----

|  x | ANNUAL REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---------|------------------------------------------------------------------------------------------------|

|  o | TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---------|----------------------------------------------------------------------------------------------------|

| Florida                                                             |   | 35-2164765                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of Incorporation or organization) |   | (I.R.S.      Employer Identification No.) |
|                                                                |   |                                      |
| 1400      North 15th      Street, Immokalee, Florida                |   | 34142-2202                                |
| (Address      of principal executive offices)                       |   | (Including      zip code)                 |

|   | (239)  657-3171                             |   |
|--------|-------------------------------------------------------|--------|
|   | (Issuer's      Telephone Number, Including Area Code) |   |

|                     |   | Name      of each exchange |
|--------------------------|--------|----------------------------|
| Title      of each class |   | on      which registered   |
| None                     |   | None                       |

| Large      accelerated filer o | Accelerated      filer       x | Non-accelerated      filer o |
|-------------------------------------|-------------------------------------|-----------------------------------|

----

| Item      Numberin Form 10-K                     | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Page      orLocation |         |
|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------------|
|                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |         |
| PART      I                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |         |
| Item      1.                                     | Business                                                                                                                                                                                                      |   |                 | 3            |   |
| Item      1A.                                    | Risk      Factors                                                                                                                                                                                             |   |                 | 6            |   |
| Item      1B.                                    | Unresolved      Staff      Comments                                                                                                                                                                           |   |                 | 6            |   |
| Item      2.                                     | Properties                                                                                                                                                                                                    |   |                 | 7            |   |
| Item      3.                                     | Legal      Proceedings                                                                                                                                                                                        |   |                 | 7            |   |
| Item      4.                                     | Submission      of Matters to a Vote of Security      Holders                                                                                                                                                 |   |                 | 7            |   |
| PART      II                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |         |   |
| Item      5.                                     | Market      for the Registrant's Common Equity and Related  Shareholder      Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 | 7            |   |
| Item      6.                                     | Selected      Financial      Data                                                                                                                                                                             |   |                 | 10           |   |
| Item      7.                                     | Management's      Discussion and Analysis of      Financial                                                                                                                                                   |   |                 |    |   |
|                                             | Condition      and Results of      Operations                                                                                                                                                                 |   |                 | 11           |   |
| Item      7A.                                    | Quantitative      and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | 11           |   |
| Item      8.                                     | Financial      Statements and Supplementary      Data                                                                                                                                                         |   |                 | 29           |   |
| Item      9.                                     | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 | 74           |   |
| Item      9A.                                    | Controls      and      Procedures                                                                                                                                                                             |   |                 | 74           |   |
| Item      9B.                                    | Other      Information                                                                                                                                                                                        |   |                 | 74           |   |
| PART      III                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |         |   |
| Item      10.                                    | Directors,      Executive Officers and Corporate      Governance                                                                                                                                              |   |                 | 74           |   |
| Item      11.                                    | Executive      Compensation                                                                                                                                                                                   |   |                 | 74           |   |
| Item      12.                                    | Security      Ownership of Certain Beneficial Owners and Managementand      Related Shareholder      Matters                                                                                                  |   |                 | 74           |   |
| Item      13.                                    | Certain      Relationships and Related Transactions and DirectorIndependence                                                                                                                                  |   |                 | 74           |   |
| Item      14.                                    | Principal      Accountant Fees and      Service                                                                                                                                                               |   |                 | 74           |   |
| PART      IV                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |         |   |
| Item      15.                                    | Exhibits      and Financial Statements      Schedules                                                                                                                                                         |   |                 | 75           |   |
| Signatures                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |         |
| Certification      of Periodic Financial Reports |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |         |

----

| ITEM      1. | BUSINESS |
|--------------|----------|

|   |        (i) | commercial      and small business lending and depositservices; |
|--------|-----------------|-----------------------------------------------------------------|

|   |               (ii) | residential      real estate mortgage and retail lending and deposit services;      and |
|--------|------------------------------------------------------------|-----------------------------------------------------------------------------------------|

|   |              (iii) | commercial      and residential real estate developmentlending. |
|--------|-------------------------------------------------------|-----------------------------------------------------------------|

|   | (a) | consumer      loans, automobile loans, real estate equity lines of credit, education      loans and real estate loans secured by single-family      residences; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | commercial      and business loans for small to medium-sized companies, including Small      Business Administration and other government-guaranteed      financing; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | individual      and builder short-term residential construction  financing; |
|--------|-----|-----------------------------------------------------------------------------|

|   | (d) | home      improvement loans; and |
|--------|-----|----------------------------------|

|   | (e) | commercial      and residential real estate developmentloans. |
|--------|-----|---------------------------------------------------------------|

|   | · | reviewing      and acting upon loan requests quickly with a locally-based loan      committee, |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | maintaining      flexible but prudent lendingpolicies, |
|--------|--------|--------------------------------------------------------|

|   | · | personalizing      service by establishing long-term banking relationships with its      customers; and |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | · | maintaining      an appropriate ratio of employees to customers to enhance the level of      service. |
|--------|--------|-------------------------------------------------------------------------------------------------------|

