                           |  |      |          
|Diluted, Proforma                                                                                                          |  | $    | 1.79     
|                                                                                                                           |  |      |          

Comprehensive Income

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available for sale,
are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income.

Concentrations of Credit Risk

Lending is highly concentrated in real estate loans to local borrowers. The real
estate loans are well collateralized; however, they are subject to changes in the local real estate conditions. This concentration could further impact the Companys credit risk should conditions in the local real estate markets deteriorate
further.

The success of the Company is dependent, to a certain extent, upon prevailing economic and real estate market conditions in the geographic
markets it serves. Deteriorating conditions in these geographic markets would likely have a material adverse effect on the Companys results of operations and financial condition. The operating results of the Company depend primarily on its net
interest income. Accordingly, operations are subject to risks and uncertainties surrounding the exposure to changes in the interest rate environment.

At
times, the Company may have cash and cash equivalents at financial institutions in excess of insured limits. The Company places cash and cash equivalents with high credit quality financial institutions whose credit rating is monitored by management
to minimize credit risk.



- 13 -



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(1) Summary of Significant Accounting Policies (Continued)



Changes in Accounting Principles and Effects of New Accounting Pronouncements

SFAS No. 141, Business Combinations (Revised 2007).SFAS No. 141R replaces SFAS No. 141, Business Combinations, and applies to all
transactions and other events in which one entity obtains control over one or more other businesses. SFAS No. 141R requires an acquirer, upon initially obtaining control of another entity, to recognize the assets, liabilities and any
noncontrolling interest in the acquiree at fair value as of the acquisition date. Contingent consideration is required to be recognized and measured at fair value on the date of acquisition rather than at a later date when the amount of that
consideration may be determinable beyond a reasonable doubt. This fair value approach replaces the cost-allocation process required under SFAS No. 141 whereby the cost of an acquisition was allocated to the individual assets acquired and
liabilities assumed based on their estimated fair value. SFAS No. 141R requires acquirers to expense acquisition-related costs as incurred rather than allocating such costs to the assets acquired and liabilities assumed, as was previously the
case under SFAS No. 141. Under SFAS No. 141R, the requirements of SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities, would have to be met in order to accrue for a restructuring plan in purchase
accounting. Pre-acquisition contingencies are to be recognized at fair value, unless it is a noncontractual contingency that is not likely to materialize, in which case, nothing should be recognized in purchase accounting and, instead, that
contingency would be subject to the probable and estimable recognition criteria of SFAS No. 5,Accounting for Contingencies. SFAS No. 141R is expected to have an impact on the Companys accounting for business combinations
closing on or after January 1, 2009.

In February 2006, the Financial Accounting Standards Board (FASB) issued SFAS No. 155, Accounting for
Certain Hybrid Financial Instrumentsan amendment of FASB Statements No. 133 and 140. This statement provides entities with relief from having to separately determine the fair value of an embedded derivative that would otherwise be
required to be bifurcated from its host contract in accordance with the requirements of SFAS 133. Entities can make an irrevocable election to measure such hybrid financial instruments at fair value in its entirety, with subsequent changes in fair
value recognized in earnings. This election can be made on an instrument-by-instrument basis. The adoption of SFAS No. 155 on January 1, 2007 did not impact the Companys consolidated financial statements.

In March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of Financial Assets. This statement, which is an amendment to SFAS No. 140,
will simplify the accounting for servicing assets and liabilities, such as those common with mortgage securitization activities. Specifically, SFAS No. 156 addresses the recognition and measurement of separately recognized servicing assets and
liabilities and provides an approach to simplify efforts to obtain hedge-like (offset) accounting. SFAS No. 156 also clarifies when an obligation to service financial assets should be separately recognized as a servicing initially measured at
fair value, if practicable, and permits an entity with a separately recognized servicing asset or servicing liability to choose either the amortization or fair value methods for subsequent measurement. The adoption of SFAS No. 156 on
January 1, 2007 did not have a significant impact on the Companys consolidated financial statements.



- 14 -



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(1) Summary of Significant Accounting Policies (Continued)



Changes in Accounting Principles and Effects of New Accounting Pronouncements (Continued)



FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement
109.Interpretation No. 48 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions
should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax
position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the
more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold
should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. Interpretation No. 48 also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and
penalties. The adoption of Interpretation No. 48 on January 1, 2007 did not significantly impact the Companys consolidated financial statements.

FSP No. 48-1 Definition of Settlement in FASB Interpretation No. 48.FSP No. 48-1 provides guidance on how to determine whether a tax position is effectively settled for the purpose of recognizing previously
unrecognized tax benefits. FSP No. 48-1 was effective retroactively to January 1, 2007 and did not significantly impact the Companys consolidated financial statements.

In September 2006, the FASB issued SFAS No. 157,Fair Value Measurements. SFAS No. 157 enhances existing guidance for measuring assets and liabilities using fair value. Before the issuance of
SFAS No. 157, guidance for applying fair value was incorporated in several accounting pronouncements. SFAS No. 157 provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure
about the use of fair value to measure assets and liabilities. SFAS No. 157 also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and sets out a fair value hierarchy with the highest priority being
quoted prices in active markets. Under SFAS No. 157, fair value measurements are disclosed by level within that hierarchy. While SFAS No. 157 does not add any new fair value measurements, it does change current practice. Changes to
practice include: (1) a requirement for an entity to include its own credit standing in the measurement of its liabilities; (2) a modification of the transaction price presumption; (3) a prohibition on the use of block discounts when
valuing large blocks of securities for broker-dealers and investment companies; and (4) a requirement to adjust the value of restricted stock for the effect of the restriction even if the restriction lapses within one year. SFAS No. 157 is
effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The Company does not expect the adoption of this standard to have a material effect on its financial
position, results of operations or disclosures.



- 15 -



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(1) Summary of Significant Accounting Policies (Continued)



Changes in Accounting Principles and Effects of New Accounting Pronouncements (Continued)



In September 2006, the FASB issued SFAS No. 158, Employers Accounting for Defined Benefit Pension
and Other Post Retirement Plansan Amendment of FASB Statements No. 87, 88, 106 and 123(R) (FASB 158). This statement requires companies to recognize a net liability or asset to report the funded status of their defined benefit
pension and other post retirement plans on the balance sheet. SFAS 158 requires additional new disclosures to be made in companies financial statements. SFAS 158 is effective for publicly-held companies for fiscal years ending after
December 15, 2006, except for the measurement date provisions, which are effective for fiscal years ending after December 15, 2008. The adoption of this standard did not have an effect on the Companys financial position, results of
operations or disclosures.

In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities
 Including an Amendment to FASB Statement No. 115. This statement permits entities to choose to measure many financial instruments and certain other items at fair value that are
not currently required to be measured at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring
related assets and liabilities differently without having to apply complex hedge accounting provisions. This statement requires a business entity to report unrealized gains and losses on items for which the
fair value option has been elected in earnings at each subsequent reporting date. An entity may decide whether to elect the fair value option for each eligible item on its election date, subject to certain
requirements described in the statement. This statement shall be effective as of the beginning of each reporting entitys first fiscal year that begins after November 15, 2007. The Company does not expect this standard to have an
effect on its financial position, results of operations or disclosures.

