**BERRY      . DUNN . MCNEIL & PARKER**

**BDMP**

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

----

| **COMMUNITY                  BANCORP. AND SUBSIDIARY**                                                                       |
|------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  BALANCE SHEETS**                                                                             |
| **December                  31, 2006 and 2005**                                                                              |
|                                                                                                                         |   |   |   |   |   |   |
| **ASSETS**                                                                                                                   |   | **2006** |   |   | **2005** |   |
|   Cash                  and due from banks                                                                         | $ | 11,292,831 |   | $ | 11,066,745 |   |
|   Federal                  funds sold and overnight deposits                                                       |   | 8,173,779 |   |   | 6,508,194 |   |
|           Cash                  and cash equivalents                       |   | 19,466,610 |   |   | 17,574,939 |   |
|   Securities                  held-to-maturity (fair value $21,301,000                                             |   |   |   |   |   |   |
|    and                  $28,444,000 at December 31, 2006 and 2005)                                            |   | 21,069,866 |   |   | 28,391,665 |   |
|   Securities                  available-for-sale                                                                   |   | 22,612,207 |   |   | 36,454,426 |   |
|   Restricted                  equity securities                                                                    |   | 2,828,250 |   |   | 3,252,150 |   |
|   Loans                  held for sale                                                                             |   | 566,300 |   |   | 1,586,582 |   |
|   Loans                                                                                                            |   | 268,729,726 |   |   | 250,622,955 |   |
|      Allowance                  for loan losses                                                     |   | (2,267,821 | ) |   | (2,189,187 | ) |
|      Unearned                  net loan fees                                                        |   | (632,105 | ) |   | (684,106 | ) |
|           Net                  loans                                       |   | 265,829,800 |   |   | 247,749,662 |   |
|   Bank                  premises and equipment, net                                                                |   | 12,334,024 |   |   | 11,617,119 |   |
|   Accrued                  interest receivable                                                                     |   | 1,667,135 |   |   | 1,789,251 |   |
|   Other                  assets                                                                                    |   | 5,440,350 |   |   | 5,411,770 |   |
|                                                                                                                         |   |   |   |   |   |   |
|           Total                  assets                                    | $ | 351,814,542 |   | $ | 353,827,564 |   |
|                                                                                                                         |   |   |   |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS' EQUITY**                                                                    |   |   |   |   |   |   |
| LIABILITIES                                                                                                                  |   |   |   |   |   |   |
|   Deposits:                                                                                                        |   |   |   |   |   |   |
|      Demand,                  non-interest bearing                                                  | $ | 47,402,628 |   | $ | 45,848,972 |   |
|      NOW                  and money market accounts                                                 |   | 81,402,928 |   |   | 100,078,793 |   |
|      Savings                                                                                        |   | 38,471,441 |   |   | 45,281,605 |   |
|      Time,                  $100,000 and over                                                       |   | 33,835,057 |   |   | 25,621,541 |   |
|      Other                  time                                                                    |   | 99,876,140 |   |   | 77,481,500 |   |
|           Total                  deposits                                  |   | 300,988,194 |   |   | 294,312,411 |   |
|   Other                  borrowed funds                                                                            |   | 40,000 |   |   | 10,040,000 |   |
|   Securities                  sold under agreements to repurchase                                                  |   | 17,083,946 |   |   | 17,347,140 |   |
|   Accrued                  interest and other liabilities                                                          |   | 2,971,591 |   |   | 3,004,679 |   |
|                                                                                                                         |   |   |   |   |   |   |
|           Total                  liabilities                               |   | 321,083,731 |   |   | 324,704,230 |   |
|                                                                                                                         |   |   |   |   |   |   |
| COMMITMENTS                  AND CONTINGENT LIABILITIES (Notes 6, 15, 16, 17 and 20)                                         |
|                                                                                                                         |   |   |   |   |   |   |
| SHAREHOLDERS'                  EQUITY                                                                                        |   |   |   |   |   |   |
|   Common                  stock, $2.50 par value; 6,000,000 shares authorized,                                     |   |   |   |   |   |   |
|     4,339,619                  shares issued at December 31, 2006 and 4,279,884 shares                   |   |   |   |   |   |   |
|     shares                  issued at December 31, 2005 (including 15,222 shares                  issued |   |   |   |   |   |   |
|     February                  1, 2007 and 13,522 shares issued February 1, 2006)                         |   | 10,849,048 |   |   | 10,699,709 |   |
|   Additional                  paid-in capital                                                                      |   | 22,006,492 |   |   | 21,324,481 |   |
|   Retained                  earnings                                                                               |   | 760,667 |   |   | 165,983 |   |
|   Accumulated                  other comprehensive loss                                                            |   | (270,664 | ) |   | (452,118 | ) |
|   Less                  treasury stock, at cost (2006 and 2005 - 209,510 shares)                                   |   | (2,614,732 | ) |   | (2,614,721 | ) |
|                                                                                                                         |   |   |   |   |   |   |
|           Total                  shareholders' equity                      |   | 30,730,811 |   |   | 29,123,334 |   |
|                                                                                                                         |   |   |   |   |   |   |
|           Total                  liabilities and shareholders' equity      | $ | 351,814,542 |   | $ | 353,827,564 |   |
|                                                                                                                         |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements.    |

----

| **COMMUNITY                BANCORP. AND SUBSIDIARY**                                                                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF INCOME**                                                                                                          |
| **Years                Ended December 31, 2006, 2005, and 2004**                                                                                              |
|                                                                                                                                                          |
|                                                                                                                                                          |   | **2006** |   |   | **2005** |   |   | **2004** |   |
| Interest                and dividend income                                                                                                                   |   |   |   |   |   |   |   |   |   |
|   Interest                and fees on loans                                                                                                         | $ | 18,471,445 |   | $ | 15,645,438 |   | $ | 13,869,932 |   |
|   Interest                on debt securities                                                                                                        |   |   |   |   |   |   |   |   |   |
|     Taxable                                                                                                                               |   | 1,082,241 |   |   | 1,482,998 |   |   | 1,973,437 |   |
|     Tax-exempt                                                                                                                            |   | 1,079,573 |   |   | 1,059,198 |   |   | 1,023,986 |   |
|   Dividends                                                                                                                                         |   | 176,610 |   |   | 133,119 |   |   | 61,075 |   |
|   Interest                on federal funds sold and overnight deposits                                                                              |   | 165,975 |   |   | 36,809 |   |   | 37,915 |   |
|                                                                                                                                                          |   | 20,975,844 |   |   | 18,357,562 |   |   | 16,966,345 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                                                                               |   |   |   |   |   |   |   |   |   |
|   Interest                on deposits                                                                                                               |   | 6,684,827 |   |   | 4,596,744 |   |   | 4,335,331 |   |
|   Interest                on borrowed funds and securities                                                                                          |   |   |   |   |   |   |   |   |   |
|     sold                under agreements to repurchase                                                                                    |   | 1,018,261 |   |   | 830,654 |   |   | 426,839 |   |
|                                                                                                                                                          |   | 7,703,088 |   |   | 5,427,398 |   |   | 4,762,170 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |   |
|     Net                interest income                                                                                                    |   | 13,272,756 |   |   | 12,930,164 |   |   | 12,204,175 |   |
|     Provision                for loan losses                                                                                              |   | 137,500 |   |   | 150,000 |   |   | 95,000 |   |
|     Net                interest income after provision for loan losses                                                                    |   | 13,135,256 |   |   | 12,780,164 |   |   | 12,109,175 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |   |
| Non-interest                income                                                                                                                            |   |   |   |   |   |   |   |   |   |
|   Service                fees                                                                                                                       |   | 1,322,360 |   |   | 1,251,910 |   |   | 1,212,020 |   |
|   Net                realized gains on securities                                                                                                   |   | 56,875 |   |   | 0 |   |   | 44,059 |   |
|   Other                income                                                                                                                       |   | 1,744,941 |   |   | 1,920,811 |   |   | 1,961,622 |   |
|                                                                                                                                                          |   | 3,124,176 |   |   | 3,172,721 |   |   | 3,217,701 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |   |
| Non-interest                expense                                                                                                                           |   |   |   |   |   |   |   |   |   |
|   Salaries                and wages                                                                                                                 |   | 4,562,000 |   |   | 4,567,003 |   |   | 4,268,960 |   |
|   Employee                benefits                                                                                                                  |   | 1,699,405 |   |   | 1,628,501 |   |   | 1,536,441 |   |
|   Occupancy                expenses                                                                                                                 |   | 2,180,336 |   |   | 2,002,091 |   |   | 1,973,934 |   |
|   Other                expenses                                                                                                                     |   | 3,712,629 |   |   | 3,544,654 |   |   | 3,420,155 |   |
|                                                                                                                                                          |   | 12,154,370 |   |   | 11,742,249 |   |   | 11,199,490 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |   |
|     Income                before income taxes                                                                                             |   | 4,105,062 |   |   | 4,210,636 |   |   | 4,127,386 |   |
|     Income                taxes                                                                                                           |   | 729,614 |   |   | 790,001 |   |   | 730,422 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |   |
|           Net                income                                                                         | $ | 3,375,448 |   | $ | 3,420,635 |   | $ | 3,396,964 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |   |
| Earnings                per common share                                                                                                                      |   | $0.82 |   |   | $0.84 |   |   | $0.85 |   |
| Weighted                average number of common shares                                                                                                       |   |   |   |   |   |   |   |   |   |
|   used                in computing earnings per share                                                                                               |   | 4,097,577 |   |   | 4,050,993 |   |   | 4,010,894 |   |
| Dividends                declared per share                                                                                                                   |   | $0.68 |   |   | $0.67 |   |   | $0.64 |   |
| Book                value per share on shares outstanding at December 31                                                                                      |   | $7.44 |   |   | $7.15 |   |   | $6.96 |   |
|                                                                                                                                                          |
| All                per share data and number of shares have been restated to reflect                a 5%                stock dividend declared in June 2005. |
|                                                                                                                                                          |
| The                accompanying notes are an integral part of these consolidated financial                statements.                                         |

----

| **COMMUNITY                  BANCORP. AND SUBSIDIARY**                  |
|-------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF SHAREHOLDERS' EQUITY**    |
| **Years                  Ended December 31, 2006, 2005, and 2004**      |
|                                                                    |
|                                                                    | **---Common                  Stock---** |
|                                                                    | **Shares** |   |   | **Amount** |
|                                                                    |   |   |   |   |
| Balances,                  December 31, 2003                            | 3,789,084 |   | $ | 9,929,973 |
|                                                                    |   |   |   |   |
| Comprehensive                  income, net of taxes                     |   |   |   |   |
| Net                  income                                             | 0 |   |   | 0 |
| Net                  unrealized holding losses on securities            |   |   |   |   |
| available-for-sale,                  net of tax benefit, ($347,565)     | 0 |   |   | 0 |
|                                                                    |   |   |   |   |
| Total                  comprehensive income                             |   |   |   |   |
|                                                                    |   |   |   |   |
| Dividends                  declared                                     | 0 |   |   | 0 |
| Issuance                  of stock                                      | 65,559 |   |   | 163,898 |
| Purchase                  of treasury stock                             | (15,539 | ) |   | 0 |
|                                                                    |   |   |   |   |
| Balances,                  December 31, 2004                            | 3,839,104 |   |   | 10,093,871 |
|                                                                    |   |   |   |   |
| Comprehensive                  income, net of taxes                     |   |   |   |   |
| Net                  income                                             | 0 |   |   | 0 |
| Net                  unrealized holding losses on securities            |   |   |   |   |
| available-for-sale,                  net of tax benefit, ($146,014)     | 0 |   |   | 0 |
|                                                                    |   |   |   |   |
| Total                  comprehensive income                             |   |   |   |   |
|                                                                    |   |   |   |   |
| Dividends                  declared                                     | 0 |   |   | 0 |
| 5%                  stock dividend                                      | 192,544 |   |   | 481,360 |
| Issuance                  of stock                                      | 49,791 |   |   | 124,478 |
| Purchase                  of treasury stock                             | (11,065 | ) |   | 0 |
|                                                                    |   |   |   |   |
| Balances,                  December 31, 2005                            | 4,070,374 |   |   | 10,699,709 |
|                                                                    |   |   |   |   |
| Comprehensive                  income, net of taxes                     |   |   |   |   |
| Net                  income                                             | 0 |   |   | 0 |
| Net                  unrealized holding gain on securities              |   |   |   |   |
| available-for-sale,                  net of tax, $93,477                | 0 |   |   | 0 |
|                                                                    |   |   |   |   |
| Total                  comprehensive income                             |   |   |   |   |
|                                                                    |   |   |   |   |
| Dividends                  declared                                     | 0 |   |   | 0 |
| Issuance                  of stock                                      | 59,736 |   |   | 149,339 |
| Purchase                  of treasury stock (fractional share redeemed) | (1 | ) |   | 0 |
|                                                                    |   |   |   |   |
| Balances,                  December 31, 2006                            | 4,130,109 |   | $ | 10,849,048 |
|                                                                    |   |   |   |   |

----

|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|--------|----------------|--------|--------------|--------|--------|----------------------------------|--------|--------|--------------|--------|--------|-------------------|--------|
|   |           |   |         |   |   | **Accumulated**                  |   |   |         |   |   |              |   |
|   | **Additional** |   |         |   |   | **other**                        |   |   |         |   |   | **Total**         |   |
|   | **paid-in**    |   | **Retained** |   |   | **comprehensive**                |   |   | **Treasury** |   |   | **shareholders'** |   |
|   | **capital**    |   | **earnings** |   |   | **income                (loss)** |   |   | **stock**    |   |   | **equity**        |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
| $      | 16,861,802     | $      | 1,971,870    |   | $      | 506,006                          |   | $      | (2,184,505   | )      | $      | 27,085,146        |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 0              |   | 3,396,964    |   |   | 0                                |   |   | 0            |   |   | 3,396,964         |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 0              |   | 0            |   |   | (674,685                         | )      |   | 0            |   |   | (674,685          | )      |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   |           |   |         |   |   |                             |   |   |         |   |   | 2,722,279         |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 0              |   | (2,592,823   | )      |   | 0                                |   |   | 0            |   |   | (2,592,823        | )      |
|   | 916,803        |   | 0            |   |   | 0                                |   |   | 0            |   |   | 1,080,701         |   |
|   | 0              |   | 0            |   |   | 0                                |   |   | (251,857     | )      |   | (251,857          | )      |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 17,778,605     |   | 2,776,011    |   |   | (168,679                         | )      |   | (2,436,362   | )      |   | 28,043,446        |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 0              |   | 3,420,635    |   |   | 0                                |   |   | 0            |   |   | 3,420,635         |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 0              |   | 0            |   |   | (283,439                         | )      |   | 0            |   |   | (283,439          | )      |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   |           |   |         |   |   |                             |   |   |         |   |   | 3,137,196         |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 0              |   | (2,720,332   | )      |   | 0                                |   |   | 0            |   |   | (2,720,332        | )      |
|   | 2,828,971      |   | (3,310,331   | )      |   | 0                                |   |   | 0            |   |   | 0                 |   |
|   | 716,905        |   | 0            |   |   | 0                                |   |   | 0            |   |   | 841,383           |   |
|   | 0              |   | 0            |   |   | 0                                |   |   | (178,359     | )      |   | (178,359          | )      |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 21,324,481     |   | 165,983      |   |   | (452,118                         | )      |   | (2,614,721   | )      |   | 29,123,334        |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 0              |   | 3,375,448    |   |   | 0                                |   |   | 0            |   |   | 3,375,448         |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 0              |   | 0            |   |   | 181,454                          |   |   | 0            |   |   | 181,454           |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   |           |   |         |   |   |                             |   |   |         |   |   | 3,556,902         |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
|   | 0              |   | (2,780,764   | )      |   | 0                                |   |   | 0            |   |   | (2,780,764        | )      |
|   | 682,011        |   | 0            |   |   | 0                                |   |   | 0            |   |   | 831,350           |   |
|   | 0              |   | 0            |   |   | 0                                |   |   | (11          | )      |   | (11               | )      |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |
| $      | 22,006,492     | $      | 760,667      |   | $      | (270,664                         | )      | $      | (2,614,732   | )      | $      | 30,730,811        |   |
|   |           |   |         |   |   |                             |   |   |         |   |   |              |   |

