| Louisiana                               | 26-0513559             |
|-----------------------------------------|------------------------|
| (State or other jurisdiction            | (I.R.S. Employer       |
| incorporation or organization)          | Identification Number) |
|                                    |                   |
| 400 East Thomas Street                  |                   |
| Hammond, Louisiana                      | 70401                  |
| (Address of principal executive office) | (Zip Code)             |

----

| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY                            |
|---------------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                               |
| (dollars in thousands, except share data)                                 |
|                                                                      |   |   |   |   |   |   |
|                                                                      |   | March 31, |   |   | December 31, |   |
|                                                                      |   | 2010 |   |   | 2009 |   |
| Assets                                                                    |   | (unaudited) |   |   |   |   |
| Cash and cash equivalents:                                                |   |   |   |   |   |   |
|   Cash and due from banks                                       |   | $ | 16,403 |   |   | $ | 33,425 |   |
|   Interest-earning demand deposits with banks                   |   |   | 17,168 |   |   |   | 14 |   |
|   Federal funds sold                                            |   |   | 32,181 |   |   |   | 13,279 |   |
|     Cash and cash equivalents                         |   |   | 65,752 |   |   |   | 46,718 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| Investment securities:                                                    |   |   |   |   |   |   |   |   |
|  Available for sale, at fair value                                   |   |   | 247,275 |   |   |   | 249,480 |   |
|  Held to maturity, at cost (estimated fair value of                  |   |   |   |   |   |   |   |   |
|    $12,594 and $12,462, respectively)                      |   |   | 12,247 |   |   |   | 12,349 |   |
|   Investment securities                                         |   |   | 259,522 |   |   |   | 261,829 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank stock, at cost                                     |   |   | 2,785 |   |   |   | 2,547 |   |
| Loans held for sale                                                       |   |   | 264 |   |   |   | - |   |
|                                                                      |   |   |   |   |   |   |   |   |
| Loans, net of unearned income                                             |   |   | 602,637 |   |   |   | 589,902 |   |
| Less: allowance for loan losses                                           |   |   | 8,268 |   |   |   | 7,919 |   |
|   Net loans                                                     |   |   | 594,369 |   |   |   | 581,983 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| Premises and equipment, net                                               |   |   | 16,976 |   |   |   | 16,704 |   |
| Goodwill                                                                  |   |   | 1,999 |   |   |   | 1,999 |   |
| Intangible assets, net                                                    |   |   | 1,839 |   |   |   | 1,893 |   |
| Other real estate, net                                                    |   |   | 1,417 |   |   |   | 658 |   |
| Accrued interest receivable                                               |   |   | 6,626 |   |   |   | 5,807 |   |
| Other assets                                                              |   |   | 8,318 |   |   |   | 10,709 |   |
|   Total Assets                                                  |   | $ | 959,867 |   |   | $ | 930,847 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                                      |   |   |   |   |   |   |   |   |
| Deposits:                                                                 |   |   |   |   |   |   |   |   |
|   Noninterest-bearing demand                                    |   | $ | 122,957 |   |   | $ | 131,818 |   |
|   Interest-bearing demand                                       |   |   | 202,754 |   |   |   | 188,252 |   |
|   Savings                                                       |   |   | 41,607 |   |   |   | 40,272 |   |
|   Time                                                          |   |   | 460,139 |   |   |   | 439,404 |   |
|     Total deposits                                    |   |   | 827,457 |   |   |   | 799,746 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| Short-term borrowings                                                     |   |   | 9,665 |   |   |   | 11,929 |   |
| Accrued interest payable                                                  |   |   | 3,024 |   |   |   | 2,519 |   |
| Long-term borrowings                                                      |   |   | 17,508 |   |   |   | 20,000 |   |
| Other liabilities                                                         |   |   | 4,035 |   |   |   | 1,718 |   |
|   Total Liabilities                                             |   |   | 861,689 |   |   |   | 835,912 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| Stockholders' Equity                                                      |   |   |   |   |   |   |   |   |
| Preferred stock:                                                          |   |   |   |   |   |   |   |   |
|   Series A - $1,000 par value - authorized 5,000 shares; issued |   |   |   |   |   |   |   |   |
|    and outstanding 2,069.9 shares                          |   |   | 19,686 |   |   |   | 19,630 |   |
|   Series B - $1,000 par value - authorized 5,000 shares; issued |   |   |   |   |   |   |   |   |
|    and outstanding 103 shares                              |   |   | 1,134 |   |   |   | 1,140 |   |
| Common stock:                                                             |   |   |   |   |   |   |   |   |
|   $1 par value - authorized 100,600,000 shares; issued and      |   |   |   |   |   |   |   |   |
|     outstanding 5,559,644 shares                      |   |   | 5,560 |   |   |   | 5,560 |   |
| Surplus                                                                   |   |   | 26,459 |   |   |   | 26,459 |   |
| Retained earnings                                                         |   |   | 41,430 |   |   |   | 40,069 |   |
| Accumulated other comprehensive income                                    |   |   | 3,909 |   |   |   | 2,077 |   |
|   Total Stockholders' Equity                                    |   |   | 98,178 |   |   |   | 94,935 |   |
|     Total Liabilities and Stockholders' Equity        |   | $ | 959,867 |   |   | $ | 930,847 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements.                           |   |   |   |   |   |   |   |   |