----

----

|   | § | a      prohibition on personal loans made or arranged by the issuer to its      directors and executive officers (except for loans made by a bank subject      to Regulation O); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | independence      requirements for audit committeemembers; |
|--------|--------|------------------------------------------------------------|

|   | § | independence      requirements for company auditors; |
|--------|--------|------------------------------------------------------|

|   | § | certification      of financial statements on Forms 10-K and 10-Q, reports by the chief      executive officer and chief financialofficer; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | the      forfeiture by the chief executive officer and the chief financial officer      of bonuses or other incentive-based compensation and profits from the sale      of an issuer's securities by such officers in the twelve month period      following the initial publication of any financial statements that later      require restatement due to corporatemisconduct; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | disclosure      of off-balance sheettransactions; |
|--------|--------|---------------------------------------------------|

|   | § | two-business      day filing requirements for insiders filing Form  4s; |
|--------|--------|-------------------------------------------------------------------------|

|   | § | disclosure      of a code of ethic for financial officers and filing a Form 8-K for a      change in or waiver of such code; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | § | the      reporting of securities violations "up the ladder" by both in-house and      outside attorneys; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | § | restrictions      on the use of non-GAAP financial measures in the press release and SEC      filings; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | § | the      formation of  a public accounting oversight board;      and |
|--------|--------|--------------------------------------------------------------------------------|

|   | § | various      increase criminal penalties for violations of securities    laws. |
|--------|--------|--------------------------------------------------------------------------------|

----

| ITEM      1A. | RISK      FACTORS |
|---------------|-------------------|

| ITEM      1B. | UNRESOLVED      STAFF COMMENTS |
|---------------|--------------------------------|

----

| ITEM      2. | PROPERTIES |
|--------------|------------|

| ITEM      3. | LEGAL      PROCEEDINGS |
|--------------|------------------------|

| ITEM      4. | SUBMISSION      OF MATTERS TO A VOTE OF SECURITYHOLDERS |
|--------------|---------------------------------------------------------|

| ITEM      5. | MARKET      FOR THE REGISTRANT'S COMMON EQUITY AND RELATED SHAREHOLDER      MATTERS |
|--------------|-------------------------------------------------------------------------------------|

|                        |   |                   Estimated Price                  Range Per Share |   |   | Dividends  Declared  on                 Common Stock |   |
|-----------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                        |   | High                                                                                                                                                                                       |   |   | Low                                                                                                                             |   |   | (Per Share) |   |
|                        |   |                                                                                                                                                                                       |   |   |                                                                                                                            |   |   |   |   |
| 2007      (Split Adjusted): |   |                                                                                                                                                                                       |   |   |                                                                                                                            |   |   |   |   |
| First      Quarter          |   | $                                                                                                                                                                                          | 29.58  |   |                                                                                                                            | $      | 27.71 |   |   |   | 0.000 |   |
| Second      Quarter         |   |                                                                                                                                                                                       | 29.79  |   |                                                                                                                            |   | 29.38 |   |   |   | 0.210 |   |
| Third      Quarter          |   |                                                                                                                                                                                       | 30.00  |   |                                                                                                                            |   | 29.79 |   |   |   | 0.000 |   |
| Fourth      Quarter         |   |                                                                                                                                                                                       | 30.00  |   |                                                                                                                            |   | 19.72 |   |   |   | 0.210 |   |

|                        |   |                    Estimated Price                   Range Per Share |   |   |         Dividends   Declared on     Common      Stock |   |
|-----------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|--------|
|                        |   | High                                                                                                                                                                                                   |   |   | Low                                                                                                     |   |   | (Per Share) |   |
|                        |   |                                                                                                                                                                                                   |   |   |                                                                                                    |   |   |   |   |
| 2006      (Split Adjusted): |   |                                                                                                                                                                                                   |   |   |                                                                                                    |   |   |   |   |
| First      Quarter          |   | $                                                                                                                                                                                                      | 22.92  |   |                                                                                                    | $      | 19.10 |   |   |   | 0.000 |   |
| Second      Quarter         |   |                                                                                                                                                                                                   | 24.31  |   |                                                                                                    |   | 20.83 |   |   |   | 0.175 |   |
| Third      Quarter          |   |                                                                                                                                                                                                   | 26.74  |   |                                                                                                    |   | 22.92 |   |   |   | 0.000 |   |
| Fourth      Quarter         |   |                                                                                                                                                                                                   | 27.71  |   |                                                                                                    |   | 27.08 |   |   |   | 0.175 |   |

----

|                                       |     | Period      Ending |     |
|--------------------------------------------|----------|--------------------|----------|
| Index                                      | 12/31/02 | 12/31/03           | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07 |
| Florida      Community Banks, Inc.         | 100.00   | 125.30             | 159.74   | 216.34 | 496.84 | 216.28 |
| NASDAQ      Composite                      | 100.00   | 150.01             | 162.89   | 165.13 | 180.85 | 198.60 |
| SNL      South OTC-BB and Pink Banks Index | 100.00   | 133.88             | 156.22   | 178.93 | 208.63 | 178.86 |

