----

| Ohio                            |   | 34-1395608                           |
|---------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer Identification No.) |
| incorporation or organization)  |   |                                 |

----

----

| Common Shares, without par value |   | 4,861,779 shares              |
|----------------------------------|--------|-------------------------------|
| (class)                          |   | (Outstanding at May 13, 2011) |

----

| PART I – FINANCIAL INFORMATION |  3                                                                                     |
|--------------------------------------|---------------------------------------------------------------------------------------------|
|                                 |                                                                                        |   |
| Item 1.                              | Financial Statements                                                                        |  3 |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations |  29 |
| Item 3.                              | Quantitative and Qualitative Disclosures About Market Risk                                  |  38 |
| Item 4.                              | Controls and Procedures                                                                     |  38 |
|                                 |                                                                                        |   |
| PART II – OTHER INFORMATION    | 39                                                                                          |
|                                 |                                                                                        |   |
| Item 1.                              | Legal Proceedings                                                                           |  39 |
| Item 1A.                             | Risk Factors                                                                                |  39 |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds                                 |  39 |
| Item 3.                              | Defaults Upon Senior Securities                                                             |  40 |
| Item 4.                              | [Reserved]                                                                                  |  40 |
| Item 5.                              | Other Information                                                                           |  40 |
| Item 6.                              | Exhibits                                                                                    |  40 |
|                                 |                                                                                        |   |
| Signatures                           |  41                                                                                    |

----

----

|                                             |   | March       |        |   | December |   |
|--------------------------------------------------|--------|-------------|-------------|--------|----------|--------|
|                                             |   | 2011        |        |   | 2010     |   |
|                                             |   | (Unaudited) |        |   |     |   |
| ASSETS                                           |   |        |        |   |     |   |
| Cash and due from banks                          |   | $           | 38,090,470  |   |     | $      | 30,417,813 |   |
| Available-for-sale securities                    |   |        | 131,052,629 |   |     |   | 132,762,058 |   |
| Loans held for sale                              |   |        | 5,423,901   |   |     |   | 9,055,268 |   |
| Loans, net of unearned income                    |   |        | 422,166,393 |   |     |   | 427,544,414 |   |
| Allowance for loan losses                        |   |        | (6,593,279  | )      |     |   | (6,715,397 | ) |
| Premises and equipment, net                      |   |        | 14,361,382  |   |     |   | 14,622,541 |   |
| Purchased software                               |   |        | 947,061     |   |     |   | 1,021,036 |   |
| Federal Reserve and Federal Home Loan Bank Stock |   |        | 3,748,250   |   |     |   | 3,748,250 |   |
| Foreclosed assets held for sale, net             |   |        | 921,660     |   |     |   | 1,538,307 |   |
| Accrued interest receivable                      |   |        | 2,363,645   |   |     |   | 2,068,965 |   |
| Goodwill                                         |   |        | 16,733,830  |   |     |   | 16,733,830 |   |
| Core deposits and other intangibles              |   |        | 2,387,920   |   |     |   | 2,585,132 |   |
| Cash value of life insurance                     |   |        | 11,951,006  |   |     |   | 13,211,247 |   |
| Mortgage Servicing Rights                        |   |        | 3,316,228   |   |     |   | 3,190,389 |   |
| Other assets                                     |   |        | 8,096,914   |   |     |   | 8,503,832 |   |
|                                             |   |        |        |   |     |   |   |   |
| Total assets                                     |   | $           | 654,968,010 |   |     | $      | 660,287,685 |   |

| Note: | The balance sheet at December 31, 2010 has been derived from the audited consolidated financial statements at that date |
|-------|-------------------------------------------------------------------------------------------------------------------------|

----

|                                       |   | March       |        |   | December |   |
|--------------------------------------------|--------|-------------|-------------|--------|----------|--------|
|                                       |   | 2011        |        |   | 2010     |   |
|                                       |   | (Unaudited) |        |   |     |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY       |   |        |        |   |     |   |
| Deposits                                   |   |        |        |   |     |   |
| Non interest bearing demand                |   | $           | 64,027,818  |   |     | $      | 62,745,906 |   |
| Interest bearing NOW                       |   |        | 107,940,091 |   |     |   | 105,708,472 |   |
| Savings                                    |   |        | 48,983,184  |   |     |   | 47,662,315 |   |
| Money Market                               |   |        | 77,481,943  |   |     |   | 84,635,537 |   |
| Time Deposits                              |   |        | 214,528,353 |   |     |   | 214,925,512 |   |
| Total deposits                             |   |        | 512,961,389 |   |     |   | 515,677,742 |   |
|                                       |   |        |        |   |     |   |   |   |
| Notes payable                              |   |        | 3,218,211   |   |     |   | 3,290,471 |   |
| Advances from Federal Home Loan Bank       |   |        | 16,679,942  |   |     |   | 22,807,351 |   |
| Repurchase Agreements                      |   |        | 49,499,424  |   |     |   | 45,785,254 |   |
| Trust preferred securities                 |   |        | 20,620,000  |   |     |   | 20,620,000 |   |
| Accrued interest payable                   |   |        | 2,195,926   |   |     |   | 1,971,587 |   |
| Other liabilities                          |   |        | 3,528,328   |   |     |   | 4,111,182 |   |
|                                       |   |        |        |   |     |   |   |   |
| Total liabilities                          |   |        | 608,703,220 |   |     |   | 614,263,587 |   |
|                                       |   |        |        |   |     |   |   |   |
| Shareholders' Equity                       |   |        |        |   |     |   |   |   |
| Common stock                               |   |        | 12,568,583  |   |     |   | 12,568,583 |   |
| Additional paid-in capital                 |   |        | 15,258,113  |   |     |   | 15,235,206 |   |
| Retained earnings                          |   |        | 18,813,030  |   |     |   | 18,802,106 |   |
| Accumulated other comprehensive income     |   |        | 1,394,375   |   |     |   | 1,187,514 |   |
| Treasury stock                             |   |        | (1,769,311  | )      |     |   | (1,769,311 | ) |
|                                       |   |        |        |   |     |   |   |   |
| Total shareholders' equity                 |   |        | 46,264,790  |   |     |   | 46,024,098 |   |
|                                       |   |        |        |   |     |   |   |   |
| Total liabilities and shareholders' equity |   | $           | 654,968,010 |   |     | $      | 660,287,685 |   |

| Note: | The balance sheet at December 31, 2010 has been derived from the audited consolidated financial statements at that date. |
|-------|--------------------------------------------------------------------------------------------------------------------------|

----

|                                                |   | Three Months Ended |      |
|-----------------------------------------------------|--------|------------------------------|-----------|
|                                                |   | March 31                |      |
|                                                |   | 2011                         |      |   | 2010 |   |
| Interest income                                     |   |                         |      |   |   |   |
| Loans                                               |   |                         |      |   |   |   |
| Taxable                                             |   | $                            | 5,852,367 |   |   | $ | 6,411,582 |   |
| Tax-exempt                                          |   |                         | 11,494    |   |   |   | 18,915 |   |
| Securities                                          |   |                         |      |   |   |   |   |   |
| Taxable                                             |   |                         | 610,524   |   |   |   | 702,255 |   |
| Tax-exempt                                          |   |                         | 335,969   |   |   |   | 319,063 |   |
| Other                                               |   |                         | 83        |   |   |   | 31,448 |   |
| Total interest income                               |   |                         | 6,810,437 |   |   |   | 7,483,263 |   |
|                                                |   |                         |      |   |   |   |   |   |
| Interest expense                                    |   |                         |      |   |   |   |   |   |
| Deposits                                            |   |                         | 1,049,393 |   |   |   | 1,374,291 |   |
| Other borrowings                                    |   |                         | 24,629    |   |   |   | 38,083 |   |
| Retail Repurchase Agreements                        |   |                         | 425,519   |   |   |   | 426,967 |   |
| Federal Home Loan Bank advances                     |   |                         | 133,016   |   |   |   | 352,817 |   |
| Trust preferred securities                          |   |                         | 344,578   |   |   |   | 386,624 |   |
| Total interest expense                              |   |                         | 1,977,135 |   |   |   | 2,578,782 |   |
|                                                |   |                         |      |   |   |   |   |   |
| Net interest income                                 |   |                         | 4,833,302 |   |   |   | 4,904,481 |   |
|                                                |   |                         |      |   |   |   |   |   |
| Provision for loan losses                           |   |                         | 498,840   |   |   |   | 1,391,433 |   |
|                                                |   |                         |      |   |   |   |   |   |
| Net interest income after provision for loan losses |   |                         | 4,334,462 |   |   |   | 3,513,048 |   |
|                                                |   |                         |      |   |   |   |   |   |
| Non-interest income                                 |   |                         |      |   |   |   |   |   |
| Data service fees                                   |   |                         | 912,254   |   |   |   | 4,029,406 |   |
| Trust fees                                          |   |                         | 695,321   |   |   |   | 642,786 |   |
| Customer service fees                               |   |                         | 580,942   |   |   |   | 587,401 |   |
| Net gain on sales of loans                          |   |                         | 467,909   |   |   |   | 717,014 |   |
| Net realized gain on sales of securities            |   |                         | -         |   |   |   | 451,474 |   |
| Investment securities recoveries                    |   |                         | -         |   |   |   | 73,774 |   |
| Loan servicing fees                                 |   |                         | 161,406   |   |   |   | 122,208 |   |
| Loss on sale or disposal of assets                  |   |                         | (100,209  | ) |   |   | (28,652 | ) |
| Other income                                        |   |                         | 145,203   |   |   |   | 155,981 |   |
| Total non-interest income                           |   |                         | 2,862,826 |   |   |   | 6,751,392 |   |