----

| **COMMUNITY                BANCORP. AND SUBSIDIARY**                                                   |
|--------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                                               |
| **Years                Ended December 31, 2006, 2005, and 2004**                                       |
|                                                                                                   |
|                                                                                                   |
|                                                                                                   |   | **  2006** |   |   | **  2005** |   |   | **  2004** |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES                                                    |   |   |   |   |   |   |   |   |   |
|  Net                income                                                                        | $ | 3,375,448 |   | $ | 3,420,635 |   | $ | 3,396,964 |   |
|  Adjustments                to reconcile net income to net                                        |   |   |   |   |   |   |   |   |   |
|   cash                provided by operating activities:                                      |   |   |   |   |   |   |   |   |   |
|    Depreciation                and amortization                                         |   | 874,564 |   |   | 789,587 |   |   | 776,093 |   |
|    Provision                for loan losses                                             |   | 137,500 |   |   | 150,000 |   |   | 95,000 |   |
|    Provision                for deferred income taxes                                   |   | (28,349 | ) |   | (36,931 | ) |   | 72,768 |   |
|    Net                gain on sale of securities                                        |   | (56,875 | ) |   | 0 |   |   | (44,059 | ) |
|    Net                gain on sale of loans                                             |   | (314,850 | ) |   | (376,946 | ) |   | (426,198 | ) |
|    Loss                on disposal or sale of bank premises and equipment               |   | 6,589 |   |   | 32,835 |   |   | 24,796 |   |
|    Gain                on sales of other real estate owned                              |   | 0 |   |   | (7,710 | ) |   | (12,684 | ) |
|    (Gain)                loss on Trust LLC                                              |   | (60,409 | ) |   | (20,825 | ) |   | 15,829 |   |
|    Amortization                of bond premium, net                                     |   | 84,650 |   |   | 251,535 |   |   | 406,234 |   |
|    Proceeds                from sales of loans held for sale                            |   | 30,058,562 |   |   | 29,074,835 |   |   | 36,277,381 |   |
|    Originations                of loans held for sale                                   |   | (28,723,430 | ) |   | (28,451,074 | ) |   | (35,431,429 | ) |
|    Decrease                (increase) in interest receivable                            |   | 122,116 |   |   | (136,424 | ) |   | 23,363 |   |
|    Increase                in mortgage servicing rights                                 |   | (166,799 | ) |   | (174,143 | ) |   | (231,583 | ) |
|    (Increase)                decrease in other assets                                   |   | (210,815 | ) |   | (101,135 | ) |   | 42,063 |   |
|    Amortization                of limited partnerships                                  |   | 354,156 |   |   | 338,216 |   |   | 292,915 |   |
|    Decrease                in unamortized loan fees                                     |   | (52,001 | ) |   | (79,668 | ) |   | (41,510 | ) |
|    Increase                in taxes payable                                             |   | 7,963 |   |   | 90,881 |   |   | 113,416 |   |
|    Increase                (decrease) in interest payable                               |   | 128,579 |   |   | 49,169 |   |   | (18,636 | ) |
|    Increase                (decrease) in accrued expenses                               |   | 4,140 |   |   | 225,818 |   |   | (351,322 | ) |
|    Increase                (decrease) in other liabilities                              |   | 95,410 |   |   | (5,167 | ) |   | 47,242 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |
|       Net                cash provided by operating activities           |   | 5,636,149 |   |   | 5,033,488 |   |   | 5,026,643 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES                                                    |   |   |   |   |   |   |   |   |   |
|   Securities                held-to-maturity                                                 |   |   |   |   |   |   |   |   |   |
|    Maturities                and paydowns                                               |   | 43,144,522 |   |   | 40,946,852 |   |   | 47,074,787 |   |
|    Purchases                                                                            |   | (35,822,723 | ) |   | (37,755,503 | ) |   | (37,107,593 | ) |
|   Securities                available-for-sale                                               |   |   |   |   |   |   |   |   |   |
|    Sales                and maturities                                                  |   | 15,089,375 |   |   | 17,000,000 |   |   | 20,461,560 |   |
|    Purchases                                                                            |   | (1,000,000 | ) |   | (2,988,906 | ) |   | (16,659,541 | ) |
|   Proceeds                from redemption (purchase) of restricted equity securities         |   | 423,900 |   |   | (936,700 | ) |   | (958,600 | ) |
|   Decrease                in limited partnership contributions payable                       |   | (301,625) |   |   | (149,294 | ) |   | (668,178 | ) |
|   Increase                in loans, net                                                      |   | (18,234,097 | ) |   | (23,013,545 | ) |   | (23,840,610 | ) |
|   Capital                expenditures, net                                                   |   | (1,598,059 | ) |   | (4,382,421 | ) |   | (1,043,086 | ) |
|   Investments                in limited partnerships, net                                    |   | 0 |   |   | (494,505 | ) |   | (678,178 | ) |
|   Proceeds                from sales of other real estate owned                              |   | 0 |   |   | 100,510 |   |   | 68,048 |   |
|   Recoveries                of loans charged off                                             |   | 68,460 |   |   | 66,193 |   |   | 127,809 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |
|       Net                cash provided by (used in) investing activities |   | 1,769,753 |   |   | (11,607,319 | ) |   | (13,223,582 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                    |   | **2006**    |   |   | **2005**   |   |   | **2004**   |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|------------|--------|--------|------------|--------|
| CASH                FLOWS FROM FINANCING ACTIVITIES                                                     |   |        |   |   |       |   |   |       |   |
|   Net                (decrease) increase in demand, NOW, savings, and                         |   |        |   |   |       |   |   |       |   |
|    money                market accounts                                                  |   | (23,932,373 | )      |   | 6,692,807  |   |   | 6,601,419  |   |
|   Net                increase (decrease) in time deposits                                     |   | 30,608,156  |   |   | 5,013,733  |   |   | (3,674,807 | )      |
|   Net                (decrease) increase in repurchase agreements                             |   | (263,194    | )      |   | 2,439,622  |   |   | 2,890,948  |   |
|   Net                (decrease) increase in short-term borrowings                             |   | (2,000,000  | )      |   | 633,000    |   |   | (1,633,000 | )      |
| Advances                in long-term borrowings                                                         |   | 20,000,000  |   |   | 10,000,000 |   |   | 0          |   |
| Repayments                in long-term borrowings                                                       |   | (28,000,000 | )      |   | (7,000,000 | )      |   | 0          |   |
|   Payments                to acquire treasury stock                                           |   | (11         | )      |   | (178,359   | )      |   | (251,857   | )      |
|   Dividends                paid                                                               |   | (1,926,809  | )      |   | (1,842,839 | )      |   | (1,716,868 | )      |
|                                                                                                    |   |        |   |   |       |   |   |       |   |
|       Net                cash (used in) provided by financing activities  |   | (5,514,231  | )      |   | 15,757,964 |   |   | 2,215,835  |   |
|       Net                increase (decrease) in cash and cash equivalents |   | 1,891,671   |   |   | 9,184,133  |   |   | (5,981,104 | )      |
|   Cash                and cash equivalents                                                    |   |        |   |   |       |   |   |       |   |
|      Beginning                                                                 |   | 17,574,939  |   |   | 8,390,806  |   |   | 14,371,910 |   |
|      Ending                                                                    | $      | 19,466,610  |   | $      | 17,574,939 |   | $      | 8,390,806  |   |
|                                                                                                    |   |        |   |   |       |   |   |       |   |
| SUPPLEMENTAL                SCHEDULE OF CASH PAID DURING THE YEAR                                       |
|   Interest                                                                                    | $      | 7,574,509   |   | $      | 5,378,229  |   | $      | 4,780,806  |   |
|   Income                taxes                                                                 | $      | 750,000     |   | $      | 688,200    |   | $      | 592,088    |   |
|                                                                                                    |   |        |   |   |       |   |   |       |   |
| SUPPLEMENTAL                SCHEDULE OF NONCASH INVESTING                                               |   |        |   |   |       |   |   |       |   |
|  AND                FINANCING ACTIVITIES                                                           |   |        |   |   |       |   |   |       |   |
|   Change                in unrealized loss on securities available-for-sale                   | $      | 274,931     |   | $      | (429,453   | )      | $      | (1,022,250 | )      |
|                                                                                                    |   |        |   |   |       |   |   |       |   |
|   Other                real estate owned acquired in settlement of loans                      | $      | 0           |   | $      | 10,000     |   | $      | 49,887     |   |
|                                                                                                    |   |        |   |   |       |   |   |       |   |
|   Dividends                paid:                                                              |   |        |   |   |       |   |   |       |   |
|    Dividends                declared                                                     | $      | 2,780,764   |   | $      | 2,720,332  |   | $      | 2,592,823  |   |
|    Increase                in dividends payable                                          |   |        |   |   |       |   |   |       |   |
|     attributable                to dividends declared                               |   | (7,585      | )      |   | (41,516    | )      |   | (6,304     | )      |
|    Dividends                reinvested                                                   |   | (846,370    | )      |   | (835,977   | )      |   | (869,651   | )      |
|                                                                                                    | $      | 1,926,809   |   | $      | 1,842,839  |   | $      | 1,716,868  |   |
|                                                                                                    |   |        |   |   |       |   |   |       |   |
|   Stock                dividend                                                               | $      | 0           |   | $      | 3,310,331  |   | $      | 0          |   |

----

**COMMUNITY      BANCORP. & SUBSIDIARY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note      1.  Significant Accounting Policies**

**Basis      of presentation and consolidation**

**Nature      of operations**

**Concentration      of risk**

**Use      of estimates**

----

**Presentation      of cash flows**

**Investment      securities **

**Other      investments**

**Restricted      equity securities**

----

**Loans      held for sale**

**Loans**

**Allowance      for loan losses**

**Bank      premises and equipment**

**Other      real estate owned**

----

**Income      taxes**

**Foreign      currency transactions**

**Mortgage      servicing**

**Pension      costs**

**Advertising      costs**

**Comprehensive      income**

----

|                                                                                                   |   | **2006** |      |  **2005** |   |  **2004** |   |
|--------------------------------------------------------------------------------------------------------|--------|----------|-----------|----------------|--------|----------------|--------|
|                                                                                                   |   |     |      |      |   |      |   |
| Net                income                                                                              |   | $        | 3,375,448 |           | $      | 3,420,635      |   | $ | 3,396,964 |   |
| Other                comprehensive income (loss), net of tax:                                          |   |     |      |           |   |           |   |   |   |   |
|     Change                in unrealized holding losses on available-               |   |     |      |           |   |           |   |   |   |   |
|      for-sale                securities arising during the period             |   |     | 331,806   |           |   | (429,453       | )      |   | (983,603 | ) |
|     Reclassification                adjustment for gains realized in income        |   |     | (56,875   | )              |   | 0              |   |   | (38,647 | ) |
|        Net                unrealized gain (losses)                  |   |     | 274,931   |           |   | (429,453       | )      |   | (1,022,250 | ) |
|        Tax                effect                                    |   |     | (93,477   | )              |   | 146,014        |   |   | 347,565 |   |
|        Other                comprehensive income (loss), net of tax |   |     | 181,454   |           |   | (283,439       | )      |   | (674,685 | ) |
|      Total                comprehensive income                                |   | $        | 3,556,902 |           | $      | 3,137,196      |   | $ | 2,722,279 |   |

**Earnings      per common share**

**Off-balance-sheet      financial instruments**

**Fair      values of financial instruments**

**Cash      and cash equivalents:  **

**Investment      securities:  **

**Restricted      equity securities:  **

**Loans      and loans held for sale:  **

**Deposits      and borrowed funds:  **

----

**Short-term      borrowings:  **

**Off-balance-sheet      credit related instruments:  **

**Accrued      interest:  **

**Transfers      of financial assets**

**Reclassification**

**Impact      of Recently Issued Accounting Standards:**

----

**Note      2.  Investment Securities**

|                                                 |   |          |       | **Gross**      |   | **Gross**      |   |      |    |
|------------------------------------------------------|--------|---------------|------------|----------------|--------|----------------|--------|-----------|---------|
|                                                 |   | **Amortized** |       | **Unrealized** |   | **Unrealized** |   | **Fair**  |    |
| **Securities                AFS**                    |   | **Cost**      |       | **Gains**      |   | **Losses**     |   | **Value** |    |
|                                                 |   |          |       |           |   |           |   |      |    |
| December                31, 2006                     |   |          |       |           |   |           |   |      |    |
| U.                S. sponsored enterprise securities |   | $             | 19,030,313 |           | $      | 0              |   | $         | 382,168 |   | $ | 18,648,145 |   |
| U.                S. Government securities           |   |          | 3,991,991  |           |   | 5,068          |   |      | 32,997  |   |   | 3,964,062 |   |
|                                                 |   | $             | 23,022,304 |           | $      | 5,068          |   | $         | 415,165 |   | $ | 22,612,207 |   |
|                                                 |   |          |       |           |   |           |   |      |    |   |   |   |   |
| December                31, 2005                     |   |          |       |           |   |           |   |      |    |   |   |   |   |
| U.                S. sponsored enterprise securities |   | $             | 33,115,577 |           | $      | 1,770          |   | $         | 651,476 |   | $ | 32,465,871 |   |
| U.                S. Government securities           |   |          | 2,989,486  |           |   | 983            |   |      | 39,844  |   |   | 2,950,625 |   |
| Corporate                debt securities             |   |          | 1,001,891  |           |   | 3,539          |   |      | 0       |   |   | 1,005,430 |   |
| Other                investments                     |   |          | 32,500     |           |   | 0              |   |      | 0       |   |   | 32,500 |   |
|                                                 |   | $             | 37,139,454 |           | $      | 6,292          |   | $         | 691,320 |   | $ | 36,454,426 |   |
|                                                 |   |          |       |           |   |           |   |      |    |   |   |   |   |
| **Securities                HTM**                    |   |          |       |           |   |           |   |      |    |   |   |   |   |
|                                                 |   |          |       |           |   |           |   |      |    |   |   |   |   |
| December                31, 2006                     |   |          |       |           |   |           |   |      |    |   |   |   |   |
| States                and Political Subdivisions     |   | $             | 21,069,866 |           | $      | 231,134        |   | $         | 0       |   | $ | 21,301,000 |   |
|                                                 |   |          |       |           |   |           |   |      |    |   |   |   |   |
| December                31, 2005                     |   |          |       |           |   |           |   |      |    |   |   |   |   |
| States                and Political Subdivisions     |   | $             | 28,391,665 |           | $      | 52,335         |   | $         | 0       |   | $ | 28,444,000 |   |