----

| Plan Category                                 |   | Number      of Securitiesto      be Issued Uponthe      Exercise ofOutstanding Options |    |   | Weighted-averageExercise      Price ofOutstanding Options |   |   | Number      of EquitySecurities      Remaining Available for FutureIssuance      Under EquityCompensation Plan |   |
|-----------------------------------------------|--------|----------------------------------------------------------------------------------------|---------|--------|-----------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------|--------|
|                                          |   |                                                                                   |    |   |                                                      |   |   |                                                                                                           |   |
| Equity      Compensation Plans                |   |                                                                                   |    |   |                                                      |   |   |                                                                                                           |   |
| Approved      by Shareholders                 |   |                                                                                   | 232,522 |   |                                                      | $      | 10.19  |                                                                                                           |   |   | 88,485 |   |
| Equity      Compensation Plans                |   |                                                                                   |    |   |                                                      |   |   |                                                                                                           |   |   |   |   |
|   Not      Approved by Shareholders |   |                                                                                   | — |   |                                                      |   | 0.00   |                                                                                                           |   |   | — |   |
|                                          |   |                                                                                   |    |   |                                                      |   |   |                                                                                                           |   |   |   |   |
| Total                                         |   |                                                                                   | 232,522 |   |                                                      | $      | 10.19  |                                                                                                           |   |   | 88,485 |   |