----

| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY                  |
|-----------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF INCOME (unaudited)                   |
| (dollars in thousands, except per share data)                   |
|                                                            |   |   |   |   |   |   |
|                                                            |   | Three Months |   |
|                                                            |   | Ended March 31, |   |
|                                                            |   | 2010 |   |   | 2009 |   |
| Interest Income:                                                |   |   |   |   |   |   |
|   Loans (including fees)                              |   | $ | 8,804 |   |   | $ | 8,657 |   |
|   Loans held for sale                                 |   |   | 1 |   |   |   | 1 |   |
|   Deposits with other banks                           |   |   | 9 |   |   |   | 225 |   |
|   Securities (including FHLB stock)                   |   |   | 3,419 |   |   |   | 2,074 |   |
|   Federal funds sold                                  |   |   | 2 |   |   |   | 17 |   |
|     Total Interest Income                   |   |   | 12,235 |   |   |   | 10,974 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Interest Expense:                                               |   |   |   |   |   |   |   |   |
|   Demand deposits                                     |   |   | 201 |   |   |   | 319 |   |
|   Savings deposits                                    |   |   | 10 |   |   |   | 41 |   |
|   Time deposits                                       |   |   | 2,718 |   |   |   | 3,592 |   |
|   Borrowings                                          |   |   | 41 |   |   |   | 62 |   |
|     Total Interest Expense                  |   |   | 2,970 |   |   |   | 4,014 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Net Interest Income                                             |   |   | 9,265 |   |   |   | 6,960 |   |
| Provision for loan losses                                       |   |   | 679 |   |   |   | 648 |   |
| Net Interest Income after Provision for Loan Losses             |   |   | 8,586 |   |   |   | 6,312 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Noninterest Income:                                             |   |   |   |   |   |   |   |   |
|   Service charges, commissions and fees               |   |   | 983 |   |   |   | 980 |   |
|   Net gains on sale of securities                     |   |   | 261 |   |   |   | - |   |
|   Net gains on sale of loans                          |   |   | 59 |   |   |   | 79 |   |
|   Other                                               |   |   | 339 |   |   |   | 278 |   |
|     Total Noninterest Income                |   |   | 1,642 |   |   |   | 1,337 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Noninterest Expense:                                            |   |   |   |   |   |   |   |   |
|   Salaries and employee benefits                      |   |   | 2,898 |   |   |   | 2,826 |   |
|   Occupancy and equipment expense                     |   |   | 752 |   |   |   | 683 |   |
|   Net cost from other real estate & repossessions |   |   | 64 |   |   |   | 110 |   |
|   Regulatory assessment                               |   |   | 356 |   |   |   | 401 |   |
|   Other                                               |   |   | 2,186 |   |   |   | 1,987 |   |
|     Total Noninterest Expense               |   |   | 6,256 |   |   |   | 6,007 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Income Before Income Taxes                                      |   |   | 3,972 |   |   |   | 1,642 |   |
| Provision for income taxes                                      |   |   | 1,389 |   |   |   | 570 |   |
| Net Income                                                      |   |   | 2,583 |   |   |   | 1,072 |   |
| Preferred stock dividends                                       |   |   | (333 | ) |   |   | - |   |
| Income Available to Common Shareholders                         |   | $ | 2,250 |   |   | $ | 1,072 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Per Common Share:                                               |   |   |   |   |   |   |   |   |
|   Earnings                                            |   | $ | 0.40 |   |   | $ | 0.19 |   |
|   Cash dividends paid                                 |   | $ | 0.16 |   |   | $ | 0.16 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Average Common Shares Outstanding                               |   |   | 5,559,644 |   |   |   | 5,559,644 |   |
|                                                            |   |   |   |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements                  |   |   |   |   |   |   |   |   |

----

| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY            |
|-----------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY           |
| (dollars in thousands, except per share data)             |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   | Series A |   |   | Series B |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                      |   | Preferred |   |   | Preferred |   |   | Common |   |   |   |   |   |   |   |   | Other |   |   |   |   |
|                                                      |   | Stock |   |   | Stock |   |   | Stock |   |   |   |   |   | Retained |   |   | Comprehensive |   |   |   |   |
|                                                      |   | $1,000 Par |   |   | $1,000 Par |   |   | $1 Par |   |   | Surplus |   |   | Earnings |   |   | Income / (Loss) |   |   | Total |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance December 31, 2008 as previously reported          |   | $ | - |   |   | $ | - |   |   | $ | 5,560 |   |   | $ | 26,459 |   |   | $ | 37,769 |   |   | $ | (3,158 | ) |   | $ | 66,630 |   |
|  Corection of an error                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,143 | ) |   |   | - |   |   |   | (1,143 | ) |
| Balance December 31, 2008 as restated                     |   |   | - |   |   |   | - |   |   |   | 5,560 |   |   |   | 26,459 |   |   |   | 36,626 |   |   |   | (3,158 | ) |   |   | 65,487 |   |
| Net income                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,072 |   |   |   | - |   |   |   | 1,072 |   |
| Change in unrealized loss                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   on available for sale securities,             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   net of reclassification adjustments and taxes |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,145 | ) |   |   | (2,145 | ) |
| Comprehensive income                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,073 | ) |
| Cash dividends on common stock ($0.16 per share)          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (890 | ) |   |   | - |   |   |   | (890 | ) |
| Balance March 31, 2009 (unaudited)                        |   | $ | - |   |   | $ | - |   |   | $ | 5,560 |   |   | $ | 26,459 |   |   | $ | 36,808 |   |   | $ | (5,303 | ) |   | $ | 63,523 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance December 31, 2009                                 |   | $ | 19,630 |   |   | $ | 1,140 |   |   | $ | 5,560 |   |   | $ | 26,459 |   |   | $ | 40,069 |   |   | $ | 2,077 |   |   | $ | 94,935 |   |
| Net income                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,583 |   |   |   | - |   |   |   | 2,583 |   |
| Change in unrealized gain                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   on available for sale securities,             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   net of reclassification adjustments and taxes |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,832 |   |   |   | 1,832 |   |
| Comprehensive income                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4,415 |   |
| Cash dividends on common stock ($0.16 per share)          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (889 | ) |   |   | - |   |   |   | (889 | ) |
| Preferred stock dividend, amortization and accretion      |   |   | 56 |   |   |   | (6 | ) |   |   | - |   |   |   | - |   |   |   | (333 | ) |   |   | - |   |   |   | (283 | ) |
| Balance March 31, 2010 (unaudited)                        |   | $ | 19,686 |   |   | $ | 1,134 |   |   | $ | 5,560 |   |   | $ | 26,459 |   |   | $ | 41,430 |   |   | $ | 3,909 |   |   | $ | 98,178 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| See Notes to Consolidated Financial Statements |   |   |   |   |   |   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|