----

|                                      |   | **Carrying** |       | **Fair**  |   |
|-------------------------------------------|--------|--------------|------------|-----------|--------|
|                                      |   | **Amount**   |       | **Value** |   |
|                                      |   |         |       |      |   |
| Due                in one year or less    |   | $            | 5,003,179  |      | $      | 4,949,006 |   |
| Due                from one to five years |   |         | 18,019,125 |      |   | 17,663,201 |   |
|                                      |   | $            | 23,022,304 |      | $      | 22,612,207 |   |

|                                      |   | **Carrying** |       | **Fair**   |   |
|-------------------------------------------|--------|--------------|------------|------------|--------|
|                                      |   | **Amount**   |       | **Value*** |   |
|                                      |   |         |       |       |   |
| Due                in one year or less    |   | $            | 17,253,914 |       | $      | 17,254,000 |   |
| Due                from one to five years |   |         | 1,444,078  |       |   | 1,502,000 |   |
| Due                from five to ten years |   |         | 1,744,228  |       |   | 1,802,000 |   |
| Due                after ten years        |   |         | 627,646    |       |   | 743,000 |   |
|                                      |   | $            | 21,069,866 |       | $      | 21,301,000 |   |

| December                31, 2006     |   | **Less                than 12 months** |      |  **12                months or more** |   | **Total**       |   |
|--------------------------------------|--------|----------------------------------------|-----------|--------------------------------------------|--------|-----------------|--------|
|                                 |   | **Fair**                               |      | **Unrealized**                             |   |  **Fair**  |   | **Unrealized** |   | **Fair** |   | **Unrealized** |   |
|                                 |   | **Value**                              |      | **Loss**                                   |   |  **Value** |   | **Loss** |   | **Value** |   | **Loss** |   |
| U.S.                sponsored        |   |                                   |      |                                       |   |       |   |   |   |   |   |   |   |
| enterprise                securities |   | $                                      | 999,836   |                                       | $      | 163             |   | $ | 17,648,309 |   | $ | 382,005 |   | $ | 18,648,145 |   | $ | 382,168 |   |
| U.S.                Government       |   |                                   |      |                                       |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities                           |   |                                   | 993,438   |                                       |   | 4,841           |   |   | 1,968,437 |   |   | 28,156 |   |   | 2,961,875 |   |   | 32,997 |   |
|                                 |   | $                                      | 1,993,274 |                                       | $      | 5,004           |   | $ | 19,616,746 |   | $ | 410,161 |   | $ | 21,610,020 |   | $ | 415,165 |   |

| December                  31, 2005     |   | **Less                  than 12 months** |      |  **12                  months or more** |   | **Total**       |   |
|----------------------------------------|--------|------------------------------------------|-----------|----------------------------------------------|--------|-----------------|--------|
|                                   |   | **Fair**                                 |      | **Unrealized**                               |   |  **Fair**  |   | **Unrealized** |   | **Fair** |   | **Unrealized** |   |
|                                   |   | **Value**                                |      | **Loss**                                     |   |  **Value** |   | **Loss** |   | **Value** |   | **Loss** |   |
| U.S.                  sponsored        |   |                                     |      |                                         |   |       |   |   |   |   |   |   |   |
| enterprise                  securities |   | $                                        | 2,958,580 |                                         | $      | 35,003          |   | $ | 27,499,097 |   | $ | 616,473 |   | $ | 30,457,677 |   | $ | 651,476 |   |
| U.S.                  Government       |   |                                     |      |                                         |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities                             |   |                                     | 979,375   |                                         |   | 14,919          |   |   | 974,062 |   |   | 24,925 |   |   | 1,953,437 |   |   | 39,844 |   |
|                                   |   | $                                        | 3,937,955 |                                         | $      | 49,922          |   | $ | 28,473,159 |   | $ | 641,398 |   | $ | 32,411,114 |   | $ | 691,320 |   |

----

**Note      3.  Loans**

|                                      |   | **2006** |        | **2005** |   |
|-------------------------------------------|--------|----------|-------------|----------|--------|
| Commercial                                |   | $        | 22,217,047  |     | $      | 20,262,855 |   |
| Real                estate - Construction |   |     | 11,889,203  |     |   | 13,931,238 |   |
| Real                estate - Mortgage     |   |     | 213,894,135 |     |   | 194,565,926 |   |
| Installment                and other      |   |     | 20,729,341  |     |   | 21,862,936 |   |
|                                      |   |     | 268,729,726 |     |   | 250,622,955 |   |
| Deduct:                                   |   |     |        |     |   |   |   |
| Allowance                for loan losses  |   |     | 2,267,821   |     |   | 2,189,187 |   |
| Unearned                net loan fees     |   |     | 632,105     |     |   | 684,106 |   |
|                                      |   |     | 2,899,926   |     |   | 2,873,293 |   |
|                                      |   | $        | 265,829,800 |     | $      | 247,749,662 |   |

**Note      4.  Loan Servicing**

----

|                                                   | **Years                  Ended December 31,** |
|--------------------------------------------------------|-----------------------------------------------|
|                                                   |                                          | **2006** |   | **2005** |   | **2004** |   |
|                                                   |                                          |   |   |   |   |   |   |
| Mortgage                  servicing rights capitalized | $                                             | 447,939 | $ | 423,133 | $ | 446,079 |   |
| Mortgage                  servicing rights amortized   | $                                             | 281,140 | $ | 248,990 | $ | 214,496 |   |

**Note      5.  Allowance for Loan Losses**

|                                                 |   | **2006**  |   |   | **2005**  |   |   | **2004**  |   |
|------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
|                                                 |   |      |   |   |      |   |   |      |   |
| Balance,                    beginning of year        | $      | 2,189,187 |   | $      | 2,153,372 |   | $      | 2,199,110 |   |
| Provision                    for loan losses         |   | 137,500   |   |   | 150,000   |   |   | 95,000    |   |
| Recoveries                    of amounts charged off |   | 68,460    |   |   | 66,193    |   |   | 127,809   |   |
|                                                 |   | 2,395,147 |   |   | 2,369,565 |   |   | 2,421,919 |   |
| Amounts                    charged off               |   | (127,326  | )      |   | (180,378  | )      |   | (268,547  | )      |
| Balance,                    end of year              | $      | 2,267,821 |   | $      | 2,189,187 |   | $      | 2,153,372 |   |

**Note      6.  Bank Premises and Equipment**

|                                                             |   | **2006** |       |  **2005** |   |
|------------------------------------------------------------------|--------|----------|------------|----------------|--------|
|                                                             |   |     |       |      |   |
| Land                and land improvements                        |   | $        | 2,315,414  |           | $      | 1,566,010 |   |
| Buildings                and improvements                        |   |     | 9,746,666  |           |   | 9,301,401 |   |
| Furniture                and equipment                           |   |     | 5,282,007  |           |   | 5,039,609 |   |
| Leasehold                improvements                            |   |     | 623,621    |           |   | 636,789 |   |
| Other                prepaid assets and construction in progress |   |     | 94,688     |           |   | 8,127 |   |
|                                                             |   |     | 18,062,396 |           |   | 16,551,936 |   |
| Less                accumulated depreciation and amortization    |   |     | (5,728,372 | )              |   | (4,934,817 | ) |
|                                                             |   | $        | 12,334,024 |           | $      | 11,617,119 |   |

----

| 2007                              | $      | 142,563 |
|-----------------------------------|--------|---------|
| 2008                              |   | 143,872 |
| 2009                              |   | 145,220 |
| 2010                              |   | 118,451 |
| 2011                              |   | 98,924  |
| Subsequent                to 2011 |   | 335,641 |
|                              | $      | 984,671 |

**Note      7.  Other Real Estate Owned (OREO)**

**Note      8.  Other Investments**

**Note      9.  Deposits**

| **2007**  | $      | 103,452,693 |
|-----------|--------|-------------|
| **2008**  |   | 11,249,101  |
| **2009**  |   | 11,034,356  |
| **2010**  |   | 1,442,297   |
| **2011**  |   | 6,532,750   |
| **Total** | $      | 133,711,197 |

----

**Note      10.  Borrowed Funds**

|                                                                             |   | **   2006** |   | **   2005** |
|----------------------------------------------------------------------------------|--------|----------------------------|--------|----------------------------|
|                                                                             |   |                       |   |                       |
| FHLB                  term borrowing, 4.11% fixed rate, payable January 18, 2006 | $      | 0                          | $      | 2,000,000                  |
| FHLB                  term borrowing, 4.47% fixed rate, payable March 27, 2006   |   | 0                          |   | 3,000,000                  |
| Community                  Investment Program borrowing, 7.57%                   |   |                       |   |                       |
|  fixed                  rate, payable November 16, 2007                     |   | 30,000                     |   | 30,000                     |
| FHLB                  term borrowing, 4.78% fixed rate, payable                  |   |                       |   |                       |
|  January                  18, 2011, callable quarterly                      |   | 0                          |   | 5,000,000                  |
| Community                  Investment Program borrowing, 7.67%                   |   |                       |   |                       |
|  fixed                  rate, payable November 16, 2012                     |   | 10,000                     |   | 10,000                     |
|                                                                             | $      | 40,000                     | $      | 10,040,000                 |

| 2007   | $      | 30,000 |   |
|--------|--------|--------|--------|
| 2012   |   | 10,000 |   |
|   | $      | 40,000 |   |

**Note      11.  Securities Sold Under Agreements to      Repurchase**

----

**Note      12.  Income Taxes**

|                                     | **2006** |    |  **2005** |   |  **2004** |   |
|------------------------------------------|----------|---------|----------------|--------|----------------|--------|
|                                     |     |    |      |   |      |   |
| Currently                paid or payable | $        | 757,963 |           | $      | 826,932        |   | $ | 657,654 |   |
| Deferred                                 |     | (28,349 | )              |   | (36,931        | )      |   | 72,768 |   |
|                                     | $        | 729,614 |           | $      | 790,001        |   | $ | 730,422 |   |

|                                         | **2006** |      |  **2005** |   |  **2004** |   |
|----------------------------------------------|----------|-----------|----------------|--------|----------------|--------|
| Computed                expected tax expense | $        | 1,395,721 |           | $      | 1,431,616      |   | $ | 1,403,311 |   |
| Tax                exempt interest           |     | (367,055  | )              |   | (360,127       | )      |   | (348,155 | ) |
| Disallowed                interest           |     | 42,257    |           |   | 34,813         |   |   | 36,932 |   |
| Partnership                tax credits       |     | (345,522  | )              |   | (320,165       | )      |   | (248,521 | ) |
| Other                                        |     | 4,213     |           |   | 3,864          |   |   | (113,145 | ) |
|                                         | $        | 729,614   |           | $      | 790,001        |   | $ | 730,422 |   |

|                                    | **2006** |    |  **2005** |   |  **2004** |   |
|-----------------------------------------|----------|---------|----------------|--------|----------------|--------|
|                                    |     |    |      |   |      |   |
| Depreciation                            | $        | (20,178 | )              | $      | (60,525        | )      | $ | 4,199 |   |
| Loan                fees                |     | 1,814   |           |   | 2,721          |   |   | 5,181 |   |
| Mortgage                servicing       |     | 56,711  |           |   | 59,209         |   |   | 78,738 |   |
| Deferred                compensation    |     | (36,458 | )              |   | (27,654        | )      |   | (44,742 | ) |
| Bad                debts                |     | (26,735 | )              |   | (12,177        | )      |   | 15,551 |   |
| Nonaccrual                loan interest |     | (8,661  | )              |   | 1,495          |   |   | 32,567 |   |
| Other                                   |     | 5,158   |           |   | 0              |   |   | (18,726 | ) |
|                                    | $        | (28,349 | )              | $      | (36,931        | )      | $ | 72,768 |   |

----

|                                                                                  | **2006** |      |  **2005** |   |
|---------------------------------------------------------------------------------------|----------|-----------|----------------|--------|
| Components                of the deferred tax asset:                                  |     |      |      |   |
|   Bad                debts                                                  | $        | 596,883   |           | $      | 570,148 |   |
|   Unearned                loan fees                                         |     | 4,577     |           |   | 6,391 |   |
|   Nonaccrual                loan interest                                   |     | 11,003    |           |   | 2,342 |   |
|   Deferred                compensation                                      |     | 366,925   |           |   | 330,467 |   |
|   Unrealized                loss on securities available-for-sale           |     | 139,433   |           |   | 232,910 |   |
|   Other                                                                     |     | 94,858    |           |   | 100,014 |   |
|        Total                deferred tax asset     |     | 1,213,679 |           |   | 1,242,272 |   |
|                                                                                  |     |      |           |   |   |   |
| Components                of the deferred tax liability:                              |     |      |           |   |   |   |
|   Depreciation                                                              |     | 284,941   |           |   | 305,119 |   |
|   Limited                partnerships                                       |     | 255,280   |           |   | 255,280 |   |
|   Mortgage                servicing rights                                  |     | 378,627   |           |   | 321,915 |   |
|        Total                deferred tax liability |     | 918,848   |           |   | 882,314 |   |
|         Net                deferred tax asset | $        | 294,831   |           | $      | 359,958 |   |

**Note      13.  401(k) and Profit-Sharing Plan**

**Note      14.  Deferred Compensation and Supplemental Employee Retirement      Plans**

----

**Note      15.  Financial Instruments with Off-Balance-Sheet      Risk**

|                                                                      | **Contract                or**         |
|---------------------------------------------------------------------------|----------------------------------------|
|                                                                      | **--Notional                Amount--** |
|                                                                      | **2006**                               | **2005** |
|                                                                      |                                   |   |   |   |
| Unused                portions of commercial lines of credit              | $                                      | 11,116,285 | $ | 17,497,235 |
| Unused                portions of home equity lines of credit             |                                   | 11,212,136 |   | 8,867,594 |
| Other                commitments to extend credit                         |                                   | 11,982,321 |   | 10,303,630 |
| Standby                letters of credit and commercial letters of credit |                                   | 1,004,200 |   | 621,135 |
| Credit                card arrangements                                   |                                   | 9,086,665 |   | 8,890,318 |
| MPF                credit enhancement obligation, net (See Note 16)       |                                   | 1,130,949 |   | 1,066,162 |