----

|                                    |   | Three Months Ended |      |
|-----------------------------------------|--------|------------------------------|-----------|
|                                    |   | March 31                |      |
|                                    |   | 2011                         |      |   | 2010 |   |
| Non-interest expense                    |   |                         |      |   |   |   |
| Salaries and employee benefits          |   |                         | 3,530,106 |   |   |   | 5,103,540 |   |
| Net occupancy expense                   |   |                         | 584,057   |   |   |   | 586,223 |   |
| FDIC Insurance expense                  |   |                         | 317,639   |   |   |   | 218,903 |   |
| Equipment expense                       |   |                         | 711,051   |   |   |   | 2,165,101 |   |
| Software impairment expense             |   |                         | -         |   |   |   | 568,535 |   |
| Data processing fees                    |   |                         | 143,744   |   |   |   | 194,786 |   |
| Professional fees                       |   |                         | 473,536   |   |   |   | 642,810 |   |
| Marketing expense                       |   |                         | 55,976    |   |   |   | 77,601 |   |
| Printing and office supplies            |   |                         | 76,148    |   |   |   | 161,102 |   |
| Telephone and communication             |   |                         | 156,640   |   |   |   | 386,206 |   |
| Postage and delivery expense            |   |                         | 344,309   |   |   |   | 570,433 |   |
| State, local and other taxes            |   |                         | 143,568   |   |   |   | 121,039 |   |
| Employee expense                        |   |                         | 95,884    |   |   |   | 279,925 |   |
| Other expenses                          |   |                         | 427,033   |   |   |   | 683,860 |   |
| Total non-interest expense              |   |                         | 7,059,691 |   |   |   | 11,760,064 |   |
|                                    |   |                         |      |   |   |   |   |   |
| Income (loss) before income tax expense |   |                         | 137,597   |   |   |   | (1,495,624 | ) |
| Income tax expense (benefit)            |   |                         | 126,672   |   |   |   | (647,686 | ) |
|                                    |   |                         |      |   |   |   |   |   |
| Net income (loss)                       |   | $                            | 10,925    |   |   | $ | (847,938 | ) |
|                                    |   |                         |      |   |   |   |   |   |
| Earnings (loss) per common share:       |   |                         |      |   |   |   |   |   |
| Basic                                   |   | $                            | 0.00      |   |   | $ | (0.17 | ) |
| Diluted                                 |   | $                            | 0.00      |   |   | $ | (0.17 | ) |

----

|                                                                           |   | Three Months Ended |       |
|--------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                           |   | Mar. 31, 2011      |       |   | Mar. 31, 2010 |   |
|                                                                           |   |                         |       |   |   |   |
| Balance at beginning of period                                                 |   | $                            | 46,024,098 |   |   | $ | 61,707,655 |   |
|                                                                           |   |                         |       |   |   |   |   |   |
| Net Income (Loss)                                                              |   |                         | 10,925     |   |   |   | (847,938 | ) |
|                                                                           |   |                         |       |   |   |   |   |   |
| Unrealized gains on securities                                                 |   |                         |       |   |   |   |   |   |
| Unrealized holding gains arising during the year, net of tax                   |   |                         | 206,861    |   |   |   | 249,171 |   |
| Less: reclassification adjustment for gains realized in net income, net of tax |   |                         | -          |   |   |   | 297,972 |   |
| Total comprehensive income (loss)                                              |   |                         | 217,786    |   |   |   | (896,739 | ) |
|                                                                           |   |                         |       |   |   |   |   |   |
| Share-based compensation                                                       |   |                         | 22,906     |   |   |   | 43,627 |   |
|                                                                           |   |                         |       |   |   |   |   |   |
| Balance at end of period                                                       |   | $                            | 46,264,790 |   |   | $ | 60,854,543 |   |

----

|                                                      |   | March 31, 2011 |        |   | March 31, 2010 |   |
|-----------------------------------------------------------|--------|--------------------------|-------------|--------|--------------------------|--------|
| Operating Activities                                      |   |                     |        |   |                     |   |
| Net Income/(loss)                                         |   | $                        | 10,925      |   |                     | $      | (847,938 | ) |
| Items not requiring (providing) cash                      |   |                     |        |   |                     |   |   |   |
| Depreciation and amortization                             |   |                     | 453,858     |   |                     |   | 1,422,548 |   |
| Provision for loan losses                                 |   |                     | 498,840     |   |                     |   | 1,391,433 |   |
| Expense of share-based compensation plan                  |   |                     | 22,906      |   |                     |   | 43,627 |   |
| Amortization of premiums and discounts on securities      |   |                     | 431,539     |   |                     |   | 201,935 |   |
| Amortization of intangible assets                         |   |                     | 197,212     |   |                     |   | 200,134 |   |
| Deferred income taxes                                     |   |                     | (106,563    | )      |                     |   | (20,568 | ) |
| Proceeds from sale of loans held for sale                 |   |                     | 29,634,009  |   |                     |   | 69,929,801 |   |
| Originations of loans held for sale                       |   |                     | (25,534,733 | )      |                     |   | (64,824,772 | ) |
| Gain from sale of loans                                   |   |                     | (467,909    | )      |                     |   | (717,014 | ) |
| Gain on available for sale securities                     |   |                     | -           |   |                     |   | (451,474 | ) |
| Software and fixed asset impairment                       |   |                     | -           |   |                     |   | 568,535 |   |
| Loss on sale of foreclosed assets                         |   |                     | 100,274     |   |                     |   | 22,841 |   |
| (Gain) / Loss on sale of fixed assets                     |   |                     | (65         | )      |                     |   | 5,811 |   |
| Income from bank owned life insurance                     |   |                     | (93,521     | )      |                     |   | (104,047 | ) |
| Changes in                                                |   |                     |        |   |                     |   |   |   |
| Interest receivable                                       |   |                     | (294,680    | )      |                     |   | (638,251 | ) |
| Other assets                                              |   |                     | 274,191     |   |                     |   | 409,687 |   |
| Interest payable and other liabilities                    |   |                     | (358,515    | )      |                     |   | (1,745,332 | ) |
|                                                      |   |                     |        |   |                     |   |   |   |
| Net cash from operating activities                        |   |                     | 4,767,768   |   |                     |   | 4,846,956 |   |
|                                                      |   |                     |        |   |                     |   |   |   |
| Investing Activities                                      |   |                     |        |   |                     |   |   |   |
| Purchase of available-for-sale securities                 |   |                     | (4,039,486  | )      |                     |   | (23,365,873 | ) |
| Proceeds from maturities of available-for-sale securities |   |                     | 5,630,800   |   |                     |   | 11,773,761 |   |
| Proceeds from sales of available-for-sale-securities      |   |                     | -           |   |                     |   | 9,995,724 |   |
| Proceeds from bank owned life insurance                   |   |                     | 1,353,762   |   |                     |   | - |   |
| Net change in loans                                       |   |                     | 4,357,295   |   |                     |   | 3,478,042 |   |
| Purchase of premises and equipment and software           |   |                     | (118,724    | )      |                     |   | (753,269 | ) |
| Proceeds from sales of premises and equipment             |   |                     | 65          |   |                     |   | 477,941 |   |
| Proceeds from sale of foreclosed assets                   |   |                     | 923,029     |   |                     |   | 2,727,528 |   |
|                                                      |   |                     |        |   |                     |   |   |   |
| Net cash from investing activities                        |   | $                        | 8,106,741   |   |                     | $      | 4,333,854 |   |

