----

| Community Bancorp. and Subsidiary                                                                |   |                         |        |   |                    |   |
|--------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|--------|-------------------------|--------|
| Consolidated Balance Sheets                                                                      |   |                         |        |   |                    |   |
| December 31, 2009 and 2008                                                                       |   |                         |        |   |                    |   |
|                                                                                             |   | 2009     |        |   | 2008     |   |
| Assets                                                                                           |   |                         |        |   |                    |   |
|   Cash and due from banks                                                              |   | $                            | 9,598,107   |   |                    | $      |  11,236,007 |   |
|   Federal funds sold and overnight deposits                                            |   |                         | 5,036       |   |                    |   | 33,621 |   |
|      Total cash and cash equivalents                                    |   |                         | 9,603,143   |   |                    |   | 11,269,628 |   |
|   Securities held-to-maturity (fair value $45,543,000 at December 31, 2009             |   |                         |        |   |                    |   |   |   |
|    and $38,212,000 at December 31, 2008)                                          |   |                         | 44,766,250  |   |                    |   | 37,288,357 |   |
|   Securities available-for-sale                                                        |   |                         | 23,974,830  |   |                    |   | 29,449,424 |   |
|   Restricted equity securities, at cost                                                |   |                         | 3,906,850   |   |                    |   | 3,906,850 |   |
|   Loans held-for-sale                                                                  |   |                         | 321,983     |   |                    |   | 1,181,844 |   |
|   Loans                                                                                |   |                         | 381,937,123 |   |                    |   | 364,811,683 |   |
|     Allowance for loan losses                                                |   |                         | (3,450,542  | )      |                    |   | (3,232,932 | ) |
|     Unearned net loan fees                                                   |   |                         | (152,188    | )      |                    |   | (301,004 | ) |
|         Net loans                                        |   |                         | 378,334,393 |   |                    |   | 361,277,747 |   |
|   Bank premises and equipment, net                                                     |   |                         | 13,637,414  |   |                    |   | 14,989,429 |   |
|   Accrued interest receivable                                                          |   |                         | 1,895,313   |   |                    |   | 2,044,550 |   |
|   Bank owned life insurance                                                            |   |                         | 3,813,016   |   |                    |   | 3,690,079 |   |
|   Core deposit intangible                                                              |   |                         | 2,663,040   |   |                    |   | 3,328,800 |   |
|   Goodwill                                                                             |   |                         | 11,574,269  |   |                    |   | 11,574,269 |   |
|   Other real estate owned (OREO)                                                       |   |                         | 743,000     |   |                    |   | 185,000 |   |
|   Prepaid expense Federal Deposit Insurance Corporation (FDIC)                         |   |                         | 2,105,565   |   |                    |   | 0 |   |
|   Other assets                                                                         |   |                         | 7,948,031   |   |                    |   | 7,613,255 |   |
|         Total assets                                     |   | $                            | 505,287,097 |   |                    | $      | 487,799,232 |   |
|                                                                                             |   |                         |        |   |                    |   |   |   |
| Liabilities and Shareholders' Equity                                                             |   |                         |        |   |                    |   |   |   |
|  Liabilities                                                                                |   |                         |        |   |                    |   |   |   |
|   Deposits:                                                                            |   |                         |        |   |                    |   |   |   |
|     Demand, non-interest bearing                                             |   | $                            | 52,821,573  |   |                    | $      | 50,134,874 |   |
|     NOW and money market accounts                                            |   |                         | 146,244,454 |   |                    |   | 127,500,699 |   |
|     Savings                                                                  |   |                         | 52,448,863  |   |                    |   | 49,266,879 |   |
|     Time deposits, $100,000 and over                                         |   |                         | 63,261,583  |   |                    |   | 56,486,310 |   |
|     Other time deposits                                                      |   |                         | 104,009,257 |   |                    |   | 118,852,018 |   |
|         Total deposits                                   |   |                         | 418,785,730 |   |                    |   | 402,240,780 |   |
|                                                                                             |   |                         |        |   |                    |   |   |   |
|   Federal funds purchased and other borrowed funds                                     |   |                         | 13,411,000  |   |                    |   | 12,572,000 |   |
|   Repurchase agreements                                                                |   |                         | 19,042,214  |   |                    |   | 19,086,456 |   |
|   Capital lease obligations                                                            |   |                         | 876,536     |   |                    |   | 915,052 |   |
|   Junior subordinated debentures                                                       |   |                         | 12,887,000  |   |                    |   | 12,887,000 |   |
|   Accrued interest and other liabilities                                               |   |                         | 3,394,779   |   |                    |   | 4,825,052 |   |
|         Total liabilities                                |   |                         | 468,397,259 |   |                    |   | 452,526,340 |   |
|                                                                                             |   |                         |        |   |                    |   |   |   |
|  Commitments and Contingent Liabilities (Notes 2, 6, 16, 17, 18 and 21)                     |   |                         |        |   |                    |   |   |   |
|                                                                                             |   |                         |        |   |                    |   |   |   |
|  Shareholders' Equity                                                                       |   |                         |        |   |                    |   |   |   |
|   Preferred stock, 1,000,000 shares authorized, 25 shares issued                       |   |                         |        |   |                    |   |   |   |
|     and outstanding ($100,000 liquidation value)                             |   |                         | 2,500,000   |   |                    |   | 2,500,000 |   |
|   Common stock, $2.50 par value; 10,000,000 shares authorized at December 31,          |   |                         |        |   |                    |   |   |   |
|     2009 and 2008, and 4,759,913 and 4,679,206 shares issued at December 31, |   |                         |        |   |                    |   |   |   |
|     2009 and 2008, respectively (including 21,636 and 22,105 shares issued   |   |                         |        |   |                    |   |   |   |
|     February 1, 2010 and 2009, respectively)                                 |   |                         | 11,899,783  |   |                    |   | 11,698,015 |   |
|   Additional paid-in capital                                                           |   |                         | 26,192,359  |   |                    |   | 25,757,516 |   |
|   Accumulated deficit                                                                  |   |                         | (1,192,409  | )      |                    |   | (2,592,721 | ) |
|   Accumulated other comprehensive income                                               |   |                         | 112,882     |   |                    |   | 532,859 |   |
|   Less: treasury stock, at cost; 210,101 shares at December 31, 2009 and 2008          |   |                         | (2,622,777  | )      |                    |   | (2,622,777 | ) |
|         Total shareholders' equity                       |   |                         | 36,889,838  |   |                    |   | 35,272,892 |   |
|                                                                                             |   |                         |        |   |                    |   |   |   |
|         Total liabilities and shareholders' equity       |   | $                            | 505,287,097 |   |                    | $      | 487,799,232 |   |

----

| Community Bancorp. and Subsidiary                                              |   |                          |       |   |                               |   |
|--------------------------------------------------------------------------------|--------|-------------------------------|------------|--------|------------------------------------|--------|
| Consolidated Statements of Income                                              |   |                          |       |   |                               |   |
|                                                                           |   |                          |       |   |                               |   |
| For The Years Ended December 31,                                               |   | 2009      |       |   | 2008      |   |
|                                                                           |   |                          |       |   |                               |   |
|  Interest income                                                          |   |                          |       |   |                               |   |
|    Interest and fees on loans                                   |   | $                             | 21,907,599 |   |                               | $      | 23,633,127 |   |
|    Interest on debt securities                                  |   |                          |       |   |                               |   |   |   |
|      Taxable                                          |   |                          | 779,278    |   |                               |   | 1,463,702 |   |
|      Tax-exempt                                       |   |                          | 1,367,439  |   |                               |   | 1,740,183 |   |
|    Dividends                                                    |   |                          | 64,550     |   |                               |   | 186,304 |   |
|    Interest on federal funds sold and overnight deposits        |   |                          | 406        |   |                               |   | 64,334 |   |
|         Total interest income          |   |                          | 24,119,272 |   |                               |   | 27,087,650 |   |
|                                                                           |   |                          |       |   |                               |   |   |   |
|  Interest expense                                                         |   |                          |       |   |                               |   |   |   |
|    Interest on deposits                                         |   |                          | 6,147,348  |   |                               |   | 8,829,141 |   |
|    Interest on federal funds purchased and other borrowed funds |   |                          | 307,594    |   |                               |   | 434,652 |   |
|    Interest on repurchase agreements                            |   |                          | 255,281    |   |                               |   | 262,883 |   |
|    Interest on junior subordinated debentures                   |   |                          | 974,257    |   |                               |   | 976,340 |   |
|         Total interest expense         |   |                          | 7,684,480  |   |                               |   | 10,503,016 |   |
|                                                                           |   |                          |       |   |                               |   |   |   |
|     Net interest income                                    |   |                          | 16,434,792 |   |                               |   | 16,584,634 |   |
|     Provision for loan losses                                   |   |                          | 625,004    |   |                               |   | 499,163 |   |
|     Net interest income after provision for loan losses    |   |                          | 15,809,788 |   |                               |   | 16,085,471 |   |
|                                                                           |   |                          |       |   |                               |   |   |   |
|  Non-interest income                                                      |   |                          |       |   |                               |   |   |   |
|    Service fees                                                 |   |                          | 2,174,607  |   |                               |   | 2,176,123 |   |
|    Income from sold loans                                       |   |                          | 1,114,099  |   |                               |   | 317,598 |   |
|    Income on bank owned life insurance                          |   |                          | 122,937    |   |                               |   | 130,703 |   |
|    Net realized gains on securities                             |   |                          | 471,055    |   |                               |   | 0 |   |
|    Other income                                                 |   |                          | 1,773,735  |   |                               |   | 1,411,901 |   |
|         Total non-interest income      |   |                          | 5,656,433  |   |                               |   | 4,036,325 |   |
|                                                                           |   |                          |       |   |                               |   |   |   |
|  Non-interest expense                                                     |   |                          |       |   |                               |   |   |   |
|    Salaries and wages                                           |   |                          | 5,984,998  |   |                               |   | 5,899,851 |   |
|    Employee benefits                                            |   |                          | 2,170,228  |   |                               |   | 2,325,363 |   |
|    Occupancy expenses, net                                      |   |                          | 2,990,440  |   |                               |   | 3,234,601 |   |
|    Write down of Fannie Mae preferred stock                     |   |                          | 94,446     |   |                               |   | 739,332 |   |
|    FDIC insurance                                               |   |                          | 784,877    |   |                               |   | 144,234 |   |
|    Amortization of core deposit intangible                      |   |                          | 665,760    |   |                               |   | 832,200 |   |
|    Other expenses                                               |   |                          | 5,342,929  |   |                               |   | 5,069,491 |   |
|         Total non-interest expense     |   |                          | 18,033,678 |   |                               |   | 18,245,072 |   |
|                                                                           |   |                          |       |   |                               |   |   |   |
|     Income before income taxes                             |   |                          | 3,432,543  |   |                               |   | 1,876,724 |   |
|  Income tax benefit                                                       |   |                          | (315,319   | )      |                               |   | (324,622 | ) |
|         Net income                     |   | $                             | 3,747,862  |   |                               | $      | 2,201,346 |   |
|                                                                           |   |                          |       |   |                               |   |   |   |
|  Earnings per common share                                                |   | $                             | 0.79       |   |                               | $      | 0.46 |   |
|  Weighted average number of common shares                                 |   |                          |       |   |                               |   |   |   |
|   used in computing earnings per share                               |   |                          | 4,504,943  |   |                               |   | 4,430,657 |   |
|  Dividends declared per common share                                      |   | $                             | 0.48       |   |                               | $      | 0.68 |   |
|  Book value per share on common shares outstanding at December 31,        |   | $                             | 7.56       |   |                               | $      | 7.33 |   |

----

| COMMUNITY BANCORP. AND SUBSIDIARY                     |
|-------------------------------------------------------|
| Consolidated Statements of Shareholders’ Equity |
| Years Ended December 31, 2009 and 2008                |

|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |
|------------------------------------------------------|--------|--------------|-----------|--------|-----------------|--------|------------|--------|--------|--------|--------|--------|
|                                                 |   | Common Stock |      |   | Preferred Stock |   |
|                                                 |   | Shares       |      |   | Amount          |   |       | Shares |   |   | Amount |   |
|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |
| Balances, December 31, 2007                          |   |         | 4,399,167 |   |            | $      | 11,523,171 |   |   |   | 25     |   |   | $ | 2,500,000 |   |
|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income, net of taxes                   |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Net income                                           |   |         | 0         |   |            |   | 0          |   |   |   | 0      |   |   |   | 0 |   |
| Net unrealized holding gain on securities            |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
|   available-for-sale, net of tax, $217,212 |   |         | 0         |   |            |   | 0          |   |   |   | 0      |   |   |   | 0 |   |
|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                           |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Cash dividends declared - common stock               |   |         | 0         |   |            |   | 0          |   |   |   | 0      |   |   |   | 0 |   |
| Cash dividends declared - preferred stock            |   |         | 0         |   |            |   | 0          |   |   |   | 0      |   |   |   | 0 |   |
| Issuance of common stock                             |   |         | 69,938    |   |            |   | 174,844    |   |   |   | 0      |   |   |   | 0 |   |
|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2008                          |   |         | 4,469,105 |   |            |   | 11,698,015 |   |   |   | 25     |   |   |   | 2,500,000 |   |
|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income, net of taxes                   |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Net income                                           |   |         | 0         |   |            |   | 0          |   |   |   | 0      |   |   |   | 0 |   |
| Net unrealized holding loss on securities       |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
|   available-for-sale, net of tax, $216,352 |   |         | 0         |   |            |   | 0          |   |   |   | 0      |   |   |   | 0 |   |
|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                           |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Cash dividends declared - common stock               |   |         | 0         |   |            |   | 0          |   |   |   | 0      |   |   |   | 0 |   |
| Cash dividends declared - preferred stock            |   |         | 0         |   |            |   | 0          |   |   |   | 0      |   |   |   | 0 |   |
| Issuance of common stock                             |   |         | 80,707    |   |            |   | 201,768    |   |   |   | 0      |   |   |   | 0 |   |
|                                                 |   |         |      |   |            |   |       |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2009                          |   |         | 4,549,812 |   |            | $      | 11,899,783 |   |   |   | 25     |   |   | $ | 2,500,000 |   |