----

**Note      16.  Contingent Liability **

**Note      17.  Legal Contingencies**

**Note      18.  Transactions with Related Parties**

|                                 | **   2006** |      |  **   2005** |   |
|--------------------------------------|----------------------------|-----------|----------------------------------|--------|
|                                 |                       |      |                        |   |
| Balance,                beginning    | $                          | 520,675   |                             | $      | 567,907 |   |
| Loans                - New Directors |                       | 749,441   |                             |   | 0 |   |
| New                loans             |                       | 784,933   |                             |   | 378,271 |   |
| Repayments                           |                       | (669,552  | )                                |   | (425,503 | ) |
| Balance,                ending       | $                          | 1,385,497 |                             | $      | 520,675 |   |

----

|                                | **2006** |   | **2005** |   | **2004** |   |
|-------------------------------------|----------|--------|----------|--------|----------|--------|
|                                |     |   |     |   |     |   |
| Newport                             | $        | 18,635 |     | $      | 16,994   |   | $ | 16,555 |   |
| Barre                               |     | 2,313  |     |   | 2,225    |   |   | 2,135 |   |
|      Total | $        | 20,948 |     | $      | 19,219   |   | $ | 18,690 |   |

|                           | **2006** |   | **2005** |   | **2004** |   |
|--------------------------------|----------|--------|----------|--------|----------|--------|
|                           |     |   |     |   |     |   |
| Management                Fees | $        | 36,841 |     | $      | 35,521   |   | $ | 37,316 |   |

**Note      19.  Restrictions on Cash and Due From Banks**

**Note      20.  Regulatory Matters**

----

|                                                    |       |            |                                  |                                  | **Minimum**                   |
|---------------------------------------------------------|------------|-----------------|---------------------------------------|---------------------------------------|-------------------------------|
|                                                    |       |            |                                  |                                  | **To                Be Well** |
|                                                    |       |            | **Minimum**                           | **Capitalized                Under**  |
|                                                    |       |            | **For                Capital**        | **Prompt                Corrective**  |
|                                                    |       |            | **Adequacy                Purposes:** | **Action                Provisions:** |
|                                                    | **Actual** |            |                                  |                                  |                          |
|                                                    | **Amount** | **Ratio ** | **Amount**                            | **Ratio**                             | **Amount**                    | **Ratio** |
|                                                    |       |            |                                  |                                  |                          |   |
| **As                of December 31, 2006:**             |       |            |                                  |                                  |                          |   |
| Total                capital (to risk-weighted assets)  |       |            |                                  |                                  |                          |   |
|    Consolidated                          | $33,270    | 14.10%          | $18,879                               | 8.0%                                  | N/A                           | N/A |
|    Bank                                  | $33,047    | 14.01%          | $18,872                               | 8.0%                                  | $23,590                       | 10.0% |
| Tier                I capital (to risk-weighted assets) |       |            |                                  |                                  |                          |   |
|    Consolidated                          | $31,002    | 13.14%          | $ 9,439                          | 4.0%                                  | N/A                           | N/A |
|    Bank                                  | $30,779    | 13.05%          | $ 9,436                          | 4.0%                                  | $14,154                       | 6.0% |
| Tier                I capital (to average assets)       |       |            |                                  |                                  |                          |   |
|    Consolidated                          | $31,002    | 8.59%           | $14,434                               | 4.0%                                  | N/A                           | N/A |
|    Bank                                  | $30,779    | 8.53%           | $14,430                               | 4.0%                                  | $18,038                       | 5.0% |
| **As                of December 31, 2005:**             |       |            |                                  |                                  |                          |   |
| Total                capital (to risk-weighted assets)  |       |            |                                  |                                  |                          |   |
|    Consolidated                          | $31,764    | 14.65%          | $17,347                               | 8.0%                                  | N/A                           | N/A |
|    Bank                                  | $32,037    | 14.78%          | $17,343                               | 8.0%                                  | $21,678                       | 10.0% |
| Tier                I capital (to risk-weighted assets) |       |            |                                  |                                  |                          |   |
|    Consolidated                          | $29,575    | 13.64%          | $ 8,674                          | 4.0%                                  | N/A                           | N/A |
|    Bank                                  | $29,848    | 13.77%          | $ 8,671                          | 4.0%                                  | $13,007                       | 6.0% |
| Tier                I capital (to average assets)       |       |            |                                  |                                  |                          |   |
|    Consolidated                          | $29,575    | 8.37%           | $14,136                               | 4.0%                                  | N/A                           | N/A |
|    Bank                                  | $29,848    | 8.45%           | $14,132                               | 4.0%                                  | $17,666                       | 5.0% |

----

**Note      21.  Fair Value of Financial Instruments**

|                                                            | **December                31, 2006** | **December                31, 2005** |
|-----------------------------------------------------------------|--------------------------------------|--------------------------------------|
|                                                            | **Carrying**                         | **Fair**                             | **Carrying** | **Fair** |
|                                                            | **Amount**                           | **Value**                            | **Amount** | **Value** |
|                                                            |                                 | **(in                thousands)**    |   |
| Financial                assets:                                |                                 |                                 |   |   |
| Cash                and cash equivalents                        | $                                    | 19,467                               | $ | 19,467 | $ | 17,575 | $ | 17,575 |
| Securities                held-to-maturity                      |                                 | 21,070                               |   | 21,301 |   | 28,392 |   | 28,444 |
| Securities                available-for-sale                    |                                 | 22,612                               |   | 22,612 |   | 36,454 |   | 36,454 |
| Restricted                equity securities                     |                                 | 2,828                                |   | 2,828 |   | 3,252 |   | 3,252 |
| Loans                and loans held-for-sale, net               |                                 | 266,396                              |   | 266,361 |   | 249,336 |   | 247,367 |
| Accrued                interest receivable                      |                                 | 1,667                                |   | 1,667 |   | 1,789 |   | 1,789 |
|                                                            |                                 |                                 |   |   |   |   |   |   |
| Financial                liabilities:                           |                                 |                                 |   |   |   |   |   |   |
| Deposits                                                        |                                 | 300,988                              |   | 299,670 |   | 294,312 |   | 292,940 |
| Repurchase                agreements                            |                                 | 17,084                               |   | 17,072 |   | 17,347 |   | 17,335 |
| Federal                funds purchased and other borrowed funds |                                 | 40                                   |   | 42 |   | 10,040 |   | 10,088 |
| Accrued                interest payable                         |                                 | 345                                  |   | 345 |   | 216 |   | 216 |
|                                                            |                                 |                                 |   |   |   |   |   |

----

**Note      22.  Condensed Financial Information (Parent Company      Only)**

| **COMMUNITY                BANCORP. (PARENT COMPANY ONLY)**                                                            |   |
|------------------------------------------------------------------------------------------------------------------------|--------|
| **CONDENSED                BALANCE SHEETS**                                                                            |   |
| **DECEMBER                31, 2006 AND 2005**                                                                          |   |
|                                                                                                                   |   |
| **ASSETS**                                                                                                             |   | **2006** |   |  **2005** |   |
|                                                                                                                   |   |   |   |    |   |
|   Cash                                                                                                       |   | $ | 635,250 |   | $ | 113,967 |   |
|   Investment                in subsidiary - Community National Bank                                          |   |   | 30,507,941 |   |   | 29,395,617 |   |
|   Other                assets                                                                                |   |   | 85,732 |   |   | 89,257 |   |
|        Total                assets                                                  |   | $ | 31,228,923 |   | $ | 29,598,841 |   |
|                                                                                                                   |   |   |   |   |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS' EQUITY**                                                                |   |   |   |   |   |   |   |
| Liabilities                                                                                                            |   |   |   |   |   |   |   |
|   Dividends                payable                                                                           |   | $ | 498,112 |   | $ | 475,507 |   |
|       Total                liabilities                                                   |   |   | 498,112 |   |   | 475,507 |   |
|                                                                                                                   |   |   |   |   |   |   |   |
| Shareholders'                equity                                                                                    |   |   |   |   |   |   |   |
|   Common                stock, $2.50 par value; 6,000,000 shares authorized,                4,339,619        |   |   |   |   |   |   |   |
|    shares                issued at December 31, 2006 and 4,279,884 shares issued at                     |   |   |   |   |   |   |   |
|    December                31, 2005 (including 15,222 shares issued February 1, 2007                and |   |   |   |   |   |   |   |
|    13,522                shares issued February 1, 2006)                                                |   |   | 10,849,048 |   |   | 10,699,709 |   |
|   Additional                paid-in capital                                                                  |   |   | 22,006,492 |   |   | 21,324,481 |   |
|   Retained                earnings                                                                           |   |   | 760,667 |   |   | 165,983 |   |
|   Accumulated                other comprehensive loss                                                        |   |   | (270,664 | ) |   | (452,118 | ) |
|   Less                treasury stock, at cost (2006 and 2005 - 209,510 shares)                               |   |   | (2,614,732 | ) |   | (2,614,721 | ) |
|        Total                shareholders' equity                                    |   |   | 30,730,811 |   |   | 29,123,334 |   |
|        Total                liabilities and shareholders' equity                    |   | $ | 31,228,923 |   | $ | 29,598,841 |   |

----

| **COMMUNITY                BANCORP. (PARENT COMPANY ONLY)**                      |   |
|----------------------------------------------------------------------------------|--------|
| **CONDENSED                STATEMENTS OF INCOME**                                |   |
| **Years                Ended December 31, 2006, 2005, and 2004**                 |   |
|                                                                             |   | **2006** |   |  **2005** |   |  **2004** |   |
| Revenues                                                                         |   |   |   |    |   |    |   |
|   Dividends                                                            |   |   |   |    |   |    |   |
|     Bank                subsidiary - Community National Bank |   | $ | 2,611,000 |   | $ | 1,491,000 |   | $ | 2,331,000 |   |
|     Other                dividend income                     |   |   | 300 |   |   | 600 |   |   | 600 |   |
|       Total                revenues                |   |   | 2,611,300 |   |   | 1,491,600 |   |   | 2,331,600 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |
| Other                non-interest income                                         |   |   |   |   |   |   |   |   |   |   |
|     Gain                on sale of stock                     |   |   | 56,875 |   |   | 0 |   |   | 0 |   |
|       Total                non-interest income     |   |   | 56,875 |   |   | 0 |   |   | 0 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                         |   |   |   |   |   |   |   |   |   |   |
|   Administrative                and other                              |   |   | 309,329 |   |   | 167,533 |   |   | 164,466 |   |
|       Total                expenses                |   |   | 309,329 |   |   | 167,533 |   |   | 164,466 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |
| Income                before applicable income tax and equity in                 |   |   |   |   |   |   |   |   |   |   |
|  undistributed                net income of subsidiary                      |   |   | 2,358,846 |   |   | 1,324,067 |   |   | 2,167,134 |   |
| Applicable                income tax benefit                                     |   |   | 85,732 |   |   | 56,757 |   |   | 172,254 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |
| Income                before equity in undistributed net                         |   |   |   |   |   |   |   |   |   |   |
|  income                of subsidiary                                        |   |   | 2,444,578 |   |   | 1,380,824 |   |   | 2,339,388 |   |
| Equity                in undistributed net income of subsidiary                  |   |   | 930,870 |   |   | 2,039,811 |   |   | 1,057,576 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |
|       Net                income                    |   | $ | 3,375,448 |   | $ | 3,420,635 |   | $ | 3,396,964 |   |

----

| **COMMUNITY                BANCORP. (PARENT COMPANY ONLY)**                                        |   |
|----------------------------------------------------------------------------------------------------|--------|
| **CONDENSED                STATEMENTS OF CASH FLOWS**                                              |   |
| **Years                Ended December 31, 2006, 2005, and 2004**                                   |   |
|                                                                                               |   |
|                                                                                               |   | **2006** |   |  **2005** |   |  **2004** |   |
|                                                                                               |   |   |   |    |   |    |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES                                                |   |   |   |    |   |    |   |
|  Net                income                                                                    |   | $ | 3,375,448 |   | $ | 3,420,635 |   | $ | 3,396,964 |   |
|   Adjustments                to reconcile net income to net cash                         |   |   |   |   |   |   |   |   |   |   |
|    provided                by operating activities                                  |   |   |   |   |   |   |   |   |   |   |
|   Equity                in undistributed net income of subsidiary                        |   |   | (930,870 | ) |   | (2,039,811 | ) |   | (1,057,576 | ) |
|   Net                gain on sale of investments                                         |   |   | (56,875 | ) |   | 0 |   |   | 0 |   |
|   (Increase)                decrease in income taxes receivable                          |   |   | (28,975 | ) |   | 115,496 |   |   | (131,234 | ) |
|        Net                cash provided by operating activities |   |   | 2,358,728 |   |   | 1,496,320 |   |   | 2,208,154 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES                                                |   |   |   |   |   |   |   |   |   |   |
|   Proceeds                from sale of investments available-for-sale                    |   |   | 89,375 |   |   | 0 |   |   | 0 |   |
|        Net                cash provided by investing activities |   |   | 89,375 |   |   | 0 |   |   | 0 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES                                                |   |   |   |   |   |   |   |   |   |   |
|   Purchase                of treasury stock                                              |   |   | (11 | ) |   | (178,359 | ) |   | (251,857 | ) |
|   Dividends                paid                                                          |   |   | (1,926,809 | ) |   | (1,842,839 | ) |   | (1,716,868 | ) |
|        Net                cash used in financing activities     |   |   | (1,926,820 | ) |   | (2,021,198 | ) |   | (1,968,725 | ) |
|        Net                increase (decrease) in cash           |   |   | 521,283 |   |   | (524,878 | ) |   | 239,429 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Cash                                                                                               |   |   |   |   |   |   |   |   |   |   |
|   Beginning                                                                              |   |   | 113,967 |   |   | 638,845 |   |   | 399,416 |   |
|   Ending                                                                                 |   | $ | 635,250 |   | $ | 113,967 |   | $ | 638,845 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL                SCHEDULE OF CASH RECEIVED                                              |   |   |   |   |   |   |   |   |   |   |
| DURING                THE YEAR                                                                     |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |
|   Income                taxes                                                            |   | $ | 56,757 |   | $ | 172,254 |   | $ | 41,019 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL                SCHEDULE OF NONCASH INVESTING                                          |   |   |   |   |   |   |   |   |   |   |
| AND                FINANCING ACTIVITIES                                                            |   |   |   |   |   |   |   |   |   |   |
|   Change                in unrealized loss on securities available-for-sale              |   | $ | 274,931 |   | $ | (429,453 | ) | $ | (1,022,250 | ) |
|   Dividends                paid:                                                         |   |   |   |   |   |   |   |   |   |   |
|    Dividends                declared                                                |   | $ | 2,780,764 |   | $ | 2,720,332 |   | $ | 2,592,823 |   |
|    Increase                in dividends payable attributable to dividends declared  |   |   | (7,585 | ) |   | (41,516 | ) |   | (6,304 | ) |
|    Dividends                reinvested                                              |   |   | (846,370 | ) |   | (835,977 | ) |   | (869,651 | ) |
|                                                                                               |   | $ | 1,926,809 |   | $ | 1,842,839 |   | $ | 1,716,868 |   |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |
|   Stock                dividend                                                          |   | $ | 0 |   | $ | 3,310,331 |   | $ | 0 |   |