SFAS No. 160, Noncontrolling Interest in Consolidated Financial
Statements, an amendment of ARB Statement No. 51.SFAS No. 160 amends Accounting Research Bulletin (ARB) No. 51, Consolidated Financial Statements, to establish accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary. SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary, which is sometimes referred to as minority interest, is an ownership interest in the consolidated
entity that should be reported as a component of equity in the consolidated financial statements. Among other requirements, SFAS No. 160 requires consolidated net income to be reported at amounts that include the amounts attributable to both
the parent and the noncontrolling interest. It also requires disclosure, on the face of the consolidated statements of income, of the amounts of consolidated net income attributable to the parent and to the noncontrolling interest. SFAS No. 160
is effective for the Company on January 1, 2009 and is not expected to have a significant impact on the Companys consolidated financial statements.



- 16 -



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(1) Summary of Significant Accounting Policies (Continued)



Changes in Accounting Principles and Effects of New Accounting Pronouncements (Continued)



Emerging Issues Task Force (EITF) Issue No. 06-4, Accounting for Deferred Compensation and Postretirement
Benefit Aspects of Endorsement Split Dollar Life Insurance Arrangements.EITF No. 06-4 requires the recognition of a liability and related compensation expense for endorsement split-dollar life insurance policies that provide a benefit to
an employee that extends to post-retirement periods. Under EITF No. 06-4, life insurance policies purchased for the purpose of providing such benefits do not effectively settle an entitys obligation to the employee. Accordingly, the
entity must recognize a liability and related compensation expense during the employees active service period based on the future cost of insurance to be incurred during the employees retirement. If the entity has agreed to provide the
employee with a death benefit, then the liability for the future death benefit should be recognized by following the guidance in SFAS No. 106, Employers Accounting for Postretirement Benefits Other Than Pensions. The adoption of
EITF No. 06-4 is not expected to have an impact on the Companys consolidated financial statements.

SAB No. 109, Written Loan
Commitments Recorded at Fair Value Through Earnings.SAB No. 109 supersedes SAB No. 105, Application of Accounting Principles to Loan Commitments, and indicates that the expected net future cash flows related to the
associated servicing of the loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The guidance in SAB No. 109 is applied on a prospective basis to derivative loan
commitments issued or modified in fiscal quarters beginning after December 15, 2007. SAB No. 109 is not expected to have a material impact on the Companys consolidated financial statements.

(2) Investment Securities

The amortized cost and fair value of
securities available for sale are summarized as follows:



|                           |  |               |            |                      |   |                       |  |   |           |   |  |   |           
|-------------------------- |  | ------------- | ---------- | -------------------- | - | --------------------- |  | - | --------- | - |  | - | ----------
|                           |  | AmortizedCost |            | GrossUnrealizedGains |   | GrossUnrealizedLosses |  |   | FairValue
|December 31, 2007          |  |               |            |                      |   |                       |  |   |           |   |  |   |           
|U.S. Government Agencies   |  | $             | 10,005,372 |                      | $ | 74,350                |  | $ |          |   |  | $ | 10,079,722
|Mortgage Backed Securities |  |               | 9,634,081  |                      |   | 97,624                |  |   | (30,196   | ) |  |   | 9,701,509 
|                           |  |               |            |                      |   |                       |  |   |           |   |  |   |           
|                           |  | $             | 19,639,453 |                      | $ | 171,974               |  | $ | (30,196   | ) |  | $ | 19,781,231
|                           |  |               |            |                      |   |                       |  |   |           |   |  |   |           
|December 31, 2006          |  |               |            |                      |   |                       |  |   |           |   |  |   |           
|U.S. Government Agencies   |  | $             | 12,999,067 |                      | $ | 35,382                |  | $ | (47,249   | ) |  | $ | 12,987,200
|                           |  |               |            |                      |   |                       |  |   |           |   |  |   |           

Securities with a carrying value of approximately $5,756,000 and $4,491,000 at December 31, 2007 and 2006,
respectively, were pledged to secure public deposits and for other purposes as required or permitted by law.



- 17 -



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(2) Investment Securities (Continued)



The amortized cost and fair value of securities available for sale as of December 31, 2007 by contractual
maturity are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or repay obligations with or without call or prepayment penalties.



|                                       |               |                               |            |  |   |           
|-------------------------------------- | ------------- | ----------------------------- | ---------- |  | - | ----------
|                                       |               | Securities Available for Sale
|                                       | AmortizedCost |                               | FairValue 
|Due After Five Years Through Ten Years |               | $                             | 10,005,372 |  | $ | 10,079,722
|Mortgage Backed                        |               |                               | 9,634,081  |  |   | 9,701,509 
|                                       |               |                               |            |  |   |           
|                                       |               | $                             | 19,639,453 |  | $ | 19,781,231
|                                       |               |                               |            |  |   |           

Proceeds from sales of investments available for sale were $7,911,125 in 2007, $84,567 in 2006 and $0 in 2005.
Gross realized gains totaled $51,860 in 2007 and $0 in 2006 and 2005. Gross realized losses totaled $8,663 in 2007, $1,026 in 2006 and $0 in 2005.

Information pertaining to securities with gross unrealized losses at December 31, 2007 and 2006 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:



|                           |           |                     |                     |  |   |       
|-------------------------- | --------- | ------------------- | ------------------- |  | - | ------
|                           |           | Less Than 12 Months
|                           | FairValue |                     | GrossUnrealizedLoss
|December 31, 2007          |           |                     |                     |  |   |       
|Mortgage Backed Securities |           | $                   | 1,967,782           |  | $ | 30,196
|                           |           |                     |                     |  |   |       
|December 31, 2006          |           |                     |                     |  |   |       
|U.S. Government Agencies   |           | $                   | 4,429,650           |  | $ | 47,249
|                           |           |                     |                     |  |   |       

Management evaluates securities for other than temporary impairment at least on a quarterly basis, and more
frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of
the issuer and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At December 31, 2007, the debt securities with unrealized losses depreciated 1.50 percent from the Banks amortized cost basis. Either the U.S. Government guarantees these securities or U.S. Government
sponsored corporations. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuers financial condition, management considers whether the federal government or its agencies
issue the securities, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuers financial condition. As management has the ability to hold debt securities until maturity, or for the foreseeable future
if classified as available for sale, no declines are deemed to be other than temporary.



- 18 -



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(3) Loans

The
composition of loans as of December 31 is summarized as follows:



|                                        |  |      |             |   |      |   |             |  
|--------------------------------------- |  | ---- | ----------- | - | ---- | - | ----------- | -
|                                        |  | 2007 |             |   | 2006 |  
|Commercial and Financial                |  | $    | 33,507,147  |   |      | $ | 24,921,861  |  
|Real Estate-Acquisition and Development |  |      | 44,320,864  |   |      |   | 47,409,078  |  
|Real EstateConstruction                |  |      | 26,136,632  |   |      |   | 32,880,904  |  
|Real EstateMortgage                    |  |      | 71,794,508  |   |      |   | 81,615,401  |  
|Consumer Installment and Other          |  |      | 2,418,733   |   |      |   | 2,947,164   |  
|                                        |  |      |             |   |      |   |             |  
|                                        |  |      | 178,177,884 |   |      |   | 189,774,408 |  
|Allowance for Loan Losses               |  |      | (2,426,269  | ) |      |   | (2,328,393  | )
|Deferred Loan Fees                      |  |      | (44,093     | ) |      |   | (93,752     | )
|                                        |  |      |             |   |      |   |             |  
|                                        |  | $    | 175,707,522 |   |      | $ | 187,352,263 |  
|                                        |  |      |             |   |      |   |             |  

The Company originates primarily commercial, residential and consumer loans to customers in Coweta County and
surrounding counties. The ability of the majority of the Companys customers to honor their contractual loan obligations is dependent on the economy in these areas. Of the Companys loan portfolio, 80 percent is secured by real estate, of
which a substantial portion is secured by real estate in the Companys market area.