----

| ITEM      6. | SELECTED      FINANCIAL DATA |
|--------------|------------------------------|

|                                                                          |   |                                             Years Ended December 31, |    |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                          |   |             2007                                                                                                                                                                                                                     |    |   |         2006 |   |   |         2005 |   |   |         2004 |   |   |            2003 |   |
|                                                                          |   | (Dollars      in thousands except per share data)                                                                                                                                                                                                                  |    |
|                                                                          |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      Summary:                                                        |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                          |   | $                                                                                                                                                                                                                                                                  | 77,417  |   |   | $ | 85,575 |   |   | $ | 57,788 |   |   | $ | 39,550 |   |   | $ | 33,520 |   |
| Interest      expense                                                         |   |                                                                                                                                                                                                                                                               | 38,390  |   |   |   | 34,365 |   |   |   | 17,385 |   |   |   | 9,200 |   |   |   | 10,081 |   |
| Net      interest income                                                      |   |                                                                                                                                                                                                                                                               | 39,027  |   |   |   | 51,210 |   |   |   | 40,403 |   |   |   | 30,350 |   |   |   | 23,439 |   |
| Provision      for loan losses                                                |   |                                                                                                                                                                                                                                                               | 6,868   |   |   |   | 2,296 |   |   |   | 1,762 |   |   |   | 1,971 |   |   |   | 1,700 |   |
| Net      interest income after provision for loan losses                      |   |                                                                                                                                                                                                                                                               | 32,159  |   |   |   | 48,914 |   |   |   | 38,641 |   |   |   | 28,379 |   |   |   | 21,739 |   |
| Noninterest      income                                                       |   |                                                                                                                                                                                                                                                               | 2,828   |   |   |   | 3,916 |   |   |   | 3,914 |   |   |   | 3,808 |   |   |   | 2,729 |   |
| Noninterest      expense                                                      |   |                                                                                                                                                                                                                                                               | 17,664  |   |   |   | 15,069 |   |   |   | 12,933 |   |   |   | 12,251 |   |   |   | 10,980 |   |
| Income      before income taxes                                               |   |                                                                                                                                                                                                                                                               | 17,323  |   |   |   | 37,761 |   |   |   | 29,622 |   |   |   | 19,936 |   |   |   | 13,488 |   |
| Income      taxes expense                                                     |   |                                                                                                                                                                                                                                                               | 6,414   |   |   |   | 14,615 |   |   |   | 11,404 |   |   |   | 7,694 |   |   |   | 5,091 |   |
| Net      income                                                               |   |                                                                                                                                                                                                                                                               | 10,909  |   |   |   | 23,146 |   |   |   | 18,218 |   |   |   | 12,242 |   |   |   | 8,397 |   |
|                                                                          |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per      Common Share Data:                                                   |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Retroactively      adjusted for effects of stock dividends and stock splits) |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income - basic                                                       |   | $                                                                                                                                                                                                                                                                  | 1.38    |   |   | $ | 2.93 |   |   | $ | 2.31 |   |   | $ | 1.57 |   |   | $ | 1.08 |   |
| Net      income - diluted                                                     |   |                                                                                                                                                                                                                                                               | 1.36    |   |   |   | 2.90 |   |   |   | 2.29 |   |   |   | 1.55 |   |   |   | 1.07 |   |
| Cash      dividends declared per common share                                 |   |                                                                                                                                                                                                                                                               | 0.42    |   |   |   | 0.35 |   |   |   | 0.29 |   |   |   | 0.24 |   |   |   | 0.11 |   |
|                                                                          |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Average Balances:                                               |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                             |   | $                                                                                                                                                                                                                                                                  | 982,935 |   |   | $ | 1,003,937 |   |   | $ | 791,418 |   |   | $ | 588,771 |   |   | $ | 513,583 |   |
| Total      loans                                                              |   |                                                                                                                                                                                                                                                               | 812,603 |   |   |   | 876,604 |   |   |   | 670,885 |   |   |   | 490,521 |   |   |   | 425,278 |   |
| Securities                                                                    |   |                                                                                                                                                                                                                                                               | 124,816 |   |   |   | 75,513 |   |   |   | 70,213 |   |   |   | 43,567 |   |   |   | 32,618 |   |
| Earning      assets                                                           |   |                                                                                                                                                                                                                                                               | 950,125 |   |   |   | 968,125 |   |   |   | 750,433 |   |   |   | 552,930 |   |   |   | 486,643 |   |
| Deposits                                                                      |   |                                                                                                                                                                                                                                                               | 790,483 |   |   |   | 831,112 |   |   |   | 640,504 |   |   |   | 483,135 |   |   |   | 411,084 |   |
| Long-term      borrowings                                                     |   |                                                                                                                                                                                                                                                               | 81,491  |   |   |   | 80,369 |   |   |   | 70,912 |   |   |   | 50,762 |   |   |   | 55,660 |   |
| Shareholders'      equity                                                     |   |                                                                                                                                                                                                                                                               | 98,387  |   |   |   | 80,113 |   |   |   | 62,280 |   |   |   | 48,365 |   |   |   | 38,867 |   |
| Shares      outstanding (split adjusted, in thousands)                        |   |                                                                                                                                                                                                                                                               | 7,909   |   |   |   | 7,890 |   |   |   | 7,885 |   |   |   | 7,804 |   |   |   | 7,804 |   |
|                                                                          |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Period-End Balances:                                            |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                             |   | $                                                                                                                                                                                                                                                                  | 942,674 |   |   | $ | 1,016,677 |   |   | $ | 907,082 |   |   | $ | 660,864 |   |   | $ | 525,508 |   |
| Total      loans                                                              |   |                                                                                                                                                                                                                                                               | 761,431 |   |   |   | 869,608 |   |   |   | 791,609 |   |   |   | 552,509 |   |   |   | 437,593 |   |
| Securities                                                                    |   |                                                                                                                                                                                                                                                               | 141,410 |   |   |   | 106,704 |   |   |   | 66,242 |   |   |   | 74,265 |   |   |   | 38,938 |   |
| Earning      assets                                                           |   |                                                                                                                                                                                                                                                               | 907,043 |   |   |   | 977,911 |   |   |   | 863,042 |   |   |   | 627,722 |   |   |   | 491,153 |   |
| Deposits                                                                      |   |                                                                                                                                                                                                                                                               | 753,658 |   |   |   | 835,462 |   |   |   | 737,256 |   |   |   | 520,585 |   |   |   | 423,284 |   |
| Long-term      borrowings                                                     |   |                                                                                                                                                                                                                                                               | 85,929  |   |   |   | 85,929 |   |   |   | 70,334 |   |   |   | 70,310 |   |   |   | 50,332 |   |
| Shareholders'      equity                                                     |   |                                                                                                                                                                                                                                                               | 98,205  |   |   |   | 90,567 |   |   |   | 70,076 |   |   |   | 52,928 |   |   |   | 42,086 |   |
| Shares      outstanding (split adjusted, in thousands)                        |   |                                                                                                                                                                                                                                                               | 7,909   |   |   |   | 7,909 |   |   |   | 7,885 |   |   |   | 7,804 |   |   |   | 7,804 |   |
|                                                                          |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Ratios:                                                         |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average equity                                                 |   |                                                                                                                                                                                                                                                               | 11.09   | % |   |   | 28.89 | % |   |   | 29.25 | % |   |   | 25.31 | % |   |   | 21.60 | % |
| Return      on average assets                                                 |   |                                                                                                                                                                                                                                                               | 1.11    |   |   |   | 2.31 |   |   |   | 2.30 |   |   |   | 2.08 |   |   |   | 1.63 |   |
| Net      interest margin                                                      |   |                                                                                                                                                                                                                                                               | 4.15    |   |   |   | 5.30 |   |   |   | 5.39 |   |   |   | 5.50 |   |   |   | 4.82 |   |
| Allowance      for loan losses to loans                                       |   |                                                                                                                                                                                                                                                               | 2.40    |   |   |   | 1.56 |   |   |   | 1.46 |   |   |   | 1.77 |   |   |   | 1.84 |   |
| Net      charge-offs to average loans                                         |   |                                                                                                                                                                                                                                                               | 0.26    |   |   |   | 0.03 |   |   |   | 0.00 |   |   |   | 0.05 |   |   |   | (0.01 | ) |
| Average      equity to average assets                                         |   |                                                                                                                                                                                                                                                               | 10.01   |   |   |   | 7.98 |   |   |   | 7.87 |   |   |   | 8.21 |   |   |   | 7.57 |   |
|                                                                          |   |                                                                                                                                                                                                                                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Dividends Declared                                                  |   | $                                                                                                                                                                                                                                                                  | 3,296   |   |   | $ | 2,747 |   |   | $ | 2,289 |   |   | $ | 1,883 |   |   | $ | 781 |   |