----

|                                                                                             |   | March 31, 2011 |       |   | March 31, 2010 |   |
|--------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|--------------------------|--------|
| Financing Activities                                                                             |   |                     |       |   |                     |   |
| Net (decrease) increase in demand deposits, money market, interest checking and savings accounts |   | $                        | (2,319,194 | )      |                     | $      | 12,614,595 |   |
| Net decrease in certificates of deposit                                                          |   |                     | (397,159   | )      |                     |   | (4,911,086 | ) |
| Net increase in securities sold under agreements to repurchase                                   |   |                     | 3,714,170  |   |                     |   | 2,068,279 |   |
| Net increase in federal funds purchased                                                          |   |                     | -          |   |                     |   | (5,000,000 | ) |
| Repayment of Federal Home Loan Bank advances                                                     |   |                     | (6,127,409 | )      |                     |   | (2,607,300 | ) |
| Proceeds from notes payable                                                                      |   |                     | -          |   |                     |   | 2,000,000 |   |
| Repayment of notes payable                                                                       |   |                     | (72,260    | )      |                     |   | (765,841 | ) |
|                                                                                             |   |                     |       |   |                     |   |   |   |
| Net cash (used in) / from financing activities                                                   |   |                     | (5,201,852 | )      |                     |   | 3,398,647 |   |
|                                                                                             |   |                     |       |   |                     |   |   |   |
| Increase in Cash and Cash Equivalents                                                            |   |                     | 7,672,657  |   |                     |   | 12,579,457 |   |
|                                                                                             |   |                     |       |   |                     |   |   |   |
| Cash and Cash Equivalents, Beginning of Year                                                     |   |                     | 30,417,813 |   |                     |   | 24,824,785 |   |
|                                                                                             |   |                     |       |   |                     |   |   |   |
| Cash and Cash Equivalents, End of Period                                                         |   | $                        | 38,090,470 |   |                     | $      | 37,404,242 |   |
|                                                                                             |   |                     |       |   |                     |   |   |   |
| Supplemental Cash Flows Information                                                              |   |                     |       |   |                     |   |   |   |
|                                                                                             |   |                     |       |   |                     |   |   |   |
| Interest Paid                                                                                    |   | $                        | 1,752,796  |   |                     | $      | 2,885,467 |   |
|                                                                                             |   |                     |       |   |                     |   |   |   |
| Transfer of loans to foreclosed assets                                                           |   | $                        | 399,768    |   |                     | $      | 2,589,970 |   |
|                                                                                             |   |                     |       |   |                     |   |   |   |
| Sale and financing of foreclosed assets                                                          |   | $                        | -          |   |                     | $      | 2,249,532 |   |

----

|                       |   | Three Months Ended |      |
|----------------------------|--------|------------------------------|-----------|
|                       |   | March 31                |      |
|                       |   | 2011                         |      |   | 2010 |   |
| Basic earnings per share   |   |                         | 4,861,779 |   |   |   | 4,861,779 |   |
| Diluted earnings per share |   |                         | 4,861,779 |   |   |   | 4,861,779 |   |

----

|                                           |   | March 31, |        |   | December 31, |   |
|------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
|                                           |   | 2011           |        |   | 2010              |   |
| Commercial                                     |   | $              | 70,619,272  |   |              | $      | 72,488,678 |   |
| Commercial real estate                         |   |           | 181,750,397 |   |              |   | 177,889,619 |   |
| Agricultural                                   |   |           | 37,206,059  |   |              |   | 40,762,147 |   |
| Residential real estate                        |   |           | 82,435,692  |   |              |   | 84,775,026 |   |
| Consumer                                       |   |           | 50,252,550  |   |              |   | 51,710,239 |   |
| Leasing                                        |   |           | 181,521     |   |              |   | 194,384 |   |
| Total loans                                    |   |           | 422,445,491 |   |              |   | 427,820,093 |   |
| Less                                           |   |           |        |   |              |   |   |   |
| Net deferred loan fees, premiums and discounts |   |           | (279,098    | )      |              |   | (275,679 | ) |
| Loans, net of unearned income                  |   |           | 422,166,393 |   |              |   | 427,544,414 |   |
| Allowance for loan losses                      |   | $              | (6,593,279  | )      |              | $      | (6,715,397 | ) |

| ($'s in thousands) |   | March 31, |       |   | December 31, |   |
|------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                         |   | 2011           |       |   | 2010              |   |
| Commercial                   |   | $              | 2,950,220  |   |              | $      | 3,031,716 |   |
| Commercial real estate       |   |           | 5,335,542  |   |              |   | 6,065,058 |   |
| Agricultural                 |   |           | 86,598     |   |              |   | - |   |
| Residential real estate      |   |           | 3,466,181  |   |              |   | 2,564,913 |   |
| Consumer                     |   |           | 282,055    |   |              |   | 621,000 |   |
| Leasing                      |   |           | -          |   |              |   | - |   |
|                         |   |           |       |   |              |   |   |   |
| Total                        |   | $              | 12,120,596 |   |              | $      | 12,282,687 |   |

----

| March 31, 2011            |   | Business |   |   | Commercial       |   |    |         |   |   | Residential         |   |   |     |   |   |   |   |   |        |   |   |   |   |
|-------------------------------------|--------|----------|--------|--------|------------------|--------|---------|--------------|--------|--------|---------------------|--------|--------|----------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|
| ($'s in thousands)        |   | Loans    |   |   | Real Estate |   |    | Agricultural |   |   | First Mortgage |   |   | Consumer |   |   | Other  |   |   | Unallocated |   |   | Total  |   |
|                                |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |
| ALLOWANCE FOR LOAN AND LEASE LOSSES |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |
|                                |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |
| Beginning balance                   |   | $        | 1,723  |   |             | $      | 3,774   |         |   | $      | 16                  |   |   | $        | 643    |   |   | $      | 401    |        |   | $      | 128    |   |   | $ | 30 |   |   | $ | 6,715 |   |
| Charge Offs                         |   |     | (209   | )      |             |   | (100    | )            |   |   | -                   |   |   |     | (103   | )      |   |   | (200   | )           |   |   | (27    | )      |   |   | - |   |   |   | (639 | ) |
| Recoveries                          |   |     | 5      |   |             |   | 3       |         |   |   | 1                   |   |   |     | -      |   |   |   | 7      |        |   |   | 2      |   |   |   | - |   |   |   | 18 |   |
| Provision                           |   |     | 247    |   |             |   | (354    | )            |   |   | 1                   |   |   |     | 386    |   |   |   | 243    |        |   |   | 5      |   |   |   | (29 | ) |   |   | 499 |   |
| Ending Balance                      |   | $        | 1,766  |   |             | $      | 3,322   |         |   | $      | 18                  |   |   | $        | 926    |   |   | $      | 451    |        |   | $      | 108    |   |   | $ | 1 |   |   | $ | 6,593 |   |
|                                |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                     |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| individually                        |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| evaluated for                       |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment                          |   | $        | 701    |   |             | $      | 1,085   |         |   | $      | -                   |   |   | $        | 300    |   |   | $      | -      |        |   |   |   |   |   |   |   |   |   | $ | 2,087 |   |
| Ending balance:                     |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| collectively                        |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| evaluated for                       |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment                          |   | $        | 1,064  |   |             | $      | 2,237   |         |   | $      | 18                  |   |   | $        | 626    |   |   | $      | 451    |        |   | $      | 108    |   |   | $ | 1 |   |   | $ | 4,506 |   |
|                                |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                              |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                     |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| individually                        |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| evaluated for                       |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment                          |   | $        | 2,864  |   |             | $      | 5,306   |         |   | $      | -                   |   |   | $        | 2,337  |   |   | $      | 93     |        |   |   |   |   |   |   |   |   |   | $ | 10,600 |   |
| Ending balance:                     |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| collectively                        |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| evaluated for                       |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment                          |   | $        | 67,755 |   |             | $      | 176,445 |         |   | $      | 37,206              |   |   | $        | 80,099 |   |   | $      | 50,159 |        |   | $      | 182    |   |   | $ | - |   |   | $ | 411,845 |   |

| December 31, 2010         |   | Business |   |   | Commercial       |   |    |         |   |   | Residential         |   |   |     |   |   |   |   |   |        |   |   |   |   |
|-------------------------------------|--------|----------|--------|--------|------------------|--------|---------|--------------|--------|--------|---------------------|--------|--------|----------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|
| ($'s in thousands)        |   | Loans    |   |   | Real Estate |   |    | Agricultural |   |   | First Mortgage |   |   | Consumer |   |   | Other  |   |   | Unallocated |   |   | Total  |   |
|                                |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |
| ALLOWANCE FOR LOAN AND LEASE LOSSES |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |
|                                |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |
| Beginning balance                   |   | $        | 2,604  |   |             | $      | 3,210   |         |   | $      | 92                  |   |   | $        | 715    |   |   | $      | 255    |        |   | $      | 154    |   |   | $ | - |   |   | $ | 7,030 |   |
| Charge Offs                         |   |     | (4,739 | )      |             |   | (4,748  | )            |   |   | -                   |   |   |     | (1,210 | )      |   |   | (542   | )           |   |   | (95    | )      |   |   | - |   |   |   | (11,334 | ) |
| Recoveries                          |   |     | 182    |   |             |   | 171     |         |   |   | 11                  |   |   |     | 53     |   |   |   | -      |        |   |   | 14     |   |   |   | - |   |   |   | 431 |   |
| Provision                           |   |     | 3,676  |   |             |   | 5,141   |         |   |   | (87                 | )      |   |     | 1,085  |   |   |   | 688    |        |   |   | 55     |   |   |   | 30 |   |   |   | 10,588 |   |
| Ending Balance                      |   | $        | 1,723  |   |             | $      | 3,774   |         |   | $      | 16                  |   |   | $        | 643    |   |   | $      | 401    |        |   | $      | 128    |   |   | $ | 30 |   |   | $ | 6,715 |   |
|                                |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                     |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| individually                        |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| evaluated for                       |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment                          |   | $        | 684    |   |             | $      | 1,157   |         |   | $      | -                   |   |   | $        | -      |   |   | $      | -      |        |   |   |   |   |   |   |   |   |   | $ | 1,841 |   |
| Ending balance:                     |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| collectively                        |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| evaluated for                       |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment                          |   | $        | 1,039  |   |             | $      | 2,617   |         |   | $      | 16                  |   |   | $        | 643    |   |   | $      | 401    |        |   | $      | 128    |   |   | $ | 30 |   |   | $ | 4,874 |   |
| Loans:                              |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                     |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| individually                        |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| evaluated for                       |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment                          |   | $        | 3,121  |   |             | $      | 3,774   |         |   | $      | -                   |   |   | $        | -      |   |   | $      | -      |        |   |   |   |   |   |   |   |   |   | $ | 6,895 |   |
| Ending balance:                     |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| collectively                        |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| evaluated for                       |   |     |   |   |             |   |    |         |   |   |                |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment                          |   | $        | 69,368 |   |             | $      | 174,116 |         |   | $      | 40,762              |   |   | $        | 84,775 |   |   | $      | 51,710 |        |   | $      | 194    |   |   | $ | - |   |   | $ | 420,925 |   |