----

| FIRST GUARANTY BANCSHARES, INC. AND SUBSIDIARY                               |   |
|------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)                            |   |
| (in thousands)                                                               |   |
|                                                                         |   |   |   |   |   |   |
|                                                                         |   | Three Months Ended March 31, |   |
|                                                                         |   | 2010 |   |   | 2009 |   |
| Cash Flows From Operating Activities                                         |   |   |   |   |   |   |
| Net income                                                                   |   | $ | 2,583 |   |   | $ | 1,110 |   |
| Adjustments to reconcile net income to net cash                              |   |   |   |   |   |   |   |   |
|   provided by operating activities:                                |   |   |   |   |   |   |   |   |
|     Provision for loan losses                            |   |   | 679 |   |   |   | 648 |   |
|     Depreciation and amortization                        |   |   | 120 |   |   |   | 351 |   |
|     Amortization of discount on investments              |   |   | (76 | ) |   |   | (233 | ) |
|     Gain on call of securities                           |   |   | (261 | ) |   |   | - |   |
|     Gain on sale of assets                               |   |   | (58 | ) |   |   | (78 | ) |
|     ORE writedowns and loss on disposition               |   |   | 33 |   |   |   | 82 |   |
|     FHLB stock dividends                                 |   |   | (2 | ) |   |   | (2 | ) |
|     Net decrease in loans held for sale                  |   |   | (264 | ) |   |   | (56 | ) |
|     Change in other assets and liabilities, net          |   |   | 3,629 |   |   |   | (386 | ) |
| Net Cash Provided By Operating Activities                                    |   |   | 6,383 |   |   |   | 1,436 |   |
|                                                                         |   |   |   |   |   |   |   |   |
| Cash Flows From Investing Activities                                         |   |   |   |   |   |   |   |   |
| Proceeds from maturities and calls of HTM securities                         |   |   | 106 |   |   |   | 4,597 |   |
| Proceeds from maturities and calls of AFS securities                         |   |   | 335,474 |   |   |   | 438,825 |   |
| Funds invested in AFS securities                                             |   |   | (330,365 | ) |   |   | (563,251 | ) |
| Funds invested in Federal Home Loan Bank stock                               |   |   | (237 | ) |   |   | - |   |
| Proceeds from maturities of time deposits with banks                         |   |   | - |   |   |   | 2,715 |   |
| Net (increase) decrease in loans                                             |   |   | (13,929 | ) |   |   | 13,919 |   |
| Purchase of premises and equipment                                           |   |   | (536 | ) |   |   | (192 | ) |
| Proceeds from sales of other real estate owned                               |   |   | 73 |   |   |   | 56 |   |
| Net Cash Used In Investing Activities                                        |   |   | (9,414 | ) |   |   | (103,331 | ) |
|                                                                         |   |   |   |   |   |   |   |   |
| Cash Flows From Financing Activities                                         |   |   |   |   |   |   |   |   |
| Net increase in deposits                                                     |   |   | 27,711 |   |   |   | 131,450 |   |
| Net (decrease) increase in federal funds purchased and short-term borrowings |   |   | (2,265 | ) |   |   | 8,715 |   |
| Repayment of long-term borrowings                                            |   |   | (2,492 | ) |   |   | (2,484 | ) |
| Dividends paid                                                               |   |   | (889 | ) |   |   | - |   |
| Net Cash Provided By Financing Activities                                    |   |   | 22,065 |   |   |   | 137,681 |   |
|                                                                         |   |   |   |   |   |   |   |   |
| Net Increase In Cash and Cash Equivalents                                    |   |   | 19,034 |   |   |   | 35,786 |   |
| Cash and Cash Equivalents at the Beginning of the Period                     |   |   | 46,718 |   |   |   | 78,017 |   |
| Cash and Cash Equivalents at the End of the Period                           |   | $ | 65,752 |   |   | $ | 113,803 |   |
|                                                                         |   |   |   |   |   |   |   |   |
| Noncash Activities:                                                          |   |   |   |   |   |   |   |   |
|   Loans transferred to foreclosed assets                           |   | $ | 864 |   |   | $ | 290 |   |
|                                                                         |   |   |   |   |   |   |   |   |
| Cash Paid During The Period:                                                 |   |   |   |   |   |   |   |   |
|   Interest on deposits and borrowed funds                          |   | $ | 2,464 |   |   | $ | 2,936 |   |
|   Income taxes                                                     |   | $ | 500 |   |   | $ | 1,700 |   |
|                                                                         |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |
| See Notes to Consolidated Financial Statements                               |   |   |   |   |   |   |   |   |