The Company has a credit exposure (loans outstanding plus
unfunded lines of credit) exceeding 25 percent of the Companys total risk based capital to borrowers in the following industries at December 31, 2007:



|                         |  |   |           
|------------------------ |  | - | ----------
|Retail                   |  | $ | 6,725,480 
|Office                   |  |   | 21,848,363
|Gas Station / C-Store    |  |   | 10,174,985
|Hotel/Motel              |  |   | 6,643,490 
|Multi-Family             |  |   | 6,687,951 
|Speculative Construction |  |   | 24,966,532
|Presold Construction     |  |   | 10,853,353
|Land Development         |  |   | 33,973,100
|Vacant Land              |  |   | 27,389,798

Changes in the allowance for loan losses for the years ended December 31 are as follows:



|                                           |  |      |           |   |      |   |           |      |  |   |           |  
|------------------------------------------ |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|                                           |  | 2007 |           |   | 2006 |   |           | 2005 | 
|Balance, Beginning                         |  | $    | 2,328,393 |   |      | $ | 2,062,180 |      |  | $ | 1,606,399 |  
|Provision for Loan Losses                  |  |      | 906,053   |   |      |   | 384,841   |      |  |   | 548,225   |  
|Loans Charged Off                          |  |      | (830,975  | ) |      |   | (136,542  | )    |  |   | (96,194   | )
|Recoveries of Loans Previously Charged Off |  |      | 22,798    |   |      |   | 17,914    |      |  |   | 3,750     |  
|                                           |  |      |           |   |      |   |           |      |  |   |           |  
|Balance, Ending                            |  | $    | 2,426,269 |   |      | $ | 2,328,393 |      |  | $ | 2,062,180 |  
|                                           |  |      |           |   |      |   |           |      |  |   |           |  



- 19 -



---

(3) Loans (Continued)



The following is a summary of information pertaining to impaired loans:



|                                        |      |                                           |            |      |  |   |        
|--------------------------------------- | ---- | ----------------------------------------- | ---------- | ---- |  | - | -------
|                                        |      | As of and For the Years EndedDecember 31,
|                                        | 2007 |                                           |            | 2006
|Total Investment in Impaired loans      |      | $                                         | 16,007,494 |      |  | $ | 128,543
|Less Allowance for Impaired Loan Losses |      |                                           | (421,188   | )    |  |   |       
|                                        |      |                                           |            |      |  |   |        
|Net Investment, December 31             |      | $                                         | 15,586,306 |      |  | $ | 128,543
|                                        |      |                                           |            |      |  |   |        
|Average Investment During the Year      |      | $                                         | 18,201,431 |      |  | $ | 128,543
|                                        |      |                                           |            |      |  |   |        
|Income Recognized During the Year       |      | $                                         | 344,000    |      |  | $ | 3,781  
|                                        |      |                                           |            |      |  |   |        
|Income Collected During the Year        |      | $                                         | 923,394    |      |  | $ | 5,238  
|                                        |      |                                           |            |      |  |   |        

The Company had $16,007,494 and $128,543 of loans classified as impaired, which includes all nonaccrual loans, at
December 31, 2007 and 2006, respectively, for which $421,188 in specific reserves have been allocated. The Companys policy is to recognize interest on a cash basis for loans classified as impaired. Nonaccrual loans are delinquent loans
for which accruals of interest have been discontinued for reasons related to the debtors financial instability. Loans past due 90 days and still accruing interest totaled $44,162 and $69,953 on December 31, 2007 and 2006, respectively.

In the ordinary course of business, the Company has granted loans to certain related parties, including directors, executive officers and their
affiliates. The interest rates on these loans were substantially the same as rates prevailing at the time of the transaction, and repayment terms are customary for the type of loan. Changes in related party loans are shown below as of
December 31:



|                    |  |      |            |   |      |   |            |  
|------------------- |  | ---- | ---------- | - | ---- | - | ---------- | -
|                    |  | 2007 |            |   | 2006 |  
|Balance, Beginning  |  | $    | 8,134,645  |   |      | $ | 4,674,487  |  
|Change in Directors |  |      | (2,920,072 | ) |      |   |           |  
|Advances            |  |      | 2,892,860  |   |      |   | 4,803,912  |  
|Repayments          |  |      | (634,873   | ) |      |   | (1,343,754 | )
|                    |  |      |            |   |      |   |            |  
|Balance, Ending     |  | $    | 7,472,560  |   |      | $ | 8,134,645  |  
|                    |  |      |            |   |      |   |            |  



- 20 -



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(4) Premises and Equipment

Premises and equipment as of December 31 is summarized as follows:



|                         |  |      |            |   |      |   |            |  
|------------------------ |  | ---- | ---------- | - | ---- | - | ---------- | -
|                         |  | 2007 |            |   | 2006 |  
|Land and Improvements    |  | $    | 4,520,399  |   |      | $ | 1,742,991  |  
|Buildings                |  |      | 4,771,292  |   |      |   | 3,870,620  |  
|Furniture and Equipment  |  |      | 1,703,737  |   |      |   | 1,459,091  |  
|                         |  |      |            |   |      |   |            |  
|                         |  |      | 10,995,428 |   |      |   | 7,072,702  |  
|Accumulated Depreciation |  |      | (1,547,439 | ) |      |   | (1,226,662 | )
|                         |  |      |            |   |      |   |            |  
|                         |  | $    | 9,447,989  |   |      | $ | 5,846,040  |  
|                         |  |      |            |   |      |   |            |  

Depreciation charged to operations totaled $320,777 in 2007, $316,723 in 2006 and $261,794 in 2005.

Leases

The Company leases the land for the downtown branch facility
under a noncancelable-operating lease with an initial lease term of five years with three five-year renewal options. The Company is responsible for utilities, property taxes, insurance and routine maintenance. The Company also leased office space
for a loan production office in Stockbridge, Georgia with a lease term of two years, another loan production office in Duluth, Georgia with a lease term of six months, another office lease in Carrolton, Georgia with a lease term of one year, and a
mortgage origination office in Winter Park, Florida with a lease term of one year.

During 2006, the Company entered into a thirty-six month operating
lease for an automobile to be used by an executive officer.

Future minimum lease payments as of December 31, 2007 are as follows:



|                        |  |        |        
|----------------------- |  | ------ | -------
|Year Ending December 31 |  | Amount
|2008                    |  | $      | 75,282 
|2009                    |  |        | 24,287 
|2010                    |  |        | 21,600 
|2011                    |  |        | 21,600 
|2012                    |  |        | 16,200 
|                        |  |        |        
|                        |  | $      | 158,969
|                        |  |        |        

Rental expense under all operating leases totaled $63,701, $60,955 and $101,410 for the years ended
December 31, 2007, 2006 and 2005, respectively.