----

|   | 1. | One (1) Superior - Risk is negligible. Loans are to well-seasoned borrowers, displaying sound financial condition, consistent superior earnings performance, strong capitalization, and access to a range of financing alternatives. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Two (2) Excellent - Risk is minimal. Borrower is well capitalized, operates in a stable industry, financial ratios exceed peers, and financial trends are positive. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Three (3) Good - Risk is modest.  Borrower has good overall financial condition and adequate capitalization to withstand temporary setbacks. Financial trends are positive, and there is clear ability to service debt from the primary source. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Four (4) Average - Risk is acceptable. Borrowers in this category may be characterized by acceptable asset quality, but may face a degree of uncertainty due to new business, untried market, high degree of leverage, expansion, management change, or industry conditions. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Four Monitored (4m) = Monitored Pass Credits - Risk is increasing.  Borrowers in this category may be characterized by an increasing amount of risk due to one or more of the following characteristics listed below.  Additionally, these borrowers require a higher than normal amount of monitoring by the relationship manager and bank management.  Borrowers who are placed in this category may also demonstrate the potential for an upgrade in the next 12 months given improvement in one or more of the factors listed below. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Declining trends in the earnings and cash flow of the company is evident by moderate to severe losses although debt service coverage remains within policy limits. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Lines of credit that have been evergreen (75% of maximum availability) for more than two consecutive years. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | § | Absence of relevant financial information or stale financial information provided. |
|--------|--------|------------------------------------------------------------------------------------|

|   | § | Restructure or modification to the loan agreement for the purpose of additional funds to support ongoing operations of the company. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The borrower demonstrates a material weakness or declining trend in collateral support for the given loans. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | 6. | Five (5) Special Mention - Defined as having potential weaknesses that deserve management's close attention. If uncorrected these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the credit or the institution's credit position. Special mention credits are not considered as part of the classified extensions of credit category and do not expose State Bank to sufficient risk to warrant classification. Extensions of credit that might be detailed in this category include those in which: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The lending officer may be unable to properly supervise the credit because of an inadequate loan or credit agreement. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | § | Questions exist regarding the condition of and/or control over collateral. |
|--------|--------|----------------------------------------------------------------------------|

----

|   | § | Economic or market conditions may unfavorably affect the obligor in the future. |
|--------|--------|---------------------------------------------------------------------------------|

|   | § | A declining trend in the obligor's operations or an imbalanced position in the balance sheet exists, but not to the point that repayment is jeopardized. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Other deviations from prudent lending practices are present. |
|--------|--------|--------------------------------------------------------------|

|   | § | The special mention category should not be used to identify an extension of credit that has as its sole weakness credit-data or documentation exceptions not material to the repayment of the credit. It should also not be used to list extensions of credit that contain risks usually associated with that particular type of lending. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Any extension of credit involves certain risks, regardless of the collateral or the borrower's capacity and willingness to repay the debt. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Six (6) Substandard - A "substandard" extension of credit is inadequately protected by the sound worth and paying capacity of the obligor or of the collateral pledged, if any. Extensions of credit so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that State Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard credits, does not have to exist in individual extensions of credit classified substandard. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | Seven (7) Doubtful - Has all the weaknesses in one classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage of and strengthen the credit, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceedings, capital injection, perfecting liens on additional collateral, or refinancing plans. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | An entire credit is not classified as doubtful when collection of a specific portion appears highly probable. An example of proper use of the doubtful category is the case of a company being liquidated, with the trustee-in-bankruptcy indicating a minimum disbursement of forty percent (40%) and a maximum of sixty-five percent (65%) to unsecured creditors including State Bank. In this situation, estimates are based on liquidation-value appraisals with actual values yet to be realized. By definition, the only portion of the credit that is doubtful is the twenty-five percent (25%) difference between forty percent (40%) and sixty-five percent (65%). A proper classification of such a credit would show forty percent (40%) substandard, twenty-five percent (25%) doubtful, and thirty-five percent (35%) loss. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | Eight (8) Loss - Considered uncollectible and of such little value that continuance as a Bank asset is not warranted. This classification does not mean that the credit has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future.  Loans failing to meet the minimum conditions of the Doubtful classifications are charged off. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| March 31, 2011 |   |       |   |   | Commercial       |   |    |         |   |   |        |   |   |     |   |   |   |   |
|--------------------------|--------|------------|--------|--------|------------------|--------|---------|--------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
|                     |   | Commercial |   |   | Real Estate |   |    | Agricultural |   |   | Residential |   |   | Consumer |   |   | Leases |   |
|  1-2                |   | $          | 889    |   |             | $      | 446     |         |   | $      | 177         |   |   | $        | 1,692  |   |   | $      | 148 |   |   | $ | - |   |
|     3     |   |       | 24,286 |   |             |   | 62,969  |         |   |   | 13,513      |   |   |     | 69,057 |   |   |   | 46,847 |   |   |   | 39 |   |
|     4     |   |       | 40,183 |   |             |   | 102,026 |         |   |   | 23,228      |   |   |     | 5,753  |   |   |   | 2,602 |   |   |   | 143 |   |
| Total Pass               |   |       | 65,358 |   |             |   | 165,441 |         |   |   | 36,918      |   |   |     | 76,502 |   |   |   | 49,597 |   |   |   | 182 |   |
|                     |   |       |   |   |             |   |    |         |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |
|    5           |   |       | 747    |   |             |   | 6,573   |         |   |   | 5           |   |   |     | 2,055  |   |   |   | 215 |   |   |   | - |   |
|    6           |   |       | 2,035  |   |             |   | 5,041   |         |   |   | 283         |   |   |     | 2,405  |   |   |   | 218 |   |   |   | - |   |
|    7           |   |       | 2,479  |   |             |   | 4,695   |         |   |   | -           |   |   |     | 1,474  |   |   |   | 223 |   |   |   | - |   |
|    8           |   |       | -      |   |             |   | -       |         |   |   | -           |   |   |     | -      |   |   |   | - |   |   |   | - |   |
| Total                    |   | $          | 70,619 |   |             | $      | 181,750 |         |   | $      | 37,206      |   |   | $        | 82,436 |   |   | $      | 50,253 |   |   | $ | 182 |   |

| December 31, 2010 |   |       |   |   | Commercial       |   |    |         |   |   |        |   |   |     |   |   |   |   |
|-----------------------------|--------|------------|--------|--------|------------------|--------|---------|--------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
|                        |   | Commercial |   |   | Real Estate |   |    | Agricultural |   |   | Residential |   |   | Consumer |   |   | Leases |   |
|  1-2                   |   | $          | 903    |   |             | $      | 735     |         |   | $      | 180         |   |   | $        | 3,861  |   |   | $      | 444 |   |   | $ | 127 |   |
|     3        |   |       | 25,101 |   |             |   | 63,789  |         |   |   | 15,883      |   |   |     | 68,979 |   |   |   | 47,650 |   |   |   | - |   |
|     4        |   |       | 40,159 |   |             |   | 97,307  |         |   |   | 24,204      |   |   |     | 5,535  |   |   |   | 2,589 |   |   |   | 67 |   |
| Total Pass                  |   |       | 66,163 |   |             |   | 161,831 |         |   |   | 40,268      |   |   |     | 78,375 |   |   |   | 50,683 |   |   |   | 194 |   |
|                        |   |       |   |   |             |   |    |         |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |
|    5              |   |       | 1,021  |   |             |   | 7,141   |         |   |   | 6           |   |   |     | 2,465  |   |   |   | 217 |   |   |   | - |   |
|    6              |   |       | 2,739  |   |             |   | 3,176   |         |   |   | 489         |   |   |     | 2,605  |   |   |   | 450 |   |   |   | - |   |
|    7         |   |       | 2,566  |   |             |   | 5,742   |         |   |   | -           |   |   |     | 1,330  |   |   |   | 360 |   |   |   | - |   |
|    8              |   |       | -      |   |             |   | -       |         |   |   | -           |   |   |     | -      |   |   |   | - |   |   |   | - |   |
| Total                       |   | $          | 72,489 |   |             | $      | 177,890 |         |   | $      | 40,762      |   |   | $        | 84,775 |   |   | $      | 51,710 |   |   | $ | 194 |   |