----

| ITEM      7. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------|

|                                      |   |                   December 31, |    |
|-------------------------------------------|--------|--------------------------------------------------------------------------------------------|---------|
|                                      |   | 2007                                                                                       |    |   | 2006 |   |   | 2005 |   |
|                                      |   | (In      thousands)                                                                        |    |
|                                      |   |                                                                                       |    |   |   |   |   |   |   |
| Interest-bearing      deposits with banks |   | $                                                                                          | 1,868   |   |   | $ | 1,499 |   |   | $ | 5,003 |   |
| Securities                                |   |                                                                                       | 141,410 |   |   |   | 106,704 |   |   |   | 66,242 |   |
| Federal      funds sold                   |   |                                                                                       | 2,334   |   |   |   | 100 |   |   |   | 188 |   |
| Loans:                                    |   |                                                                                       |    |   |   |   |   |   |   |   |   |   |
| Real      estate (1)                      |   |                                                                                       | 710,951 |   |   |   | 822,540 |   |   |   | 748,384 |   |
| Commercial      and other                 |   |                                                                                       | 50,480  |   |   |   | 47,068 |   |   |   | 43,225 |   |
| Total      loans                          |   |                                                                                       | 761,431 |   |   |   | 869,608 |   |   |   | 791,609 |   |
|                                      |   |                                                                                       |    |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets              |   | $                                                                                          | 907,043 |   |   | $ | 977,911 |   |   | $ | 863,042 |   |

----

|                                                                                                                                                           |   | December      31,           |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                                                                           |   | 2007                        |    |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
|                                                                                                                                                           |   | Amount                      |    |   | Percentof Total |   |   | Amount |   |   | Percentof Total |   |   | Amount |   |   | Percentof Total |   |   | Amount |   |   | Percentof Total |   |   | Amount |   |   | Percentof Total |   |
|                                                                                                                                                           |   | (Dollars      in Thousands) |    |
|                                                                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,financial      and agricultural                                                                                                                     |   | $                           | 42,718  |   |   |   | 5.60 | % |   | $ | 41,575 |   |   |   | 4.77 | % |   | $ | 37,309 |   |   |   | 4.69 | % |   | $ | 51,378 |   |   |   | 9.26 | % |   | $ | 45,274 |   |   |   | 10.31 | % |
| Real      estate -  construction                                                                                                                     |   |                        | 414,738 |   |   |   | 54.37 |   |   |   | 478,085 |   |   |   | 54.80 |   |   |   | 467,854 |   |   |   | 58.81 |   |   |   | 270,016 |   |   |   | 48.69 |   |   |   | 172,890 |   |   |   | 39.37 |   |
| Real      estate -mortgage                       |   |                        | 296,213 |   |   |   | 38.83 |   |   |   | 344,309 |   |   |   | 39.47 |   |   |   | 280,230 |   |   |   | 35.22 |   |   |   | 222,374 |   |   |   | 40.10 |   |   |   | 208,819 |   |   |   | 47.55 |   |
| Consumer                                         |   |                        | 6,112   |   |   |   | 0.80 |   |   |   | 6,275 |   |   |   | 0.72 |   |   |   | 7,502 |   |   |   | 0.94 |   |   |   | 8,086 |   |   |   | 1.46 |   |   |   | 10,665 |   |   |   | 2.43 |   |
| Loans      held-for-sale                                                                                                                                       |   |                        | — |   |   |   | 0.00 |   |   |   | 146 |   |   |   | 0.02 |   |   |   | 300 |   |   |   | 0.04 |   |   |   | 576 |   |   |   | 0.10 |   |   |   | — |   |   |   | 0.00 |   |
| Other                                            |   |                        | 3,006   |   |   |   | 0.40 |   |   |   | 2,008 |   |   |   | 0.22 |   |   |   | 2,356 |   |   |   | 0.30 |   |   |   | 2,181 |   |   |   | 0.39 |   |   |   | 1,487 |   |   |   | 0.34 |   |
|                                                                                                                                                           |   |                        | 762,787 |   |   |   | 100.00 | % |   |   | 872,398 |   |   |   | 100.00 | % |   |   | 795,551 |   |   |   | 100.00 | % |   |   | 554,611 |   |   |   | 100.00 | % |   |   | 439,135 |   |   |   | 100.00 | % |
|                                                                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unearned      income                                                                                                                                           |   |                        | (1,356  | ) |   |   |   |   |   |   | (2,790 | ) |   |   |   |   |   |   | (3,942 | ) |   |   |   |   |   |   | (2,102 | ) |   |   |   |   |   |   | (1,542 | ) |   |   |   |   |
| Allowance      for loan  losses                                                                                                                      |   |                        | (18,309 | ) |   |   |   |   |   |   | (13,590 | ) |   |   |   |   |   |   | (11,523 | ) |   |   |   |   |   |   | (9,791 | ) |   |   |   |   |   |   | (8,067 | ) |   |   |   |   |
|                                                                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loans                                   |   | $                           | 743,122 |   |   |   |   |   |   | $ | 856,018 |   |   |   |   |   |   | $ | 780,086 |   |   |   |   |   |   | $ | 542,718 |   |   |   |   |   |   | $ | 429,526 |   |   |   |   |   |