The operations of the mortgage production office in Port Orange, Florida moved in December 2006 to a
smaller office in Winter Park, Florida. This move reduced the monthly lease payment from $1,875 to $666.



- 21 -



---

(4) Premises and Equipment (Continued)



Leases (Continued)



On February 28, 2008, the Company completed a sale-leaseback transaction on the main office located in Newnan,
Georgia and two branch properties located in Peachtree City, Georgia and Tyrone, Georgia. The purchaser/lessor is Out-Med IV, LLC whose members and board of managers include three of the Companys board of directors. In total, the Company sold
and concurrently leased back land and buildings with a carrying amount of $5.47 million. Net proceeds were $8.51 million, resulting in a gain, net of transaction costs of $3.04 million. The Company will recognize the gain ratably over the 10-year
expected term of the leases.

In addition, on June 8, 2007, the Company purchased from Out-Med IV, LLC 1.52 acres on Highway 34 in Newnan, Georgia for
future branch expansion. The purchase price was $797,611.

(5) Deposits

The aggregate amount of overdrawn deposit accounts reclassified as loan balances totaled $11,349 and $3,807 as of December 31, 2007 and 2006, respectively.

Components of interest-bearing deposits as of December 31 are as follows:



|                        |  |      |             |      |   |            
|----------------------- |  | ---- | ----------- | ---- | - | -----------
|                        |  | 2007 |             | 2006
|Interest Bearing Demand |  | $    | 31,415,239  |      | $ | 27,669,452 
|Savings                 |  |      | 1,313,564   |      |   | 1,967,756  
|Time, $100,000 and Over |  |      | 56,840,331  |      |   | 53,020,553 
|Other Time              |  |      | 92,969,253  |      |   | 103,757,115
|                        |  |      |             |      |   |            
|Balance, Ending         |  | $    | 182,538,387 |      | $ | 186,414,876
|                        |  |      |             |      |   |            

The aggregate amount of short-term time deposits in denominations of $100,000 or more at December 31, 2007
and 2006 was $47,719,433 and $45,060,046, respectively. The scheduled maturities of time deposits at December 31, 2007 are as follows:



|     |  |        |            
|---- |  | ------ | -----------
|Year |  | Amount
|2008 |  | $      | 122,417,506
|2009 |  |        | 22,832,107 
|2010 |  |        | 4,104,817  
|2011 |  |        | 101,155    
|2012 |  |        | 353,999    
|     |  |        |            
|     |  | $      | 149,809,584
|     |  |        |            



- 22 -



---

(6) Other Borrowings

During 2004, the Bank executed a borrowing agreement with the Federal Home Loan Bank of Atlanta to provide reliable, attractively priced funds as a funding source for the Banks growth. The line of credit is secured by loans originated
by the Bank and held in its portfolio. The Federal Home Loan Bank determines the eligibility of each loan as qualifying collateral to secure this line of credit. At December 31, 2007, the Bank has $18,000,000 in advances. A summary of the
Banks borrowings from the FHLB as of December 31 follows:



|                                                                                     |  |      |            |      |   |  
|------------------------------------------------------------------------------------ |  | ---- | ---------- | ---- | - | -
|                                                                                     |  | 2007 |            | 2006
|Advance from FHLB with Interest at a Variable Rate of 4.40% Due at January 31, 2008. |  | $    | 13,000,000 |      | $ | 
|Advance from FHLB with Interest at a Fixed Rate of 3.62% Due at December 10, 2009.   |  |      | 5,000,000  |      |   | 
|                                                                                     |  |      |            |      |   |  
|                                                                                     |  | $    | 18,000,000 |      | $ | 
|                                                                                     |  |      |            |      |   |  

At December 31, 2007, scheduled maturities of FHLB borrowings are as follows:



|     |  |        |           
|---- |  | ------ | ----------
|Year |  | Amount
|2008 |  | $      | 13,000,000
|2009 |  |        | 5,000,000 
|     |  |        |           
|     |  | $      | 18,000,000
|     |  |        |           

(7) Employee and Director Benefits

Stock Options

The Company has a stock option plan, which grants key employees options to purchase shares of common
stock of the Company. A committee appointed by the board of directors determines option prices and terms. The plan provides for a total of 150,000 options to purchase common shares of the Company. As of December 31, 2007 and 2006, 45,000
options under the plan have been granted.



- 23 -



---

(7) Employee and Director Benefits (Continued)



Stock Options (Continued)



Other pertinent information related to the options for the years ended December 31:



|                               |        |        |                              |      |        |  |                              |  |   |      
|------------------------------ | ------ | ------ | ---------------------------- | ---- | ------ |  | ---------------------------- |  | - | -----
|                               |        | 2007   |                              | 2006
|                               | Number |        | WeightedAverageExercisePrice |      | Number |  | WeightedAverageExercisePrice
|Options Outstanding, Beginning |        | 44,000 |                              | $    | 10.00  |  | 45,000                       |  | $ | 10.00
|Granted                        |        |       |                              |      |       |  |                             |  |   |     
|Exercised                      |        | 21,500 |                              | $    | 10.00  |  | 1,000                        |  | $ | 10.00
|                               |        |        |                              |      |        |  |                              |  |   |      
|Options Outstanding, Ending    |        | 22,500 |                              | $    | 10.00  |  | 44,000                       |  | $ | 10.00
|                               |        |        |                              |      |        |  |                              |  |   |      
|Exercisable, Ending            |        | 22,500 |                              | $    | 10.00  |  | 44,000                       |  | $ | 10.00
|                               |        |        |                              |      |        |  |                              |  |   |      



|                                    |  |        |  |                              |       |                                                   |          
|----------------------------------- |  | ------ |  | ---------------------------- | ----- | ------------------------------------------------- | ---------
|                                    |  | Number |  | WeightedAverageExercisePrice |       | WeightedAverage RemainingContractualLife in Years
|Outstanding and Exercisable, Ending |  | 22,500 |  | $                            | 10.00 |                                                   | 2.5 Years
|                                    |  |        |  |                              |       |                                                   |          

Stock Warrants

In recognition of the efforts and financial risks undertaken by the Companys organizers, the Company granted each organizer an opportunity to purchase a number of shares of the Companys common stock. The warrants vest over a
three-year period from the date the Bank was incorporated and are exercisable in whole or in part during the ten-year period following the incorporation date, at an exercise price equal to $10 per share. The warrants are nontransferable, but shares
issued pursuant to the exercise of warrants will be transferable, subject to compliance with applicable securities laws. At December 31, 2007 and 2006, there were 40,000 warrants outstanding and exercisable.