|                     |   |            |   |   |            |   |   |              |   |   |            |   |   |    |   |   |             |   |    | Total Loans > |   |
|--------------------------|--------|-----------------|--------|--------|-----------------|--------|--------|-------------------|--------|--------|-----------------|--------|--------|---------|--------|--------|------------------|--------|---------|----------------------------|--------|
|                     |   | 30-59 Days |   |   | 60-89 Days |   |   | Greater Than |   |   | Total Past |   |   |    |   |   | Total Loans |   |    | 90 Days and      |   |
| March 31, 2011 |   | Past Due   |   |   | Past Due   |   |   | 90 Days      |   |   | Due             |   |   | Current |   |   | Receivable       |   |    | Accruing                   |   |
|                     |   |            |   |   |            |   |   |              |   |   |            |   |   |    |   |   |             |   |    |                       |   |
| Commercial               |   | $               | 15     |   |            | $      | -      |              |   | $      | 2,935           |   |   | $       | 2,950  |   |             | $      | 67,669  |                       |   | $ | 70,619 |   |   | $ | - |   |
| Commercial Real Estate   |   |            | 105    |   |            |   | -      |              |   |   | 6,138           |   |   |    | 6,244  |   |             |   | 175,507 |                       |   |   | 181,750 |   |   |   | - |   |
| Agricultural             |   |            | -      |   |            |   | -      |              |   |   | 87              |   |   |    | 87     |   |             |   | 37,119  |                       |   |   | 37,206 |   |   |   | - |   |
| Residential              |   |            | 537    |   |            |   | -      |              |   |   | 1,196           |   |   |    | 1,733  |   |             |   | 80,703  |                       |   |   | 82,436 |   |   |   | - |   |
| Consumer                 |   |            | 203    |   |            |   | 44     |              |   |   | 216             |   |   |    | 463    |   |             |   | 49,790  |                       |   |   | 50,253 |   |   |   | - |   |
| Leases                   |   |            | -      |   |            |   | -      |              |   |   | -               |   |   |    | -      |   |             |   | 182     |                       |   |   | 182 |   |   |   | - |   |
| Loans                    |   |            | 861    |   |            |   | 44     |              |   |   | 10,572          |   |   |    | 11,476 |   |             |   | 410,969 |                       |   |   | 422,445 |   |   |   | - |   |
|                     |   |            |   |   |            |   |   |              |   |   |            |   |   |    |   |   |             |   |    |                       |   |   |   |   |   |   |   |   |
| Loans held for Sale      |   |            | -      |   |            |   | -      |              |   |   | -               |   |   |    | -      |   |             |   | 5,424   |                       |   |   | 5,424 |   |   |   | - |   |
|                     |   |            |   |   |            |   |   |              |   |   |            |   |   |    |   |   |             |   |    |                       |   |   |   |   |   |   |   |   |
| Total                    |   | $               | 861    |   |            | $      | 44     |              |   | $      | 10,572          |   |   | $       | 11,476 |   |             | $      | 416,392 |                       |   | $ | 427,868 |   |   | $ | - |   |

|                        |   |            |   |   |            |   |   |              |   |   |            |   |   |    |   |   |             |   |    | Total Loans > |   |
|-----------------------------|--------|-----------------|--------|--------|-----------------|--------|--------|-------------------|--------|--------|-----------------|--------|--------|---------|--------|--------|------------------|--------|---------|----------------------------|--------|
|                        |   | 30-59 Days |   |   | 60-89 Days |   |   | Greater Than |   |   | Total Past |   |   |    |   |   | Total Loans |   |    | 90 Days and      |   |
| December 31, 2010 |   | Past Due   |   |   | Past Due   |   |   | 90 Days      |   |   | Due             |   |   | Current |   |   | Receivable       |   |    | Accruing                   |   |
|                        |   |            |   |   |            |   |   |              |   |   |            |   |   |    |   |   |             |   |    |                       |   |
| Commercial                  |   | $               | 242    |   |            | $      | 73     |              |   | $      | 2,744           |   |   | $       | 3,059  |   |             | $      | 69,430  |                       |   | $ | 72,489 |   |   | $ | - |   |
| Commercial Real Estate      |   |            | 148    |   |            |   | 10     |              |   |   | 5,617           |   |   |    | 5,775  |   |             |   | 172,115 |                       |   |   | 177,890 |   |   |   | - |   |
| Agricultural                |   |            | -      |   |            |   | 88     |              |   |   | -               |   |   |    | 88     |   |             |   | 40,674  |                       |   |   | 40,762 |   |   |   | - |   |
| Residential                 |   |            | 427    |   |            |   | 372    |              |   |   | 1,584           |   |   |    | 2,383  |   |             |   | 82,392  |                       |   |   | 84,775 |   |   |   | - |   |
| Consumer                    |   |            | 255    |   |            |   | 25     |              |   |   | 547             |   |   |    | 827    |   |             |   | 50,883  |                       |   |   | 51,710 |   |   |   | - |   |
| Leases                      |   |            | -      |   |            |   | -      |              |   |   | -               |   |   |    | -      |   |             |   | 194     |                       |   |   | 194 |   |   |   | - |   |
| Loans                       |   |            | 1,072  |   |            |   | 568    |              |   |   | 10,492          |   |   |    | 12,132 |   |             |   | 415,688 |                       |   |   | 427,820 |   |   |   | - |   |
| Loans held for Sale         |   |            | -      |   |            |   | -      |              |   |   | -               |   |   |    | -      |   |             |   | 9,055   |                       |   |   | 9,055 |   |   |   | - |   |
|                        |   |            |   |   |            |   |   |              |   |   |            |   |   |    |   |   |             |   |    |                       |   |   |   |   |   |   |   |   |
| Total                       |   | $               | 1,072  |   |            | $      | 568    |              |   | $      | 10,492          |   |   | $       | 12,132 |   |             | $      | 424,743 |                       |   | $ | 436,875 |   |   | $ | - |   |

----

| March 31, 2011                      |   |       |   |   | Unpaid    |   |   |      |   |   | Average    |   |   | Interest   |   |
|-------------------------------------|--------|------------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
| ($'s in thousands)                  |   | Recorded   |   |   | Principal |   |   | Related   |   |   | Recorded   |   |   | Income     |   |
|                                |   | Investment |   |   | Balance   |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
| With no related allowance recorded: |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |
| Commercial                          |   | $          | 349    |   |      | $      | 698    |      |   | $      | -          |   |   | $          | 360    |   |   | $ | (2 | ) |
| Commercial Real Estate              |   |       | 2,058  |   |      |   | 2,920  |      |   |   | -          |   |   |       | 2,917  |   |   |   | (3 | ) |
| Agricultural                        |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Residential                         |   |       | 410    |   |      |   | 460    |      |   |   | -          |   |   |       | 462    |   |   |   | 3 |   |
| Consumer                            |   |       | 91     |   |      |   | 91     |      |   |   | -          |   |   |       | 93     |   |   |   | 1 |   |
| With a specific allowance recorded: |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial                          |   |       | 2,493  |   |      |   | 4,142  |      |   |   | 901        |   |   |       | 2,877  |   |   |   | (5 | ) |
| Commercial Real Estate              |   |       | 4,116  |   |      |   | 4,215  |      |   |   | 935        |   |   |       | 5,144  |   |   |   | (1 | ) |
| Agricultural                        |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Residential                         |   |       | 999    |   |      |   | 1,237  |      |   |   | 219        |   |   |       | 1,231  |   |   |   | 8 |   |
| Consumer                            |   |       | 84     |   |      |   | 84     |      |   |   | 32         |   |   |       | 32     |   |   |   | 1 |   |
| Totals:                             |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial                          |   | $          | 2,842  |   |      | $      | 4,841  |      |   | $      | 901        |   |   | $          | 3,238  |   |   | $ | (7 | ) |
| Commercial Real Estate              |   | $          | 6,174  |   |      | $      | 7,136  |      |   | $      | 935        |   |   | $          | 8,061  |   |   | $ | (4 | ) |
| Agricultural                        |   | $          | -      |   |      | $      | -      |      |   | $      | -          |   |   | $          | -      |   |   | $ | - |   |
| Residential                         |   | $          | 1,409  |   |      | $      | 1,698  |      |   | $      | 219        |   |   | $          | 1,693  |   |   | $ | 11 |   |
| Consumer                            |   | $          | 175    |   |      | $      | 175    |      |   | $      | 32         |   |   | $          | 126    |   |   | $ | 2 |   |