----

----

|                          |                                                                                                                       |   | Fair Value Measurements at                                                                 |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
|                          |                                                                                                                       |   | March 31, 2010, Using                                                                      |
|                          |                                                                                                                       |   | Quoted                                                                                     |   |   |
|                          |                                                                                                                       |   | Prices In                                                                                  |   |   |
|                          |                                                                                                                       |   | Active                                                                                     |   |   |
|                          |                                                                                                                       |   | Markets                                                                                    | Significant |   |
|                          | Assets/Liabilities                                                                                                         |   | For                                                                                        | Other | Significant |
|                          | Measured at Fair                                                                                                           |   | Identical                                                                                  | Observable | Unobservable |
|                          | Value                                                                                                                      |   | Assets                                                                                     | Inputs | Inputs |
|                          | March 31, 2010                                                                                                             |   | (Level 1)                                                                                  | (Level 2) | (Level 3) |
|                          | (unaudited, dollars in thousands)                                                                                          |
|                          |                                                                                                                       |   |                                                                                       |   |   |
| Securities available for sale |  $                  247,275 |   |  $             7,443 |  $         230,577 |  $             9,255 |

|                                            |                                                                                                                |   | Other                                                                                                                                                         |
|-------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                            | Noninterest                                                                                                         |   | Comprehensive                                                                                                                                                 |
|                                            | Income                                                                                                              |   | Income                                                                                                                                                        |
|                                            | (unaudited, in thousands)                                                                                           |
|                                            |                                                                                                                |   |                                                                                                                                                          |
| Total gains included in earnings                |               261                             |   |                           - |
|   (or changes in net assets)          |                                                                                                                |   |                                                                                                                                                          |
|                                            |                                                                                                                |   |                                                                                                                                                          |
| Increase in unrealized gains relating to assets |                    - |   |                   1,832                                             |
|   still held at March 31, 2010        |                                                                                                                |   |                                                                                                                                                          |

----

|                                                                               |   | March 31,              |    |   | December 31, |   |
|------------------------------------------------------------------------------------|--------|------------------------|---------|--------|--------------|--------|
|                                                                               |   | 2010                   |    |   | 2009         |   |
|                                                                               |   |                   |    |   | As % of      |   |   |   |   |   | As % of |   |
|                                                                               |   | Balance                |    |   | Category     |   |   | Balance |   |   | Category |   |
|                                                                               |   | (dollars in thousands) |    |
| Real estate                                                                        |   |                   |    |   |         |   |   |   |   |   |   |   |
|    Construction & land development                              |   | $                      | 77,979  |   |         |   | 12.9 | % |   | $ | 78,686 |   |   |   | 13.3 | % |
|    Farmland                                                         |   |                   | 13,541  |   |         |   | 2.2 | % |   |   | 11,352 |   |   |   | 1.9 | % |
|    1-4 Family                                                       |   |                   | 80,948  |   |         |   | 13.4 | % |   |   | 77,470 |   |   |   | 13.1 | % |
|    Multifamily                                                      |   |                   | 15,672  |   |         |   | 2.6 | % |   |   | 8,927 |   |   |   | 1.5 | % |
|    Non-farm non-residential                                         |   |                   | 304,527 |   |         |   | 50.5 | % |   |   | 300,673 |   |   |   | 51.0 | % |
|       Total real estate                              |   |                   | 492,667 |   |         |   | 81.6 | % |   |   | 477,108 |   |   |   | 80.8 | % |
|                                                                               |   |                   |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Agricultural                                                                       |   |                   | 14,673  |   |         |   | 2.4 | % |   |   | 14,017 |   |   |   | 2.4 | % |
| Commercial and industrial                                                          |   |                   | 78,772  |   |         |   | 13.1 | % |   |   | 82,348 |   |   |   | 13.9 | % |
| Consumer and other                                                                 |   |                   | 17,398  |   |         |   | 2.9 | % |   |   | 17,226 |   |   |   | 2.9 | % |
|         Total loans before unearned income |   |                   | 603,510 |   |         |   | 100.0 | % |   |   | 590,699 |   |   |   | 100.0 | % |
| Less: unearned income                                                              |   |                   | (873    | )      |         |   |   |   |   |   | (797 | ) |   |   |   |   |
|         Total loans after unearned income  |   | $                      | 602,637 |   |         |   |   |   |   | $ | 589,902 |   |   |   |   |   |
|                                                                               |   |                   |    |   |         |   |   |   |   |   |   |   |   |   |   |   |

|                                          |   | March 31, 2010            |    |
|-----------------------------------------------|--------|---------------------------|---------|
|                                          |   | Fixed                     |    |   | Floating |   |   | Total |   |
|                                          |   | (unaudited, in thousands) |    |
|                                          |   |                      |    |   |   |   |   |   |   |
| One year or less                              |   | $                         | 223,010 |   |   | $ | 68,634 |   |   | $ | 291,644 |   |
| One to five years                             |   |                      | 246,993 |   |   |   | 214 |   |   |   | 247,207 |   |
| Five to 15 years                              |   |                      | 26,966  |   |   |   | - |   |   |   | 26,966 |   |
| Over 15 years                                 |   |                      | 15,607  |   |   |   | - |   |   |   | 15,607 |   |
|   Subtotal                          |   |                      | 512,576 |   |   |   | 68,848 |   |   |   | 581,424 |   |
| Nonaccrual loans                              |   |                      | -       |   |   |   | - |   |   |   | 21,213 |   |
|   Total loans after unearned income |   | $                         | 512,576 |   |   | $ | 68,848 |   |   | $ | 602,637 |   |
|                                          |   |                      |    |   |   |   |   |   |   |   |   |   |

|                                  |   | March 31,                 |   |   | December 31, |   |
|---------------------------------------|--------|---------------------------|--------|--------|--------------|--------|
|                                  |   | 2010                      |   |   | 2009         |   |
|                                  |   | (unaudited, in thousands) |   |
|                                  |   |                      |   |   |         |   |
| Balance beginning of period           |   | $                         | 7,919  |   |         | $      | 6,482 |   |
| Provision charged to expense          |   |                      | 679    |   |         |   | 4,155 |   |
| Loans charged-off                     |   |                      | (394   | )      |         |   | (2,879 | ) |
| Recoveries                            |   |                      | 64     |   |         |   | 161 |   |
|   Allowance for loan losses |   | $                         | 8,268  |   |         | $      | 7,919 |   |
|                                  |   |                      |   |   |         |   |   |   |