Other pertinent information related to the warrants for the years ended December 31:



|                                |        |        |                              |      |        |  |                              |  |   |      
|------------------------------- | ------ | ------ | ---------------------------- | ---- | ------ |  | ---------------------------- |  | - | -----
|                                |        | 2007   |                              | 2006
|                                | Number |        | WeightedAverageExercisePrice |      | Number |  | WeightedAverageExercisePrice
|Warrants Outstanding, Beginning |        | 40,000 |                              | $    | 10.00  |  | 40,000                       |  | $ | 10.00
|Granted                         |        |       |                              |      |       |  |                             |  |   |     
|Exercised                       |        |       |                              |      |       |  |                             |  |   |     
|                                |        |        |                              |      |        |  |                              |  |   |      
|Warrants Outstanding, Ending    |        | 40,000 |                              | $    | 10.00  |  | 40,000                       |  | $ | 10.00
|                                |        |        |                              |      |        |  |                              |  |   |      



- 24 -



---

(7) Employee and Director Benefits (Continued)



Stock Warrants (Continued)



|                                    |  |        |  |                              |       |                                                   |       
|----------------------------------- |  | ------ |  | ---------------------------- | ----- | ------------------------------------------------- | ------
|                                    |  | Number |  | WeightedAverageExercisePrice |       | WeightedAverage RemainingContractualLife in Years
|Outstanding and Exercisable, Ending |  | 40,000 |  | $                            | 10.00 |                                                   | 1 Year
|                                    |  |        |  |                              |       |                                                   |       

401(k) Profit Sharing Plan

The Company has a 401(k) profit sharing plan available to all eligible employees, subject to certain minimum age and service requirements. Contributions charged to expense totaled $13,241, $11,879 and $10,952 for the
years ended December 31, 2007, 2006 and 2005, respectively.

Deferred Compensation Plan

In 2005, the Bank commenced a salary continuation plan covering its executive officers through individual contracts. Under this plan, the Bank is committed to pay the
individuals an annual benefit as defined in each individual contract. The benefit will be paid over a period of 15 years beginning at age 65. If the individual dies before age 65, the amount of the annual benefit will be distributed to the
individuals beneficiary for a period of 15 years. Liabilities accrued under the plan totaled $117,636 and $89,188 as of December 31, 2007 and 2006, respectively. Expense charged to operations totaled $28,448, $52,702 and $36,486 for the
years ended December 31, 2007, 2006 and 2005, respectively. No benefits have been paid as of December 31, 2007.

Effective March 1, 2007,
the Bank commenced a Directors Deferred Compensation Plan. Under this plan, directors may elect to defer some or all of their board fees. The balance in the directors deferral account will grow at an annual rate, compounded monthly, equal to
75 percent of the Banks return on equity for the previous quarter. The benefit will be paid over 10 years beginning at age 67. The total amount accrued under the plan is $148,600 as of December 31, 2007.



- 25 -



---

(8) Income Taxes

Income tax expense consists of the following for the years ended December 31:



|                                   |  |      |         |      |   |           |  |   |           |  
|---------------------------------- |  | ---- | ------- | ---- | - | --------- |  | - | --------- | -
|                                   |  | 2007 |         | 2006 |   | 2005      | 
|Current Federal Expense            |  | $    | 663,177 |      | $ | 1,280,364 |  | $ | 1,134,995 |  
|Deferred Federal Expense (Benefit) |  |      | 452     |      |   | 36,807    |  |   | (188,117  | )
|                                   |  |      |         |      |   |           |  |   |           |  
|Federal Income Tax Expense         |  |      | 663,629 |      |   | 1,317,171 |  |   | 946,878   |  
|Current State Income Tax Expense   |  |      | 36,423  |      |   | 249,366   |  |   | 166,003   |  
|                                   |  |      |         |      |   |           |  |   |           |  
|                                   |  | $    | 700,052 |      | $ | 1,566,537 |  | $ | 1,112,881 |  
|                                   |  |      |         |      |   |           |  |   |           |  

The Companys income tax differs from the amounts computed by applying the federal income tax statutory rates
to income before income taxes. A reconciliation of the differences is as follows:



|                               |  |      |         |   |      |   |           |      |  |   |         |  
|------------------------------ |  | ---- | ------- | - | ---- | - | --------- | ---- |  | - | ------- | -
|                               |  | 2007 |         |   | 2006 |   |           | 2005 | 
|Statutory Federal Income Taxes |  | $    | 639,725 |   |      | $ | 1,384,643 |      |  | $ | 959,378 |  
|State Taxes                    |  |      |        |   |      |   | (49,554   | )    |  |   | (58,242 | )
|Officer Life Insurance         |  |      | (31,846 | ) |      |   | (26,564   | )    |  |   | (23,033 | )
|Other                          |  |      | 55,750  |   |      |   | 8,646     |      |  |   | 68,775  |  
|                               |  |      |         |   |      |   |           |      |  |   |         |  
|Actual Federal Income Taxes    |  | $    | 663,629 |   |      | $ | 1,317,171 |      |  | $ | 946,878 |  
|                               |  |      |         |   |      |   |           |      |  |   |         |  

The components of deferred income taxes as of December 31 are as follows:



|                                                                           |  |      |          |   |      |   |          |  
|-------------------------------------------------------------------------- |  | ---- | -------- | - | ---- | - | -------- | -
|                                                                           |  | 2007 |          |   | 2006 |  
|Deferred Tax Assets                                                        |  |      |          |   |      |   |          |  
|Loan Loss Reserves                                                         |  | $    | 741,688  |   |      | $ | 734,873  |  
|Salary Continuation Liability                                              |  |      | 39,996   |   |      |   | 30,324   |  
|Other                                                                      |  |      | 23,391   |   |      |   |         |  
|                                                                           |  |      |          |   |      |   |          |  
|                                                                           |  |      | 805,075  |   |      |   | 765,197  |  
|Deferred Tax Liabilities                                                   |  |      |          |   |      |   |          |  
|Depreciation                                                               |  |      | (276,001 | ) |      |   | (236,574 | )
|Deferred Tax Asset (Liabilities) on Unrealized Securities Gains and Losses |  |      | (53,876  | ) |      |   | 4,509    |  
|                                                                           |  |      |          |   |      |   |          |  
|Net Deferred Tax Assets                                                    |  | $    | 475,198  |   |      | $ | 533,132  |  
|                                                                           |  |      |          |   |      |   |          |  



- 26 -



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(9) Earnings Per Share

Presented below is a summary of the components used to calculate basic and diluted earnings per share for the years ended December 31:



|                                                                                                                                |  |      |           |      |   |           |  |   |          
|------------------------------------------------------------------------------------------------------------------------------- |  | ---- | --------- | ---- | - | --------- |  | - | ---------
|                                                                                                                                |  | 2007 |           | 2006 |   | 2005     
|Basic Earnings Per Share                                                                                                        |  |      |           |      |   |           |  |   |          
|Weighted Average Common Shares Outstanding                                                                                      |  |      | 1,001,651 |      |   | 921,512   |  |   | 900,000  
|                                                                                                                                |  |      |           |      |   |           |  |   |          
|Net Income                                                                                                                      |  | $    | 1,181,491 |      | $ | 2,505,942 |  | $ | 1,708,818
|                                                                                                                                |  |      |           |      |   |           |  |   |          
|Basic Earnings Per Share                                                                                                        |  | $    | 1.18      |      | $ | 2.72      |  | $ | 1.90     
|                                                                                                                                |  |      |           |      |   |           |  |   |          
|Diluted Earnings Per Share                                                                                                      |  |      |           |      |   |           |  |   |          
|Weighted Average Common Shares Outstanding                                                                                      |  |      | 1,001,651 |      |   | 921,512   |  |   | 900,000  
|Net Effect of the Assumed Exercise of Stock Options Based on the Treasury Stock Method Using Average Market Prices for the
Year |  |      | 45,144    |      |   | 59,441    |  |   | 42,027   
|                                                                                                                                |  |      |           |      |   |           |  |   |          
|Total Weighted Average Common Shares and Potential Common Shares Outstanding                                                    |  |      | 1,046,795 |      |   | 980,953   |  |   | 942,027  
|                                                                                                                                |  |      |           |      |   |           |  |   |          
|Net Income                                                                                                                      |  | $    | 1,181,491 |      | $ | 2,505,942 |  | $ | 1,708,818
|                                                                                                                                |  |      |           |      |   |           |  |   |          
|Diluted Earnings Per Share                                                                                                      |  | $    | 1.13      |      | $ | 2.55      |  | $ | 1.81     
|                                                                                                                                |  |      |           |      |   |           |  |   |          