| December 31, 2010                   |   |       |   |   | Unpaid    |   |   |      |   |   | Average    |   |   | Interest   |   |
|-------------------------------------|--------|------------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
| ($'s in thousands)                  |   | Recorded   |   |   | Principal |   |   | Related   |   |   | Recorded   |   |   | Income     |   |
|                                |   | Investment |   |   | Balance   |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
| With no related allowance recorded: |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |
| Commercial                          |   | $          | 436    |   |      | $      | 786    |      |   | $      | -          |   |   | $          | 2,075  |   |   | $ | 4 |   |
| Commercial Real Estate              |   |       | 2,744  |   |      |   | 4,040  |      |   |   | -          |   |   |       | 4,195  |   |   |   | 52 |   |
| Agricultural                        |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | 10 |   |
| Residential                         |   |       | 616    |   |      |   | 741    |      |   |   | -          |   |   |       | 1,045  |   |   |   | 2 |   |
| Consumer                            |   |       | 43     |   |      |   | 43     |      |   |   | -          |   |   |       | 72     |   |   |   | - |   |
| With a specific allowance recorded: |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial                          |   |       | 2,438  |   |      |   | 3,938  |      |   |   | 684        |   |   |       | 2,147  |   |   |   | (48 | ) |
| Commercial Real Estate              |   |       | 3,202  |   |      |   | 3,202  |      |   |   | 1,187      |   |   |       | 3,147  |   |   |   | 44 |   |
| Agricultural                        |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Residential                         |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Consumer                            |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Totals:                             |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Commercial                          |   | $          | 2,874  |   |      | $      | 4,724  |      |   | $      | 684        |   |   | $          | 4,222  |   |   | $ | (44 | ) |
| Commercial Real Estate              |   | $          | 5,946  |   |      | $      | 7,242  |      |   | $      | 1,187      |   |   | $          | 7,342  |   |   | $ | 96 |   |
| Agricultural                        |   | $          | -      |   |      | $      | -      |      |   | $      | -          |   |   | $          | -      |   |   | $ | 10 |   |
| Residential                         |   | $          | 616    |   |      | $      | 741    |      |   | $      | -          |   |   | $          | 1,045  |   |   | $ | 2 |   |
| Consumer                            |   | $          | 43     |   |      | $      | 43     |      |   | $      | -          |   |   | $          | 72     |   |   | $ | - |   |

----

----

|   | 1) | The restructuring constitutes a concession. |
|--------|----|---------------------------------------------|

|   | 2) | The debtor is experiencing financial difficulties. |
|--------|----|----------------------------------------------------|

|   | 1) | The financial assts to be repurchased or redeemed are the same or substantially the same as those transferred. |
|--------|----|----------------------------------------------------------------------------------------------------------------|

|   | 2) | The agreement is to repurchase or redeem them before maturity, at a fixed or determinable price. |
|--------|----|--------------------------------------------------------------------------------------------------|

|   | 3) | The agreement is entered into contemporaneously with, or in contemplation of, the transfer. |
|--------|----|---------------------------------------------------------------------------------------------|

----

----

| NOTE E — SEGMENT INFORMATION                                                |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |
|-------------------------------------------------------------------------------------------------------|--------|---------|-------------|--------|------------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------------|-------------|--------|--------------|--------|
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |
| As of and for the three months ended March 31, 2011 |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |
|                                                                                                  |   |    |        |   | Data       |   |      |   |   |   | Total     |   |   | Intersegment |        |   | Consolidated |   |
| Income statement information                                                                |   | Banking |        |   | Processing |   |      | Other  |   |   | Segments  |   |   | Elimination  |        |   | Totals       |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |
| Net interest income (expense)                                                                         |   | $       | 5,227,440   |   |       | $      | (79,283   | )      |   | $      | (314,855  | )      |   | $            | 4,833,302   |   |         |   |   |   | $ | 4,833,302 |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |
| Non-interest income - external customers                                                         |   |    | 1,939,032   |   |       |   | 912,319   |   |   |   | 11,475    |   |   |         | 2,862,826   |   |         |   |   |   |   | 2,862,826 |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |
| Non-interest income - other segments                                                                  |   |    | 50,420      |   |       |   | 381,377   |   |   |   | 37,500    |   |   |         | 469,297     |   |         |   | (469,297 | ) |   |   | - |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Total revenue                                                                                         |   |    | 7,216,892   |   |       |   | 1,214,413 |   |   |   | (265,880  | )      |   |         | 8,165,425   |   |         |   | (469,297 | ) |   |   | 7,696,128 |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Non-interest expense                                                                                  |   |    | 5,660,993   |   |       |   | 1,507,161 |   |   |   | 360,834   |   |   |         | 7,528,988   |   |         |   | (469,297 | ) |   |   | 7,059,691 |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Significant non-cash items:                                                                           |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                         |   |    | 225,640     |   |       |   | 225,862   |   |   |   | 2,356     |   |   |         | 453,858     |   |         |   | - |   |   |   | 453,858 |   |
| Provision for loan losses                                                                             |   |    | 498,840     |   |       |   | -         |   |   |   | -         |   |   |         | 498,840     |   |         |   | - |   |   |   | 498,840 |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Income tax expense (benefit)                                                                          |   |    | 226,235     |   |       |   | (99,534   | )      |   |   | (29       | )      |   |         | 126,672     |   |         |   | - |   |   |   | 126,672 |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Segment profit (loss)                                                                                 |   | $       | 830,824     |   |       | $      | (193,214  | )      |   | $      | (626,685  | )      |   | $            | 10,925      |   |         | $      | - |   |   | $ | 10,925 |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Balance sheet information                                                                             |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Total assets                                                                                          |   | $       | 648,875,357 |   |       | $      | 6,085,170 |   |   | $      | 5,227,705 |   |   | $            | 660,188,232 |   |         | $      | (5,220,222 | ) |   | $ | 654,968,010 |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Goodwill and intangibles                                                                              |   | $       | 18,673,819  |   |       | $      | 447,931   |   |   | $      | -         |   |   | $            | 19,121,750  |   |         | $      | - |   |   | $ | 19,121,750 |   |
|                                                                                                  |   |    |        |   |       |   |      |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Premises and equipment expenditures                                                                   |   | $       | 118,724     |   |       | $      | -         |   |   | $      | -         |   |   | $            | 118,724     |   |         | $      | - |   |   | $ | 118,724 |   |

----

| NOTE E — SEGMENT INFORMATION                                                |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |
|-------------------------------------------------------------------------------------------------------|--------|---------|-------------|--------|------------|--------|------------|--------|--------|--------|-----------|--------|--------|--------------|-------------|--------|--------------|--------|
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |
| As of and for the three months ended March 31, 2010 |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |
|                                                                                                  |   |    |        |   | Data       |   |       |   |   |   | Total     |   |   | Intersegment |        |   | Consolidated |   |
| Income statement information                                                                |   | Banking |        |   | Processing |   |       | Other  |   |   | Segments  |   |   | Elimination  |        |   | Totals       |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |
| Net interest income (expense)                                                                         |   | $       | 5,340,699   |   |       | $      | (61,403    | )      |   | $      | (374,815  | )      |   | $            | 4,904,481   |   |         |   |   |   | $ | 4,904,481 |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |
| Non-interest income - external customers                                                         |   |    | 2,696,332   |   |       |   | 4,029,407  |   |   |   | 57,287    |   |   |         | 6,783,026   |   |         |   |   |   |   | 6,783,026 |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |
| Non-interest income - other segments                                                                  |   |    | 25,072      |   |       |   | 369,810    |   |   |   | 273,454   |   |   |         | 668,336     |   |         |   | (668,336 | ) |   |   | - |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Total revenue                                                                                         |   |    | 8,062,103   |   |       |   | 4,337,814  |   |   |   | (44,074   | )      |   |         | 12,355,843  |   |         |   | (668,336 | ) |   |   | 11,687,507 |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Non-interest expense                                                                                  |   |    | 6,060,473   |   |       |   | 5,669,252  |   |   |   | 730,309   |   |   |         | 12,460,034  |   |         |   | (668,336 | ) |   |   | 11,791,698 |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Significant non-cash items:                                                                           |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                         |   |    | 258,522     |   |       |   | 1,148,162  |   |   |   | 15,864    |   |   |         | 1,422,548   |   |         |   | - |   |   |   | 1,422,548 |   |
| Fixed asset & software impairment                                                                 |   |    | -           |   |       |   | 568,535    |   |   |   | -         |   |   |         | 568,535     |   |         |   |   |   |   |   | 568,535 |   |
| Provision for loan losses                                                                             |   |    | 1,391,433   |   |       |   | -          |   |   |   | -         |   |   |         | 1,391,433   |   |         |   | - |   |   |   | 1,391,433 |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Income tax expense (benefit)                                                                          |   |    | 71,829      |   |       |   | (452,689   | )      |   |   | (266,826  | )      |   |         | (647,686    | )      |         |   | - |   |   |   | (647,686 | ) |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Segment profit (loss)                                                                                 |   | $       | 538,368     |   |       | $      | (878,749   | )      |   | $      | (507,557  | )      |   | $            | (847,938    | )      |         | $      | - |   |   | $ | (847,938 | ) |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Balance sheet information                                                                             |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Total assets                                                                                          |   | $       | 653,521,849 |   |       | $      | 22,796,993 |   |   | $      | 4,259,352 |   |   | $            | 680,578,194 |   |         | $      | (6,774,597 | ) |   | $ | 673,803,597 |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Goodwill and intangibles                                                                              |   | $       | 19,312,167  |   |       | $      | 6,880,002  |   |   | $      | -         |   |   | $            | 26,192,169  |   |         | $      | - |   |   | $ | 26,192,169 |   |
|                                                                                                  |   |    |        |   |       |   |       |   |   |   |      |   |   |         |        |   |         |   |   |   |   |   |   |   |
| Premises and equipment expenditures                                                                   |   | $       | 132,861     |   |       | $      | 620,408    |   |   | $      | -         |   |   | $            | 753,269     |   |         | $      | - |   |   | $ | 753,269 |   |