----

|                                                 |   | Three Months Ended        |   |
|------------------------------------------------------|--------|---------------------------|--------|
|                                                 |   | March 31,                 |   |
|                                                 |   | 2010                      |   |   | 2009 |   |
|                                                 |   | (unaudited, in thousands) |   |
|                                                 |   |                      |   |   |   |   |
| Balance at beginning of period                       |   | $                         | 7,919  |   |   | $ | 6,482 |   |
|                                                 |   |                      |   |   |   |   |   |   |
| Charge-offs:                                         |   |                      |   |   |   |   |   |   |
|   Real estate loans:                            |   |                      |   |   |   |   |   |   |
|     Construction and land development |   |                      | (5     | ) |   |   | - |   |
|     One- to four- family residential  |   |                      | (187   | ) |   |   | (153 | ) |
|     Non-farm non-residential          |   |                      | -      |   |   |   | (356 | ) |
|   Commercial and industrial loans               |   |                      | (96    | ) |   |   | (50 | ) |
|   Consumer and other                            |   |                      | (106   | ) |   |   | (179 | ) |
|     Total charge-offs                 |   |                      | (394   | ) |   |   | (738 | ) |
|                                                 |   |                      |   |   |   |   |   |   |
| Recoveries:                                          |   |                      |   |   |   |   |   |   |
|   Real estate loans:                            |   |                      |   |   |   |   |   |   |
|     Construction and land development |   |                      | 1      |   |   |   | 1 |   |
|     Farmland                          |   |                      | -      |   |   |   | 1 |   |
|     One- to four- family residential  |   |                      | -      |   |   |   | 10 |   |
|   Commercial and industrial loans               |   |                      | 33     |   |   |   | 3 |   |
|   Consumer and other                            |   |                      | 30     |   |   |   | 37 |   |
|     Total recoveries                  |   |                      | 64     |   |   |   | 52 |   |
|                                                 |   |                      |   |   |   |   |   |   |
| Net charge-offs                                      |   |                      | (330   | ) |   |   | (686 | ) |
| Provision for loan losses                            |   |                      | 679    |   |   |   | 648 |   |
|                                                 |   |                      |   |   |   |   |   |   |
| Balance at end of period                             |   | $                         | 8,268  |   |   | $ | 6,444 |   |
|                                                 |   |                      |   |   |   |   |   |   |
| Ratios:                                              |   |                      |   |   |   |   |   |   |
| Net loan charge-offs to average loans                |   |                      | 0.06   | % |   |   | 0.11 | % |
| Net loan charge-offs to loans at end of period       |   |                      | 0.05   | % |   |   | 0.12 | % |
| Allowance for loan losses to loans at end of period  |   |                      | 1.37   | % |   |   | 1.09 | % |
| Net loan charge-offs to allowance for loan losses    |   |                      | 3.99   | % |   |   | 10.65 | % |
| Net loan charge-offs to provision charged to expense |   |                      | 48.58  | % |   |   | 105.82 | % |