----

**Note      23.  Quarterly Financial Data (Unaudited)**

| **COMMUNITY                BANCORP. AND SUBSIDIARY** |
|------------------------------------------------------|
|                                                 |
|                                                 | **Quarters                in 2006 ended** |
|                                                 |   | **March                31,** |   | **June                30,** |   | **Sept.                30,** |   | **Dec.                31,** |
|                                                 |   |   |   |   |   |   |   |   |
| Interest                income                       | $ | 4,874,446 | $ | 5,188,141 | $ | 5,293,321 | $ | 5,619,936 |
| Interest                expense                      |   | 1,616,977 |   | 1,847,419 |   | 2,078,793 |   | 2,159,899 |
| Provision                for loan losses             |   | 37,500 |   | 37,500 |   | 37,500 |   | 25,000 |
| Securities                gains                      |   | 0 |   | 0 |   | 0 |   | 56,875 |
| Non-interest                income                   |   | 669,624 |   | 838,393 |   | 791,409 |   | 824,750 |
| Non-interest                expense                  |   | 3,113,226 |   | 3,120,224 |   | 3,061,570 |   | 2,859,350 |
| Net                income                            |   | 665,942 |   | 832,100 |   | 764,064 |   | 1,113,342 |
| Earnings                per common share             |   | 0.16 |   | 0.20 |   | 0.19 |   | 0.27 |
|                                                 |   |   |   |   |   |   |   |   |
|                                                 | **Quarters                in 2005 ended** |
|                                                 |   | **March                31,** |   | **June                30,** |   | **Sept.                30,** |   | **Dec.                31,** |
|                                                 |   |   |   |   |   |   |   |   |
| Interest                income                       | $ | 4,357,163 | $ | 4,421,948 | $ | 4,648,748 | $ | 4,929,703 |
| Interest                expense                      |   | 1,179,886 |   | 1,318,911 |   | 1,394,072 |   | 1,534,529 |
| Provision                for loan losses             |   | 37,500 |   | 37,500 |   | 37,500 |   | 37,500 |
| Non-interest                income                   |   | 694,589 |   | 796,303 |   | 821,370 |   | 860,459 |
| Non-interest                expense                  |   | 2,951,815 |   | 2,953,735 |   | 2,896,883 |   | 2,939,816 |
| Net                income                            |   | 730,141 |   | 757,044 |   | 918,112 |   | 1,015,338 |
| Earnings                per common share             |   | 0.18 |   | 0.19 |   | 0.23 |   | 0.24 |
|                                                 |   |   |   |   |   |   |   |   |
|                                                 |   | **Quarters                in 2004 ended** |
|                                                 |   | **March                31,** |   | **June                30,** |   | **Sept.                30,** |   | **Dec.                31,** |
|                                                 |   |   |   |   |   |   |   |   |
| Interest                income                       | $ | 4,161,101 | $ | 4,177,138 | $ | 4,172,423 | $ | 4,455,683 |
| Interest                expense                      |   | 1,255,820 |   | 1,226,265 |   | 1,145,625 |   | 1,134,460 |
| Provision                for loan losses             |   | 51,000 |   | 34,000 |   | 10,000 |   | 0 |
| Securities                gains                      |   | 0 |   | 18,631 |   | 25,428 |   | 0 |
| Non-interest                income                   |   | 663,209 |   | 884,152 |   | 855,239 |   | 815,101 |
| Non-interest                expense                  |   | 2,740,438 |   | 2,777,099 |   | 2,875,104 |   | 2,806,849 |
| Net                income                            |   | 763,842 |   | 819,201 |   | 800,123 |   | 1,013,798 |
| Earnings                per common share             |   | 0.19 |   | 0.20 |   | 0.20 |   | 0.26 |
|                                                 |   |   |   |   |   |   |   |   |

----

**Note      24.  Other Income and Other Expenses**

|                                                                   |   | **2006** |    | **2005** |   | **2004** |   |
|------------------------------------------------------------------------|--------|----------|---------|----------|--------|----------|--------|
| Income                                                                 |   |     |    |     |   |     |   |
|                                                                   |   |     |    |     |   |     |   |
|   Income                from sold loans, net of amortization |   | $        | 481,649 |     | $      | 551,091  |   | $ | 657,781 |   |
|                                                                   |   |     |    |     |   |     |   |   |   |   |
| Expenses                                                               |   |     |    |     |   |     |   |   |   |   |
|                                                                   |   |     |    |     |   |     |   |   |   |   |
|   Printing                and supplies                       |   | $        | 206,144 |     | $      | 214,263  |   | $ | 219,379 |   |
|   State                deposit tax                           |   |     | 280,805 |     |   | 240,000  |   |   | 264,000 |   |
|   Loss                on limited partnerships                |   |     | 354,156 |     |   | 338,216  |   |   | 292,915 |   |
|   Advertising                                                |   |     | 224,802 |     |   | 219,996  |   |   | 213,309 |   |
|   Telephone                                                  |   |     | 162,783 |     |   | 193,121  |   |   | 207,348 |   |
|   ATM                fees                                    |   |     | 187,173 |     |   | 229,003  |   |   | 197,716 |   |

**Note      25.  Subsequent Event**

----

----

*     *

----

|                                                  | December                31, |
|-------------------------------------------------------|-----------------------------|
|                                                  | 2006                        | 2005 | 2004 |
|                                                  |                        |   |   |
| Return                on Average Assets               | 0.95%                       | 1.00% | 1.03% |
| Return                on Average Equity               | 11.35%                      | 12.05% | 12.32% |
| Dividend                Payout Ratio                  | 82.93%                      | 79.76% | 75.29% |
| Average                Equity to Average Assets Ratio | 8.40%                       | 8.33% | 8.38% |

----

| SELECTED                FINANCIAL DATA                                                                                                                                                       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                         |
| Year                Ended December 31,                                                                                                                                                       | 2006 | 2005 | 2004 | 2003 | 2002 |
|                                                                                                                                                                                         | (Dollars                in Thousands, except per share data) |
|                                                                                                                                                                                         |
| Total                Interest Income                                                                                                                                                         | $ | 20,976 | $ | 18,357 | $ | 16,966 | $ | 17,627 | $ | 18,379 |   |
| Total                Interest Expense                                                                                                                                                        |   | (7,703 | ) | (5,427 | ) | (4,762 | ) | (5,359 | ) | (6,680 | ) |
|     Net                Interest Income                                                                                                                                   |   | 13,273 |   | 12,930 |   | 12,204 |   | 12,268 |   | 11,699 |   |
| Provision                for Loan Losses                                                                                                                                                     |   | (138 | ) | (150 | ) | (95 | ) | (123 | ) | (326 | ) |
| Non-Interest                Income                                                                                                                                                           |   | 3,124 |   | 3,173 |   | 3,218 |   | 3,432 |   | 3,319 |   |
| Non-Interest                Expense                                                                                                                                                          |   | (12,154 | ) | (11,742 | ) | (11,200 | ) | (10,790 | ) | (10,527 | ) |
|     Income                Before Income Taxes                                                                                                                            |   | 4,105 |   | 4,211 |   | 4,127 |   | 4,787 |   | 4,165 |   |
| Applicable                Income Taxes (1)                                                                                                                                                   |   | (730 | ) | (790 | ) | (730 | ) | (989 | ) | (925 | ) |
|     Net                Income                                                                                                                                            | $ | 3,375 | $ | 3,421 | $ | 3,397 | $ | 3,798 | $ | 3,240 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Balance                Sheet Data:                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loans                                                                                                                                                                     | $ | 266,396 | $ | 249,336 | $ | 226,716 | $ | 203,526 | $ | 204,047 |   |
| Total                Assets                                                                                                                                                                  |   | 351,815 |   | 353,828 |   | 334,836 |   | 330,742 |   | 309,228 |   |
| Total                Deposits                                                                                                                                                                |   | 300,988 |   | 294,312 |   | 282,606 |   | 279,679 |   | 260,922 |   |
| Borrowed                Funds                                                                                                                                                                |   | 40 |   | 10,040 |   | 6,407 |   | 8,040 |   | 5,040 |   |
| Total                Liabilities                                                                                                                                                             |   | 321,084 |   | 324,704 |   | 306,793 |   | 303,657 |   | 283,523 |   |
| Total                Shareholders' Equity                                                                                                                                                    |   | 30,731 |   | 29,123 |   | 28,043 |   | 27,085 |   | 25,705 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Per                Share Data: (2)                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                per Share                                                                                                                                                            | $ | 0.82 | $ | 0.84 | $ | 0.85 | $ | 0.96 | $ | 0.83 |   |
| Cash                Dividends Declared                                                                                                                                                       | $ | 0.68 | $ | 0.67 | $ | 0.64 | $ | 0.61 | $ | 0.60 |   |
| Weighted                Average Number of Common                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
|  Shares                Outstanding                                                                                                                                                      |   | 4,097,577 |   | 4,050,993 |   | 4,010,894 |   | 3,961,386 |   | 3,923,625 |   |
| Number                of Common Shares Outstanding                                                                                                                                           |   | 4,130,109 |   | 4,070,374 |   | 4,031,060 |   | 3,978,538 |   | 3,944,536 |   |
|                                                                                                                                                                                         |
| *(1)                Applicable income taxes above includes the income tax effect, assuming                a                34% tax rate, on securities gains,*                               |
| *                    totaling $56,875 in 2006, $0 in 2005, $14,980 in 2004, $48,587 in                2003,and                $10,646 in 2002.*                          |
| *(2)                All per share data prior to the second quarter of 2005 has been restated                to reflect a 5% stock dividend declared in that quarter of                2005.* |

----

|                                               |   | For                the year ended December 31, |   |
|----------------------------------------------------|--------|------------------------------------------------|--------|
|                                               |   | 2006                       |   | 2005     |   | 2004     |   |
|                                               |   | (Dollars                in Thousands)          |   |
|                                               |   |                                           |   |   |   |   |   |
| Net                interest income as presented    |   | $                                              | 13,273 |   | $ | 12,930 |   | $ | 12,204 |   |
| Effect                of tax-exempt income         |   |                                           | 556    |   |   | 546 |   |   | 527 |   |
| Net                interest income, tax equivalent |   | $                                              | 13,829 |   | $ | 13,476 |   | $ | 12,731 |   |

| Table                A                                                                                                                                                                                                                                                                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| AVERAGE                BALANCES AND INTEREST RATES                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                            |   | 2006 |   |   | 2005 |   |   | 2004 |   |   |
|                                                                                                                                                                                                                                                                                                                            |   | Average | Income/ | Rate/ | Average | Income/ | Rate/ | Average | Income/ | Rate/ |   |
|                                                                                                                                                                                                                                                                                                                            |   | Balance | Expense | Yield | Balance | Expense | Yield | Balance | Expense | Yield |   |
|                                                (Dollars                in Thousands) |
| Interest-Earning                Assets                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Loans                (1)                                                                                                                                                                                                                                                                                                        |   | $ 263,901 | $  18,471 | 7.00% | $ 238,376 | $  15,645 | 6.56% | $ 212,460 | $  13,870 | 6.53% |   |
| Taxable                Investment                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Securities                                                                                                                                                                                                                                                                                                                      | 30,174 | 1,082 | 3.59% | 44,243 | 1,483 | 3.35% | 55,621 | 1,974 | 3.55% |   |
| Tax-exempt                Investment                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |
| Securities                                                                                                                                                                                                                                                                                                                      | 28,529 | 1,636 | 5.73% | 32,092 | 1,605 | 5.00% | 37,386 | 1,551 | 4.15% |   |
| Federal                Funds Sold                                                                                                                                                                                                                                                                                               | 263 | 10 | 3.80% | 465 | 17 | 3.66% | 1,146 | 12 | 1.05% |   |
| Overnight                Deposits                                                                                                                                                                                                                                                                                               | 3,052 | 156 | 5.11% | 591 | 20 | 3.38% | 2,059 | 26 | 1.26% |   |
| Other                Securities                                                                                                                                                                                                                                                                                                 | 3,161 | 177 | 5.60% | 3,014 | 133 | 4.41% | 1,969 | 60 | 3.05% |   |
|      TOTAL                                                                                                                                                                                                                                                                                             |   | $ 329,080 | $  21,532 | 6.54% | $ 318,781 | $  18,903 | 5.93% | $ 310,641 | $  17,493 | 5.63% |   |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing                Liabilities                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Savings                Deposits                                                                                                                                                                                                                                                                                                 | $   43,563 | $       152 | 0.35% | $   46,722 | $       163 | 0.35% | $   45,154 | $       164 | 0.36% |   |
| NOW                and Money Market                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |
| Funds                                                                                                                                                                                                                                                                                                                           | 80,348 | 1,698 | 2.11% | 88,152 | 1,452 | 1.65% | 91,258 | 1,272 | 1.39% |   |
| Time                Deposits                                                                                                                                                                                                                                                                                                    | 121,691 | 4,835 | 3.97% | 99,042 | 2,981 | 3.01% | 100,656 | 2,903 | 2.88% |   |
| Other                Borrowed Funds                                                                                                                                                                                                                                                                                             | 13,236 | 693 | 5.24% | 16,106 | 624 | 3.87% | 8,763 | 298 | 3.40% |   |
| Repurchase                Agreements                                                                                                                                                                                                                                                                                            | 15,688 | 325 | 2.07% | 13,987 | 207 | 1.48% | 12,880 | 125 | 0.97% |   |
|      TOTAL                                                                                                                                                                                                                                                                                             |   | $ 274,526 | $  7,703 | 2.81% | $ 264,009 | $  5,427 | 2.06% | $ 258,711 | $  4,762 | 1.84% |   |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Net                Interest Income                                                                                                                                                                                                                                                                                              |   | $13,829 |   |   | $13,476 |   |   | $12,731 |   |   |
| Net                Interest Spread(2)                                                                                                                                                                                                                                                                                           |   |   | 3.73% |   |   | 3.87% |   |   | 3.79% |   |
| Interest                Margin(3)                                                                                                                                                                                                                                                                                               |   |   | 4.20% |   |   | 4.23% |   |   | 4.10% |   |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| (1)  Included                in gross loans are non-accrual loans with an average balance of $1,070,518                for 2006, $623,011 for                                                                                                                                                                         |   |
|         2005,                and $1,191,852 for 2004.                                                                                                                                                                                                                                   |
| (2)  Net                interest spread is the difference between the yield on earning assets                and                the rate paid on interest-bearing                                                                                                                                                     |   |
|         liabilities.                                                                                                                                                                                                                                                                    |   |
| (3)  Interest                margin is tax equivalent net interest income divided by average earning                assets.                                                                                                                                                                                           |