(10) Subordinated Debentures (Trust Preferred Securities)

On December 8, 2005, the Company established NCB Statutory Trust I (the Trust). It is a wholly owned statutory business trust. The Company is the sole sponsor of the
Trust and acquired the Trusts common securities for $93,000. The Trust was created for the exclusive purpose of issuing 30-year capital trust preferred securities (Trust Preferred Securities) in the aggregate amount of $3,000,000 and using the
proceeds to acquire junior subordinated debentures (Subordinated Debentures) issued by Newnan Coweta Bancshares, Inc. The sole assets of the Trust are the Subordinated Debentures. The Companys aggregate $93,000 investment in the Trust is
included in other assets in the accompanying consolidated balance sheets, and the $3,093,000 obligation of Newnan Coweta Bancshares, Inc. is reflected in subordinated debt.

The Trust Preferred Securities bear a fixed rate of 6.395 percent until December 15, 2010, at which time the securities will bear a floating rate set each quarter based on a spread over 3-month LIBOR plus 1.50
percent. The Trust Preferred Securities mature December 15, 2035. Distributions are payable quarterly. The Trust Preferred Securities are subject to mandatory redemption upon repayment of the Subordinated Debentures at their stated maturity
date or earlier redemption in an amount equal to their liquidation amount plus accumulated and unpaid distributions to the date of redemption. The Company guarantees the payment of distributions and payment for redemption or liquidation of the Trust
Preferred Securities to the extent of funds held by the Trust. The Companys obligations under the Subordinated Debentures together with the guarantee and other back-up obligations, in the aggregate, constitute a full and unconditional
guarantee by Newnan Coweta Bancshares, Inc. of the obligations of the Trust under the Trust Preferred Securities.



- 27 -



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(10) Subordinated Debentures (Trust Preferred Securities) (Continued)



The Subordinated Debentures are unsecured, bear interest at a rate equal to the rates paid by the Trust on the Trust
Preferred Securities and mature on the same date as those noted above for the Trust Preferred Securities. Interest is payable quarterly. The Company may defer the payment of interest at any time for a period not exceeding 20 consecutive quarters
provided that deferral period does not extend past the stated maturity.

Subject to approval by the Federal Reserve Bank of Atlanta, the Trust Preferred
Securities may be redeemed prior to maturity at the Companys option on or after December 15, 2010. The Trust Preferred Securities may also be redeemed in whole or in part, at any time within 90 days following the occurrence of a special
event at the Special Redemption Price. Special Events would include a tax event, an investment company event or a capital treatment event.

The Trust
Preferred Securities qualify as Tier 1 capital under current regulatory definitions subject to certain limitations.

The interest income received from the
Companys trust totaled $5,980, $6,063 and $0 for the years ended December 31, 2007, 2006 and 2005, respectively. The interest expense paid to the trust totaled $198,896, $201,643 and $0 for the years ended December 31, 2007, 2006 and
2005, respectively.

(11) Commitments and Contingencies

Loan Commitments

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the
financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. They involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amount recognized in
the consolidated balance sheets.

The Companys exposure to credit loss in the event of nonperformance by the other party to the financial instrument
for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet
instruments. A summary of the Companys commitments for the years ended December 31 is as follows:



|                             |  |      |            |      |   |           
|---------------------------- |  | ---- | ---------- | ---- | - | ----------
|                             |  | 2007 |            | 2006
|Commitments to Extend Credit |  | $    | 18,711,357 |      | $ | 30,426,930
|Letters of Credit            |  |      | 1,081,371  |      |   | 1,338,146 
|                             |  |      |            |      |   |           
|                             |  | $    | 19,792,728 |      | $ | 31,765,076
|                             |  |      |            |      |   |           

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any
condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.



- 28 -



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(11) Commitments and Contingencies (Continued)



Loan Commitments (Continued)



Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a
customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to
customers. Collateral is required in instances which the Company deemed necessary.

Contingencies

In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would
not have a material effect on the Companys consolidated financial statements.

(12) Regulatory Matters

At December 31, 2007 the Company is currently restricted from declaring or paying dividends to its stockholders without prior approval from the Federal Reserve Bank.

The Company and the Bank are also subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum
capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on consolidated financial statements. Under capital adequacy guidelines and the
regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Companys and Banks assets, liabilities, and certain off-balance sheet items as
calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not
applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to
maintain minimum amounts and ratios of Total and Tier I capital to risk-weighted assets, as defined, and of Tier I capital to average assets, as defined. Management believes, as of December 31, 2007 and 2006, the Company and the Bank met all
capital adequacy requirements to which they are subject.



- 29 -



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(12) Regulatory Matters (Continued)



As of December 31, 2007, the most recent notification from the Federal Deposit Insurance Corporation categorized
the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum Total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the
following table. There are no conditions or events since that notification that management believes have changed the Banks category. Prompt corrective action provisions are not applicable to bank holding companies.



|                                       |                |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |       |  
|-------------------------------------- | -------------- | ------ | ------ |  | ---------------------------- | ------ |  | ------------------------------------------------------------- | ------ |  | ------ | - | ----- | - | ------ |  | ----- | -
|                                       |                | Actual |        |  | For CapitalAdequacy Purposes |        |  | To Be WellCapitalized UnderPrompt CorrectiveAction Provisions |       
|                                       | Amount         |        | Ratio  |  |                              | Amount |  | Ratio                                                         |        |  | Amount |   | Ratio |  
|                                       | (In Thousands) |       
|December 31, 2007                      |                |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |       |  
|                                       |                |        |        |  |                              |       
|Total Capital to Risk-Weighted Assets  |                |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |       |  
|Consolidated                           |                | $      | 24,939 |  | 12.13                        | %      |  | $                                                             | 16,445 |  | 8.00   | % |       |   | N/A    |  | N/A   |  
|Bank                                   |                |        | 24,919 |  | 12.13                        |        |  |                                                               | 16,437 |  | 8.00   |   |       | $ | 20,546 |  | 10.00 | %
|Tier 1 Capital to Risk-Weighted Assets |                |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |       |  
|Consolidated                           |                |        | 22,513 |  | 10.95                        |        |  |                                                               | 8,222  |  | 4.00   |   |       |   | N/A    |  | N/A   |  
|Bank                                   |                |        | 22,493 |  | 10.95                        |        |  |                                                               | 8,219  |  | 4.00   |   |       |   | 11,711 |  | 6.00  |  
|Tier 1 Capital to Average Assets       |                |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |       |  
|Consolidated                           |                |        | 22,513 |  | 9.83                         |        |  |                                                               | 9,159  |  | 4.00   |   |       |   | N/A    |  | N/A   |  
|Bank                                   |                |        | 22,493 |  | 9.83                         |        |  |                                                               | 9,155  |  | 4.00   |   |       |   | 11,444 |  | 5.00  |  
|                                       |                |        |        |  |                              |       
|December 31, 2006                      |                |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |       |  
|                                       |                |        |        |  |                              |       
|Total Capital to Risk-Weighted Assets  |                |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |       |  
|Consolidated                           |                |        | 23,016 |  | 11.79                        |        |  |                                                               | 15,609 |  | 8.00   |   |       |   | N/A    |  | N/A   |  
|Bank                                   |                |        | 22,998 |  | 11.78                        |        |  |                                                               | 15,618 |  | 8.00   |   |       |   | 19,523 |  | 10.00 |  
|Tier 1 Capital to Risk-Weighted Assets |                |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |       |  
|Consolidated                           |                |        | 20,688 |  | 10.60                        |        |  |                                                               | 7,802  |  | 4.00   |   |       |   | N/A    |  | N/A   |  
|Bank                                   |                |        | 20,670 |  | 10.58                        |        |  |                                                               | 7,807  |  | 4.00   |   |       |   | 11,711 |  | 6.00  |  
|Tier 1 Capital to Average Assets       |                |        |        |  |                              |        |  |                                                               |        |  |        |   |       |   |        |  |       |  
|Consolidated                           |                |        | 20,688 |  | 9.47                         |        |  |                                                               | 8,738  |  | 4.00   |   |       |   | N/A    |  | N/A   |  
|Bank                                   |                |        | 20,670 |  | 9.47                         |        |  |                                                               | 8,731  |  | 4.00   |   |       |   | 10,913 |  | 5.00  |  