----

----

|                      |   | As of March 31, 2010      |   |   | As of December 31, 2009 |   |
|---------------------------|--------|---------------------------|--------|--------|-------------------------|--------|
|                      |   | Gross Carrying            |   |   | Accumulated             |   |   | Net Carrying |   |   | Gross Carrying |   |   | Accumulated |   |   | Net Carrying |   |
|                      |   | Amount                    |   |   | Amortization            |   |   | Amount |   |   | Amount |   |   | Amortization |   |   | Amount |   |
|                      |   | (unaudited, in thousands) |   |
|                      |   |                      |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Core deposit intangibles  |   | $                         | 7,997  |   |                    | $      | 6,294 |   |   | $ | 1,703 |   |   | $ | 7,997 |   |   | $ | 6,240 |   |   | $ | 1,757 |   |
| Mortgage servicing rights |   |                      | 157    |   |                    |   | 21 |   |   |   | 136 |   |   |   | 157 |   |   |   | 21 |   |   |   | 136 |   |
|   Total         |   | $                         | 8,154  |   |                    | $      | 6,315 |   |   | $ | 1,839 |   |   | $ | 8,154 |   |   | $ | 6,261 |   |   | $ | 1,893 |   |
|                      |   |                      |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| ·   | Net income for the first quarter of 2010 was $2.6 million with earnings per common share of $0.40. For the first quarter of 2009, the Company had a net income totaling $1.1 million with earnings per common share of $0.19. Net income available to common shareholders at March 31, 2010 and December 31, 2009 was $2.3 million and $1.1 million, respectively. The increase in net income was primarily the result of an increase in net interest income. The Company also recognized gains from sales of securities and increases in other noninterest expense, primarily from increased data processing and marketing and public relations expenses. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net interest income for the first quarter of 2010 and 2009 was $9.3 million and $7.0 million, respectively. The net interest margin was 4.15% for the first quarter 2010 and 3.10% for the first quarter 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The provision for loan losses for the first quarter of 2010 was $679,000 compared to $648,000 for the first quarter of 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Total assets at March 31, 2010 were $959.9 million, an increase of $29.0 million or 3.1% when compared to $930.8 million at December 31, 2009. The increase in assets primarily resulted from excess cash received from deposit growth which was ultimately invested in loans, interest-earning deposits with banks and federal funds sold. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Investment securities totaled $259.5 million at March 31, 2010, a decrease of $2.3 million when compared to $261.8 million at December 31, 2009. At March 31, 2010, available for sale securities, at fair value, totaled $247.3 million, a decrease of $2.2 million when compared to December 31, 2009. Held to maturity securities, at cost, totaled $12.2 million at March 31, 2010, a decrease of $0.1 million when compared to $12.3 million at December 31, 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The net loan portfolio at March 31, 2010 totaled $594.4 million, an increase of $12.4 million from the December 31, 2009 level of $582.0 million. Net loans are reduced by the allowance for loan losses which totaled $8.3 million for March 31, 2010 and $7.9 million for December 31, 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Nonperforming assets at March 31, 2010 were $22.6 million, an increase of $7.0 million compared to December 31, 2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Total deposits increased $27.7 million or 3.5% in 2010 compared to December 31, 2009. Of this increase, individual and business deposits increased by $6.4 million and public fund deposits increased by $21.3 million. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Return on average assets for the quarters ended March 31 2010 and 2009 were 1.08% and 0.46%, respectively and return on average common equity for the same periods were 13.76% and 6.52%, respectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company’s Board of Directors declared cash dividends of $0.16 per common share in each of the first quarters of 2010 and 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                     |   | March 31,      |   |   | December 31, |   |
|--------------------------------------------------------------------------|--------|----------------|--------|--------|--------------|--------|
|                                                                     |   | 2010           |   |   | 2009         |   |
|                                                                     |   | (in thousands) |   |
| Non-accrual loans:                                                       |   |           |   |   |         |   |
|   Real estate loans:                                                |   |           |   |   |         |   |
|     Construction and land development                     |   | $              | 2,101  |   |         | $      | 2,841 |   |
|     Farmland                                              |   |           | 42     |   |         |   | 54 |   |
|     One- to four- family residential                      |   |           | 6,592  |   |         |   | 2,814 |   |
|     Non-farm non-residential                              |   |           | 10,794 |   |         |   | 7,439 |   |
|   Non-real estate loans:                                            |   |           |   |   |         |   |   |   |
|     Commercial and industrial                             |   |           | 1,569  |   |         |   | 830 |   |
|     Consumer and other                                    |   |           | 116    |   |         |   | 205 |   |
|       Total non-accrual loans                   |   |           | 21,214 |   |         |   | 14,183 |   |
|                                                                     |   |           |   |   |         |   |   |   |
| Loans 90 days and greater delinquent                                     |   |           |   |   |         |   |   |   |
| and still accruing:                                                      |   |           |   |   |         |   |   |   |
|   Real estate loans:                                                |   |           |   |   |         |   |   |   |
|     One- to four- family residential                      |   |           | -      |   |         |   | 757 |   |
|   Non-real estate loans:                                            |   |           |   |   |         |   |   |   |
|     Consumer and other                                    |   |           | -      |   |         |   | 28 |   |
|       Total loans 90 days greater               |   |           |   |   |         |   |   |   |
|         delinquent and still accruing |   |           | -      |   |         |   | 785 |   |
|                                                                     |   |           |   |   |         |   |   |   |
|     Total nonperforming loans                             |   |           | 21,214 |   |         |   | 14,968 |   |
|                                                                     |   |           |   |   |         |   |   |   |
| Real estate owned:                                                       |   |           |   |   |         |   |   |   |
|   Real estate loans:                                                |   |           |   |   |         |   |   |   |
|     One- to four- family residential                      |   |           | 1,091  |   |         |   | 292 |   |
|     Non-farm non-residential                              |   |           | 326    |   |         |   | 366 |   |
|       Total real estate owned                   |   |           | 1,417  |   |         |   | 658 |   |
|                                                                     |   |           |   |   |         |   |   |   |
|     Total nonperforming assets                            |   | $              | 22,631 |   |         | $      | 15,626 |   |
|                                                                     |   |           |   |   |         |   |   |   |
| Ratios:                                                                  |   |           |   |   |         |   |   |   |
| Nonperforming assets to total loans                                      |   |           | 3.76   | %      |         |   | 2.65 | % |
| Nonperforming assets to total assets                                     |   |           | 2.36   | %      |         |   | 1.68 | % |
| Nonperforming assets to allowance for loan losses                        |   |           | 36.5   | %      |         |   | 50.7 | % |

----

----

----

----

|                                     |   | March 31,                 |    |
|------------------------------------------|--------|---------------------------|---------|
|                                     |   | 2010                      |    |   | 2009 |   |
|                                     |   | (unaudited, in thousands) |    |
| Loans:                                   |   |                      |    |   |   |   |
|   Average outstanding balance  |   | $                         | 591,858 |   |   | $ | 597,607 |   |
|   Balance at end of period     |   | $                         | 602,637 |   |   | $ | 591,473 |   |
|                                     |   |                      |    |   |   |   |   |   |
| Allowance for Loan Losses:               |   |                      |    |   |   |   |   |   |
|   Balance at beginning of year |   | $                         | 7,919   |   |   | $ | 6,482 |   |
|   Provision charged to expense |   |                      | 679     |   |   |   | 648 |   |
|   Loans charged-off            |   |                      | (394    | ) |   |   | (738 | ) |
|   Recoveries                   |   |                      | 64      |   |   |   | 52 |   |
|   Balance at end of period     |   | $                         | 8,268   |   |   | $ | 6,444 |   |
|                                     |   |                      |    |   |   |   |   |   |