----

----

| Table                      B                                                     |
|----------------------------------------------------------------------------------|
| CHANGES                      IN INTEREST INCOME AND INTEREST EXPENSE             |
|                                                                             |
|                                                                             | 2006  vs.  2005 | 2005  vs.  2004 |
| RATE                      VOLUME                                                 |    Variance                      Due to(1) | Total |     Variance                      Due to(1) | Total |
|                                                                             |   | Rate |   |   | Volume |   |   | Variance |   |   | Rate |   |   | Volume |   |   | Variance |   |
|                                                                             | (Dollars                      in Thousands) |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Earning                      Assets                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans(2)                                                                         | $ | 1,151 |   | $ | 1,675 |   | $ | 2,826 |   | $ | 83 |   | $ | 1,692 |   | $ | 1,775 |   |
| Taxable                      Investment Securities                               |   | 103 |   |   | (504 | ) |   | (401 | ) |   | (110 | ) |   | (381 | ) |   | (491 | ) |
| Tax-exempt                      Investment Securities                            |   | 235 |   |   | (204 | ) |   | 31 |   |   | 319 |   |   | (265 | ) |   | 54 |   |
| Federal                      Funds Sold                                          |   | 1 |   |   | (8 | ) |   | (7 | ) |   | 30 |   |   | (25 | ) |   | 5 |   |
| Overnight                      Deposits                                          |   | 53 |   |   | 83 |   |   | 136 |   |   | 44 |   |   | (50 | ) |   | (6 | ) |
| Other                      Securities                                            |   | 38 |   |   | 6 |   |   | 44 |   |   | 41 |   |   | 32 |   |   | 73 |   |
|    Total                      Interest Earnings                   | $ | 1,581 |   | $ | 1,048 |   | $ | 2,629 |   | $ | 407 |   | $ | 1,003 |   | $ | 1,410 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing                      Liabilities                                |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                      Deposits                                            | $ | 0 |   | $ | (11 | ) | $ | (11 | ) | $ | (7 | ) | $ | 6 |   | $ | (1 | ) |
| NOW                      and Money Market Funds                                  |   | 411 |   |   | (165 | ) |   | 246 |   |   | 231 |   |   | (51 | ) |   | 180 |   |
| Time                      Deposits                                               |   | 1,172 |   |   | 682 |   |   | 1,854 |   |   | 127 |   |   | (49 | ) |   | 78 |   |
| Other                      Borrowed Funds                                        |   | 219 |   |   | (150 | ) |   | 69 |   |   | 76 |   |   | 250 |   |   | 326 |   |
| Repurchase                      Agreements                                       |   | 93 |   |   | 25 |   |   | 118 |   |   | 71 |   |   | 11 |   |   | 82 |   |
|    Total                      Interest Expense                    | $ | 1,895 |   | $ | 381 |   | $ | 2,276 |   | $ | 498 |   | $ | 167 |   | $ | 665 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Change                      in Net Interest Income | $ | (314 | ) | $ | 667 |   | $ | 353 |   | $ | (91 | ) | $ | 836 |   | $ | 745 |   |

| (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 |
| (2)  Loans                  are stated before deduction of unearned discount and allowance                  for loan                  losses. Interest on non-accrual loans                                                 |
|       is                  excluded from income. The principal balances of non-accrual loans                  are                  included in calculations of the yield                  on loans. |

*Non-interest      Income*

*Non-interest      Expense*

----

----

| DISTRIBUTION                  OF AVERAGE ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY    |
|------------------------------------------------------------------------------------------|
|                                                                                     |
|                                                                                     | Year                  ended December 31, |
|                                                                                     |   | 2006 |   |   |   |   | 2005 |   |   |   |   | 2004 |   |   |   |
|                                                                                     |   | (Dollars                  in Thousands) |   |
| AVERAGE                  ASSETS                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   | Balance |   | % |   |   | Balance |   | % |   |   | Balance |   | % |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                  Investment Securities(1)                                        | $ | 30,174 |   | 8.53% |   | $ | 44,243 |   | 12.99% |   | $ | 55,621 |   | 16.89% |   |
| Tax-exempt                  Investment Securities(1)                                     |   | 28,529 |   | 8.06% |   |   | 32,092 |   | 9.42% |   |   | 37,386 |   | 11.35% |   |
| Other                  Securities(1)                                                     |   | 3,161 |   | 0.89% |   |   | 3,014 |   | 0.88% |   |   | 1,969 |   | 0.60% |   |
|   Total                  Investment Securities                                 |   | 61,864 |   | 17.48% |   |   | 79,349 |   | 23.29% |   |   | 94,976 |   | 28.84% |   |
| Cash                  and Due from Banks                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Non-Interest                  Bearing                                              |   | 8,724 |   | 2.46% |   |   | 8,618 |   | 2.53% |   |   | 7,816 |   | 2.37% |   |
|  Overnight                  Deposits                                                |   | 3,052 |   | 0.86% |   |   | 591 |   | 0.17% |   |   | 2,059 |   | 0.63% |   |
| Federal                  Funds Sold                                                      |   | 263 |   | 0.07% |   |   | 465 |   | 0.14% |   |   | 1,146 |   | 0.35% |   |
| Gross                  Loans                                                             |   | 263,901 |   | 74.55% |   |   | 238,376 |   | 69.97% |   |   | 212,460 |   | 64.52% |   |
| Reserve                  for Loan Losses and Accrued Fees                                |   | (2,923 | ) | -0.83% |   |   | (2,892 | ) | -0.85% |   |   | (3,004 | ) | -0.91% |   |
| Premises                  and Equipment                                                  |   | 11,876 |   | 3.36% |   |   | 7,602 |   | 2.23% |   |   | 7,713 |   | 2.34% |   |
| Other                  Real Estate Owned                                                 |   | 0 |   | 0.00% |   |   | 5 |   | 0.00% |   |   | 103 |   | 0.03% |   |
| Other                  Assets                                                            |   | 7,238 |   | 2.05% |   |   | 8,579 |   | 2.52% |   |   | 6,020 |   | 1.83% |   |
|      Total                  Average Assets                      | $ | 353,995 |   | 100% |   | $ | 340,693 |   | 100% |   | $ | 329,289 |   | 100% |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| AVERAGE                  LIABILITIES                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                  Deposits                                                         | $ | 46,964 |   | 13.27% |   | $ | 46,078 |   | 13.53% |   | $ | 40,140 |   | 12.19% |   |
| Now                  and Money Market Accounts                                           |   | 80,348 |   | 22.70% |   |   | 88,152 |   | 25.87% |   |   | 91,258 |   | 27.71% |   |
| Savings                  Accounts                                                        |   | 43,563 |   | 12.30% |   |   | 46,722 |   | 13.71% |   |   | 45,154 |   | 13.71% |   |
| Time                  Deposits                                                           |   | 121,691 |   | 34.38% |   |   | 99,042 |   | 29.07% |   |   | 100,656 |   | 30.57% |   |
|      Total                  Deposits                            |   | 292,566 |   | 82.65% |   |   | 279,994 |   | 82.18% |   |   | 277,208 |   | 84.18% |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  Borrowed Funds                                                    |   | 13,236 |   | 3.74% |   |   | 16,106 |   | 4.73% |   |   | 8,763 |   | 2.66% |   |
| Repurchase                  Agreements                                                   |   | 15,688 |   | 4.43% |   |   | 13,987 |   | 4.11% |   |   | 12,880 |   | 3.91% |   |
| Other                  Liabilities                                                       |   | 2,780 |   | 0.78% |   |   | 2,215 |   | 0.65% |   |   | 2,859 |   | 0.87% |   |
|      Total                  Average Liabilities                 | $ | 324,270 |   | 91.60% |   | $ | 312,302 |   | 91.67% |   | $ | 301,710 |   | 91.62% |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| AVERAGE                  SHAREHOLDERS' EQUITY                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                  Stock                                                            | $ | 10,783 |   | 3.05% |   | $ | 10,430 |   | 3.06% |   | $ | 10,021 |   | 3.04% |   |
| Surplus                                                                                  |   | 21,663 |   | 6.12% |   |   | 19,754 |   | 5.80% |   |   | 17,373 |   | 5.28% |   |
| Retained                  Earnings                                                       |   | 300 |   | 0.08% |   |   | 1,054 |   | 0.31% |   |   | 2,250 |   | 0.68% |   |
| Less:                  Treasury Stock                                                    |   | (2,600 | ) | -0.73% |   |   | (2,483 | ) | -0.73% |   |   | (2,277 | ) | -0.69% |   |
| Accumulated                  Other Comprehensive                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)                  Income (1)                                                       |   | (421 | ) | -0.12% |   |   | (364 | ) | -0.11% |   |   | 212 |   | 0.07% |   |
|      Total                  Average Shareholders' Equity        |   | 29,725 |   | 8.40% |   |   | 28,391 |   | 8.33% |   |   | 27,579 |   | 8.38% |   |
|      Total                  Average Liability and Shareholders' |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Equity                                                     | $ | 353,995 |   | 100% |   | $ | 340,693 |   | 100% |   | $ | 329,289 |   | 100% |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| *(1)  In                accordance with FASB No. 115, 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.*               |

----

*Interest      Rate Risk and Asset and Liability Management - *

| One                Year Horizon                                      | Two                Year Horizon      |
|----------------------------------------------------------------------|--------------------------------------|
| Rate                Change        | Percent                Change in NII | Rate                Change      | Percent                Change in NII |
|                                                                 |                                 |   |   |
| Down                200 basis points                                 | -1.1%                                | Down                200 basis points | -4.6% |
| Up                200 basis points                                   | -3.0%                                | Up                200 basis points |   1.1% |

----

| GAP                  ANALYSIS                                                 |
|-------------------------------------------------------------------------------|
| Community                  Bancorp. & Subsidiary                          |
| December                  31, 2006                                            |
| Cumulative                  repriced within:                                  |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   | 3                  Months |   |   | 4                  to 12 |   |   | 1                  to 3 |   |   | 3                  to 5 |   |   | Over                  5 |   |   |   |
|                                                                          |   | or                  less |   |   | Months |   |   | Years |   |   | Years |   |   | Years |   |   | Total |
|                                                                          | (Dollars                  in Thousands, by repricing date) |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  sensitive assets:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                  funds sold                                           | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |
| Overnight                  deposits                                           |   | 8,174 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 8,174 |
| Investments                  -                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Available                  for Sale                               |   | 1,000 |   |   | 3,949 |   |   | 16,675 |   |   | 988 |   |   | 0 |   |   | 22,612 |
|   Held                  to Maturity                                 |   | 1,960 |   |   | 15,294 |   |   | 762 |   |   | 682 |   |   | 2,372 |   |   | 21,070 |
| Restricted                  equity securities                                 |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 2,828 |   |   | 2,828 |
| Loans                  (1)                                                    |   | 49,725 |   |   | 36,213 |   |   | 42,941 |   |   | 68,749 |   |   | 70,947 |   |   | 268,575 |
|     Total                  interest sensitive assets      | $ | 60,859 |   | $ | 55,456 |   | $ | 60,378 |   | $ | 70,419 |   | $ | 76,147 |   | $ | 323,259 |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  sensitive liabilities:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time                  deposits $100,000 and over                              | $ | 9,089 |   | $ | 17,534 |   | $ | 4,927 |   | $ | 2,285 |   | $ | 0 |   | $ | 33,835 |
| Other                  time deposits                                          |   | 28,092 |   |   | 53,352 |   |   | 12,987 |   |   | 5,445 |   |   | 0 |   |   | 99,876 |
| Money                  markets                                                |   | 2,986 |   |   | 10,781 |   |   | 0 |   |   | 0 |   |   | 23,000 |   |   | 36,767 |
| Regular                  savings                                              |   | 0 |   |   | 3,471 |   |   | 0 |   |   | 0 |   |   | 35,000 |   |   | 38,471 |
| Now                  accounts                                                 |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 44,636 |   |   | 44,636 |
| Borrowed                  funds                                               |   | 0 |   |   | 0 |   |   | 30 |   |   | 0 |   |   | 10 |   |   | 40 |
| Repurchase                  agreements                                        |   | 17,084 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 17,084 |
|     Total                  interest sensitive liabilities | $ | 57,251 |   | $ | 85,138 |   | $ | 17,944 |   | $ | 7,730 |   | $ | 102,646 |   | $ | 270,709 |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest rate sensitivity gap                            | $ | 3,608 |   | $ | (29,682 | ) | $ | 42,434 |   | $ | 62,689 |   | $ | (26,499 | ) |   |   |
| Cumulative                  net interest rate sensitivity gap                 | $ | 3,608 |   | $ | (26,074 | ) | $ | 16,360 |   | $ | 79,049 |   | $ | 52,550 |   |   |   |
| Cumulative                  net interest rate sensitivity                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  gap                  as a percentage of total assets                    |   | 1.03% |   |   | -7.41% |   |   | 4.65% |   |   | 22.47% |   |   | 14.94% |   |   |   |
| Cumulative                  interest sensitivity gap as a                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  percentage                  of total interest-earning assets            |   | 1.12% |   |   | -8.07% |   |   | 5.06% |   |   | 24.45% |   |   | 16.26% |   |   |   |
| Cumulative                  interest earning assets                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| as                  a percentage of cumulative                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest-bearing                  liabilities                                 |   | 106.30% |   |   | 81.69% |   |   | 110.20% |   |   | 147.04% |   |   | 119.41% |   |   |   |