|                                                   |   |                                        Maturity |    |   |                   Rate Structure for Loans                  Maturing Over One Year |   |
|--------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                   |   |                One                Year or               Less             |    |   |            Over One             Year           Through     Five      Years                        |   |   |            Over            Five             Years |   |   |              Total |   |   |        Predetermined          Interest        Rate |   |   |          Floating         or           Adjustable        Rate |   |
|                                                   |   | (Amounts      in thousands)                                                                                                                                                                                          |    |
|                                                   |   |                                                                                                                                                                                                                 |    |   |                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,      financial  and agricultural |   | $                                                                                                                                                                                                                    | 31,229  |   |                                                                                                                                                                                                       | $      | 11,489 |   |   | $ | — |   |   | $ | 42,718 |   |   | $ | 3,860 |   |   | $ | 7,630 |   |
| Real      estate – construction                  |   |                                                                                                                                                                                                                 | 322,057 |   |                                                                                                                                                                                                       |   | 92,381 |   |   |   | 300 |   |   |   | 414,738 |   |   |   | 36,712 |   |   |   | 55,968 |   |
|                                                   |   |                                                                                                                                                                                                                 |    |   |                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                  |   | $                                                                                                                                                                                                                    | 353,286 |   |                                                                                                                                                                                                       | $      | 103,870 |   |   | $ | 300 |   |   | $ | 457,456 |   |   | $ | 40,572 |   |   | $ | 63,598 |   |

----

|                                |   |                    December 31, |    |
|-------------------------------------|--------|--------------------------------------------------------------------------------------------------|---------|
|                                |   | 2007                                                                                             |    |   | 2006 |   |   | 2005 |   |
|                                |   | (In      thousands)                                                                              |    |
|                                |   |                                                                                             |    |   |   |   |   |   |   |
| Held-to-Maturity:                   |   |                                                                                             |    |   |   |   |   |   |   |
| FHLB and FHLMC agency      notes    |   | $                                                                                                | 18,491  |   |   | $ | 12,531 |   |   | $ | 1,997 |   |
| State and Municipal      securities |   |                                                                                             | 20,787  |   |   |   | 16,765 |   |   |   | — |   |
| Mortgage-backed      securities     |   |                                                                                             | 96,532  |   |   |   | 71,813 |   |   |   | 59,036 |   |
| Total      Held-to-Maturity         |   |                                                                                             | 135,810 |   |   |   | 101,109 |   |   |   | 61,033 |   |
|                                |   |                                                                                             |    |   |   |   |   |   |   |   |   |   |
| Other      Investment Securities    |   |                                                                                             | 5,600   |   |   |   | 5,595 |   |   |   | 4,709 |   |
|                                |   |                                                                                             |    |   |   |   |   |   |   |   |   |   |
| Total      Securities               |   | $                                                                                                | 141,410 |   |   | $ | 106,704 |   |   | $ | 65,742 |   |

----

|                                                                                                                                                                                                                                                                                    |   | Maturing                                                                                                 |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                    |   | Within                    One Year |    |   | After      One ButWithin Five Years |   |   | After      Five ButWithin Ten Years |   |   | After                     Ten Years |   |
|                                                                                                                                                                                                                                                                                    |   | Amount                                                                                                   |    |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |
|                                                                                                                                                                                                                                                                                    |   | (Amounts      in thousands, except percentages)                                                          |    |
| Securities      Held-to-Maturity                                                                                                                                                                                                                                                        |   |                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                    |   |                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB and FHLMC agency      notes                                                                                                                                                                                                                                                        |   | $                                                                                                        | 2,099   |   |   |   | 3.55 | % |   | $ | — |   |   |   | 0.00 | % |   | $ | 12,473 |   |   |   | 5.94 | % |   | $ | 3,919 |   |   |   | 5.85 | % |
| State and Municipal      securities                                                                                                                                                                                                                                                     |   |                                                                                                     | — |   |   |   | 0.00 |   |   |   | — |   |   |   | 0.00 |   |   |   | — |   |   |   | 0.00 |   |   |   | 20,787 |   |   |   | 5.78 |   |
| Mortgage-backed      securities                                                                                                                                                                                                                                                         |   |                                                                                                     | — |   |   |   | 0.00 |   |   |   | — |   |   |   | 0.00 |   |   |   | 2,236 |   |   |   | 3.96 |   |   |   | 94,296 |   |   |   | 5.04 |   |
|                                                                                                                                                                                                                                                                                    |   |                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Investment Securities                                                                                                                                                                                                                                                        |   |                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                    |   |                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other investment      securities                                                                                                                                                                                                                                                        |   |                                                                                                     | — |   |   |   | 0.00 |   |   |   | — |   |   |   | 0.00 |   |   |   | — |   |   |   | 0.00 |   |   |   | 5,600 |   |   |   | 4.43 |   |
|                                                                                                                                                                                                                                                                                    |   |                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Securities                                            |   | $                                                                                                        | 2,099   |   |   |   | 3.55 |   |   | $ | — |   |   |   | 0.00 |   |   | $ | 14,709 |   |   |   | 4.77 |   |   | $ | 124,602 |   |   |   | 5.16 |   |