----

|       |       |   |        |   |       |          |   |   |     |   |   |          |       |
|------------|------------|--------|-------------|--------|------------|---------------|--------|--------|----------|--------|--------|---------------|------------|
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |
|       |       |   |        |   |       | Accumulated   |   |   |     |   |   |          |       |
| Additional |       |   |        |   |       | other         |   |   |     |   |   | Total         |       |
| paid-in    |       |   | Accumulated |   |       | comprehensive |   |   | Treasury |   |   | shareholders' |       |
| capital    |       |   | deficit     |   |       | income        |   |   | stock    |   |   | equity        |       |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |
| $          | 25,006,439 |   |        | $      | (1,597,682 | )             |   | $      | 111,209  |   |   | $             | (2,622,777 | ) |   | $ | 34,920,360 |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       | 0          |   |        |   | 2,201,346  |          |   |   | 0        |   |   |          | 0          |   |   |   | 2,201,346 |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       | 0          |   |        |   | 0          |          |   |   | 421,650  |   |   |          | 0          |   |   |   | 421,650 |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   | 2,622,996 |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       | 0          |   |        |   | (3,008,885 | )             |   |   | 0        |   |   |          | 0          |   |   |   | (3,008,885 | ) |
|       | 0          |   |        |   | (187,500   | )             |   |   | 0        |   |   |          | 0          |   |   |   | (187,500 | ) |
|       | 751,077    |   |        |   | 0          |          |   |   | 0        |   |   |          | 0          |   |   |   | 925,921 |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       | 25,757,516 |   |        |   | (2,592,721 | )             |   |   | 532,859  |   |   |          | (2,622,777 | ) |   |   | 35,272,892 |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       | 0          |   |        |   | 3,747,862  |          |   |   | 0        |   |   |          | 0          |   |   |   | 3,747,862 |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       | 0          |   |        |   | 0          |          |   |   | (419,977 | )      |   |          | 0          |   |   |   | (419,977 | ) |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   | 3,327,885 |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
|       | 0          |   |        |   | (2,160,050 | )             |   |   | 0        |   |   |          | 0          |   |   |   | (2,160,050 | ) |
|       | 0          |   |        |   | (187,500   | )             |   |   | 0        |   |   |          | 0          |   |   |   | (187,500 | ) |
|       | 434,843    |   |        |   | 0          |          |   |   | 0        |   |   |          | 0          |   |   |   | 636,611 |   |
|       |       |   |        |   |       |          |   |   |     |   |   |          |       |   |   |   |   |   |
| $          | 26,192,359 |   |        | $      | (1,192,409 | )             |   | $      | 112,882  |   |   | $             | (2,622,777 | ) |   | $ | 36,889,838 |   |

----

| Community Bancorp. and Subsidiary                                                 |   |                         |        |   |                         |   |
|-----------------------------------------------------------------------------------|--------|------------------------------|-------------|--------|------------------------------|--------|
| Consolidated Statements of Cash Flows                                             |   |                         |        |   |                         |   |
| For The Years Ended December 31,                                                  |   | 2009     |        |   | 2008     |   |
|                                                                              |   |                         |        |   |                         |   |
| Cash Flow from Operating Activities:                                              |   |                         |        |   |                         |   |
|   Net Income                                                            |   | $                            | 3,747,862   |   |                         | $      | 2,201,346 |   |
| Adjustments to Reconcile Net Income to Net Cash Provided by                       |   |                         |        |   |                         |   |   |   |
|  Operating Activities:                                                       |   |                         |        |   |                         |   |   |   |
|   Depreciation and amortization, premises and equipment                 |   |                         | 1,090,618   |   |                         |   | 1,131,854 |   |
|   Provision for loan losses                                             |   |                         | 625,004     |   |                         |   | 499,163 |   |
|   Deferred income tax benefit                                           |   |                         | (545,933    | )      |                         |   | (798,728 | ) |
|   Net gain on sale of securities                                        |   |                         | (471,055    | )      |                         |   | 0 |   |
|   Net gain on sale of loans                                             |   |                         | (1,114,099  | )      |                         |   | (317,598 | ) |
|   Loss on sale or disposal of fixed assets                              |   |                         | 0           |   |                         |   | 36,173 |   |
|   Loss on sale of OREO                                                  |   |                         | 7,523       |   |                         |   | 0 |   |
|   Loss (gain) on Trust LLC                                              |   |                         | 1,296       |   |                         |   | (983 | ) |
|   Amortization (accretion) of bond premium (discount), net              |   |                         | 238,960     |   |                         |   | (51,943 | ) |
|   Write down on Fannie Mae preferred stock                              |   |                         | 94,446      |   |                         |   | 739,332 |   |
|   Write down on OREO                                                    |   |                         | 100,000     |   |                         |   | 0 |   |
|   Proceeds from sales of loans held for sale                            |   |                         | 72,112,002  |   |                         |   | 27,211,457 |   |
|   Originations of loans held for sale                                   |   |                         | (70,138,042 | )      |                         |   | (27,389,827 | ) |
|   Increase (decrease) in taxes payable                                  |   |                         | 80,615      |   |                         |   | (321,735 | ) |
|   Decrease in interest receivable                                       |   |                         | 149,237     |   |                         |   | 259,505 |   |
|   Increase in prepaid FDIC insurance assessment                         |   |                         | (2,105,565  | )      |                         |   | 0 |   |
|   Decrease in mortgage servicing rights                                 |   |                         | 27,149      |   |                         |   | 226,708 |   |
|   Decrease in other assets                                              |   |                         | 101,100     |   |                         |   | 395,410 |   |
|   Increase in bank owned life insurance                                 |   |                         | (122,937    | )      |                         |   | (130,703 | ) |
|   Amortization of core deposit intangible                               |   |                         | 665,760     |   |                         |   | 832,200 |   |
|   Amortization of limited partnerships                                  |   |                         | 983,904     |   |                         |   | 371,084 |   |
|   Decrease in unamortized loan fees                                     |   |                         | (148,816    | )      |                         |   | (142,368 | ) |
|   Decrease in interest payable                                          |   |                         | (79,414     | )      |                         |   | (43,381 | ) |
|   Increase in accrued expenses                                          |   |                         | 14,271      |   |                         |   | 146,295 |   |
|   Decrease in other liabilities                                         |   |                         | (523,077    | )      |                         |   | (2,570,895 | ) |
|                                                                              |   |                         |        |   |                         |   |   |   |
|      Net cash provided by operating activities           |   |                         | 4,790,809   |   |                         |   | 2,282,366 |   |
|                                                                              |   |                         |        |   |                         |   |   |   |
| Cash Flows from Investing Activities:                                             |   |                         |        |   |                         |   |   |   |
|   Investments - held-to-maturity                                        |   |                         |        |   |                         |   |   |   |
|     Maturities and paydowns                                   |   |                         | 47,379,523  |   |                         |   | 36,362,788 |   |
|     Purchases                                                 |   |                         | (54,857,415 | )      |                         |   | (39,340,313 | ) |
|   Investments - available-for-sale                                      |   |                         |        |   |                         |   |   |   |
|     Sales, maturities and paydowns                            |   |                         | 22,747,245  |   |                         |   | 17,802,162 |   |
|     Purchases                                                 |   |                         | (17,771,332 | )      |                         |   | (1,079,688 | ) |
|   Purchase of restricted equity securities                              |   |                         | 0           |   |                         |   | (450,000 | ) |
|   (Decrease) increase in limited partnership contributions payable      |   |                         | (690,545    | )      |                         |   | 1,457,000 |   |
|   Investments in limited partnership                                    |   |                         | (766,555    | )      |                         |   | (1,462,000 | ) |
|   Increase in loans, net                                                |   |                         | (18,434,694 | )      |                         |   | (9,514,092 | ) |
|   Proceeds from sales of bank premises and equipment,                   |   |                         |        |   |                         |   |   |   |
|     net of capital expenditures                               |   |                         | 261,397     |   |                         |   | 651,776 |   |
|   Proceeds from sales of OREO                                           |   |                         | 167,477     |   |                         |   | 0 |   |
|   Recoveries of loans charged off                                       |   |                         | 68,860      |   |                         |   | 110,336 |   |
|                                                                              |   |                         |        |   |                         |   |   |   |
|      Net cash (used in) provided by investing activities |   |                         | (21,896,039 | )      |                         |   | 4,537,969 |   |

----

|                                                                                    |   | 2009     |       |   | 2008     |   |
|-----------------------------------------------------------------------------------------|--------|------------------------------|------------|--------|------------------------------|--------|
|                                                                                    |   |                         |       |   |                         |   |
| Cash Flows from Financing Activities:                                                   |   |                         |       |   |                         |   |
|   Net increase (decrease) in demand, NOW, money market & savings accounts |   |                         | 24,612,438 |   |                         |   | (4,180,855 | ) |
|   Net decrease in time deposits                                               |   |                         | (8,067,488 | )      |                         |   | (9,798,475 | ) |
|   Net (decrease) increase in repurchase agreements                            |   |                         | (44,242    | )      |                         |   | 1,641,523 |   |
|   Net (decrease) increase in short-term borrowings                            |   |                         | (9,161,000 | )      |                         |   | 6,812,000 |   |
|   Proceeds from long-term borrowings                                          |   |                         | 10,000,000 |   |                         |   | 0 |   |
|   Repayments on long-term borrowings                                          |   |                         | 0          |   |                         |   | (8,000,000 | ) |
|   Decrease in capital lease obligations                                       |   |                         | (38,516    | )      |                         |   | (28,175 | ) |
|   Dividends paid on preferred stock                                           |   |                         | (187,500   | )      |                         |   | (187,500 | ) |
|   Dividends paid on common stock                                              |   |                         | (1,674,947 | )      |                         |   | (2,081,748 | ) |
|      Net cash provided by (used in) financing activities       |   |                         | 15,438,745 |   |                         |   | (15,823,230 | ) |
|                                                                                    |   |                         |       |   |                         |   |   |   |
|      Net decrease in cash and cash equivalents                 |   |                         | (1,666,485 | )      |                         |   | (9,002,895 | ) |
|   Cash and cash equivalents:                                                  |   |                         |       |   |                         |   |   |   |
|           Beginning                   |   |                         | 11,269,628 |   |                         |   | 20,272,523 |   |
|           Ending                      |   | $                            | 9,603,143  |   |                         | $      | 11,269,628 |   |
|                                                                                    |   |                         |       |   |                         |   |   |   |
|  Supplemental Schedule of Cash Paid During the Period                              |   |                         |       |   |                         |   |   |   |
|   Interest                                                                    |   | $                            | 7,763,894  |   |                         | $      | 11,378,597 |   |
|                                                                                    |   |                         |       |   |                         |   |   |   |
|   Income taxes                                                                |   | $                            | 150,000    |   |                         | $      | 755,000 |   |
|                                                                                    |   |                         |       |   |                         |   |   |   |
|  Supplemental Schedule of Noncash Investing and Financing Activities:              |   |                         |       |   |                         |   |   |   |
|   Change in unrealized gain on securities available-for-sale                  |   | $                            | (636,329   | )      |                         | $      | 638,862 |   |
|                                                                                    |   |                         |       |   |                         |   |   |   |
|   Loans and bank premises transferred to OREO                                 |   | $                            | 833,000    |   |                         | $      | 185,000 |   |
|                                                                                    |   |                         |       |   |                         |   |   |   |
|   Fair value adjustment of Fannie Mae preferred stock                         |   | $                            | 0          |   |                         | $      | 656,347 |   |
|                                                                                    |   |                         |       |   |                         |   |   |   |
|   Fair value adjustment on acquired bank premises and equipment               |   | $                            | 0          |   |                         | $      | 452,535 |   |
|                                                                                    |   |                         |       |   |                         |   |   |   |
|   Investments in limited partnership                                          |   |                         |       |   |                         |   |   |   |
|     Increase in limited partnerships                                |   | $                            | (766,555   | )      |                         | $      | (1,462,000 | ) |
|     (Decrease) increase in contributions payable                    |   |                         | (690,545   | )      |                         |   | 1,457,000 |   |
|                                                                                    |   | $                            | (1,457,100 | )      |                         | $      | (5,000 | ) |
|                                                                                    |   |                         |       |   |                         |   |   |   |
|  Common Shares Dividends Paid                                                      |   |                         |       |   |                         |   |   |   |
|   Dividends declared                                                          |   | $                            | 2,160,050  |   |                         | $      | 3,008,885 |   |
|   Decrease (increase) in dividends payable attributable to dividends declared |   |                         | 151,508    |   |                         |   | (1,216 | ) |
|   Dividends reinvested                                                        |   |                         | (636,611   | )      |                         |   | (925,921 | ) |
|                                                                                    |   | $                            | 1,674,947  |   |                         | $      | 2,081,748 |   |