----

| GAP                  ANALYSIS                                                 |
|-------------------------------------------------------------------------------|
| Community                  Bancorp. & Subsidiary                          |
| December                  31, 2005                                            |
| Cumulative                  repriced within:                                  |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   | 3                  Months |   |   | 4                  to 12 |   |   | 1                  to 3 |   |   | 3                  to 5 |   |   | Over                  5 |   |   |   |
|                                                                          |   | or                  less |   |   | Months |   |   | Years |   |   | Years |   |   | Years |   |   | Total |
|                                                                          | (Dollars                  in Thousands, by repricing date) |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  sensitive assets:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                  funds sold                                           | $ | 3,120 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 0 |   | $ | 3,120 |
| Overnight                  deposits                                           |   | 3,388 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 3,388 |
| Investments                  -                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Available                  for Sale                               |   | 3,000 |   |   | 8,945 |   |   | 13,703 |   |   | 9,768 |   |   | 1,006 |   |   | 36,422 |
|   Held                  to Maturity                                 |   | 3,342 |   |   | 22,297 |   |   | 711 |   |   | 697 |   |   | 1,345 |   |   | 28,392 |
| Restricted                  equity securities                                 |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 3,252 |   |   | 3,252 |
| Loans                  (1)                                                    |   | 48,180 |   |   | 38,453 |   |   | 32,687 |   |   | 59,910 |   |   | 72,544 |   |   | 251,774 |
|     Total                  interest sensitive assets      | $ | 61,030 |   | $ | 69,695 |   | $ | 47,101 |   | $ | 70,375 |   | $ | 78,147 |   | $ | 326,348 |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  sensitive liabilities:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time                  deposits $100,000 and over                              | $ | 3,234 |   | $ | 10,650 |   | $ | 8,701 |   | $ | 3,037 |   | $ | 0 |   | $ | 25,622 |
| Other                  time deposits                                          |   | 14,839 |   |   | 34,219 |   |   | 20,421 |   |   | 8,002 |   |   | 0 |   |   | 77,481 |
| Money                  markets                                                |   | 1,268 |   |   | 26,155 |   |   | 0 |   |   | 0 |   |   | 30,000 |   |   | 57,423 |
| Regular                  savings                                              |   | 0 |   |   | 5,281 |   |   | 0 |   |   | 0 |   |   | 40,000 |   |   | 45,281 |
| Now                  accounts                                                 |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 42,656 |   |   | 42,656 |
| Borrowed                  funds                                               |   | 5,000 |   |   | 0 |   |   | 30 |   |   | 0 |   |   | 5,010 |   |   | 10,040 |
| Repurchase                  agreements                                        |   | 17,347 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | 17,347 |
|     Total                  interest sensitive liabilities | $ | 41,688 |   | $ | 76,305 |   | $ | 29,152 |   | $ | 11,039 |   | $ | 117,666 |   | $ | 275,850 |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest rate sensitivity gap                            | $ | 19,342 |   | $ | (6,610 | ) | $ | 17,949 |   | $ | 59,336 |   | $ | (39,519 | ) |   |   |
| Cumulative                  net interest rate                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| sensitivity                  gap                                              | $ | 19,342 |   | $ | 12,732 |   | $ | 30,681 |   | $ | 90,017 |   | $ | 50,498 |   |   |   |
| Cumulative                  net interest rate sensitivity                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  gap                  as a percentage of total assets                    |   | 5.47% |   |   | 3.60% |   |   | 8.67% |   |   | 25.44% |   |   | 14.27% |   |   |   |
| Cumulative                  interest sensitivity gap as                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  percentage                  of total interest-                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  earning                  assets                                         |   | 5.93% |   |   | 3.90% |   |   | 9.40% |   |   | 27.58% |   |   | 15.47% |   |   |   |
| Cumulative                  interest earning assets                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| as                  a percentage of cumulative                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest-bearing                  liabilities                                 |   | 146.40% |   |   | 110.79% |   |   | 120.85% |   |   | 156.91% |   |   | 118.31% |   |   |   |

*Credit      Risk -*
* *

----

| COMPOSITION                    OF LOAN PORTFOLIO             |
|--------------------------------------------------------------|
|                                                         |   |   |   |   |   |
|                                                         | 2006 | 2005 | 2004 | 2003 | 2002 |
|                                                         |   | 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                                      | $ | 11,889 |   | 4.42% | $ | 13,931 |   | 5.52% | $ | 11,646 |   | 5.07% | $ | 8,929 |   | 4.32% | $ | 9,969 |   | 4.81% |
| Farm                    Land                                 |   | 3,217 |   | 1.19% |   | 2,870 |   | 1.14% |   | 2,496 |   | 1.09% |   | 2,783 |   | 1.35% |   | 2,818 |   | 1.36% |
| 1-4                    Family Residential                    |   | 157,008 |   | 58.30% |   | 144,777 |   | 57.40% |   | 127,555 |   | 55.55% |   | 120,848 |   | 58.51% |   | 121,138 |   | 58.50% |
| Commercial                    Real Estate                    |   | 54,236 |   | 20.14% |   | 48,505 |   | 19.23% |   | 43,610 |   | 18.99% |   | 33,422 |   | 16.18% |   | 30,277 |   | 14.62% |
| Loans                    to Finance                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agricultural                    Production                   |   | 224 |   | 0.08% |   | 214 |   | 0.09% |   | 443 |   | 0.19% |   | 529 |   | 0.26% |   | 369 |   | 0.18% |
| Commercial                    & Industrial               |   | 21,993 |   | 8.17% |   | 20,049 |   | 7.95% |   | 21,592 |   | 9.40% |   | 16,951 |   | 8.21% |   | 18,846 |   | 9.10% |
| Consumer                    Loans                            |   | 20,588 |   | 7.65% |   | 21,296 |   | 8.44% |   | 21,716 |   | 9.46% |   | 22,517 |   | 10.90% |   | 23,110 |   | 11.16% |
| All                    Other Loans                           |   | 141 |   | 0.05% |   | 567 |   | 0.23% |   | 575 |   | 0.25% |   | 552 |   | 0.27% |   | 556 |   | 0.27% |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Gross                    Loans |   | 269,296 |   | 100% |   | 252,209 |   | 100% |   | 229,633 |   | 100% |   | 206,531 |   | 100% |   | 207,083 |   | 100% |
| Less:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reserve                    for Loan Losses                   |   | (2,268 | ) | -0.84% |   | (2,189 | ) | -0.87% |   | (2,153 | ) | -0.94% |   | (2,199 | ) | -1.06% |   | (2,156 | ) | -1.04% |
| Unearned                    Loan Fees                        |   | (632 | ) | -0.24% |   | (684 | ) | -0.27% |   | (764 | ) | -0.33% |   | (805 | ) | -0.39% |   | (880 | ) | -0.43% |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net                    Loans   | $ | 266,396 |   | 98.92% | $ | 249,336 |   | 98.86% | $ | 226,716 |   | 98.73% | $ | 203,527 |   | 98.55% | $ | 204,047 |   | 98.53% |

| MATURITY                  SCHEDULE                               |
|------------------------------------------------------------------|
|                                                             |
|                                                             | Fixed                  Rate Loans | Variable                  Rate Loans |
|                                                             | Within | 1                  -                  5 | After |   | Within | 1                  -                  5 | After |   |
|                                                             | 1                  Year | Years | 5                  years | Total | 1                  Year | Years | 5                  years | Total |
|                                                             | (Dollars                  in Thousands) |
| Real                  Estate                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Construction                  & Land Development | $ | 6,316 | $ | 12 | $ | 438 | $ | 6,766 | $ | 4,422 | $ | 701 | $ | 0 | $ | 5,123 |
|   Secured                  by Farm Land                |   | 325 |   | 0 |   | 618 |   | 943 |   | 1,709 |   | 565 |   | 0 |   | 2,274 |
|   Commercial                  Real Estate              |   | 508 |   | 1,593 |   | 9,409 |   | 11,510 |   | 17,557 |   | 15,008 |   | 10,161 |   | 42,726 |
| Loans                  to Finance Agricultural Production        |   | 3 |   | 13 |   | 0 |   | 16 |   | 208 |   | 0 |   | 0 |   | 208 |
| Commercial                  & Industrial Loans               |   | 537 |   | 7,778 |   | 1,297 |   | 9,612 |   | 8,979 |   | 2,666 |   | 736 |   | 12,381 |
| Total                                                            | $ | 7,689 | $ | 9,396 | $ | 11,762 | $ | 28,847 | $ | 32,875 | $ | 18,940 | $ | 10,897 | $ | 62,712 |

*Allowance      for loan losses and provisions - *

----

| SUMMARY                    OF LOAN LOSS EXPERIENCE                           |
|------------------------------------------------------------------------------|
|                                                                         |   |   |   |   |   |
| December                    31,                                              | 2006 | 2005 | 2004 | 2003 | 2002 |
|                                                                         | (Dollars                    in Thousands) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| Loans                    Outstanding End of Period                           | $ | 269,296 | $ | 252,209 | $ | 229,633 | $ | 206,531 | $ | 207,083 |
| Average                    Loans Outstanding During Period                   | $ | 263,901 | $ | 238,376 | $ | 212,460 | $ | 205,237 | $ | 196,528 |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| Loan                    Loss Reserve, Beginning of Period                    | $ | 2,189 | $ | 2,153 | $ | 2,199 | $ | 2,156 | $ | 2,008 |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| Loans                    Charged Off:                                        |   |   |   |   |   |   |   |   |   |   |
|   Residential                    Real Estate Loans                 |   | 6 |   | 5 |   | 26 |   | 2 |   | 55 |
|   Commercial                    Real Estate Loans                  |   | 17 |   | 0 |   | 0 |   | 10 |   | 0 |
|   Commercial                    Loans not Secured by Real Estate   |   | 13 |   | 45 |   | 54 |   | 0 |   | 5 |
|   Consumer                    Loans                                |   | 91 |   | 130 |   | 189 |   | 185 |   | 237 |
|       Total                                    |   | 127 |   | 180 |   | 269 |   | 197 |   | 297 |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                                  |   |   |   |   |   |   |   |   |   |   |
|   Residential                    Real Estate Loans                 |   | 1 |   | 1 |   | 1 |   | 4 |   | 3 |
|   Commercial                    Real Estate Loans                  |   | 6 |   | 0 |   | 0 |   | 0 |   | 0 |
|   Commercial                    Loans not Secured by Real Estate   |   | 3 |   | 6 |   | 12 |   | 3 |   | 4 |
|   Consumer                    Loans                                |   | 58 |   | 59 |   | 115 |   | 110 |   | 112 |
|       Total                                    |   | 68 |   | 66 |   | 128 |   | 117 |   | 119 |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| Net                    Loans Charged Off                                     |   | 59 |   | 114 |   | 141 |   | 80 |   | 178 |
| Provision                    Charged to Income                               |   | 138 |   | 150 |   | 95 |   | 123 |   | 326 |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| Loan                    Loss Reserve, End of Period                          | $ | 2,268 | $ | 2,189 | $ | 2,153 | $ | 2,199 | $ | 2,156 |
|                                                                         |   |   |   |   |   |   |   |   |   |   |
| Net                    Losses as a Percent of Average Loans                  |   | 0.02% |   | 0.05% |   | 0.07% |   | 0.04% |   | 0.09% |
| Provision                    Charged to Income as a Percent of Average Loans |   | 0.05% |   | 0.06% |   | 0.04% |   | 0.06% |   | 0.17% |
| At                    End of Period:                                         |   |   |   |   |   |   |   |   |   |   |
| Loan                    Loss Reserve as a Percent of Outstanding Loans       |   | 0.84% |   | 0.87% |   | 0.94% |   | 1.06% |   | 1.04% |
|                                                                         |   |   |   |   |   |   |   |   |   |   |

----

| NON-PERFORMING                ASSETS                    |
|---------------------------------------------------------|
|                                                    |   |   |   |   |   |
| December                31,                             | 2006 | 2005 | 2004 | 2003 | 2002 |
|                                                    | (Dollars                in Thousands) |
| Accruing                Loans Past Due 90 Days or More: |   |   |   |   |
|   Consumer                                    | $ | 33 | $ | 8 | $ | 7 | $ | 4 | $ | 16 |
|   Commercial                                  |   | 60 |   | 0 |   | 50 |   | 0 |   | 1 |
|   Commercial                Real Estate       |   | 0 |   | 0 |   | 0 |   | 0 |   | 198 |
|   Residential                Real Estate      |   | 113 |   | 169 |   | 137 |   | 15 |   | 142 |
|      Total                     |   | 206 |   | 177 |   | 194 |   | 19 |   | 357 |
|                                                    |   |   |   |   |   |   |   |   |   |   |
| Non-accrual                Loans                        |   | 721 |   | 436 |   | 865 |   | 1,295 |   | 1,631 |
|                                                    |   |   |   |   |   |   |   |   |   |   |
| Total                Non-accrual and Past Due Loans     |   | 927 |   | 613 |   | 1,059 |   | 1,314 |   | 1,988 |
| Other                Real Estate Owned                  |   | 0 |   | 0 |   | 83 |   | 88 |   | 0 |
|                                                    |   |   |   |   |   |   |   |   |   |   |
|   Total                Non-Performing Loans   | $ | 927 | $ | 613 | $ | 1,142 | $ | 1,402 | $ | 1,988 |
|                                                    |   |   |   |   |   |   |   |   |   |   |
| Percent                of Gross Loans                   |   | 0.34% |   | 0.24% |   | 0.50% |   | 0.68% |   | 0.96% |
| Reserve                Coverage of Non-Performing Loans |   | 244.66% |   | 357.10% |   | 188.53% |   | 156.85% |   | 108.45% |

----

| December                  31,            |                                    | 2006   | %      |   | 2005   | %      |   | 2004   | %      |   | 2003   | %      |   | 2002   | %      |
|------------------------------------------|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                     | (Dollars                  in Thousands) |
|                                     |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                  Real Estate | $                                       | 1,055  | 58%    | $      | 973    | 57%    | $      | 725    | 55%    | $      | 809    | 59%    | $      | 873    | 59%    |
| Commercial(1)                            |                                    | 956    | 34%    |   | 858    | 34%    |   | 936    | 35%    |   | 786    | 30%    |   | 646    | 30%    |
| Consumer                                 |                                    | 204    | 8%     |   | 229    | 9%     |   | 260    | 10%    |   | 325    | 11%    |   | 430    | 11%    |
| Unallocated                              |                                    | 53     | 0%     |   | 129    | 0%     |   | 232    | 0%     |   | 279    | 0%     |   | 207    | 0%     |
|      Total      | $                                       | 2,268  | 100%   | $      | 2,189  | 100%   | $      | 2,153  | 100%   | $      | 2,199  | 100%   | $      | 2,156  | 100%   |