----

|   | Level 1 | Quoted prices in active markets for identical assets or liabilities |
|--------|---------|---------------------------------------------------------------------|

|   | Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

| Fair Value Measurements Using: |   |
|-----------------------------------------------|--------|
| Description                                   |   | 3/31/2011 |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Available-for-Sale Securities:                |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and Government Agencies         |   | $ | 45,877,020 |   |   |   | - |   |   | $ | 45,877,020 |   |   |   | - |   |
| Mortgage-backed securities                    |   |   | 52,295,979 |   |   |   | - |   |   |   | 52,295,979 |   |   |   | - |   |
| State and political subdivisions              |   |   | 31,961,437 |   |   |   | - |   |   |   | 31,961,437 |   |   |   | - |   |
| Money Market Mutual Fund                      |   |   | 895,193 |   |   |   | 895,193 |   |   |   | - |   |   |   | - |   |
| Equity securities                             |   |   | 23,000 |   |   |   | - |   |   |   | 23,000 |   |   |   | - |   |

----

| Fair Value Measurements Using: |   |
|-----------------------------------------------|--------|
| Description                                   |   | Fair Values at12/31/2010 |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Available-for-Sale Securities:                |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and Government Agencies         |   | $ | 43,651,132 |   |   |   | - |   |   | $ | 43,651,132 |   |   |   | - |   |
| Mortgage-backed securities                    |   |   | 54,628,091 |   |   |   | - |   |   |   | 54,628,091 |   |   |   | - |   |
| State and political subdivisions              |   |   | 32,297,779 |   |   |   | - |   |   |   | 32,297,779 |   |   |   | - |   |
| Money Market Mutual Funds                     |   |   | 2,162,055 |   |   |   | 2,162,055 |   |   |   | - |   |   |   | - |   |
| Equity Securities                             |   |   | 23,000 |   |   |   | - |   |   |   | 23,000 |   |   |   | - |   |

| Fair Value Measurements Using: |   |
|-----------------------------------------------|--------|
| Description                                   |   | Fair Values at03/31/11 |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Impaired loans                                |   | $ | 6,202,661 |   |   |   | - |   |   |   | - |   |   | $ | 6,202,661 |   |

| Fair Value Measurements Using: |   |
|-----------------------------------------------|--------|
| Description                                   |   | Fair Values at12/31/2010 |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Impaired loans                                |   | $ | 6,709,231 |   |   |   | - |   |   |   | - |   |   | $ | 6,709,231 |   |
| Mortgage Servicing Rights                     |   | $ | 3,190,389 |   |   |   | - |   |   |   | - |   |   | $ | 3,190,389 |   |
| Foreclosed Assets                             |   | $ | 1,054,500 |   |   |   | - |   |   |   | - |   |   | $ | 1,054,500 |   |
| Goodwill (RDSI)                               |   | $ | 380,748 |   |   |   | - |   |   |   | - |   |   | $ | 380,748 |   |
| Intangible (RDSI)                             |   | $ | 107,000 |   |   |   | - |   |   |   | - |   |   | $ | 107,000 |   |

----

|                                    |   | March 31, 2011 |        |
|-----------------------------------------|--------|--------------------------|-------------|
|                                    |   | Carrying                 |        |   | Fair |   |
|                                    |   | Amount                   |        |   | Value |   |
|                                    |   |                     |        |   |   |   |
| Financial assets                        |   |                     |        |   |   |   |
| Cash and cash equivalents               |   | $                        | 38,090,470  |   |   | $ | 38,090,000 |   |
| Available-for-sale securities           |   |                     | 131,052,629 |   |   |   | 131,053,000 |   |
| Loans held for sale                     |   |                     | 5,423,901   |   |   |   | 5,423,901 |   |
| Loans, net of allowance for loan losses |   |                     | 415,573,114 |   |   |   | 418,207,000 |   |
| Federal Reserve and FHLB Bank stock     |   |                     | 3,748,250   |   |   |   | 3,748,000 |   |
| Accrued interest receivable             |   |                     | 2,363,645   |   |   |   | 2,364,000 |   |
|                                    |   |                     |        |   |   |   |   |   |
| Financial liabilities                   |   |                     |        |   |   |   |   |   |
| Deposits                                |   | $                        | 512,961,389 |   |   | $ | 515,780,000 |   |
| Short-term borrowings                   |   |                     | 49,499,424  |   |   |   | 50,879,000 |   |
| Notes payable                           |   |                     | 3,218,211   |   |   |   | 3,237,000 |   |
| FHLB advances                           |   |                     | 16,679,942  |   |   |   | 17,051,000 |   |
| Trust preferred securities              |   |                     | 20,620,000  |   |   |   | 21,144,000 |   |
| Accrued interest payable                |   |                     | 2,195,926   |   |   |   | 2,196,000 |   |

----

|                                    |   | December 31, 2010 |        |
|-----------------------------------------|--------|-----------------------------|-------------|
|                                    |   | Carrying                    |        |   | Fair |   |
|                                    |   | Amount                      |        |   | Value |   |
|                                    |   |                        |        |   |   |   |
| Financial assets                        |   |                        |        |   |   |   |
| Cash and cash equivalents               |   | $                           | 30,417,813  |   |   | $ | 30,418,000 |   |
| Available-for-sale securities           |   | $                           | 132,762,058 |   |   | $ | 132,762,000 |   |
| Loans held for sale                     |   | $                           | 9,055,268   |   |   | $ | 9,055,268 |   |
| Loans, net of allowance for loan losses |   | $                           | 420,829,017 |   |   | $ | 424,144,000 |   |
| Federal Reserve and FHLB Bank stock     |   | $                           | 3,748,250   |   |   | $ | 3,748,000 |   |
| Interest receivable                     |   | $                           | 2,068,965   |   |   | $ | 2,069,000 |   |
|                                    |   |                        |        |   |   |   |   |   |
| Financial liabilities                   |   |                        |        |   |   |   |   |   |
| Deposits                                |   | $                           | 515,677,742 |   |   | $ | 519,123,000 |   |
| Short-term borrowings                   |   | $                           | 45,785,254  |   |   | $ | 47,515,000 |   |
| Notes payable                           |   | $                           | 3,290,471   |   |   | $ | 3,276,000 |   |
| Federal Home Loan Bank advances         |   | $                           | 22,807,351  |   |   | $ | 23,243,000 |   |
| Trust preferred securities              |   | $                           | 20,620,000  |   |   | $ | 20,862,000 |   |
| Interest payable                        |   | $                           | 1,971,587   |   |   | $ | 1,972,000 |   |

|                                  |   |      |        |   | Gross      |   |      | Gross      |   |   |            |   |
|---------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|-----------------|--------|
|                                  |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Approximate     |   |
|                                  |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Fair Value |   |
| Available-for-Sale Securities:        |   |      |        |   |       |   |      |       |   |   |            |   |
| March 31, 2011:                       |   |      |        |   |       |   |      |       |   |   |            |   |
| U.S. Treasury and Government agencies |   | $         | 45,887,517  |   |       | $      | 245,460   |       |   | $      | (255,957        | )      |   | $ | 45,877,020 |   |
| Mortgage-backed securities            |   |      | 51,478,216  |   |       |   | 1,265,205 |       |   |   | (447,442        | )      |   |   | 52,295,979 |   |
| State and political subdivisions      |   |      | 30,656,014  |   |       |   | 1,351,800 |       |   |   | (46,377         | )      |   |   | 31,961,437 |   |
| Money Market Mutual Fund              |   |      | 895,193     |   |       |   | -         |       |   |   | -               |   |   |   | 895,193 |   |
| Equity securities                     |   |      | 23,000      |   |       |   | -         |       |   |   | -               |   |   |   | 23,000 |   |
|                                  |   |      |        |   |       |   |      |       |   |   |            |   |   |   |   |   |
|                                  |   | $         | 128,939,940 |   |       | $      | 2,862,465 |       |   | $      | (749,776        | )      |   | $ | 131,052,629 |   |