----

|                                                                                                                 |   | 2009   |      |   | 2008   |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                                                 |   |   |      |   |   |   |
| Net income before write down of Fannie Mae preferred stock and tax effect thereof                                    |   | $      | 3,810,196 |   |   | $      | 2,689,305 |   |
| Realized loss on write down of Fannie Mae preferred stock                                                            |   |   | 94,446    |   |   |   | 739,332 |   |
|      Tax effect                                                                             |   |   | (32,112   | )      |   |   | (251,373 | ) |
|         Net income                                                           |   |   | 3,747,862 |   |   |   | 2,201,346 |   |
|                                                                                                                 |   |   |      |   |   |   |   |   |
| Other comprehensive income, net of tax:                                                                              |   |   |      |   |   |   |   |   |
|      Change in unrealized holding gain on available-for-sale                                |   |   |      |   |   |   |   |   |
|        securities arising during the period                                       |   |   | (165,274  | )      |   |   | 638,862 |   |
|      Reclassification adjustment for gains realized in income                               |   |   | (471,055  | )      |   |   | 0 |   |
|        Net unrealized gain                                                        |   |   | (636,329  | )      |   |   | 638,862 |   |
|        Tax effect                                                                 |   |   | 216,352   |   |   |   | (217,212 | ) |
|        Other comprehensive income, net of tax                                     |   |   | (419,977  | )      |   |   | 421,650 |   |
|                Total comprehensive income |   | $      | 3,327,885 |   |   | $      | 2,622,996 |   |

|                                                                            |   | 2009   |      |   | 2008   |   |
|---------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                            |   |   |      |   |   |   |
| Net income, as reported                                                         |   | $      | 3,747,862 |   |   | $      | 2,201,346 |   |
| Less: dividends to preferred shareholders                                       |   |   | 187,500   |   |   |   | 187,500 |   |
| Net income available to common shareholders                                     |   | $      | 3,560,362 |   |   | $      | 2,013,846 |   |
|                                                                            |   |   |      |   |   |   |   |   |
| Weighted average number of common shares used in calculating earnings per share |   |   | 4,504,943 |   |   |   | 4,430,657 |   |
| Earnings per common share                                                       |   | $      | 0.79      |   |   | $      | 0.46 |   |

| 1. | A valuation technique that uses (a) the quoted price of an identical liability when traded as an asset, or (b) quoted prices for similar liabilities or similar liabilities when traded as assets.                                                                                                                                                                                     |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | Another valuation technique that is consistent with the principles of ASC Topic 820, examples include an income approach, such as a present value technique, or a market approach, such as a technique that is based on the amount at measurement date that the reporting entity would pay to transfer the identical liability or would receive to enter into the identical liability. |

|                                             |   |      |       |   | Gross      |   |    | Gross      |   |   |    |   |
|--------------------------------------------------|--------|-----------|------------|--------|------------|--------|---------|------------|--------|--------|---------|--------|
|                                             |   | Amortized |       |   | Unrealized |   |    | Unrealized |   |   | Fair    |   |
| Securities AFS                                   |   | Cost      |       |   | Gains      |   |    | Losses     |   |   | Value   |   |
|                                             |   |      |       |   |       |   |    |       |   |   |    |   |
| December 31, 2009                                |   |      |       |   |       |   |    |       |   |   |    |   |
| U. S. Government sponsored enterprise securities |   | $         | 18,686,949 |   |       | $      | 138,283 |       |   | $      | 18,582  |   |   | $ | 18,806,650 |   |
| U. S. Government securities                      |   |      | 5,048,683  |   |       |   | 48,773  |       |   |   | 764     |   |   |   | 5,096,692 |   |
| Preferred stock                                  |   |      | 68,164     |   |       |   | 3,324   |       |   |   | 0       |   |   |   | 71,488 |   |
|                                             |   | $         | 23,803,796 |   |       | $      | 190,380 |       |   | $      | 19,346  |   |   | $ | 23,974,830 |   |
|                                             |   |      |       |   |       |   |    |       |   |   |    |   |   |   |   |   |
| December 31, 2008                                |   |      |       |   |       |   |    |       |   |   |    |   |   |   |   |   |
| U. S. Government sponsored enterprise securities |   | $         | 8,172,304  |   |       | $      | 274,452 |       |   | $      | 0       |   |   | $ | 8,446,756 |   |
| U. S. Government securities                      |   |      | 4,047,338  |   |       |   | 152,975 |       |   |   | 0       |   |   |   | 4,200,313 |   |
| States and political subdivisions                |   |      | 1,142,876  |   |       |   | 20,012  |       |   |   | 0       |   |   |   | 1,162,888 |   |
| Mortgage-backed securities                       |   |      | 15,116,934 |   |       |   | 491,129 |       |   |   | 7,140   |   |   |   | 15,600,923 |   |
| Preferred stock                                  |   |      | 162,610    |   |       |   | 0       |       |   |   | 124,066 |   |   |   | 38,544 |   |
|                                             |   | $         | 28,642,062 |   |       | $      | 938,568 |       |   | $      | 131,206 |   |   | $ | 29,449,424 |   |
|                                             |   |      |       |   |       |   |    |       |   |   |    |   |   |   |   |   |
| Securities HTM                                   |   |      |       |   |       |   |    |       |   |   |    |   |   |   |   |   |
|                                             |   |      |       |   |       |   |    |       |   |   |    |   |   |   |   |   |
| December 31, 2009                                |   |      |       |   |       |   |    |       |   |   |    |   |   |   |   |   |
| States and political subdivisions                |   | $         | 44,766,250 |   |       | $      | 776,750 |       |   | $      | 0       |   |   | $ | 45,543,000 |   |
|                                             |   |      |       |   |       |   |    |       |   |   |    |   |   |   |   |   |
| December 31, 2008                                |   |      |       |   |       |   |    |       |   |   |    |   |   |   |   |   |
| States and political subdivisions                |   | $         | 37,288,357 |   |       | $      | 923,643 |       |   | $      | 0       |   |   | $ | 38,212,000 |   |

|                       |   | Amortized |       |   | Fair   |   |
|----------------------------|--------|-----------|------------|--------|--------|--------|
|                       |   | Cost      |       |   | Value  |   |
|                       |   |      |       |   |   |   |
| Due in one year or less    |   | $         | 8,229,400  |   |   | $      | 8,310,668 |   |
| Due from one to five years |   |      | 15,506,232 |   |   |   | 15,592,674 |   |
|                       |   | $         | 23,735,632 |   |   | $      | 23,903,342 |   |

|                       |   | Amortized |       |   | Fair   |   |
|----------------------------|--------|-----------|------------|--------|--------|--------|
|                       |   | Cost      |       |   | Value* |   |
|                       |   |      |       |   |   |   |
| Due in one year or less    |   | $         | 35,864,578 |   |   | $      | 35,865,000 |   |
| Due from one to five years |   |      | 4,034,674  |   |   |   | 4,229,000 |   |
| Due from five to ten years |   |      | 1,483,336  |   |   |   | 1,677,000 |   |
| Due after ten years        |   |      | 3,383,662  |   |   |   | 3,772,000 |   |
|                       |   | $         | 44,766,250 |   |   | $      | 45,543,000 |   |

|                                            |   | 2009                |      |   | 2008                |   |
|-------------------------------------------------|--------|---------------------|-----------|--------|---------------------|--------|
|                                            |   | Less than 12 months |      |   | Less than 12 months |   |
|                                            |   | Fair                |      |   | Unrealized          |   |   | Fair |   |   | Unrealized |   |
|                                            |   | Value               |      |   | Loss                |   |   | Value |   |   | Loss |   |
|                                            |   |                |      |   |                |   |   |   |   |   |   |   |
| U.S. Government sponsored enterprise securities |   | $                   | 2,055,018 |   |                | $      | 18,582 |   |   | $ | 0 |   |   | $ | 0 |   |
| U.S. Government securities                      |   |                | 1,003,233 |   |                |   | 764 |   |   |   | 0 |   |   |   | 0 |   |
| Mortgage-backed securities                      |   |                | 0         |   |                |   | 0 |   |   |   | 749,010 |   |   |   | 7,140 |   |
| Preferred stock                                 |   |                | 0         |   |                |   | 0 |   |   |   | 38,544 |   |   |   | 124,066 |   |
|                                            |   | $                   | 3,058,251 |   |                | $      | 19,346 |   |   | $ | 787,554 |   |   | $ | 131,206 |   |

|                             |   | 2009   |        |   | 2008   |   |
|----------------------------------|--------|--------|-------------|--------|--------|--------|
|                             |   |   |        |   |   |   |
| Commercial                       |   | $      | 27,448,574  |   |   | $      | 24,190,792 |   |
| Real estate – Construction |   |   | 16,868,447  |   |   |   | 15,203,826 |   |
| Real estate – Mortgage     |   |   | 323,795,601 |   |   |   | 309,177,362 |   |
| Installment and other            |   |   | 13,824,501  |   |   |   | 16,239,703 |   |
|                             |   |   | 381,937,123 |   |   |   | 364,811,683 |   |
| Deduct:                          |   |   |        |   |   |   |   |   |
| Allowance for loan losses        |   |   | 3,450,542   |   |   |   | 3,232,932 |   |
| Unearned net loan fees           |   |   | 152,188     |   |   |   | 301,004 |   |
|                             |   |   | 3,602,730   |   |   |   | 3,533,936 |   |
| Net Loans                        |   | $      | 378,334,393 |   |   | $      | 361,277,747 |   |

|                                                      |   | 2009   |    |   | 2008   |   |
|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                      |   |   |    |   |   |   |
| Balance at beginning of year                              |   | $      | 960,110 |   |   | $      | 1,186,818 |   |
| Mortgage servicing rights capitalized                     |   |   | 584,004 |   |   |   | 218,098 |   |
| Less:                                                     |   |   |    |   |   |   |   |   |
|    Mortgage servicing rights amortized     |   |   | 363,755 |   |   |   | 230,196 |   |
|    Impairment of mortgage servicing rights |   |   | 247,398 |   |   |   | 214,610 |   |
| Balance at end of year                                    |   | $      | 932,961 |   |   | $      | 960,110 |   |

|                              |   | 2009   |      |   | 2008   |   |
|-----------------------------------|--------|--------|-----------|--------|--------|--------|
|                              |   |   |      |   |   |   |
| Balance, beginning of year        |   | $      | 3,232,932 |   |   | $      | 3,026,049 |   |
| Provision for loan losses         |   |   | 625,004   |   |   |   | 499,163 |   |
| Recoveries of amounts charged off |   |   | 68,860    |   |   |   | 110,336 |   |
|                              |   |   | 3,926,796 |   |   |   | 3,635,548 |   |
| Amounts charged off               |   |   | (476,254  | )      |   |   | (402,616 | ) |
| Balance, end of year              |   | $      | 3,450,542 |   |   | $      | 3,232,932 |   |

|                                           |   | 2009   |       |   | 2008   |   |
|------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                           |   |   |       |   |   |   |
| Buildings and improvements                     |   | $      | 10,438,594 |   |   | $      | 10,944,863 |   |
| Land and land improvements                     |   |   | 2,571,812  |   |   |   | 2,706,812 |   |
| Furniture and equipment                        |   |   | 6,242,201  |   |   |   | 5,966,673 |   |
| Leasehold improvements                         |   |   | 1,277,509  |   |   |   | 1,267,766 |   |
| Capital lease                                  |   |   | 927,889    |   |   |   | 927,889 |   |
| Other prepaid assets                           |   |   | 14,530     |   |   |   | 17,014 |   |
|                                           |   |   | 21,472,535 |   |   |   | 21,831,017 |   |
| Less accumulated depreciation and amortization |   |   | (7,835,121 | )      |   |   | (6,841,588 | ) |
|                                           |   | $      | 13,637,414 |   |   | $      | 14,989,429 |   |

| 2010               |   | $      | 182,700 |   |
|--------------------|--------|--------|---------|--------|
| 2011               |   |   | 163,173 |   |
| 2012               |   |   | 169,173 |   |
| 2013               |   |   | 162,882 |   |
| 2014               |   |   | 144,882 |   |
| Subsequent to 2014 |   |   | 175,826 |   |
|               |   | $      | 998,636 |   |

| 2010                                        |   | $      | 110,983   |   |
|---------------------------------------------|--------|--------|-----------|--------|
| 2011                                        |   |   | 113,482   |   |
| 2012                                        |   |   | 116,982   |   |
| 2013                                        |   |   | 116,982   |   |
| 2014                                        |   |   | 119,482   |   |
| Subsequent to 2014                          |   |   | 768,835   |   |
| Total minimum lease payments                |   |   | 1,346,746 |   |
| Less amount representing interest           |   |   | (470,210  | )      |
| Present value of net minimum lease payments |   | $      | 876,536   |   |

| 2010                                  |   | $      | 532,608   |   |
|---------------------------------------|--------|--------|-----------|--------|
| 2011                                  |   |   | 426,086   |   |
| 2012                                  |   |   | 340,869   |   |
| 2013                                  |   |   | 272,695   |   |
| 2014                                  |   |   | 272,695   |   |
| Thereafter                            |   |   | 818,087   |   |
| Total core deposit intangible expense |   | $      | 2,663,040 |   |

| 2010       |   | $      | 114,205,167 |   |
|------------|--------|--------|-------------|--------|
| 2011       |   |   | 14,468,769  |   |
| 2012       |   |   | 26,272,004  |   |
| 2013       |   |   | 4,711,129   |   |
| Thereafter |   |   | 7,613,771   |   |
| Total      |   | $      | 167,270,840 |   |

|                                                             |   | 2009   |       |   | 2008   |   |
|------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Long-Term Borrowings                                             |   |   |       |   |   |   |
| FHLBB term borrowing, 2.13% fixed rate, due January 31, 2011     |   | $      | 10,000,000 |   |   | $      | 0 |   |
| Community Investment Program borrowing, 7.67% fixed rate,        |   |   |       |   |   |   |   |   |
|    due November 16, 2012                          |   |   | 10,000     |   |   |   | 10,000 |   |
|                                                             |   |   | 10,010,000 |   |   |   | 10,000 |   |
|                                                             |   |   |       |   |   |   |   |   |
| Overnight Borrowings                                             |   |   |       |   |   |   |   |   |
| Federal funds purchased (FHLBB), 0.200% and 0.375%, respectively |   |   | 3,401,000  |   |   |   | 12,562,000 |   |
|                                                             |   |   |       |   |   |   |   |   |
| Total Borrowings                                                 |   | $      | 13,411,000 |   |   | $      | 12,572,000 |   |

|                      |   | 2009   |     |   | 2008   |   |
|---------------------------|--------|--------|----------|--------|--------|--------|
|                      |   |   |     |   |   |   |
| Currently paid or payable |   | $      | 230,614  |   |   | $      | 474,106 |   |
| Deferred                  |   |   | (545,933 | )      |   |   | (798,728 | ) |
|                      |   | $      | (315,319 | )      |   | $      | (324,622 | ) |

|                          |   | 2009   |       |   | 2008   |   |
|-------------------------------|--------|--------|------------|--------|--------|--------|
|                          |   |   |       |   |   |   |
| Computed expected tax expense |   | $      | 1,167,065  |   |   | $      | 638,086 |   |
| Tax exempt interest           |   |   | (506,875   | )      |   |   | (610,785 | ) |
| Disallowed interest           |   |   | 42,479     |   |   |   | 62,443 |   |
| Tax exempt dividend           |   |   | 0          |   |   |   | (16,385 | ) |
| Partnership tax credits       |   |   | (1,022,294 | )      |   |   | (402,780 | ) |
| Other                         |   |   | 4,306      |   |   |   | 4,799 |   |
|                          |   | $      | (315,319   | )      |   | $      | (324,622 | ) |