|   |   |
|--------|--------|

|   | Deposits      and Borrowed Funds |
|--------|----------------------------------|

|                                                       |                                      December      31,                                              |
|------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                       |         2007                                                                                                                                                                                                                                                                                                                                                                                                         |                  2006              | 2005                |
|                                                       | (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| Noninterest-bearing      deposits:                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| Individuals partnerships and      corporations             | $         59,415                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $    96,885 | $           122,897 |
| U.S. Government and states and      political subdivisions |                     7,213                                                                                                                                                                                                                                                                                                                                                                                                 |   8,127 |  2,537 |
| Certified and official      checks                         |  6,007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 4,469 | 4,126 |
| Total noninterest bearing      deposits                    |        72,635                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   109,481 |    129,560 |
|                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| Interest-bearing      deposits:                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| Interest - bearing demand      accounts                    |          25,749                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 40,624 | 46,520 |
| Savings accounts                                           |           206,290                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  219,013 |  158,294 |
| Certificates of deposit, less      than $100,000           |          93,705                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 63,246 | 61,065 |
| Certificates of deposit, more      than $100,000           |    355,279                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |             403,098 |                  341,817 |
| Total interest bearing      deposits                       |    681,023                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |             725,981 |                  607,696 |
|                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| Total deposits                                             | $   753,658                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $835,462 | $     737,256 |

----

|                                  |   |                                                               Years Ended December 31, |    |
|---------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                  |   | 2007                                                                                                                                                                                                                                                                                                                                                                           |    |   | 2006 |   |   | 2005 |   |
|                                  |   |               Amount                                                                                                                                                                                                                                                                                                                   |    |   |             Rate |   |   |              Amount |   |   |             Rate |   |   |              Amount |   |   |               Rate |   |
|                                  |   | (Dollars      in thousands)                                                                                                                                                                                                                                                                                                                                                    |    |
|                                  |   |                                                                                                                                                                                                                                                                                                                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      bearing deposits     |   | $                                                                                                                                                                                                                                                                                                                                                                              | 86,371  |   |   |   | 0.00 | % |   | $ | 122,354 |   |   |   | 0.00 | % |   | $ | 129,326 |   |   |   | 0.00 | % |
| Interest-bearing      demand deposits |   |                                                                                                                                                                                                                                                                                                                                                                           | 31,934  |   |   |   | 0.87 |   |   |   | 42,533 |   |   |   | 0.88 |   |   |   | 42,745 |   |   |   | 0.47 |   |
| Savings      deposits                 |   |                                                                                                                                                                                                                                                                                                                                                                           | 223,356 |   |   |   | 4.52 |   |   |   | 201,919 |   |   |   | 4.23 |   |   |   | 154,183 |   |   |   | 2.33 |   |
| Time      deposits                    |   |                                                                                                                                                                                                                                                                                                                                                                           | 448,822 |   |   |   | 5.12 |   |   |   | 464,306 |   |   |   | 4.48 |   |   |   | 314,250 |   |   |   | 3.20 |   |
|                                  |   |                                                                                                                                                                                                                                                                                                                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total deposits                        |   | $                                                                                                                                                                                                                                                                                                                                                                              | 790,483 |   |   |   | 4.22 |   |   | $ | 831,112 |   |   |   | 3.58 |   |   | $ | 640,504 |   |   |   | 2.16 |   |

| Three      months or less           |   | $      | 78,405  |   |
|-------------------------------------|--------|--------|---------|--------|
| Over      three through six months  |   |   | 94,936  |   |
| Over      six through twelve months |   |   | 116,063 |   |
| Over      twelve months             |   |   | 65,875  |   |
|                                |   |   |    |   |
| Total                               |   | $      | 355,279 |   |