- 30 -



---

(13) Fair Value of Financial Instruments

The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices.
However, in many instances, there are no quoted market prices for the Companys various financial instruments. In cases where quoted market prices are not available, fair value is based on discounted cash flows or other valuation techniques.
Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. SFAS
No. 107, Disclosures about Fair Values of Financial Instruments, excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not
necessarily represent the underlying fair value of the Company.

The Company in estimating the fair value of its financial instruments used the following
methods and assumptions.

Cash, Due From Banks and Federal Funds SoldThe carrying amount of cash, due from banks and federal funds sold
approximates fair value.

SecuritiesFair values of securities is based on available quoted market prices. The carrying amount of equity
securities, including restricted equity securities, with no readily determinable fair value approximates fair value.

LoansThe carrying amount
of variable-rate loans that reprice frequently and have no significant change in credit risk approximates fair value. The fair value of fixed-rate loans is estimated based on discounted contractual cash flows, using interest rates currently being
offered for loans with similar terms to borrowers with similar credit quality. The fair value of impaired loans is estimated based on discounted contractual cash flows or underlying collateral values, where applicable.

DepositsThe carrying amount of demand deposits, savings deposits, and variable-rate certificates of deposit approximates fair value. The fair value of
fixed-rate certificates of deposit is estimated based on discounted contractual cash flows using interest rates currently being offered for certificates of similar maturities.

Borrowed Money The fair value of long-term debt is based upon the discounted value of contractual cash flows using a discount rate consistent with currently offered rates of similar duration.

Accrued InterestThe carrying amounts of accrued interest approximate their fair value.

Unrecognized Financial Instruments  Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the
remaining terms of the agreements and the counterparties credit standing. The fees associated with these instruments are not material.



- 31 -



---

(13) Fair Value of Financial Instruments (Continued)



The carrying amount and estimated fair value of the Companys financial instruments were as follows:



|                                            |                |      |           |      |                |         |           |   |         |  |   |        
|------------------------------------------- | -------------- | ---- | --------- | ---- | -------------- | ------- | --------- | - | ------- |  | - | -------
|                                            |                | 2007 |           | 2006
|                                            | CarryingAmount |      | FairValue |      | CarryingAmount |         | FairValue
|                                            | (In Thousands)
|Assets                                      |                |      |           |      |                |         |           |   |         |  |   |        
|Cash Due from Banks, and Federal Funds Sold |                | $    | 11,135    |      | $              | 11,135  |           | $ | 12,907  |  | $ | 12,907 
|Securities Available for Sale               |                |      | 19,781    |      |                | 19,781  |           |   | 12,987  |  |   | 12,987 
|Restricted Investments                      |                |      | 1,451     |      |                | 1,451   |           |   | 732     |  |   | 732    
|Loans                                       |                |      | 175,708   |      |                | 176,379 |           |   | 187,352 |  |   | 188,506
|Accrued Interest Receivable                 |                |      | 1,700     |      |                | 1,700   |           |   | 1,345   |  |   | 1,345  
|                                            |                |      |           |     
|Liabilities                                 |                |      |           |      |                |         |           |   |         |  |   |        
|Deposits                                    |                |      | 195,539   |      |                | 194,346 |           |   | 201,216 |  |   | 197,541
|Subordinated Debentures                     |                |      | 3,093     |      |                | 3,079   |           |   | 3,093   |  |   | 3,040  
|Other Borrowed Money                        |                |      | 18,000    |      |                | 18,030  |           |   |        |  |   |       
|Accrued Interest Payable                    |                |      | 1,700     |      |                | 1,700   |           |   | 1,887   |  |   | 1,887  

(14) Supplemental Financial Data

Components of other operating expenses in excess of one percent of total revenue for the years ended December 31 are as follows:



|                     |  |      |         |      |   |         |  |   |        
|-------------------- |  | ---- | ------- | ---- | - | ------- |  | - | -------
|                     |  | 2007 |         | 2006 |   | 2005   
|Professional fees    |  | $    | 326,477 |      | $ | 228,422 |  | $ | 268,027
|Data processing fees |  |      | 553,659 |      |   | 495,974 |  |   | 473,051
|Director fees        |  |      | 227,500 |      |   | 223,050 |  |   | 205,350

(15) Private Placement

During 2006, the Company offered a maximum of 84,000 shares of common stock through a private placement. The offering was eligible to qualified investors under an exemption from registration contained in Section 4(2) of the Securities
Act of 1933 and Rule 505 of Regulation D under the Securities Act. As of December 31, 2007, a total of 83,570 shares of common stock were sold resulting in net proceeds of $2,988,519. The offering closed on February 15, 2007.



- 32 -



---

(16) Parent Company Financial Information

NEWNAN COWETA BANCSHARES, INC. (PARENT ONLY)