----

|                                  |   |      |        |   | Gross      |   |      | Gross      |   |   |        |   |
|---------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|-------------|--------|
|                                  |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Approximate |   |
|                                  |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Fair Value  |   |
| December 31, 2010:                    |   |      |        |   |       |   |      |       |   |   |        |   |
| U.S. Treasury and Government agencies |   | $         | 43,572,741  |   |       | $      | 298,653   |       |   | $      | (220,262    | )      |   | $ | 43,651,132 |   |
| Mortgage-backed securities            |   |      | 53,652,288  |   |       |   | 1,395,036 |       |   |   | (419,232    | )      |   |   | 54,628,092 |   |
| State and political subdivisions      |   |      | 31,552,709  |   |       |   | 895,794   |       |   |   | (150,724    | )      |   |   | 32,297,779 |   |
| Money Market Mutual Fund              |   |      | 2,162,055   |   |       |   | -         |       |   |   | -           |   |   |   | 2,162,055 |   |
| Equity securities                     |   |      | 23,000      |   |       |   | -         |       |   |   | -           |   |   |   | 23,000 |   |
|                                  |   |      |        |   |       |   |      |       |   |   |        |   |   |   |   |   |
|                                  |   | $         | 130,962,793 |   |       | $      | 2,589,483 |       |   | $      | (790,218    | )      |   | $ | 132,762,058 |   |

|                                                                        |   | Available for Sale |        |
|-----------------------------------------------------------------------------|--------|------------------------------|-------------|
|                                                                        |   | Amortized                    |        |   | Fair |   |
|                                                                        |   | Cost                         |        |   | Value |   |
|                                                                        |   |                         |        |   |   |   |
| Within one year                                                             |   | $                            | 5,039,857   |   |   | $ | 5,063,043 |   |
| Due after one year through five years                                       |   |                         | 8,431,771   |   |   |   | 8,633,223 |   |
| Due after five years through ten years                                      |   |                         | 25,868,508  |   |   |   | 26,371,240 |   |
| Due after ten years                                                         |   |                         | 37,203,395  |   |   |   | 37,770,951 |   |
|                                                                        |   |                         | 76,543,531  |   |   |   | 77,838,457 |   |
|                                                                        |   |                         |        |   |   |   |   |   |
| Mortgage-backed securities, equity securities and money market mutual funds |   |                         | 52,396,409  |   |   |   | 53,214,172 |   |
|                                                                        |   |                         |        |   |   |   |   |   |
| Totals                                                                      |   | $                            | 128,939,940 |   |   | $ | 131,052,629 |   |

----

| March 31, 2011              |   | Less than 12 Months |       |   | 12 Months or Longer |   |     | Total           |   |
|---------------------------------------|--------|------------------------------------|------------|--------|------------------------------------|--------|----------|-----------------|--------|
|                                  |   | Fair Value                    |       |   | UnrealizedLosses                   |   |     | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
| Available-for-Sale Securities:        |   |                               |       |   |                               |   |     |            |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and Government agencies |   | $                                  | 14,692,495 |   |                               | $      | (255,957 | )               |   | $ | - |   |   | $ | - |   |   | $ | 14,692,495 |   |   | $ | (255,957 | ) |
| Mortgage-backed securities            |   |                               | 22,890,668 |   |                               |   | (440,875 | )               |   |   | 1,140,991 |   |   |   | (6,567 | ) |   |   | 24,031,659 |   |   |   | (447,442 | ) |
| State and political subdivisions      |   |                               | 1,002,109  |   |                               |   | (10,868  | )               |   |   | 824,636 |   |   |   | (35,508 | ) |   |   | 1,826,745 |   |   |   | (46,377 | ) |
|                                  |   |                               |       |   |                               |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   | $                                  | 38,585,272 |   |                               | $      | (707,700 | )               |   | $ | 1,965,627 |   |   | $ | (42,075 | ) |   | $ | 40,550,899 |   |   | $ | (749,776 | ) |

| December 31, 2010           |   | Less than 12 Months |       |   | 12 Months or Longer |   |     | Total           |   |
|---------------------------------------|--------|------------------------------------|------------|--------|------------------------------------|--------|----------|-----------------|--------|
|                                  |   | Fair Value                    |       |   | UnrealizedLosses                   |   |     | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
| Available-for-Sale Securities:        |   |                               |       |   |                               |   |     |            |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury and Government agencies |   | $                                  | 11,483,130 |   |                               | $      | (220,262 | )               |   | $ | - |   |   | $ | - |   |   | $ | 11,483,130 |   |   | $ | (220,262 | ) |
| Mortgage-backed securities            |   |                               | 20,281,713 |   |                               |   | (319,935 | )               |   |   | 1,164,431 |   |   |   | (99,297 | ) |   |   | 21,446,144 |   |   |   | (419,232 | ) |
| State and political subdivisions      |   |                               | 7,120,710  |   |                               |   | (126,113 | )               |   |   | 349,460 |   |   |   | (24,611 | ) |   |   | 7,470,170 |   |   |   | (150,724 | ) |
|                                  |   |                               |       |   |                               |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   | $                                  | 38,885,553 |   |                               | $      | (666,310 | )               |   | $ | 1,513,891 |   |   | $ | (123,908 | ) |   | $ | 40,399,444 |   |   | $ | (790,218 | ) |

----

----

|   | · | the Dodd-Frank Act creates a Consumer Financial Protection Bureau with broad powers to adopt and enforce consumer protection regulations; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | new capital regulations for bank holding companies will be adopted, which may impose stricter requirements, and any new trust preferred securities will no longer constitute Tier I capital; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the federal law prohibiting the payment of interest on commercial demand deposit accounts will be eliminated effective in July 2011; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the standard maximum amount of deposit insurance per customer is permanently increased to $250,000, and non-interest bearing transaction accounts will have unlimited insurance through December 31, 2012; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the assessment base for determining deposit insurance premiums will be expanded to include liabilities other than just deposits; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | new corporate governance requirements applicable generally to all public companies in all industries will require new compensation practices and disclosure requirements, including requiring companies to “claw back” incentive compensation under certain circumstances, to provide shareholders the opportunity to cast a non-binding vote on executive compensation and to consider the independence of compensation advisers. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Asset Quality Review($ in Thousands) |   | March 31,2011 |   |   | December 31,2010 |   |   | March 31,2010 |   |
|----------------------------------------------------------|--------|--------------------|--------|--------|-----------------------|--------|--------|--------------------|--------|
| Net charge-offs                                          |   | $                  | 621    |   |                  | $      | 1,535  |               |   | $ | 2,346 |   |
| Non-performing loans                                     |   | $                  | 12,121 |   |                  | $      | 12,283 |               |   | $ | 14,399 |   |
| OREO / OAO                                               |   | $                  | 924    |   |                  | $      | 1,538  |               |   | $ | 1,616 |   |
| Non-performing assets                                    |   | $                  | 13,044 |   |                  | $      | 13,822 |               |   | $ | 16,016 |   |
| Non-performing assets / Total assets                     |   |               | 1.99   | %      |                  |   | 2.07   | %                  |   |   | 2.38 | % |
| Allowance for loan losses / Total loans                  |   |               | 1.56   | %      |                  |   | 1.57   | %                  |   |   | 1.37 | % |
| Allowance for loan losses / Non-performing loans         |   |               | 55.1   | %      |                  |   | 54.7   | %                  |   |   | 42.2 | % |

----

----

|                                   |   | Actual |   |   | Minimum RequiredFor CapitalAdequacy Purposes |   |   | Minimum RequiredTo Be Well CapitalizedUnder Prompt CorrectiveAction Regulations |   |
|----------------------------------------|--------|--------|--------|--------|-------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------|--------|
|                                   |   | Amount |   |   | Ratio                                                       |   |   | Amount                                                                                                        |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                   |   |   |   |   |                                                        |   |   |                                                                                                          |   |   |   |   |   |   |   |   |
| Total capital (to risk weightedassets) |   |   |   |   |                                                        |   |   |                                                                                                          |   |   |   |   |   |   |   |   |
| Consolidated                           |   | $      | 49.1   |   |                                                        |   | 11.4   | %                                                                                                             |   | $ | 34.6 |   |   |   | 8.0 | % |   | $ | - |   |   |   | N/A |   |
| State Bank                             |   | $      | 51.3   |   |                                                        |   | 12.0   | %                                                                                                             |   | $ | 34.3 |   |   |   | 8.0 | % |   | $ | 42.8 |   |   |   | 10.0 | % |

----

----

----

----

| · | information required to be disclosed by the Company in this Quarterly Report on Form 10-Q and other reports which the Company files or submits under the Exchange Act would be accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | information required to be disclosed by the Company in this Quarterly Report on Form 10-Q and other reports which the Company files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the Company’s disclosure controls and procedures were effective as of the end of the quarterly period covered by this Quarterly Report on Form 10-Q. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | 31.1    – Rule 13a-14(a)/15d-14(a) Certification (Principal Executive Officer) |
|--------|----------------------------------------------------------------------------------------------------------|

|   | 31.2    – Rule 13a-14(a)/15d-14(a) Certification (Principal Financial Officer) |
|--------|----------------------------------------------------------------------------------------------------------|

|   | 32.1    – Section 1350 Certification (Principal Executive Officer) |
|--------|----------------------------------------------------------------------------------------------|

|   | 32.2    – Section 1350 Certification (Principal Financial Officer) |
|--------|----------------------------------------------------------------------------------------------|

----

|                          | RURBAN FINANCIAL CORP. |                                    |
|-------------------------------|------------------------|-----------------------------------------|
|                          |                   |                                    |   |
| Date:  May 13, 2011 | By                     |                               |   |
|                          |                   | Mark A. Klein                           |   |
|                          |                   | President & Chief Executive Officer |   |
|                          |                   |                                    |   |
|                          | By                     |                                    |   |
|                          |                   | Anthony V. Cosentino                    |   |
|                          |                   | Executive Vice President &          |   |
|                          |                   | Chief Financial Officer                 |   |

----