|                                  |   | 2009   |     |   | 2008   |   |
|---------------------------------------|--------|--------|----------|--------|--------|--------|
|                                  |   |   |     |   |   |   |
| Depreciation                          |   | $      | (39,522  | )      |   | $      | 139,402 |   |
| Mortgage servicing                    |   |   | (9,230   | )      |   |   | (77,081 | ) |
| Deferred compensation                 |   |   | 42,568   |   |   |   | 41,281 |   |
| Bad debts                             |   |   | (73,988  | )      |   |   | (70,341 | ) |
| Non-accrual loan interest             |   |   | (15,171  | )      |   |   | 16,359 |   |
| Core deposit intangible               |   |   | (226,358 | )      |   |   | (282,948 | ) |
| Loan fair value                       |   |   | (42,871  | )      |   |   | (96,919 | ) |
| Time deposit fair value               |   |   | (88,400  | )      |   |   | (88,400 | ) |
| Securities valuation                  |   |   | (92,187  | )      |   |   | 146,069 |   |
| Fannie Mae preferred stock write down |   |   | 11,256   |   |   |   | (510,414 | ) |
| Other                                 |   |   | (12,030  | )      |   |   | (15,736 | ) |
|                                  |   | $      | (545,933 | )      |   | $      | (798,728 | ) |

|                                                             |   | 2009   |      |   | 2008   |   |
|------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Components of the deferred tax asset:                            |   |   |      |   |   |   |
|   Bad debts                                            |   | $      | 999,008   |   |   | $      | 925,021 |   |
|   Non-accrual loan interest                            |   |   | 39,976    |   |   |   | 24,804 |   |
|   Deferred compensation                                |   |   | 310,105   |   |   |   | 352,674 |   |
|   Contingent liability - MPF program                   |   |   | 24,367    |   |   |   | 31,167 |   |
|   Fair value adjustment on acquired securities         |   |   |      |   |   |   |   |   |
|       available-for-sale           |   |   | 535,593   |   |   |   | 454,662 |   |
|   Fannie Mae preferred stock write down                |   |   | 251,373   |   |   |   | 251,373 |   |
|   Capital lease                                        |   |   | 53,142    |   |   |   | 40,170 |   |
|   Alternative minimum tax                              |   |   | 59,031    |   |   |   | 59,031 |   |
|   Fair value adjustment on acquired premises           |   |   |      |   |   |   |   |   |
|       and equipment                |   |   | 153,862   |   |   |   | 153,862 |   |
|   Other                                                |   |   | 106,400   |   |   |   | 100,541 |   |
|      Total deferred tax asset           |   |   | 2,532,857 |   |   |   | 2,393,305 |   |
|                                                             |   |   |      |   |   |   |   |   |
| Components of the deferred tax liability:                        |   |   |      |   |   |   |   |   |
|   Depreciation                                         |   |   | 333,160   |   |   |   | 372,682 |   |
|   Limited partnerships                                 |   |   | 255,280   |   |   |   | 255,280 |   |
|   Mortgage servicing rights                            |   |   | 317,207   |   |   |   | 326,437 |   |
|   Unrealized gain on securities available-for-sale     |   |   | 58,152    |   |   |   | 274,503 |   |
|   Core deposit intangible                              |   |   | 905,433   |   |   |   | 1,131,792 |   |
|   Fair value adjustment on acquired loans              |   |   | 125,866   |   |   |   | 168,737 |   |
|   Fair value adjustment on acquired time deposits      |   |   | 61,880    |   |   |   | 150,280 |   |
|      Total deferred tax liability       |   |   | 2,056,978 |   |   |   | 2,679,711 |   |
|                                                             |   |   |      |   |   |   |   |   |
|      Net deferred tax asset (liability) |   | $      | 475,879   |   |   | $      | ( 286,406 | ) |

|                                                          |   | Contract or         |       |
|---------------------------------------------------------------|--------|---------------------|------------|
|                                                          |   | --Notional Amount-- |       |
|                                                          |   | 2009                |       |   | 2008 |   |
|                                                          |   |                |       |   |   |   |
| Unused portions of home equity lines of credit                |   | $                   | 15,556,908 |   |   | $ | 14,847,871 |   |
| Other commitments to extend credit                            |   |                | 26,613,388 |   |   |   | 25,172,214 |   |
| Residential construction lines of credit                      |   |                | 1,671,116  |   |   |   | 2,187,366 |   |
| Commercial real estate and other construction lines of credit |   |                | 12,664,208 |   |   |   | 2,709,414 |   |
| Standby letters of credit and commercial letters of credit    |   |                | 735,007    |   |   |   | 353,013 |   |
| Recourse on sale of credit card portfolio                     |   |                | 391,380    |   |   |   | 940,900 |   |
| MPF credit enhancement obligation, net (See Note 17)          |   |                | 1,485,978  |   |   |   | 1,437,570 |   |

|                                     |   | 2009   |       |   | 2008   |   |
|------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                     |   |   |       |   |   |   |
| Balance, beginning                       |   | $      | 3,778,080  |   |   | $      | 3,668,049 |   |
| Loans - New Principal Officers/Directors |   |   | 2,809,549  |   |   |   | 142,462 |   |
| New loans to existing Officers/Directors |   |   | 6,206,719  |   |   |   | 467,627 |   |
| Retirement of Director                   |   |   | (2,273     | )      |   |   | 0 |   |
| Repayment*                               |   |   | (6,253,082 | )      |   |   | (500,058 | ) |
| Balance, ending                          |   | $      | 6,538,993  |   |   | $      | 3,778,080 |   |

|                    |   | 2009   |   |   | 2008   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|
|                    |   |   |   |   |   |   |
| Newport                 |   | $      | 23,841 |   |   | $      | 23,570 |   |
| Lyndonville             |   |   | 2,399  |   |   |   | 1,979 |   |
| Barre                   |   |   | 2,489  |   |   |   | 2,460 |   |
|    Total |   | $      | 28,729 |   |   | $      | 28,009 |   |

|            |   | 2009   |   |   | 2008   |   |
|-----------------|--------|--------|--------|--------|--------|--------|
|            |   |   |   |   |   |   |
| Management fees |   | $      | 34,677 |   |   | $      | 37,432 |   |

|                                      |                   |        |               |              | Minimum |
|-------------------------------------------|------------------------|-------------|--------------------|-------------------|---------|
|                                      |                   |        | Minimum            | To Be Well        |
|                                      |                   |        | For Capital        | Capitalized Under |
|                                      |                   |        | Adequacy           | Prompt Corrective |
|                                      | Actual                 | Purposes:   | Action Provisions: |
|                                      | Amount                 | Ratio  | Amount             | Ratio             | Amount  | Ratio |
|                                      | (Dollars in Thousands) |
| As of December 31, 2009:                  |                   |        |               |              |    |   |
| Total capital (to risk-weighted assets)   |                   |        |               |              |    |   |
|    Consolidated            | $40,326                | 11.57%      | $27,877            | 8.00%             | N/A     | N/A |
|    Bank                    | $40,336                | 11.60%      | $27,811            | 8.00%             | $34,764 | 10.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to risk-weighted assets)  |                   |        |               |              |    |   |
|    Consolidated            | $36,875                | 10.58%      | $13,939            | 4.00%             | N/A     | N/A |
|    Bank                    | $36,885                | 10.61%      | $13,906            | 4.00%             | $20,858 | 6.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to average assets)        |                   |        |               |              |    |   |
|    Consolidated            | $36,875                | 7.50%       | $19,674            | 4.00%             | N/A     | N/A |
|    Bank                    | $36,885                | 7.51%       | $19,643            | 4.00%             | $24,554 | 5.00% |
|                                      |                   |        |               |              |    |   |
| As of December 31, 2008:                  |                   |        |               |              |    |   |
| Total capital (to risk-weighted assets)   |                   |        |               |              |    |   |
|    Consolidated            | $36,765                | 11.04%      | $26,639            | 8.00%             | N/A     | N/A |
|    Community National Bank | $37,355                | 11.25%      | $26,571            | 8.00%             | $33,214 | 10.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to risk-weighted assets)  |                   |        |               |              |    |   |
|    Consolidated            | $33,532                | 10.07%      | $13,319            | 4.00%             | N/A     | N/A |
|    Community National Bank | $34,122                | 10.27%      | $13,285            | 4.00%             | $19,928 | 6.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to average assets)        |                   |        |               |              |    |   |
|    Consolidated            | $33,532                | 7.08%       | $18,948            | 4.00%             | N/A     | N/A |
|    Community National Bank | $34,122                | 7.22%       | $18,917            | 4.00%             | $23,569 | 5.00% |

| Level 1 | Quoted prices in active markets for identical assets or liabilities.  Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets.                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.  Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.  This category generally includes certain derivative contracts, residential mortgage servicing rights, and impaired loans. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.  Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.  For example, this category generally includes certain private equity investments, retained residual interest in securitizations, and highly-structured or long-term derivative contracts.                                                                                                                                       |

| December 31, 2009                               |   | Level 1 |      |   | Level 2 |   |       | Level 3 |   |   | Total  |   |
|-------------------------------------------------|--------|---------|-----------|--------|---------|--------|------------|---------|--------|--------|--------|--------|
| Assets:                                         |   |    |      |   |    |   |       |    |   |   |   |   |
| U.S. Government sponsored enterprise securities |   | $       | 0         |   |    | $      | 18,806,650 |    |   | $      | 0      |   |   | $ | 18,806,650 |   |
| U.S. Government securities                      |   |    | 1,003,233 |   |    |   | 4,093,459  |    |   |   | 0      |   |   |   | 5,096,692 |   |
| Preferred stock                                 |   |    | 71,488    |   |    |   | 0          |    |   |   | 0      |   |   |   | 71,488 |   |
|   Total                               |   | $       | 1,074,721 |   |    | $      | 22,900,109 |    |   | $      | 0      |   |   | $ | 23,974,830 |   |
|                                            |   |    |      |   |    |   |       |    |   |   |   |   |   |   |   |   |
| December 31, 2008                               |   |    |      |   |    |   |       |    |   |   |   |   |   |   |   |   |
| Assets:                                         |   |    |      |   |    |   |       |    |   |   |   |   |   |   |   |   |
| U.S. Government sponsored enterprise securities |   | $       | 0         |   |    | $      | 8,446,756  |    |   | $      | 0      |   |   | $ | 8,446,756 |   |
| U.S. Government securities                      |   |    | 4,200,313 |   |    |   | 0          |    |   |   | 0      |   |   |   | 4,200,313 |   |
| States and political subdivisions               |   |    | 0         |   |    |   | 1,162,888  |    |   |   | 0      |   |   |   | 1,162,888 |   |
| Mortgage-backed securities                      |   |    | 0         |   |    |   | 15,600,923 |    |   |   | 0      |   |   |   | 15,600,923 |   |
| Preferred stock                                 |   |    | 14,404    |   |    |   | 24,140     |    |   |   | 0      |   |   |   | 38,544 |   |
|   Total                               |   | $       | 4,214,717 |   |    | $      | 25,234,707 |    |   | $      | 0      |   |   | $ | 29,449,424 |   |

| December 31, 2009                        |   | Level 1 |   |   | Level 2 |   |      | Level 3 |   |   | Total  |   |
|------------------------------------------|--------|---------|--------|--------|---------|--------|-----------|---------|--------|--------|--------|--------|
| Assets:                                  |   |    |   |   |    |   |      |    |   |   |   |   |
| Loans held-for-sale                      |   | $       | 0      |   |    | $      | 321,983   |    |   | $      | 0      |   |   | $ | 321,983 |   |
| Residential mortgage servicing rights    |   |    | 0      |   |    |   | 1,011,360 |    |   |   | 0      |   |   |   | 1,011,360 |   |
| Impaired loans, net of related allowance |   |    | 0      |   |    |   | 2,186,171 |    |   |   | 0      |   |   |   | 2,186,171 |   |
| Other real estate owned                  |   |    | 0      |   |    |   | 743,000   |    |   |   | 0      |   |   |   | 743,000 |   |
|    Total                  |   | $       | 0      |   |    | $      | 4,262,514 |    |   | $      | 0      |   |   | $ | 4,262,514 |   |
|                                     |   |    |   |   |    |   |      |    |   |   |   |   |   |   |   |   |
| December 31, 2008                        |   |    |   |   |    |   |      |    |   |   |   |   |   |   |   |   |
| Assets:                                  |   |    |   |   |    |   |      |    |   |   |   |   |   |   |   |   |
| Loans held-for-sale                      |   | $       | 0      |   |    | $      | 1,181,844 |    |   | $      | 0      |   |   | $ | 1,181,844 |   |
| Residential mortgage servicing rights    |   |    | 0      |   |    |   | 956,891   |    |   |   | 0      |   |   |   | 956,891 |   |
| Impaired loans, net of related allowance |   |    | 0      |   |    |   | 1,097,426 |    |   |   | 0      |   |   |   | 1,097,426 |   |
| Other real estate owned                  |   |    | 0      |   |    |   | 185,000   |    |   |   | 0      |   |   |   | 185,000 |   |
|    Total                  |   | $       | 0      |   |    | $      | 3,421,161 |    |   | $      | 0      |   |   | $ | 3,421,161 |   |

|                                             |   | December 31, 2009 |    |   | December 31, 2008      |   |
|--------------------------------------------------|--------|-------------------|---------|--------|------------------------|--------|
|                                             |   | Carrying          |    |   | Fair                   |   |   | Carrying |   |   | Fair |   |
|                                             |   | Amount            |    |   | Value                  |   |   | Amount |   |   | Value |   |
|                                             |   |              |    |   | (Dollars in Thousands) |   |   |   |   |
| Financial assets:                                |   |              |    |   |                   |   |   |   |   |   |   |   |
| Cash and cash equivalents                        |   | $                 | 9,603   |   |                   | $      | 9,603 |   |   | $ | 11,270 |   |   | $ | 11,270 |   |
| Securities held-to-maturity                      |   |              | 44,766  |   |                   |   | 45,543 |   |   |   | 37,288 |   |   |   | 38,212 |   |
| Securities available-for-sale                    |   |              | 23,975  |   |                   |   | 23,975 |   |   |   | 29,449 |   |   |   | 29,449 |   |
| Restricted equity securities                     |   |              | 3,907   |   |                   |   | 3,907 |   |   |   | 3,907 |   |   |   | 3,907 |   |
| Loans and loans held-for-sale, net               |   |              | 378,656 |   |                   |   | 388,199 |   |   |   | 362,460 |   |   |   | 368,043 |   |
| Mortgage servicing rights                        |   |              | 933     |   |                   |   | 1,011 |   |   |   | 960 |   |   |   | 957 |   |
| Accrued interest receivable                      |   |              | 1,895   |   |                   |   | 1,895 |   |   |   | 2,045 |   |   |   | 2,045 |   |
|                                             |   |              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                           |   |              |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                         |   |              | 418,786 |   |                   |   | 420,933 |   |   |   | 402,241 |   |   |   | 405,236 |   |
| Federal funds purchased and other borrowed funds |   |              | 13,411  |   |                   |   | 13,549 |   |   |   | 12,572 |   |   |   | 12,574 |   |
| Repurchase agreements                            |   |              | 19,042  |   |                   |   | 19,042 |   |   |   | 19,086 |   |   |   | 19,086 |   |
| Capital lease obligations                        |   |              | 877     |   |                   |   | 877 |   |   |   | 915 |   |   |   | 915 |   |
| Subordinated debentures                          |   |              | 12,887  |   |                   |   | 11,370 |   |   |   | 12,887 |   |   |   | 8,407 |   |
| Accrued interest payable                         |   |              | 234     |   |                   |   | 234 |   |   |   | 313 |   |   |   | 313 |   |