BALANCE SHEETS

DECEMBER 31



|                                                                                                                                                            |  |      |            |      |   |            |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ---------- | ---- | - | ---------- | -
|                                                                                                                                                            | 
|                                                                                                                                                            |  |     
|                                                                                                                                                            |  | 2007 |            | 2006 |  
|ASSETS                                                                                                                                                      |  |      |            |      |   |            |  
|Cash                                                                                                                                                        |  | $    | 121,709    |      | $ | 26,449     |  
|Investment in Subsidiaries                                                                                                                                  |  |      | 22,674,335 |      |   | 20,756,211 |  
|                                                                                                                                                            |  |      |            |      |   |            |  
|Total Assets                                                                                                                                                |  | $    | 22,796,044 |      | $ | 20,782,660 |  
|                                                                                                                                                            |  |      |            |      |   |            |  
|                                                                                                                                                            |  |     
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                        |  |      |            |      |   |            |  
|                                                                                                                                                            |  |     
|Other Liabilities                                                                                                                                           |  | $    | 102,155    |      | $ | 8,764      |  
|                                                                                                                                                            |  |      |            |      |   |            |  
|Subordinated Debentures                                                                                                                                     |  |      | 3,093,000  |      |   | 3,093,000  |  
|                                                                                                                                                            |  |      |            |      |   |            |  
|Stockholders Equity                                                                                                                                        |  |      |            |      |   |            |  
|Common Stock, No Par Value, 5,000,000 Shares Authorized; 1,006,070 and 967,644 Shares Issued and Outstanding as of December 31,
2007 and 2006, Respectively |  |      | 12,193,435 |      |   | 11,369,100 |  
|Retained Earnings                                                                                                                                           |  |      | 7,319,552  |      |   | 6,319,153  |  
|Accumulated Other Comprehensive Income                                                                                                                      |  |      | 87,902     |      |   | (7,357     | )
|                                                                                                                                                            |  |      |            |      |   |            |  
|                                                                                                                                                            |  |      | 19,600,889 |      |   | 17,680,896 |  
|                                                                                                                                                            |  |      |            |      |   |            |  
|Total Liabilities and Stockholders Equity                                                                                                                  |  | $    | 22,796,044 |      | $ | 20,782,660 |  
|                                                                                                                                                            |  |      |            |      |   |            |  



- 33 -



---

(16) Parent Company Financial Information (Continued)



NEWNAN COWETA BANCSHARES, INC. (PARENT ONLY)

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31



|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|----------------------------------------------------------------------------------------------------------------------------- |  | ---- | --------- | - | ---- | - | --------- |  | - | --------- | -
|                                                                                                                              |  | 2007 |           |   | 2006 |   | 2005      | 
|Income                                                                                                                        |  |      |           |   |      |   |           |  |   |           |  
|Dividends from Subsidiaries                                                                                                   |  | $    | 379,989   |   |      | $ | 336,643   |  | $ | 139,774   |  
|Interest                                                                                                                      |  |      | 2,890     |   |      |   | 1,203     |  |   | 748       |  
|Miscellaneous                                                                                                                 |  |      |          |   |      |   |          |  |   | 5,000     |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|                                                                                                                              |  |      | 382,879   |   |      |   | 337,846   |  |   | 145,522   |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|Expenses                                                                                                                      |  |      |           |   |      |   |           |  |   |           |  
|Interest                                                                                                                      |  |      | 198,896   |   |      |   | 201,644   |  |   | 40,775    |  
|Other                                                                                                                         |  |      | 1,020     |   |      |   | 1,000     |  |   | 7,995     |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|                                                                                                                              |  |      | 199,916   |   |      |   | 202,644   |  |   | 48,770    |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|Income Before Equity in Undistributed Earnings of Subsidiaries                                                                |  |      | 182,963   |   |      |   | 135,202   |  |   | 96,752    |  
|Equity in Undistributed Earnings of Subsidiaries                                                                              |  |      | 998,528   |   |      |   | 2,370,740 |  |   | 1,612,066 |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|Net Income                                                                                                                    |  |      | 1,181,491 |   |      |   | 2,505,942 |  |   | 1,708,818 |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|Other Comprehensive Income (Loss)                                                                                             |  |      |           |   |      |   |           |  |   |           |  
|Gains (Losses) Arising During the Year                                                                                        |  |      | 122,041   |   |      |   | 34,732    |  |   | (65,163   | )
|Reclassification Adjustments                                                                                                  |  |      | (26,782   | ) |      |   | 635       |  |   |          |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustments and Tax Effects |  |      | 95,259    |   |      |   | 35,367    |  |   | (65,163   | )
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  
|Comprehensive Income                                                                                                          |  | $    | 1,276,750 |   |      | $ | 2,541,309 |  | $ | 1,643,655 |  
|                                                                                                                              |  |      |           |   |      |   |           |  |   |           |  



- 34 -



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(16) Parent Company Financial Information (Continued)



NEWNAN COWETA BANCSHARES, INC. (PARENT ONLY)

STATEMENTS OF CASH FLOWS

FOR THE
YEARS ENDED DECEMBER 31



|                                                                                 |  |      |           |   |      |   |            |      |  |   |            |  
|-------------------------------------------------------------------------------- |  | ---- | --------- | - | ---- | - | ---------- | ---- |  | - | ---------- | -
|                                                                                 |  | 2007 |           |   | 2006 |   |            | 2005 | 
|Cash Flows from Operating Activities                                             |  |      |           |   |      |   |            |      |  |   |            |  
|Net Income                                                                       |  | $    | 1,181,491 |   |      | $ | 2,505,942  |      |  | $ | 1,708,818  |  
|Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities |  |      |           |   |      |   |            |      |  |   |            |  
|Equity in Earnings of Subsidiaries                                               |  |      | (998,528  | ) |      |   | (2,370,740 | )    |  |   | (1,612,066 | )
|Net Other Operating Activities                                                   |  |      | 93,390    |   |      |   | 1          |      |  |   | 6,198      |  
|                                                                                 |  |      |           |   |      |   |            |      |  |   |            |  
|                                                                                 |  |      | 276,353   |   |      |   | 135,203    |      |  |   | 102,950    |  
|                                                                                 |  |      |           |   |      |   |            |      |  |   |            |  
|Cash Flows from Investing Activities                                             |  |      |           |   |      |   |            |      |  |   |            |  
|Capital Infusion in Subsidiary                                                   |  |      | (824,336  | ) |      |   | (2,389,184 | )    |  |   | (3,000,000 | )
|Investment in Statutory Trust                                                    |  |      |          |   |      |   |           |      |  |   | (93,000    | )
|                                                                                 |  |      |           |   |      |   |            |      |  |   |            |  
|                                                                                 |  |      | (824,336  | ) |      |   | (2,389,184 | )    |  |   | (3,093,000 | )
|                                                                                 |  |      |           |   |      |   |            |      |  |   |            |  
|Cash Flows from Financing Activities                                             |  |      |           |   |      |   |            |      |  |   |            |  
|Dividends Paid                                                                   |  |      | (181,092  | ) |      |   | (135,000   | )    |  |   | (99,000    | )
|Proceeds from Sale of Stock                                                      |  |      | 609,335   |   |      |   | 2,379,184  |      |  |   |           |  
|Exercise of Stock Options                                                        |  |      | 215,000   |   |      |   | 10,000     |      |  |   |           |  
|Proceeds from Issuance of Subordinated Debentures                                |  |      |          |   |      |   |           |      |  |   | 3,093,000  |  
|                                                                                 |  |      |           |   |      |   |            |      |  |   |            |  
|                                                                                 |  |      | 643,243   |   |      |   | 2,254,184  |      |  |   | 2,994,000  |  
|                                                                                 |  |      |           |   |      |   |            |      |  |   |            |  
|Increase in Cash                                                                 |  |      | 95,260    |   |      |   | 203        |      |  |   | 3,950      |  
|Cash, Beginning                                                                  |  |      | 26,449    |   |      |   | 26,246     |      |  |   | 22,296     |  
|                                                                                 |  |      |           |   |      |   |            |      |  |   |            |  
|Cash, Ending                                                                     |  | $    | 121,709   |   |      | $ | 26,449     |      |  | $ | 26,246     |  
|                                                                                 |  |      |           |   |      |   |            |      |  |   |            |  



- 35 -