----

|                                   |   | March 31,              |    |   | December 31, |   |    | Increase/(Decrease) |   |
|----------------------------------------|--------|------------------------|---------|--------|--------------|--------|---------|---------------------|--------|
|                                   |   | 2010                   |    |   | 2009         |   |    | Amount              |   |   | Percent |   |
|                                   |   | (dollars in thousands) |    |
| Deposits:                              |   |                   |    |   |         |   |    |                |   |   |   |   |
|   Noninterest-bearing demand |   | $                      | 122,957 |   |         | $      | 131,818 |                |   | $ | (8,861 | ) |   |   | -6.7 | % |
|   Interest-bearing demand    |   |                   | 202,754 |   |         |   | 188,252 |                |   |   | 14,502 |   |   |   | 7.7 | % |
|   Savings                    |   |                   | 41,607  |   |         |   | 40,272  |                |   |   | 1,335 |   |   |   | 3.3 | % |
|   Time                       |   |                   | 460,139 |   |         |   | 439,404 |                |   |   | 20,735 |   |   |   | 4.7 | % |
|     Total deposits |   | $                      | 827,457 |   |         | $      | 799,746 |                |   | $ | 27,711 |   |   |   | 3.5 | % |
|                                   |   |                   |    |   |         |   |    |                |   |   |   |   |   |   |   |   |

----

|                                                       |   | Three Months Ended March 31,      |    |
|------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                       |   | 2010                              |    |   | 2009 |   |
|                                                       |   | Average                           |    |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |
|                                                       |   | Balance                           |    |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
|                                                       |   | (unaudited, dollars in thousands) |    |
| Assets                                                     |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                   |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest-earning deposits with banks           |   | $                                 | 16,771  |   |   | $ | 9 |   |   |   | 0.22 | % |   | $ | 42,137 |   |   | $ | 225 |   |   |   | 2.17 | % |
|   Securities (including FHLB stock)              |   |                              | 290,345 |   |   |   | 3,419 |   |   |   | 4.78 | % |   |   | 224,576 |   |   |   | 2,074 |   |   |   | 3.74 | % |
|   Federal funds sold                             |   |                              | 6,836   |   |   |   | 2 |   |   |   | 0.12 | % |   |   | 45,640 |   |   |   | 17 |   |   |   | 0.15 | % |
| Loans, net of unearned income                              |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| including loans held for sale                              |   |                              | 591,858 |   |   |   | 8,805 |   |   |   | 6.03 | % |   |   | 597,746 |   |   |   | 8,658 |   |   |   | 5.87 | % |
|     Total interest-earning assets      |   |                              | 905,810 |   |   |   | 12,235 |   |   |   | 5.48 | % |   |   | 910,099 |   |   |   | 10,974 |   |   |   | 4.89 | % |
|                                                       |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning assets:                                |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cash and due from banks                        |   |                              | 18,474  |   |   |   |   |   |   |   |   |   |   |   | 19,788 |   |   |   |   |   |   |   |   |   |
|   Premises and equipment, net                    |   |                              | 17,170  |   |   |   |   |   |   |   |   |   |   |   | 16,240 |   |   |   |   |   |   |   |   |   |
|   Other assets                                   |   |                              | 9,403   |   |   |   |   |   |   |   |   |   |   |   | 9,073 |   |   |   |   |   |   |   |   |   |
|     Total                              |   | $                                 | 950,857 |   |   |   |   |   |   |   |   |   |   | $ | 955,200 |   |   |   |   |   |   |   |   |   |
|                                                       |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                       |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                              |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Demand deposits                                |   | $                                 | 206,173 |   |   | $ | 201 |   |   |   | 0.40 | % |   | $ | 229,394 |   |   |   | 319 |   |   |   | 0.56 | % |
|   Savings deposits                               |   |                              | 40,983  |   |   |   | 10 |   |   |   | 0.10 | % |   |   | 41,323 |   |   |   | 41 |   |   |   | 0.41 | % |
|   Time deposits                                  |   |                              | 446,758 |   |   |   | 2,718 |   |   |   | 2.47 | % |   |   | 474,532 |   |   |   | 3,592 |   |   |   | 3.07 | % |
|   Borrowings                                     |   |                              | 36,707  |   |   |   | 41 |   |   |   | 0.45 | % |   |   | 21,594 |   |   |   | 62 |   |   |   | 1.17 | % |
|     Total interest-bearing liabilities |   |                              | 730,621 |   |   |   | 2,970 |   |   |   | 1.65 | % |   |   | 766,843 |   |   |   | 4,014 |   |   |   | 2.12 | % |
|                                                       |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing liabilities:                           |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Demand deposits                                |   |                              | 118,449 |   |   |   |   |   |   |   |   |   |   |   | 116,258 |   |   |   |   |   |   |   |   |   |
|   Other                                          |   |                              | 4,917   |   |   |   |   |   |   |   |   |   |   |   | 5,458 |   |   |   |   |   |   |   |   |   |
|     Total liabilities                  |   |                              | 853,987 |   |   |   |   |   |   |   |   |   |   |   | 888,559 |   |   |   |   |   |   |   |   |   |
|   Stockholders' equity                           |   |                              | 96,870  |   |   |   |   |   |   |   |   |   |   |   | 66,641 |   |   |   |   |   |   |   |   |   |
|     Total                              |   | $                                 | 950,857 |   |   |   |   |   |   |   |   |   |   | $ | 955,200 |   |   |   |   |   |   |   |   |   |
| Net interest income                                        |   |                              |    |   |   | $ | 9,265 |   |   |   |   |   |   |   |   |   |   | $ | 6,960 |   |   |   |   |   |
| Net interest rate spread (1)                               |   |                              |    |   |   |   |   |   |   |   | 3.83 | % |   |   |   |   |   |   |   |   |   |   | 2.77 | % |
| Net interest-earning assets (2)                            |   | $                                 | 175,189 |   |   |   |   |   |   |   |   |   |   | $ | 143,256 |   |   |   |   |   |   |   |   |   |
| Net interest margin (3)                                    |   |                              |    |   |   |   |   |   |   |   | 4.15 | % |   |   |   |   |   |   |   |   |   |   | 3.10 | % |
|                                                       |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest-earning assets to                         |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      interest-bearing liabilities |   |                              |    |   |   |   |   |   |   |   | 123.98 | % |   |   |   |   |   |   |   |   |   |   | 118.68 | % |
|                                                       |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|    | _______________________________________________________________________________________________________________________ |
|--------------|-------------------------------------------------------------------------------------------------------------------------|