----

| Community Bancorp. (Parent Company Only)                                                         |   |
|--------------------------------------------------------------------------------------------------|--------|
| Condensed Balance Sheets                                                                         |   |
| December 31, 2009 and 2008                                                                       |   |
|                                                                                             |   |   |   |   |   |   |
|                                                                                             |   | 2009 |   |   | 2008 |   |
| Assets                                                                                           |   |   |   |   |   |   |
|   Cash                                                                                 |   | $ | 125,967 |   |   | $ | 217,055 |   |
|   Investment in subsidiary - Community National Bank                                   |   |   | 49,196,444 |   |   |   | 47,620,153 |   |
|   Investment in Capital Trust                                                          |   |   | 387,000 |   |   |   | 387,000 |   |
|   Other assets                                                                         |   |   | 442,724 |   |   |   | 462,489 |   |
|         Total assets                                     |   | $ | 50,152,135 |   |   | $ | 48,686,697 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders' Equity                                                             |   |   |   |   |   |   |   |   |
|  Liabilities                                                                                |   |   |   |   |   |   |   |   |
|   Junior subordinated debentures                                                       |   | $ | 12,887,000 |   |   | $ | 12,887,000 |   |
|   Dividends payable                                                                    |   |   | 375,297 |   |   |   | 526,805 |   |
|         Total liabilities                                |   |   | 13,262,297 |   |   |   | 13,413,805 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|  Shareholders' Equity                                                                       |   |   |   |   |   |   |   |   |
|   Preferred stock, 1,000,000 shares authorized, 25 shares issued and                   |   |   |   |   |   |   |   |   |
|     outstanding at December 31, 2009 and 2008 ($100,000 liquidation value)   |   |   | 2,500,000 |   |   |   | 2,500,000 |   |
|   Common stock, $2.50 par value; 10,000,000 shares authorized at December 31,          |   |   |   |   |   |   |   |   |
|     2009 and 2008, and 4,759,913 and 4,679,206 shares issued at December 31, |   |   |   |   |   |   |   |   |
|     2009 and 2008, respectively (including 21,636 and 22,105 shares issued   |   |   |   |   |   |   |   |   |
|     February 1, 2010 and 2009, respectively)                                 |   |   | 11,899,783 |   |   |   | 11,698,015 |   |
|   Additional paid-in capital                                                           |   |   | 26,192,359 |   |   |   | 25,757,516 |   |
|   Accumulated deficit                                                                  |   |   | (1,192,409 | ) |   |   | (2,592,721 | ) |
|   Accumulated other comprehensive income                                               |   |   | 112,882 |   |   |   | 532,859 |   |
|   Less: treasury stock, at cost; 210,101 shares at December 31, 2009 and 2008          |   |   | (2,622,777 | ) |   |   | (2,622,777 | ) |
|         Total shareholders' equity                       |   |   | 36,889,838 |   |   |   | 35,272,892 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
|         Total liabilities and shareholders' equity       |   | $ | 50,152,135 |   |   | $ | 48,686,697 |   |

----

| Community Bancorp. (Parent Company Only)                       |   |
|----------------------------------------------------------------|--------|
| Condensed Statements of Income                                 |   |
| Years Ended December 31, 2009 and 2008                         |   |
|                                                           |   |   |   |   |   |   |
|                                                           |   | 2009 |   |   | 2008 |   |
| Income                                                         |   |   |   |   |   |   |
|    Bank subsidiary distributions                |   | $ | 2,611,000 |   |   | $ | 2,352,000 |   |
|    Dividends on Capital Trust                   |   |   | 29,257 |   |   |   | 29,257 |   |
|       Total income               |   |   | 2,640,257 |   |   |   | 2,381,257 |   |
|                                                           |   |   |   |   |   |   |   |   |
| Expense                                                        |   |   |   |   |   |   |   |   |
|    Interest on junior subordinated debentures   |   |   | 974,257 |   |   |   | 976,340 |   |
|    Administrative and other                     |   |   | 357,130 |   |   |   | 413,178 |   |
|        Total expense        |   |   | 1,331,387 |   |   |   | 1,389,518 |   |
|                                                           |   |   |   |   |   |   |   |   |
| Income before applicable income tax benefit and equity in      |   |   |   |   |   |   |   |   |
|   undistributed net income of subsidiary             |   |   | 1,308,870 |   |   |   | 991,739 |   |
| Applicable income tax benefit                                  |   |   | 442,724 |   |   |   | 462,489 |   |
|                                                           |   |   |   |   |   |   |   |   |
| Income before equity in undistributed net income of subsidiary |   |   | 1,751,594 |   |   |   | 1,454,228 |   |
| Equity in undistributed net income of subsidiary               |   |   | 1,996,268 |   |   |   | 747,118 |   |
|                                                           |   |   |   |   |   |   |   |   |
|         Net income     |   | $ | 3,747,862 |   |   | $ | 2,201,346 |   |

----

| Community Bancorp. (Parent Company Only)                                                                        |   |
|-----------------------------------------------------------------------------------------------------------------|--------|
| Condensed Statements of Cash Flows                                                                              |   |
| Years Ended December 31, 2009 and 2008                                                                          |   |
|                                                                                                            |   |   |   |   |   |   |
|                                                                                                            |   | 2009 |   |   | 2008 |   |
| Cash Flows from Operating Activities                                                                            |   |   |   |   |   |   |
|   Net income                                                                                          |   | $ | 3,747,862 |   |   | $ | 2,201,346 |   |
|   Adjustments to reconcile net income to net cash provided                                            |   |   |   |   |   |   |   |   |
|     by operating activities                                                                 |   |   |   |   |   |   |   |   |
|       Equity in undistributed net income of subsidiary                            |   |   | (1,996,268 | ) |   |   | (747,118 | ) |
|       Decrease in prepaid assets                                                  |   |   | 0 |   |   |   | 120,132 |   |
|       Decrease (increase) in income taxes receivable                              |   |   | 19,765 |   |   |   | (280,000 | ) |
|          Net cash provided by operating activities                 |   |   | 1,771,359 |   |   |   | 1,294,360 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                                                            |   |   |   |   |   |   |   |   |
|       Decrease in other assets                                                    |   |   | 0 |   |   |   | 452,060 |   |
|          Net cash provided by operating activities                 |   |   | 0 |   |   |   | 452,060 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                                                            |   |   |   |   |   |   |   |   |
|       Dividends paid on preferred stock                                           |   |   | (187,500 | ) |   |   | (187,500 | ) |
|       Dividends paid on common stock                                              |   |   | (1,674,947 | ) |   |   | (2,081,748 | ) |
|          Net cash used in financing activities                     |   |   | (1,862,447 | ) |   |   | (2,269,248 | ) |
|          Net decrease in cash                                      |   |   | (91,088 | ) |   |   | (522,828 | ) |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Cash                                                                                                            |   |   |   |   |   |   |   |   |
|       Beginning                                                                   |   |   | 217,055 |   |   |   | 739,883 |   |
|       Ending                                                                      |   | $ | 125,967 |   |   | $ | 217,055 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Cash Received for Income Taxes                                                                                  |   | $ | 462,489 |   |   | $ | 182,488 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Cash Paid for Interest                                                                                          |   | $ | 974,257 |   |   | $ | 976,340 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Supplemental Schedule of Noncash Investing and Financing Activities                                             |   |   |   |   |   |   |   |   |
|       Change in unrealized gain on securities available-for-sale                  |   | $ | (636,329 | ) |   | $ | 638,862 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Dividends paid:                                                                                                 |   |   |   |   |   |   |   |   |
|       Dividends declared                                                          |   | $ | 2,160,050 |   |   | $ | 3,008,885 |   |
|       Decrease (increase) in dividends payable attributable to dividends declared |   |   | 151,508 |   |   |   | (1,216 | ) |
|       Dividends reinvested                                                        |   |   | (636,611 | ) |   |   | (925,921 | ) |
|                                                                                                            |   | $ | 1,674,947 |   |   | $ | 2,081,748 |   |

----

|                      |   | Quarters in 2009 ended |      |
|---------------------------|--------|------------------------|-----------|
|                      |   | March 31,              |      |   | June 30, |   |   | Sept. 30, |   |   | Dec. 31, |   |
|                      |   |                   |      |   |   |   |   |   |   |   |   |   |
| Interest income           |   | $                      | 6,093,582 |   |   | $ | 5,960,287 |   |   | $ | 5,986,293 |   |   | $ | 6,079,110 |   |
| Interest expense          |   |                   | 2,131,619 |   |   |   | 1,951,053 |   |   |   | 1,887,921 |   |   |   | 1,713,887 |   |
| Provision for loan losses |   |                   | 125,001   |   |   |   | 125,001 |   |   |   | 175,001 |   |   |   | 200,001 |   |
| Non-interest income       |   |                   | 1,151,556 |   |   |   | 1,852,451 |   |   |   | 1,381,757 |   |   |   | 1,270,669 |   |
| Non-interest expense      |   |                   | 4,500,111 |   |   |   | 4,755,111 |   |   |   | 4,357,764 |   |   |   | 4,420,692 |   |
| Net income                |   |                   | 683,253   |   |   |   | 1,007,565 |   |   |   | 1,013,222 |   |   |   | 1,043,822 |   |
| Earnings per common share |   |                   | 0.14      |   |   |   | 0.21 |   |   |   | 0.21 |   |   |   | 0.23 |   |
|                      |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   | Quarters in 2008 ended |      |
|                      |   | March 31,              |      |   | June 30, |   |   | Sept. 30, |   |   | Dec. 31, |   |
|                      |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income           |   | $                      | 7,136,088 |   |   | $ | 6,700,723 |   |   | $ | 6,742,377 |   |   | $ | 6,508,462 |   |
| Interest expense          |   |                   | 3,212,513 |   |   |   | 2,607,213 |   |   |   | 2,380,223 |   |   |   | 2,303,067 |   |
| Provision for loan losses |   |                   | 62,499    |   |   |   | 62,499 |   |   |   | 112,499 |   |   |   | 261,666 |   |
| Non-interest income       |   |                   | 895,774   |   |   |   | 1,217,005 |   |   |   | 1,083,974 |   |   |   | 839,572 |   |
| Non-interest expense      |   |                   | 4,785,170 |   |   |   | 4,301,975 |   |   |   | 4,851,610 |   |   |   | 4,306,317 |   |
| Net income                |   |                   | 217,048   |   |   |   | 873,561 |   |   |   | 314,613 |   |   |   | 796,124 |   |
| Earnings per common share |   |                   | 0.05      |   |   |   | 0.18 |   |   |   | 0.06 |   |   |   | 0.17 |   |

|                                                 |   | 2009   |    |   | 2008   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Income                                               |   |   |    |   |   |   |
|    Commissions from insurance company |   | $      | 119,701 |   |   | $      | 444,583 |   |
|    Loan documentation fees            |   |   | 328,750 |   |   |   | 149,431 |   |
|    Loan servicing fees                |   |   | 421,623 |   |   |   | 409,244 |   |
|                                                 |   |   |    |   |   |   |   |   |
| Expenses                                             |   |   |    |   |   |   |   |   |
|    Marketing                          |   | $      | 314,772 |   |   | $      | 414,902 |   |
|    State deposit tax                  |   |   | 414,142 |   |   |   | 465,996 |   |
|    Loss on limited partnerships       |   |   | 983,904 |   |   |   | 371,084 |   |
|    ATM Fees                           |   |   | 383,536 |   |   |   | 205,956 |   |

----

|                                   | December 31, |
|----------------------------------------|--------------|
|                                   | 2009         | 2008 |
|                                   |         |   |
| Return on Average Assets               | 0.76%        | 0.45% |
| Return on Average Equity               | 10.44%       | 6.30% |
| Dividend Payout Ratio (1)              | 60.76%       | 147.83% |
| Average Equity to Average Assets Ratio | 7.27%        | 7.10% |

|                                |   | For years ended        |   |
|-------------------------------------|--------|------------------------|--------|
|                                |   | December 31,           |   |
|                                |   | 2009                   |   |   | 2008 |   |
|                                |   | (Dollars in Thousands) |   |
|                                |   |                   |   |   |   |   |
| Net interest income as presented    |   | $                      | 16,435 |   |   | $ | 16,584 |   |
| Effect of tax-exempt income         |   |                   | 705    |   |   |   | 884 |   |
| Net interest income, tax equivalent |   | $                      | 17,140 |   |   | $ | 17,468 |   |