*Market      Risk - *

----

|                                                               | COMPOSITION                  OF INVESTMENT PORTFOLIO |
|--------------------------------------------------------------------|------------------------------------------------------|
|                                                               |                                                 | Gross | Gross |   |
|                                                               | Amortized                                            | Unrealized | Unrealized | Fair |
|                                                               | Cost                                                 | Gains | Losses | Value |
|                                                               | (Dollars                  in Thousands)              |
| December                  31, 2006                                 |                                                 |
|                                                               |
| Available-for-Sale                                                 |                                                 |
|   U.                  S. sponsored enterprise securities | $                                                    | 19,030 | $ | 0 | $ | 382 | $ | 18,648 |
|   U.                  S. Government securities           |                                                 | 3,992 |   | 5 |   | 33 |   | 3,964 |
|                                                               | $                                                    | 23,022 | $ | 5 | $ | 415 | $ | 22,612 |
|                                                               |                                                 |   |   |   |   |   |   |   |
| Held-to-Maturity                                                   |                                                 |   |   |   |   |   |   |   |
|   States                  and political subdivisions     | $                                                    | 21,070 | $ | 231 | $ | 0 | $ | 21,301 |
|                                                               |                                                 |   |   |   |   |   |   |   |
| Restricted                  Equity Securities                      | $                                                    | 2,828 | $ | 0 | $ | 0 | $ | 2,828 |
|                                                               |                                                 |   |   |   |   |   |   |   |
| Total                                                              | $                                                    | 46,920 | $ | 236 | $ | 415 | $ | 46,741 |
|                                                               |                                                 |   |   |   |   |   |   |   |
| December                  31, 2005                                 |                                                 |   |   |   |   |   |   |   |
|                                                               |                                                 |   |   |   |   |   |   |   |
| Available-for-Sale                                                 |                                                 |   |   |   |   |   |   |   |
|   U.                  S. sponsored enterprise securities | $                                                    | 33,116 | $ | 2 | $ | 652 | $ | 32,466 |
|   U.                  S. Government securities           |                                                 | 2,989 |   | 1 |   | 39 |   | 2,951 |
|   Corporate                  debt securities             |                                                 | 1,002 |   | 3 |   | 0 |   | 1,005 |
|   Other                  investments                     |                                                 | 32 |   | 0 |   | 0 |   | 32 |
|                                                               | $                                                    | 37,139 | $ | 6 | $ | 691 | $ | 36,454 |
|                                                               |                                                 |   |   |   |   |   |   |   |
| Held-to-Maturity                                                   |                                                 |   |   |   |   |   |   |   |
|   States                  and political subdivisions     | $                                                    | 28,392 | $ | 52 | $ | 0 | $ | 28,444 |
|                                                               |                                                 |   |   |   |   |   |   |   |
| Restricted                  Equity Securities                      | $                                                    | 3,252 | $ | 0 | $ | 0 | $ | 3,252 |
|                                                               |                                                 |   |   |   |   |   |   |   |
| Total                                                              | $                                                    | 68,783 | $ | 58 | $ | 691 | $ | 68,150 |

|                                                                | 2006                                    |   | 2005   |   | 2004   |   |
|---------------------------------------------------------------------|-----------------------------------------|--------|--------|--------|--------|--------|
|                                                                | (Dollars                  in Thousands) |
| Available-for-Sale                                                  |                                    |   |   |   |   |   |   |   |   |
|   Realized                  Gains                         | $                                       | 57     |   | $      | 0      |   | $ | 70 |   |
|   Realized                  Losses                        |                                    | 0      |   |   | 0      |   |   | (31 | ) |
|      Net                  Realized Gains   | $                                       | 57     |   | $      | 0      |   | $ | 39 |   |
|                                                                |                                    |   |   |   |   |   |   |   |   |
| Held-to-Maturity                                                    |                                    |   |   |   |   |   |   |   |   |
|   Realized                  Gains                         | $                                       | 0      |   | $      | 0      |   | $ | 5 |   |
|                                                                |                                    |   |   |   |   |   |   |   |   |
|      Total                  Realized Gains | $                                       | 57     |   | $      | 0      |   | $ | 44 |   |

----

| MATURITIES                  AND YIELDS OF INVESTMENT PORTFOLIO             |
|----------------------------------------------------------------------------|
|                                                                       | December                  31, |
|                                                                       | 2006 | 2005 | 2004 |
|                                                                       |   | Weighted |   | Weighted |   | Weighted |
|                                                                       | Fair/Book | Average | Fair/Book | Average | Fair/Book | Average |
|                                                                       | Value(1) | Rate | Value(1) | Rate | Value(1) | Rate |
|                                                                       | (Dollars                  in Thousands) |
| U.S.                  Treasury & U.S. Sponsored Enterprise Obligations |
|                                                                       |   |   |   |   |   |   |   |   |   |
| Available-for-Sale                                                         |   |   |   |   |   |   |   |   |   |
|   Due                  within 1 year                             | $ | 4,949 | 3.23% | $ | 10,939 | 2.92% | $ | 12,114 | 3.05% |
|   Due                  after 1 year within 5 years               |   | 17,663 | 3.75% |   | 23,472 | 3.47% |   | 34,913 | 3.09% |
|   Due                  after 5 years within 10 years             |   | 0 | 0.00% |   | 1,006 | 5.31% |   | 2,039 | 5.78% |
|      Total                                        | $ | 22,612 | 3.64% | $ | 35,417 | 3.35% | $ | 49,066 | 3.19% |
|                                                                       |   |   |   |   |   |   |   |   |   |
| Held-to-Maturity                                                           |   |   |   |   |   |   |   |   |   |
|   Due                  after 5 years within 10 years             | $ | 0 | 0.00% | $ | 0 | 0.00% | $ | 996 | 7.66% |
|      Total                                        | $ | 0 | 0.00% | $ | 0 | 0.00% | $ | 996 | 7.66% |
|                                                                       |   |   |   |   |   |   |   |   |   |
| Obligations                  of State & Political Subdivisions (2)     |
|                                                                       |   |   |   |   |   |   |   |   |   |
| Held-to-Maturity                                                           |   |   |   |   |   |   |   |   |   |
|   Due                  within 1 year                             | $ | 17,254 | 5.40% | $ | 25,638 | 5.04% | $ | 27,280 | 4.02% |
|   Due                  after 1 year within 5 years               |   | 1,444 | 6.34% |   | 1,409 | 5.73% |   | 1,679 | 5.25% |
|   Due                  after 5 years within 10 years             |   | 1,744 | 7.42% |   | 697 | 7.09% |   | 956 | 6.48% |
|   Due                  after 10 years                            |   | 628 | 10.88% |   | 648 | 10.90% |   | 668 | 10.90% |
|      Total                                        | $ | 21,070 | 5.79% | $ | 28,392 | 5.25% | $ | 30,583 | 4.31% |
|                                                                       |   |   |   |   |   |   |   |   |   |
| Corporate                  Bonds                                           |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |
| Available-for-Sale                                                         |   |   |   |   |   |   |   |   |   |
|   Due                  within 1 year                             | $ | 0 | 0.00% | $ | 1,005 | 5.86% | $ | 1,010 | 4.50% |
|   Due                  after 1 year within 5 years               |   | 0 | 0.00% |   | 0 | 0.00% |   | 1,042 | 5.89% |
|      Total                                        | $ | 0 | 0.00% | $ | 1,005 | 5.86% | $ | 2,052 | 5.21% |
|                                                                       |   |   |   |   |   |   |   |   |   |
| Restricted                  Equity Securities                              | $ | 2,828 | 5.76% | $ | 3,252 | 4.90% | $ | 2,315 | 3.65% |
|      Total                                        | $ | 2,828 | 5.76% | $ | 3,252 | 4.90% | $ | 2,315 | 3.65% |
|                                                                       |   |   |   |   |   |   |   |   |   |

| *(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) Income                on Obligations of State and Political Subdivisions is stated on a                tax                equivalent basis assuming a 34 percent tax                rate.* |

----

|                                                             |   | 2006                                  |   |   | 2005   |   |
|------------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|
|                                                             |   | (Dollars                in Thousands) |
|                                                             |   |                                  |   |   |   |   |
| Land                and land improvements                        | $      | 2,315                                 |   | $      | 1,566  |   |
| Buildings                and improvements                        |   | 9,747                                 |   |   | 9,301  |   |
| Furniture                and equipment                           |   | 5,282                                 |   |   | 5,040  |   |
| Leasehold                improvements                            |   | 623                                   |   |   | 637    |   |
| Other                prepaid assets and construction in progress |   | 95                                    |   |   | 8      |   |
|                                                             |   | 18,062                                |   |   | 16,552 |   |
| Less                accumulated depreciation and amortization    |   | (5,728                                | )      |   | (4,935 | )      |
|                                                             | $      | 12,334                                |   | $      | 11,617 |   |

----

|                                                                        | Contract                or             |
|-----------------------------------------------------------------------------|----------------------------------------|
|                                                                        | ----Notional                Amount---- |
|                                                                        | 2006                                   | 2005 |
|                                                                        | (Dollars                in Thousands)  |
|                                                                        |                                   |   |   |   |
| Unused                portions of commercial lines of credit                | $                                      | 11,116 | $ | 17,497 |
| Unused                portions of home equity lines of credit               |                                   | 11,212 |   | 8,868 |
| Other                commitments to extend credit                           |                                   | 11,982 |   | 10,304 |
| Standby                letters of credit and commercial letters of credit   |                                   | 1,004 |   | 621 |
| Credit                card arrangements                                     |                                   | 9,087 |   | 8,890 |
| MPF                credit enhancement obligation, net of liability recorded |                                   | 1,131 |   | 1,066 |

|                                          | Less                  than              | 2-3    | 4-5    | More                  than |   |
|-----------------------------------------------|-----------------------------------------|--------|--------|----------------------------|--------|
|                                          | 1                  year                 | years  | years  | 5                  years   | Total  |
|                                          | (Dollars                  in Thousands) |
|                                          |                                    |   |   |                       |   |   |   |   |   |   |
| Operating                  Leases             | $                                       | 143    | $      | 289                        | $      | 217 | $ | 336 | $ | 985 |
| Housing                  Limited Partnerships |                                    | 236    |   | 0                          |   | 0 |   | 0 |   | 236 |
| FHLB                  Borrowings              |                                    | 0      |   | 30                         |   | 0 |   | 10 |   | 40 |
|    Total                       | $                                       | 379    | $      | 319                        | $      | 217 | $ | 346 | $ | 1,261 |

----

|                                                | Annual |                             |   | Principal  |
|-----------------------------------------------------|--------|----------------------------------|--------|-----------------|
|  Purchase                Date                  | Rate   | Maturity                Date     |   | Balance    |
|                                                |   |                             |   |            |
| November                16, 1992                    | 7.57%  | November                16, 2007 |   | 30,000          |
| November                16, 1992                    | 7.67%  | November                16, 2012 |   | 10,000          |
|   Total                Long-term Advances | $      | 40,000                           |

| Balance                at December 31, 2005 (book value $7.15 per share)                                         | $      | 29,123,334 |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------|--------|
|   Net                income                                                                            |   | 3,375,448  |   |
|   Issuance                of stock                                                                     |   | 831,350    |   |
|   Purchase                of treasury stock (fractional shares redeemed)                               |   | (11        | )      |
|   Total                dividends declared                                                              |   | (2,780,764 | )      |
|   Change                in unrealized loss on available-for-sale securities, net of                tax |   | 181,454    |   |
|      Balance                at December 31, 2006 (book value $7.44 per share)           | $      | 30,730,811 |   |

----

|                                                    |                                  |        |                              |                              | Minimum                   |
|---------------------------------------------------------|---------------------------------------|-------------|-----------------------------------|-----------------------------------|---------------------------|
|                                                    |                                  |        |                              |                              | To                Be Well |
|                                                    |                                  |        | Minimum                           | Capitalized                Under  |
|                                                    |                                  |        | For                Capital        | Prompt                Corrective  |
|                                                    |                                  |        | Adequacy                Purposes: | Action                Provisions: |
|                                                    | Actual                                |        |                              |                              |                      |
|                                                    | Amount                                | Ratio  | Amount                            | Ratio                             | Amount                    | Ratio |
|                                                    | (Dollars                in Thousands) |
|                                                    |                                  |        |                              |                              |                      |   |
| As                of December 31, 2006:                 |                                  |        |                              |                              |                      |   |
| Total                capital (to risk-weighted assets)  |                                  |        |                              |                              |                      |   |
|    Consolidated                          | $33,270                               | 14.10%      | $18,879                           | 8.0%                              | N/A                       | N/A |
|    Bank                                  | $33,047                               | 14.01%      | $18,872                           | 8.0%                              | $23,590                   | 10.0% |
| Tier                I capital (to risk-weighted assets) |                                  |        |                              |                              |                      |   |
|    Consolidated                          | $31,002                               | 13.14%      | $ 9,439                      | 4.0%                              | N/A                       | N/A |
|    Bank                                  | $30,779                               | 13.05%      | $ 9,436                      | 4.0%                              | $14,154                   | 6.0% |
| Tier                I capital (to average assets)       |                                  |        |                              |                              |                      |   |
|    Consolidated                          | $31,002                               | 8.59%       | $14,434                           | 4.0%                              | N/A                       | N/A |
|    Bank                                  | $30,779                               | 8.53%       | $14,430                           | 4.0%                              | $18,038                   | 5.0% |
| As                of December 31, 2005:                 |                                  |        |                              |                              |                      |   |
| Total                capital (to risk-weighted assets)  |                                  |        |                              |                              |                      |   |
|    Consolidated                          | $31,764                               | 14.65%      | $17,347                           | 8.0%                              | N/A                       | N/A |
|    Bank                                  | $32,037                               | 14.78%      | $17,343                           | 8.0%                              | $21,678                   | 10.0% |
| Tier                I capital (to risk-weighted assets) |                                  |        |                              |                              |                      |   |
|    Consolidated                          | $29,575                               | 13.64%      | $ 8,674                      | 4.0%                              | N/A                       | N/A |
|    Bank                                  | $29,848                               | 13.77%      | $ 8,671                      | 4.0%                              | $13,007                   | 6.0% |
| Tier                I capital (to average assets)       |                                  |        |                              |                              |                      |   |
|    Consolidated                          | $29,575                               | 8.37%       | $14,136                           | 4.0%                              | N/A                       | N/A |
|    Bank                                  | $29,848                               | 8.45%       | $14,132                           | 4.0%                              | $17,666                   | 5.0% |

----

|                                     | 2006        | 2005         |
|------------------------------------------|-------------|--------------|
|                                     | First  | Second       | Third  | Fourth | First  | Second | Third  | Fourth |
| Trade                  Price             |        |         |   |   |   |   |   |   |
| High                                     | $16.00      | $15.95  | $14.74 | $14.45 | $17.34 | $17.10  | $18.25 | $16.75 |
| Low                                      | $14.55      | $12.50  | $12.75 | $13.10 | $15.68 | $14.96  | $15.00 | $15.00 |
|                                     |        |         |   |   |   |   |   |   |
|                                     | 2006        | 2005         |
|                                     | First  | Second       | Third  | Fourth | First  | Second | Third  | Fourth |
| Bid                  Price               |        |         |   |   |   |   |   |   |
| High                                     | $15.76      | $15.75  | $13.50 | $14.30 | $17.10 | $16.86  | $17.60 | $16.25 |
| Low                                      | $14.50      | $12.50  | $12.25 | $13.10 | $15.68 | $14.73  | $14.75 | $15.00 |
|                                     |        |         |   |   |   |   |   |   |
| Cash                  Dividends Declared | $0.17       | $0.17   | $0.17 | $0.17 | $0.16 | $0.17  | $0.17 | $0.17 |

**      There is no established public trading market for the Company's common stock.      Trade price and bid price information is based on high and low trade and bid      prices reported in the OTC Bulletin Board*
*®      *

*maintained      by NASDAQ, and may not represent all trades effected during the relevant      periods. Per share prices have been restated to reflect a 5% stock dividend      declared during the second quarter of 2005.*

----

| Silverlake                Wealth Management          | Winslow,                Evans & Crocker | A.G.                Edwards                 |
|------------------------------------------------------|---------------------------------------------|---------------------------------------------|
| Wachovia                Securities Financial Network | 175                Federal Street           | 1184                Main Street, Suite 1    |
| 1795                Williston Road                   | Boston,                Massachusetts 02110  | St.                Johnsbury, Vermont 05819 |
| South                Burlington, VT 05403            | (800)                556-8600               | (800)                457-1002               |
| (800)                235-0435                        |                                        |                                        |

----

----

**5-Year      Stock Performance***