|    | (1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | (2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
|--------------|------------------------------------------------------------------------------------------------------------------------|

|    | (3) Net interest margin represents net interest income divided by average total interest-earning assets. |
|--------------|---------------------------------------------------------------------------------------------------------------|

----

|                                 |   | Three Months Ended March 31, |   |
|--------------------------------------|--------|------------------------------|--------|
|                                 |   | 2010                         |   |   | 2009 |   |
|                                 |   | (unaudited, in thousands)    |   |
| Other noninterest expense:           |   |                         |   |   |   |   |
| Legal and professional fees          |   | $                            | 312    |   |   | $ | 291 |   |
| Data processing                      |   |                         | 523    |   |   |   | 439 |   |
| Marketing and public relations       |   |                         | 285    |   |   |   | 195 |   |
| Taxes - sales, capital and franchise |   |                         | 181    |   |   |   | 163 |   |
| Operating supplies                   |   |                         | 140    |   |   |   | 121 |   |
| Travel and lodging                   |   |                         | 87     |   |   |   | 94 |   |
| Other                                |   |                         | 658    |   |   |   | 684 |   |
|   Total other expense      |   | $                            | 2,186  |   |   | $ | 1,987 |   |
|                                 |   |                         |   |   |   |   |   |   |

----

|                                              |   | Interest Sensitivity Within       |     |
|---------------------------------------------------|--------|-----------------------------------|----------|
|                                              |   | 3 Months                          |     |   | Over 3 Months |   |   | Total |   |   | Over |   |   |   |   |
|                                              |   | Or Less                           |     |   | thru 12 Months |   |   | One Year |   |   | One Year |   |   | Total |   |
|                                              |   | (unaudited, dollars in thousands) |     |
| Earning Assets:                                   |   |                              |     |   |   |   |   |   |   |   |   |   |   |   |   |
|   Loans (including loans held for sale) |   | $                                 | 203,828  |   |   | $ | 109,291 |   |   | $ | 313,119 |   |   | $ | 289,782 |   |   | $ | 602,901 |   |
|   Securities (including FHLB stock)     |   |                              | 6,262    |   |   |   | 10,321 |   |   |   | 16,583 |   |   |   | 245,724 |   |   |   | 262,307 |   |
|   Federal funds sold                    |   |                              | 32,181   |   |   |   | - |   |   |   | 32,181 |   |   |   | - |   |   |   | 32,181 |   |
|   Other earning assets                  |   |                              | 17,168   |   |   |   | - |   |   |   | 17,168 |   |   |   | - |   |   |   | 17,168 |   |
|     Total earning assets      |   |                              | 259,439  |   |   |   | 119,612 |   |   |   | 379,051 |   |   |   | 535,506 |   |   | $ | 914,557 |   |
|                                              |   |                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Source of Funds:                                  |   |                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing accounts:                        |   |                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Demand deposits           |   |                              | 153,249  |   |   |   | - |   |   |   | 153,249 |   |   |   | 49,505 |   |   |   | 202,754 |   |
|     Savings                   |   |                              | 10,402   |   |   |   | - |   |   |   | 10,402 |   |   |   | 31,205 |   |   |   | 41,607 |   |
|     Time deposits             |   |                              | 195,730  |   |   |   | 134,648 |   |   |   | 330,378 |   |   |   | 129,761 |   |   |   | 460,139 |   |
|     Short-term borrowings     |   |                              | 9,665    |   |   |   | - |   |   |   | 9,665 |   |   |   | - |   |   |   | 9,665 |   |
|     Long-term borrowings      |   |                              | -        |   |   |   | 17,508 |   |   |   | 17,508 |   |   |   | - |   |   |   | 17,508 |   |
| Noninterest-bearing, net                          |   |                              | -        |   |   |   | - |   |   |   | - |   |   |   | 182,884 |   |   |   | 182,884 |   |
|     Total source of funds     |   |                              | 369,046  |   |   |   | 152,156 |   |   |   | 521,202 |   |   |   | 393,355 |   |   | $ | 914,557 |   |
| Period gap                                        |   |                              | (109,607 | ) |   |   | (32,544 | ) |   |   | (142,151 | ) |   |   | 142,151 |   |   |   |   |   |
| Cumulative gap                                    |   | $                                 | (109,607 | ) |   | $ | (142,151 | ) |   | $ | (142,151 | ) |   | $ | - |   |   |   |   |   |
|                                              |   |                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative gap as a                               |   |                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  percent of earning assets                   |   |                              | -11.98   | % |   |   | -15.54 | % |   |   | -15.54 | % |   |   |   |   |   |   |   |   |
|                                              |   |                              |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

----