| Table A                                                                                                                    |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|
| Average Balances and Interest Rates                                                                                        |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |   |   |   | 2009 |   |   |   |   |   |   |   |   | 2008 |   |   |   |   |
|                                                                                                                       |   | Average |   |   | Income/ |   |   | Rate/ |   |   | Average |   |   | Income/ |   |   | Rate/ |   |
|                                                                                                                       |   | Balance |   |   | Expense |   |   | Yield |   |   | Balance |   |   | Expense |   |   | Yield |   |
| Interest-Earning Assets                                                                                                    |   | (Dollars in Thousands) |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Loans (1)                                                                                                            |   | $ | 370,527 |   |   | $ | 21,908 |   |   |   | 5.91 | % |   | $ | 358,127 |   |   | $ | 23,633 |   |   |   | 6.60 | % |
|  Taxable investment securities                                                                                        |   |   | 25,344 |   |   |   | 779 |   |   |   | 3.07 | % |   |   | 31,875 |   |   |   | 1,464 |   |   |   | 4.59 | % |
|  Tax exempt investment securities                                                                                     |   |   | 46,299 |   |   |   | 2,072 |   |   |   | 4.48 | % |   |   | 45,077 |   |   |   | 2,624 |   |   |   | 5.82 | % |
|  Federal funds sold and overnight deposits                                                                            |   |   | 170 |   |   |   | 0 |   |   |   | 0.00 | % |   |   | 1,734 |   |   |   | 64 |   |   |   | 3.69 | % |
|  FHLBB stock (2)                                                                                                      |   |   | 3,319 |   |   |   | 0 |   |   |   | 0.00 | % |   |   | 3,319 |   |   |   | 122 |   |   |   | 3.68 | % |
|  Other investments                                                                                                    |   |   | 975 |   |   |   | 65 |   |   |   | 6.67 | % |   |   | 843 |   |   |   | 64 |   |   |   | 7.59 | % |
|      Total                                                                                        |   | $ | 446,634 |   |   | $ | 24,824 |   |   |   | 5.56 | % |   | $ | 440,975 |   |   | $ | 27,971 |   |   |   | 6.34 | % |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NOW & money market funds                                                                                         |   | $ | 126,369 |   |   | $ | 1,293 |   |   |   | 1.02 | % |   | $ | 123,203 |   |   | $ | 2,069 |   |   |   | 1.68 | % |
|  Savings deposits                                                                                                     |   |   | 53,218 |   |   |   | 163 |   |   |   | 0.31 | % |   |   | 50,087 |   |   |   | 184 |   |   |   | 0.37 | % |
|  Time deposits                                                                                                        |   |   | 169,267 |   |   |   | 4,692 |   |   |   | 2.77 | % |   |   | 176,916 |   |   |   | 6,576 |   |   |   | 3.72 | % |
|  Federal funds purchased and other borrowed funds                                                                     |   |   | 21,189 |   |   |   | 235 |   |   |   | 1.11 | % |   |   | 14,662 |   |   |   | 360 |   |   |   | 2.46 | % |
|  Repurchase agreements                                                                                                |   |   | 18,401 |   |   |   | 255 |   |   |   | 1.39 | % |   |   | 16,319 |   |   |   | 263 |   |   |   | 1.61 | % |
|  Capital lease obligations                                                                                            |   |   | 894 |   |   |   | 72 |   |   |   | 8.05 | % |   |   | 913 |   |   |   | 75 |   |   |   | 8.21 | % |
|  Junior subordinated debentures                                                                                       |   |   | 12,887 |   |   |   | 974 |   |   |   | 7.56 | % |   |   | 12,887 |   |   |   | 976 |   |   |   | 7.57 | % |
|      Total                                                                                        |   | $ | 402,225 |   |   | $ | 7,684 |   |   |   | 1.91 | % |   | $ | 394,987 |   |   | $ | 10,503 |   |   |   | 2.66 | % |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                        |   |   |   |   |   | $ | 17,140 |   |   |   |   |   |   |   |   |   |   | $ | 17,468 |   |   |   |   |   |
| Net interest spread (3)                                                                                                    |   |   |   |   |   |   |   |   |   |   | 3.65 | % |   |   |   |   |   |   |   |   |   |   | 3.68 | % |
| Interest margin (4)                                                                                                        |   |   |   |   |   |   |   |   |   |   | 3.84 | % |   |   |   |   |   |   |   |   |   |   | 3.96 | % |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Included in gross loans are non-accrual loans with an average balance of $3,193,691 and $1,186,511 for the twelve |   |
| months ended 2009 and 2008, respectively. Loans are stated before deduction of unearned discount and allowance        |   |
| for loan losses.                                                                                                           |   |
| (2) Dividends on FHLBB stock ceased during the fourth quarter of 2008 and are suspended until further notice.         |   |
| (3) Net interest spread is the difference between the yield on earning assets and the rate paid on interest-bearing   |   |
| liabilities.                                                                                                               |   |
| (4) Interest margin is net interest income divided by average earning assets.                                         |   |

| Table B                                                      |   |
|--------------------------------------------------------------|--------|
| Changes in Interest Income and Interest Expense              |   |
|                                                         |   |   |   |
|                                                         |   | 2009 vs. 2008 |   |
|                                                         |   | Variance |   |   | Variance |   |   |   |   |
| Rate / Volume                                                |   | Due to |   |   | Due to |   |   | Total |   |
|                                                         |   | Rate(1) |   |   | Volume(1) |   |   | Variance |   |
|                                                         |   | (Dollars in Thousands) |   |
| Interest-Earning Assets                                      |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |
|  Loans                                                  |   | $ | (2,544 | ) |   | $ | 818 |   |   | $ | (1,726 | ) |
|  Taxable investment securities                          |   |   | (484 | ) |   |   | (200 | ) |   |   | (684 | ) |
|  Tax exempt investment securities                       |   |   | (622 | ) |   |   | 71 |   |   |   | (551 | ) |
|  Federal funds sold and overnight deposits              |   |   | (60 | ) |   |   | (4 | ) |   |   | (64 | ) |
|  FHLBB stock                                            |   |   | (122 | ) |   |   | 0 |   |   |   | (122 | ) |
|  Other investments                                      |   |   | (10 | ) |   |   | 10 |   |   |   | 0 |   |
|      Total                          |   | $ | (3,842 | ) |   | $ | 695 |   |   | $ | (3,147 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|  NOW & money market funds                           |   | $ | (829 | ) |   | $ | 53 |   |   | $ | (776 | ) |
|  Savings deposits                                       |   |   | (34 | ) |   |   | 12 |   |   |   | (22 | ) |
|  Time deposits                                          |   |   | (1,672 | ) |   |   | (212 | ) |   |   | (1,884 | ) |
|  Federal funds purchased and other borrowed funds       |   |   | (284 | ) |   |   | 160 |   |   |   | (124 | ) |
|  Repurchase agreements                                  |   |   | (41 | ) |   |   | 33 |   |   |   | (8 | ) |
|  Capital lease obligations                              |   |   | (2 | ) |   |   | (1 | ) |   |   | (3 | ) |
|  Junior subordinated debentures                         |   |   | (2 | ) |   |   | 0 |   |   |   | (2 | ) |
|      Total                          |   | $ | (2,864 | ) |   | $ | 45 |   |   | $ | (2,819 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|      Changes in Net Interest Income |   | $ | (978 | ) |   | $ | 650 |   |   | $ | (328 | ) |

|  (1)  Items which have shown a year-to-year increase in volume have variances allocated as follows:                |
|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                              | Variance due to rate = Change in rate x new volume |
|                                                                                                                              | Variance due to volume = Change in volume x old rate |
|       Items which have shown a year-to-year decrease in volume have variances allocated as follows: |
|                                                                                                                              | Variance due to rate = Change in rate x old volume |
|                                                                                                                              | Variance due to volume = Change in volume x new rate |

| Distribution of Assets, Liabilities and Shareholder's Equity                                   |   |
|------------------------------------------------------------------------------------------------|--------|
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   | Year ended December 31, |   |
|                                                                                           |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Average Assets                                                                                 |   | Balance |   |   | % |   |   | Balance |   |   | % |   |   | Balance |   |   | % |   |
|                                                                                           |   | (Dollars in Thousands) |   |
| Cash and due from banks                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Non-interest bearing                                                                     |   | $ | 8,672 |   |   |   | 1.76 | % |   | $ | 9,504 |   |   |   | 1.93 | % |   | $ | 7,004 |   |   |   | 2.01 | % |
| Federal funds sold and overnight deposits                                                      |   |   | 170 |   |   |   | 0.03 | % |   |   | 1,734 |   |   |   | 0.35 | % |   |   | 10,203 |   |   |   | 2.93 | % |
| Taxable investment securities(1)                                                               |   |   | 25,344 |   |   |   | 5.13 | % |   |   | 31,875 |   |   |   | 6.49 | % |   |   | 22,567 |   |   |   | 6.49 | % |
| Tax-exempt investment securities(1)                                                            |   |   | 46,299 |   |   |   | 9.38 | % |   |   | 45,077 |   |   |   | 9.17 | % |   |   | 25,384 |   |   |   | 7.30 | % |
| Other securities(1)                                                                            |   |   | 3,907 |   |   |   | 0.79 | % |   |   | 3,775 |   |   |   | 0.77 | % |   |   | 2,391 |   |   |   | 0.69 | % |
|   Total investment securities                                                        |   |   | 75,550 |   |   |   | 15.30 | % |   |   | 80,727 |   |   |   | 16.43 | % |   |   | 50,342 |   |   |   | 14.48 | % |
| Gross loans                                                                                    |   |   | 370,527 |   |   |   | 75.03 | % |   |   | 358,127 |   |   |   | 72.86 | % |   |   | 263,597 |   |   |   | 75.78 | % |
| Reserve for loan losses and accrued fees                                                       |   |   | (3,624 | ) |   |   | -0.73 | % |   |   | (3,399 | ) |   |   | -0.69 | % |   |   | (2,852 | ) |   |   | -0.82 | % |
| Premises and equipment                                                                         |   |   | 14,286 |   |   |   | 2.89 | % |   |   | 15,570 |   |   |   | 3.17 | % |   |   | 12,111 |   |   |   | 3.48 | % |
| Other real estate owned                                                                        |   |   | 435 |   |   |   | 0.09 | % |   |   | 63 |   |   |   | 0.01 | % |   |   | 0 |   |   |   | 0.00 | % |
| Investment in Capital trust                                                                    |   |   | 387 |   |   |   | 0.08 | % |   |   | 387 |   |   |   | 0.08 | % |   |   | 65 |   |   |   | 0.02 | % |
| Bank owned life insurance                                                                      |   |   | 3,748 |   |   |   | 0.76 | % |   |   | 3,622 |   |   |   | 0.74 | % |   |   | 0 |   |   |   | 0.00 | % |
| Core deposit intangible                                                                        |   |   | 2,980 |   |   |   | 0.60 | % |   |   | 3,710 |   |   |   | 0.76 | % |   |   | 0 |   |   |   | 0.00 | % |
| Goodwill                                                                                       |   |   | 11,574 |   |   |   | 2.34 | % |   |   | 10,785 |   |   |   | 2.19 | % |   |   | 0 |   |   |   | 0.00 | % |
| Other assets                                                                                   |   |   | 9,135 |   |   |   | 1.85 | % |   |   | 10,665 |   |   |   | 2.17 | % |   |   | 7,364 |   |   |   | 2.12 | % |
|           Total average assets               |   | $ | 493,840 |   |   |   | 100 | % |   | $ | 491,495 |   |   |   | 100 | % |   | $ | 347,834 |   |   |   | 100 | % |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Liabilities                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                                                |   | $ | 51,989 |   |   |   | 10.53 | % |   | $ | 55,053 |   |   |   | 11.20 | % |   | $ | 47,614 |   |   |   | 13.69 | % |
| Now and money market accounts                                                                  |   |   | 126,369 |   |   |   | 25.59 | % |   |   | 123,203 |   |   |   | 25.07 | % |   |   | 77,431 |   |   |   | 22.26 | % |
| Savings accounts                                                                               |   |   | 53,218 |   |   |   | 10.77 | % |   |   | 50,087 |   |   |   | 10.19 | % |   |   | 39,005 |   |   |   | 11.21 | % |
| Time deposits                                                                                  |   |   | 169,267 |   |   |   | 34.28 | % |   |   | 176,916 |   |   |   | 36.00 | % |   |   | 132,393 |   |   |   | 38.06 | % |
|           Total average deposits             |   |   | 400,843 |   |   |   | 81.17 | % |   |   | 405,259 |   |   |   | 82.46 | % |   |   | 296,443 |   |   |   | 85.22 | % |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other borrowed funds                                                                           |   |   | 22,083 |   |   |   | 4.47 | % |   |   | 14,662 |   |   |   | 2.98 | % |   |   | 1,685 |   |   |   | 0.49 | % |
| Repurchase agreements                                                                          |   |   | 18,401 |   |   |   | 3.73 | % |   |   | 16,319 |   |   |   | 3.32 | % |   |   | 13,825 |   |   |   | 3.97 | % |
| Junior subordinated debentures                                                                 |   |   | 12,887 |   |   |   | 2.61 | % |   |   | 12,887 |   |   |   | 2.62 | % |   |   | 2,154 |   |   |   | 0.62 | % |
| Other liabilities                                                                              |   |   | 3,721 |   |   |   | 0.75 | % |   |   | 7,452 |   |   |   | 1.52 | % |   |   | 2,255 |   |   |   | 0.65 | % |
|           Total average liabilities          |   |   | 457,935 |   |   |   | 92.73 | % |   |   | 456,579 |   |   |   | 92.90 | % |   |   | 316,362 |   |   |   | 90.95 | % |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Shareholders' Equity                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock                                                                                |   |   | 2,500 |   |   |   | 0.50 | % |   |   | 2,500 |   |   |   | 0.51 | % |   |   | 109 |   |   |   | 0.03 | % |
| Common stock                                                                                   |   |   | 11,787 |   |   |   | 2.39 | % |   |   | 11,601 |   |   |   | 2.36 | % |   |   | 11,222 |   |   |   | 3.23 | % |
| Additional paid-in capital                                                                     |   |   | 25,892 |   |   |   | 5.24 | % |   |   | 25,488 |   |   |   | 5.19 | % |   |   | 23,659 |   |   |   | 6.80 | % |
| Accumulated deficit                                                                            |   |   | (1,896 | ) |   |   | -0.38 | % |   |   | (2,060 | ) |   |   | -0.42 | % |   |   | (741 | ) |   |   | -0.21 | % |
| Less: Treasury stock                                                                           |   |   | (2,623 | ) |   |   | -0.53 | % |   |   | (2,623 | ) |   |   | -0.54 | % |   |   | (2,618 | ) |   |   | -0.75 | % |
| Accumulated other comprehensive                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   income (loss)(1)                                                                   |   |   | 245 |   |   |   | 0.05 | % |   |   | 10 |   |   |   | 0.00 | % |   |   | (159 | ) |   |   | -0.05 | % |
|           Total average shareholders' equity |   |   | 35,905 |   |   |   | 7.27 | % |   |   | 34,916 |   |   |   | 7.10 | % |   |   | 31,472 |   |   |   | 9.05 | % |
|           Total average liabilities and      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             shareholders' equity   |   | $ | 493,840 |   |   |   | 100 | % |   | $ | 491,495 |   |   |   | 100 | % |   | $ | 347,834 |   |   |   | 100 | % |

| (1) | In accordance with accounting for investments, securities classified as held to maturity are carried at book value and securities classified as available for sale are carried at fair value with the unrealized gain (loss), net of applicable income taxes, reported as a net amount in accumulated other comprehensive income (loss).  The Company does not carry, nor does it intend to carry, securities classified as trading. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Maturity Date                 |   | (Dollars in Thousands) |   |
|-------------------------------|--------|------------------------|--------|
|                          |   |                   |   |
| 3 Months or Less              |   | $                      | 16,103 |   |
| Over 3 through 6 Months       |   |                   | 15,673 |   |
| Over 6 through 12 Months      |   |                   | 8,646  |   |
| Over 12 Months                |   |                   | 22,840 |   |
|     Total |   | $                      | 63,262 |   |

| One Year Horizon                                      | Two Year Horizon      |
|-------------------------------------------------------|-----------------------|
| Rate Change        | Percent Change in NII | Rate Change      | Percent Change in NII |
|                                                  |                  |   |   |
| Down 100 basis points                                 | -0.79%                | Down 100 basis points | -4.57% |
| Up 200 basis points                                   | -0.24%                | Up 200 basis points |  2.58% |

| Composition of Loan Portfolio(1)                                                                                               |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                                                                           |   | Total |   |   | % of |   |   | Total |   |   | % of |   |   | Total |   |   | % of |   |   | Total |   |   | % of |   |   | Total |   |   | % of |   |
|                                                                                                                           |   | Loans |   |   | Total |   |   | Loans |   |   | Total |   |   | Loans |   |   | Total |   |   | Loans |   |   | Total |   |   | Loans |   |   | Total |   |
|                                                                                                                           |   | (Dollars in Thousands) |   |
| Real Estate Loans                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Construction & Land                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Development                                                                                            |   | $ | 16,869 |   |   |   | 4.41 | % |   | $ | 15,204 |   |   |   | 4.15 | % |   | $ | 12,896 |   |   |   | 3.62 | % |   | $ | 11,889 |   |   |   | 4.42 | % |   | $ | 13,931 |   |   |   | 5.52 | % |
|   Farm Land                                                                                                          |   |   | 10,039 |   |   |   | 2.63 | % |   |   | 8,534 |   |   |   | 2.33 | % |   |   | 9,646 |   |   |   | 2.70 | % |   |   | 3,217 |   |   |   | 1.19 | % |   |   | 2,870 |   |   |   | 1.14 | % |
|   1-4 Family Residential                                                                                             |   |   | 216,458 |   |   |   | 56.62 | % |   |   | 213,279 |   |   |   | 58.28 | % |   |   | 195,845 |   |   |   | 54.92 | % |   |   | 157,008 |   |   |   | 58.30 | % |   |   | 144,777 |   |   |   | 57.40 | % |
|   Commercial                                                                                                         |   |   | 97,620 |   |   |   | 25.54 | % |   |   | 88,547 |   |   |   | 24.19 | % |   |   | 85,576 |   |   |   | 24.00 | % |   |   | 54,236 |   |   |   | 20.14 | % |   |   | 48,505 |   |   |   | 19.23 | % |
| Loans to Finance                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Agricultural Production                                                                                            |   |   | 952 |   |   |   | 0.25 | % |   |   | 884 |   |   |   | 0.24 | % |   |   | 2,431 |   |   |   | 0.68 | % |   |   | 224 |   |   |   | 0.08 | % |   |   | 214 |   |   |   | 0.09 | % |
| Commercial & Industrial                                                                                                    |   |   | 26,496 |   |   |   | 6.93 | % |   |   | 23,307 |   |   |   | 6.37 | % |   |   | 31,258 |   |   |   | 8.77 | % |   |   | 21,993 |   |   |   | 8.17 | % |   |   | 20,049 |   |   |   | 7.95 | % |
| Consumer Loans                                                                                                                 |   |   | 13,635 |   |   |   | 3.57 | % |   |   | 15,922 |   |   |   | 4.35 | % |   |   | 18,461 |   |   |   | 5.18 | % |   |   | 20,588 |   |   |   | 7.65 | % |   |   | 21,296 |   |   |   | 8.44 | % |
| All Other Loans                                                                                                                |   |   | 190 |   |   |   | 0.05 | % |   |   | 317 |   |   |   | 0.09 | % |   |   | 459 |   |   |   | 0.13 | % |   |   | 141 |   |   |   | 0.05 | % |   |   | 567 |   |   |   | 0.23 | % |
|           Gross Loans                                                        |   |   | 382,259 |   |   |   | 100 | % |   |   | 365,994 |   |   |   | 100 | % |   |   | 356,572 |   |   |   | 100 | % |   |   | 269,296 |   |   |   | 100 | % |   |   | 252,209 |   |   |   | 100 | % |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Allowance for Loan                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Losses                                                                                           |   |   | (3,451 | ) |   |   |   |   |   |   | (3,233 | ) |   |   |   |   |   |   | (3,026 | ) |   |   |   |   |   |   | (2,268 | ) |   |   |   |   |   |   | (2,189 | ) |   |   |   |   |
|   Deferred Loan Fees                                                                                                 |   |   | (152 | ) |   |   |   |   |   |   | (301 | ) |   |   |   |   |   |   | (443 | ) |   |   |   |   |   |   | (632 | ) |   |   |   |   |   |   | (684 | ) |   |   |   |   |
|           Net Loans                                                          |   | $ | 378,656 |   |   |   |   |   |   | $ | 362,460 |   |   |   |   |   |   | $ | 353,103 |   |   |   |   |   |   | $ | 266,396 |   |   |   |   |   |   | $ | 249,336 |   |   |   |   |   |
|                                                                                                                           |   |
| (1) Includes loans held for sale and the loan portfolio of the acquired LyndonBank at fair value for 2009, 2008 and 2007; |   |
| balances presented for 2006 and 2005 do not include LyndonBank loans.                                                          |   |

| Maturity Schedule                               |   |
|-------------------------------------------------|--------|
|                                            |   |   |   |   |   |   |
|                                            |   | Fixed Rate Loans |   |   | Variable Rate Loans |   |
|                                            |   | Within |   |   |   | 2 - 5 |   |   | After |   |   |   |   |   | Within |   |   |   | 2 - 5 |   |   | After |   |   |   |   |
|                                            |   | 1 Year |   |   | Years |   |   | 5 years |   |   | Total |   |   | 1 Year |   |   | Years |   |   | 5 years |   |   | Total |   |
|                                            |   | (Dollars in Thousands) |   |
| Real Estate                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Construction & Land Development |   | $ | 4,021 |   |   | $ | 137 |   |   | $ | 5,438 |   |   | $ | 9,596 |   |   | $ | 6,117 |   |   | $ | 506 |   |   | $ | 650 |   |   | $ | 7,273 |   |
|   Secured by Farm Land                |   |   | 73 |   |   |   | 497 |   |   |   | 2,829 |   |   |   | 3,399 |   |   |   | 3,644 |   |   |   | 2,123 |   |   |   | 873 |   |   |   | 6,640 |   |
|   Commercial Real Estate              |   |   | 5,693 |   |   |   | 3,331 |   |   |   | 10,248 |   |   |   | 19,272 |   |   |   | 25,242 |   |   |   | 49,906 |   |   |   | 3,200 |   |   |   | 78,348 |   |
| Loans to Finance Agricultural Production        |   |   | 15 |   |   |   | 79 |   |   |   | 66 |   |   |   | 160 |   |   |   | 693 |   |   |   | 99 |   |   |   | 0 |   |   |   | 792 |   |
| Commercial & Industrial Loans               |   |   | 3,029 |   |   |   | 7,026 |   |   |   | 875 |   |   |   | 10,930 |   |   |   | 11,025 |   |   |   | 4,555 |   |   |   | (14 | ) |   |   | 15,566 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                           |   | $ | 12,831 |   |   | $ | 11,070 |   |   | $ | 19,456 |   |   | $ | 43,357 |   |   | $ | 46,721 |   |   | $ | 57,189 |   |   | $ | 4,709 |   |   | $ | 108,619 |   |

| Summary of Loan Loss Experience (1)                               |   |
|-------------------------------------------------------------------|--------|
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31,                                                      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                              |   | (Dollars in Thousands) |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Outstanding End of Year                                     |   | $ | 382,259 |   |   | $ | 365,994 |   |   | $ | 356,572 |   |   | $ | 269,296 |   |   | $ | 252,209 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Loans Outstanding During Year                             |   | $ | 370,527 |   |   | $ | 358,127 |   |   | $ | 263,597 |   |   | $ | 263,901 |   |   | $ | 238,376 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Loss Reserve, Beginning of Year                              |   | $ | 3,233 |   |   | $ | 3,026 |   |   | $ | 2,268 |   |   | $ | 2,189 |   |   | $ | 2,153 |   |
| Loans Charged Off:                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Residential Real Estate                               |   |   | 110 |   |   |   | 162 |   |   |   | 0 |   |   |   | 6 |   |   |   | 5 |   |
|   Commercial Real Estate                                |   |   | 80 |   |   |   | 16 |   |   |   | 51 |   |   |   | 17 |   |   |   | 0 |   |
|   Commercial                                            |   |   | 140 |   |   |   | 109 |   |   |   | 25 |   |   |   | 13 |   |   |   | 45 |   |
|   Consumer                                              |   |   | 146 |   |   |   | 115 |   |   |   | 172 |   |   |   | 91 |   |   |   | 130 |   |
|           Total |   |   | 476 |   |   |   | 402 |   |   |   | 248 |   |   |   | 127 |   |   |   | 180 |   |
| Recoveries:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Residential Real Estate                               |   |   | 2 |   |   |   | 7 |   |   |   | 14 |   |   |   | 1 |   |   |   | 1 |   |
|   Commercial Real Estate                                |   |   | 18 |   |   |   | 2 |   |   |   | 12 |   |   |   | 6 |   |   |   | 0 |   |
|   Commercial                                            |   |   | 12 |   |   |   | 21 |   |   |   | 3 |   |   |   | 3 |   |   |   | 6 |   |
|   Consumer                                              |   |   | 37 |   |   |   | 80 |   |   |   | 42 |   |   |   | 58 |   |   |   | 59 |   |
|           Total |   |   | 69 |   |   |   | 110 |   |   |   | 71 |   |   |   | 68 |   |   |   | 66 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loans Charged Off                                             |   |   | 407 |   |   |   | 292 |   |   |   | 177 |   |   |   | 59 |   |   |   | 114 |   |
| Provision Charged to Income                                       |   |   | 625 |   |   |   | 499 |   |   |   | 148 |   |   |   | 138 |   |   |   | 150 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan loss of acquired bank                          |   |   | 0 |   |   |   | 0 |   |   |   | 787 |   |   |   | 0 |   |   |   | 0 |   |
| Loan Loss Reserve, End of Year                                    |   | $ | 3,451 |   |   | $ | 3,233 |   |   | $ | 3,026 |   |   | $ | 2,268 |   |   | $ | 2,189 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Losses as a Percent of Average Loans                          |   |   | 0.11 | % |   |   | 0.08 | % |   |   | 0.07 | % |   |   | 0.02 | % |   |   | 0.05 | % |
| Provision Charged to Income as a Percent                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   of Average Loans                                      |   |   | 0.17 | % |   |   | 0.14 | % |   |   | 0.06 | % |   |   | 0.05 | % |   |   | 0.06 | % |
| At End of Year:                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Loan Loss Reserve as a Percent of                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Outstanding Loans                               |   |   | 0.90 | % |   |   | 0.88 | % |   |   | 0.85 | % |   |   | 0.84 | % |   |   | 0.87 | % |

| Allocation of Allowance for Loan Losses (1)                       |   |
|-------------------------------------------------------------------|--------|
| December 31,                                                      |   | 2009 |   |   | % |   |   | 2008 |   |   | % |   |   | 2007 |   |   | % |   |   | 2006 |   |   | % |   |   | 2005 |   |   | % |   |
|                                                              |   | (Dollars in Thousands) |   |
| Domestic                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential Real Estate                                           |   | $ | 1,589 |   |   |   | 57 | % |   | $ | 1,404 |   |   |   | 58 | % |   | $ | 1,258 |   |   |   | 55 | % |   | $ | 1,055 |   |   |   | 58 | % |   | $ | 973 |   |   |   | 57 | % |
| Commercial (2)                                                    |   |   | 1,616 |   |   |   | 40 | % |   |   | 1,497 |   |   |   | 37 | % |   |   | 1,486 |   |   |   | 40 | % |   |   | 956 |   |   |   | 34 | % |   |   | 858 |   |   |   | 34 | % |
| Consumer                                                          |   |   | 182 |   |   |   | 3 | % |   |   | 255 |   |   |   | 5 | % |   |   | 248 |   |   |   | 5 | % |   |   | 204 |   |   |   | 8 | % |   |   | 229 |   |   |   | 9 | % |
| Unallocated                                                       |   |   | 64 |   |   |   | 0 | % |   |   | 77 |   |   |   | 0 | % |   |   | 34 |   |   |   | 0 | % |   |   | 53 |   |   |   | 0 | % |   |   | 129 |   |   |   | 0 | % |
|           Total |   | $ | 3,451 |   |   |   | 100 | % |   | $ | 3,233 |   |   |   | 100 | % |   | $ | 3,026 |   |   |   | 100 | % |   | $ | 2,268 |   |   |   | 100 | % |   | $ | 2,189 |   |   |   | 100 | % |

| (1)  Does not include loan loss allowance information for the acquired LyndonBank for 2005 through 2007. |
|--------------------------------------------------------------------------------------------------------------------|
| (2)  Includes commercial loans secured by real estate, as well as unsecured commercial loans and those   |
|       secured by other types of collateral                                           |

| Non-Performing Assets (1)                                    |   |
|--------------------------------------------------------------|--------|
| December 31,                                                 |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                         |   | (Dollars in Thousands) |   |
| Accruing Loans Past Due 90 Days or More:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Consumer                                         |   | $ | 20 |   |   | $ | 2 |   |   | $ | 11 |   |   | $ | 32 |   |   | $ | 8 |   |
|   Commercial                                       |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 60 |   |   |   | 0 |   |
|   Commercial Real Estate                           |   |   | 0 |   |   |   | 0 |   |   |   | 70 |   |   |   | 0 |   |   |   | 0 |   |
|   Residential Real Estate                          |   |   | 538 |   |   |   | 245 |   |   |   | 57 |   |   |   | 113 |   |   |   | 169 |   |
|      Total Past Due 90 Days or More |   |   | 558 |   |   |   | 247 |   |   |   | 138 |   |   |   | 205 |   |   |   | 177 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-accrual Loans                                            |   |   | 3,844 |   |   |   | 2,119 |   |   |   | 1,338 |   |   |   | 721 |   |   |   | 436 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Non-accrual, Past Due Loans                            |   |   | 4,402 |   |   |   | 2,366 |   |   |   | 1,476 |   |   |   | 926 |   |   |   | 613 |   |
| Other Real Estate Owned                                      |   |   | 743 |   |   |   | 185 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|    Total Non Performing Loans                 |   | $ | 5,145 |   |   | $ | 2,551 |   |   | $ | 1,476 |   |   | $ | 926 |   |   | $ | 613 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percent of Gross Loans                                       |   |   | 1.35 | % |   |   | 0.70 | % |   |   | 0.41 | % |   |   | 0.34 | % |   |   | 0.24 | % |
| Reserve Coverage of Non Performing Loans                     |   |   | 67.07 | % |   |   | 126.73 | % |   |   | 205.01 | % |   |   | 244.92 | % |   |   | 357.10 | % |

|                                                               |   |                   |   |   | Gross      |   |   | Gross      |   |   |   |   |
|--------------------------------------------------------------------|--------|------------------------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                                               |   | Amortized              |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                                               |   | Cost                   |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
| December 31, 2009                                                  |   | (Dollars in Thousands) |   |
|                                                               |   |
| Available-for-Sale                                                 |   |
|    U. S. Government sponsored enterprise securities |   | $                      | 18,687 |   |       | $      | 138    |       |   | $      | 18     |   |   | $ | 18,807 |   |
|    U. S. Government securities                      |   |                   | 5,049  |   |       |   | 49     |       |   |   | 1      |   |   |   | 5,097 |   |
|    Preferred stock                                  |   |                   | 68     |   |       |   | 3      |       |   |   | 0      |   |   |   | 71 |   |
|                                                               |   | $                      | 23,804 |   |       | $      | 190    |       |   | $      | 19     |   |   | $ | 23,975 |   |
|                                                               |   |
| Held-to-Maturity                                                   |   |
|    States and political subdivisions                |   | $                      | 44,766 |   |       | $      | 777    |       |   | $      | 0      |   |   | $ | 45,543 |   |
|                                                               |   |
| Restricted Equity Securities (1)                                   |   | $                      | 3,907  |   |       | $      | 0      |       |   | $      | 0      |   |   | $ | 3,907 |   |
|                                                               |   |
|          Total        |   | $                      | 72,477 |   |       | $      | 967    |       |   | $      | 19     |   |   | $ | 73,425 |   |
|                                                               |   |
| December 31, 2008                                                  |   |                   |   |
|                                                               |   |
| Available-for-Sale                                                 |   |
|    U. S. Government sponsored enterprise securities |   | $                      | 8,172  |   |       | $      | 274    |       |   | $      | 0      |   |   | $ | 8,446 |   |
|    U. S. Government securities                      |   |                   | 4,047  |   |       |   | 153    |       |   |   | 0      |   |   |   | 4,200 |   |
|    States and political subdivisions                |   |                   | 1,143  |   |       |   | 20     |       |   |   | 0      |   |   |   | 1,163 |   |
|    Mortgage-backed securities                       |   |                   | 15,117 |   |       |   | 491    |       |   |   | 7      |   |   |   | 15,601 |   |
|    Preferred stock                                  |   |                   | 163    |   |       |   | 0      |       |   |   | 124    |   |   |   | 39 |   |
|                                                               |   | $                      | 28,642 |   |       | $      | 938    |       |   | $      | 131    |   |   | $ | 29,449 |   |
|                                                               |   |
| Held-to-Maturity                                                   |   |
|    States and political subdivisions                |   | $                      | 37,288 |   |       | $      | 924    |       |   | $      | 0      |   |   | $ | 38,212 |   |
|                                                               |   |
| Restricted Equity Securities (1)                                   |   | $                      | 3,907  |   |       | $      | 0      |       |   | $      | 0      |   |   | $ | 3,907 |   |
|                                                               |   |
|          Total        |   | $                      | 69,837 |   |       | $      | 1,862  |       |   | $      | 131    |   |   | $ | 71,568 |   |

----

| Maturities and Yields of Investment Portfolio                       |   |
|---------------------------------------------------------------------|--------|
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   December 31,                                            |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                |   |   |   |   | Weighted |   |   |   |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                                |   | Fair |   |   | Average |   |   | Fair |   |   | Average |   |   | Fair |   |   | Average |   |
|                                                                |   | Value (1) |   |   | Yield (2) |   |   | Value (1) |   |   | Yield (2) |   |   | Value (1) |   |   | Yield (2) |   |
|                                                                |   | (Dollars in Thousands) |   |
| Available-for-Sale                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    U.S. Treasury & Agency Obligations            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Due in one year or less         |   | $ | 8,311 |   |   |   | 3.17 | % |   | $ | 6,149 |   |   |   | 4.44 | % |   | $ | 9,978 |   |   |   | 6.16 | % |
|       Due from one to five years      |   |   | 15,593 |   |   |   | 1.40 | % |   |   | 6,498 |   |   |   | 4.40 | % |   |   | 14,351 |   |   |   | 4.44 | % |
|       Due from five to ten years      |   |   | 0 |   |   |   | 0.00 | % |   |   | 0 |   |   |   | 0.00 | % |   |   | 1,984 |   |   |   | 5.06 | % |
|          Total         |   | $ | 23,904 |   |   |   | 2.01 | % |   | $ | 12,647 |   |   |   | 4.42 | % |   | $ | 26,313 |   |   |   | 5.14 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Tax-exempt Municipals                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Due after ten years             |   | $ | 0 |   |   |   | 0.00 | % |   | $ | 1,163 |   |   |   | 5.22 | % |   | $ | 1,157 |   |   |   | 5.19 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Mortgage Backed Securities                        |   | $ | 0 |   |   |   | 0.00 | % |   | $ | 13,883 |   |   |   | 4.70 | % |   | $ | 15,766 |   |   |   | 4.80 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Collateralized Mortgage Obligations               |   | $ | 0 |   |   |   | 0.00 | % |   | $ | 1,718 |   |   |   | 3.80 | % |   | $ | 2,102 |   |   |   | 4.48 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FRB Stock(3)                                      |   | $ | 588 |   |   |   | 6.00 | % |   | $ | 588 |   |   |   | 6.00 | % |   | $ | 138 |   |   |   | 6.00 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FHLBB Stock(3)                                    |   | $ | 3,319 |   |   |   | 0.00 | % |   | $ | 3,319 |   |   |   | 2.50 | % |   | $ | 3,319 |   |   |   | 6.50 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred Stock                                   |   | $ | 71 |   |   |   | 0.00 | % |   | $ | 39 |   |   |   | 0.00 | % |   | $ | 1,538 |   |   |   | 8.43 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held-to-Maturity                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Obligations of State & Political Subdivisions |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Due in one year or less         |   | $ | 35,864 |   |   |   | 3.31 | % |   | $ | 28,694 |   |   |   | 4.65 | % |   | $ | 29,717 |   |   |   | 5.46 | % |
|       Due from one to five years      |   |   | 4,035 |   |   |   | 5.01 | % |   |   | 3,934 |   |   |   | 5.32 | % |   |   | 1,699 |   |   |   | 6.42 | % |
|       Due from five to ten years      |   |   | 1,483 |   |   |   | 5.59 | % |   |   | 1,414 |   |   |   | 5.86 | % |   |   | 2,290 |   |   |   | 7.81 | % |
|       Due after ten years             |   |   | 3,384 |   |   |   | 8.03 | % |   |   | 3,246 |   |   |   | 8.24 | % |   |   | 605 |   |   |   | 10.81 | % |
|          Total         |   | $ | 44,766 |   |   |   | 3.89 | % |   | $ | 37,288 |   |   |   | 5.08 | % |   | $ | 34,311 |   |   |   | 5.76 | % |

| (1)  Investments classified as available-for-sale are presented at fair value, and investments classified as held-to-maturity |
|------------------------------------------------------------------------------------------------------------------------------------|
|      are presented at book value.                                                                         |
| (2) The yield on Obligations of State and Political Subdivisions is calculated on a tax equivalent basis assuming a 34        |
|      percent tax rate.                                                                                    |
| (3) Required equity purchases for membership in the Federal Reserve System and Federal Home Loan Bank System.                      |

----

|                                           |   | 2009                   |   |   | 2008   |   |
|------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                           |   | (Dollars in Thousands) |   |
|                                           |   |                   |   |   |   |   |
| Buildings and improvements                     |   | $                      | 10,439 |   |   | $      | 10,945 |   |
| Land and land improvements                     |   |                   | 2,572  |   |   |   | 2,707 |   |
| Furniture and equipment                        |   |                   | 6,242  |   |   |   | 5,966 |   |
| Leasehold improvements                         |   |                   | 1,277  |   |   |   | 1,268 |   |
| Capital lease                                  |   |                   | 928    |   |   |   | 928 |   |
| Other prepaid assets                           |   |                   | 14     |   |   |   | 17 |   |
|                                           |   |                   | 21,472 |   |   |   | 21,831 |   |
| Less accumulated depreciation and amortization |   |                   | (7,835 | )      |   |   | (6,842 | ) |
|                                           |   | $                      | 13,637 |   |   | $      | 14,989 |   |

|                                                          |   | Contract or            |   |
|---------------------------------------------------------------|--------|------------------------|--------|
|                                                          |   | --Notional Amount--    |   |
|                                                          |   | 2009                   |   |   | 2008 |   |
|                                                          |   | (Dollars in Thousands) |   |
|                                                          |   |                   |   |   |   |   |
| Unused portions of home equity lines of credit                |   | $                      | 15,557 |   |   | $ | 14,848 |   |
| Other commitments to extend credit                            |   |                   | 26,613 |   |   |   | 25,172 |   |
| Residential construction lines of credit                      |   |                   | 1,671  |   |   |   | 2,187 |   |
| Commercial real estate and other construction lines of credit |   |                   | 12,664 |   |   |   | 2,710 |   |
| Standby letters of credit and commercial letters of credit    |   |                   | 735    |   |   |   | 353 |   |
| Recourse on sale of credit card portfolio                     |   |                   | 391    |   |   |   | 941 |   |
| MPF credit enhancement obligation, net (See Note 17)          |   |                   | 1,486  |   |   |   | 1,438 |   |

|                                                                         |   | 2009                   |   |   | 2008   |   |
|------------------------------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                                                         |   | (Dollars in Thousands) |   |
| Long-Term Borrowings                                                         |   |                   |   |   |   |   |
| FHLBB term borrowing, 2.13% fixed rate, due January 31, 2011                 |   | $                      | 10,000 |   |   | $      | 0 |   |
| Community Investment Program borrowing, 7.67% fixed rate,                    |   |                   |   |   |   |   |   |   |
|    due November 16, 2012                                      |   |                   | 10     |   |   |   | 10 |   |
|                                                                         |   |                   | 10,010 |   |   |   | 10 |   |
| Overnight Borrowings                                                         |   |                   |   |   |   |   |   |   |
| Federal funds purchased (FHLBB) 0.200% and 0.375% respectively               |   |                   | 3,401  |   |   |   | 12,562 |   |
|           Total Borrowings |   | $                      | 13,411 |   |   | $      | 12,572 |   |

| Balance at December 31, 2008 (book value $7.33 per common share)                                           |   | $      | 35,272,892 |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
|    Net income                                                                               |   |   | 3,747,862  |   |
|    Issuance of common stock (dividend reinvestment)                                         |   |   | 636,611    |   |
|    Total dividends declared on common stock                                                 |   |   | (2,160,050 | )      |
|    Total dividends declared on preferred stock                                              |   |   | (187,500   | )      |
|    Change in unrealized loss on available-for-sale securities, net of tax                   |   |   | (419,977   | )      |
|        Balance at December 31, 2009 (book value $7.56 per common share) |   | $      | 36,889,838 |   |

|                                      |                   |        |               |              | Minimum |
|-------------------------------------------|------------------------|-------------|--------------------|-------------------|---------|
|                                      |                   |        | Minimum            | To Be Well        |
|                                      |                   |        | For Capital        | Capitalized Under |
|                                      |                   |        | Adequacy           | Prompt Corrective |
|                                      | Actual                 | Purposes:   | Action Provisions: |
|                                      | Amount                 | Ratio  | Amount             | Ratio             | Amount  | Ratio |
|                                      | (Dollars in Thousands) |
| As of December 31, 2009:                  |                   |        |               |              |    |   |
| Total capital (to risk-weighted assets)   |                   |        |               |              |    |   |
|    Consolidated            | $40,326                | 11.57%      | $27,877            | 8.00%             | N/A     | N/A |
|    Bank                    | $40,336                | 11.60%      | $27,811            | 8.00%             | $34,764 | 10.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to risk-weighted assets)  |                   |        |               |              |    |   |
|    Consolidated            | $36,875                | 10.58%      | $13,939            | 4.00%             | N/A     | N/A |
|    Bank                    | $36,885                | 10.61%      | $13,906            | 4.00%             | $20,858 | 6.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to average assets)        |                   |        |               |              |    |   |
|    Consolidated            | $36,875                | 7.50%       | $19,674            | 4.00%             | N/A     | N/A |
|    Bank                    | $36,885                | 7.51%       | $19,643            | 4.00%             | $24,554 | 5.00% |
|                                      |                   |        |               |              |    |   |
| As of December 31, 2008:                  |                   |        |               |              |    |   |
| Total capital (to risk-weighted assets)   |                   |        |               |              |    |   |
|    Consolidated            | $36,765                | 11.04%      | $26,639            | 8.00%             | N/A     | N/A |
|    Community National Bank | $37,355                | 11.25%      | $26,571            | 8.00%             | $33,214 | 10.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to risk-weighted assets)  |                   |        |               |              |    |   |
|    Consolidated            | $33,532                | 10.07%      | $13,319            | 4.00%             | N/A     | N/A |
|    Community National Bank | $34,122                | 10.27%      | $13,285            | 4.00%             | $19,928 | 6.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to average assets)        |                   |        |               |              |    |   |
|    Consolidated            | $33,532                | 7.08%       | $18,948            | 4.00%             | N/A     | N/A |
|    Community National Bank | $34,122                | 7.22%       | $18,917            | 4.00%             | $23,569 | 5.00% |