----

|                                                                                                                                                                                                                                                                                                                               |   | Years      Ended December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                               |   | 2008                          |   |   | 2009 |   |   | 2010 |   |   | 2011 |   |   | 2012 |   |
|                                                                                                                                                                                                                                                                                                                               |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on      indebtedness                                                 |   | $                             | 4,535  |   |   | $ | 4,449 |   |   | $ | 4,204 |   |   | $ | 4,122 |   |   | $ | 3,697 |   |
| Repayment      of      principal                                                   |   |                          | 5,000  |   |   |   | — |   |   |   | 5,000 |   |   |   | 5,000 |   |   |   | 20,000 |   |
|                                                                                                                                                                                                                                                                                                                               |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                               |   | $                             | 9,535  |   |   | $ | 4,449 |   |   | $ | 9,204 |   |   | $ | 9,122 |   |   | $ | 23,697 |   |

|   | Capital      Resources |
|--------|------------------------|

|                                                               |                                           December      31,                                               |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                               |           2007                                                                                                                                                                                                                                                                                                                                                                                                                                      |            2006              |          2005              |
|                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
| Return      on average assets                                      |           1.11%                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2.31% | 2.30% |
| Return      on average common equity                               |         11.09                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 28.89 | 29.25 |
| Dividend      payout ratio                                         |         30.21                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 11.87 | 12.56 |
| Average      common shareholders' equity toaverage assets    ratio |         10.01                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 7.98 | 7.87 |
|                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |

----

|                                                                        |   | Statutory |   |   | Years ended December 31,    |    |
|-----------------------------------------------------------------------------|--------|-----------|--------|--------|-----------------------------|---------|
|                                                                        |   | Minimum   |   |   | 2007                        |    |   | 2006 |   |   | 2005 |   |
|                                                                        |   |      |   |   | (Amounts in      thousands) |    |
|                                                                        |   |      |   |   |                        |    |   |   |   |   |   |   |
| Tier      I Capital                                                         |   |      |   |   | $                           | 128,205 |   |   | $ | 120,567 |   |   | $ | 80,076 |   |
| Tier      II Capital                                                        |   |      |   |   |                        | 10,487  |   |   |   | 12,267 |   |   |   | 10,959 |   |
| Total      Qualifying Capital                                               |   |      |   |   | $                           | 138,692 |   |   | $ | 132,834 |   |   | $ | 91,035 |   |
| Risk      Adjusted Total Assets (includingoff-balance sheet      exposures) |   |      |   |   | $                           | 831,138 |   |   | $ | 980,017 |   |   | $ | 876,172 |   |
| Adjusted      quarterly average assets                                      |   |      |   |   | $                           | 958,338 |   |   | $ | 1,023,119 |   |   | $ | 893,741 |   |
| Tier      I Capital Ratio                                                   |   |      | 4.00   | %      |                        |    | 15.43 | % |   |   | 12.30 | % |   |   | 9.14 | % |
| Total      Capital Ratio                                                    |   |      | 8.00   |   |                        |    | 16.69 |   |   |   | 13.55 |   |   |   | 10.39 |   |
| Leverage      Ratio                                                         |   |      | 4.00   |   |                        |    | 13.38 |   |   |   | 11.78 |   |   |   | 8.96 |   |

|   | Liquidity      Management |
|--------|---------------------------|

|                                                                                                                                                                                                                                                                                                                                |   | Payments due by period (in      thousands) |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                |   |         Total          |    |   |             Less than      1      year |   |   |        1-3      years |   |   |       3-5      years |   |   |            More than     5      years |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-Term      Debt                                                                 |   | $                                          | 155,808 |   |   | $ | 9,535 |   |   | $ | 13,653 |   |   | $ | 32,820 |   |   | $ | 99,800 |   |
| Capital      Lease      Obligations                                                 |   |                                       | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Operating      Lease Obligations                                                                                                                                                                                                                                                                                                    |   |                                       | 13,651  |   |   |   | 739 |   |   |   | 1,940 |   |   |   | 2,012 |   |   |   | 8,960 |   |
| Time      Deposits                                                                  |   |                                       | 465,268 |   |   |   | 380,695 |   |   |   | 77,450 |   |   |   | 7,123 |   |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                               |   | $                                          | 634,727 |   |   | $ | 390,969 |   |   | $ | 93,043 |   |   | $ | 41,955 |   |   | $ | 108,760 |   |

----

|                                                                      |   |   | 0-30    |   |   |   | 31-90   |   |   |   | 91-365   |   |   |   | 1-5     |   |   | Over      5 |    |   |   |   |
|---------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|---------|--------|--------|-------------|---------|--------|--------|--------|
|                                                                      |   | Days   |    |   | Days   |   |    | Days   |   |   | Years    |   |   | Years  |    |   | Total  |        |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |    |   |   |        |    |   |   |   |
| Interest-earning      assets (1)                                          |   |   |    |   |   |   |    |   |   |   |     |   |   |   |    |   |   |        |    |   |   |   |
| Loans                                                                     |   | $      | 501,844 |   |   | $      | 66,072  |   |   | $      | 74,027   |   |   | $      | 8,127   |   |   | $           | 213     |   |   | $      | 650,283 |   |
| Securities and federal funds      sold                                    |   |   | 5,700   |   |   |   | — |   |   |   | 4,533    |   |   |   | 55,216  |   |   |        | 78,295  |   |   |   | 143,744 |   |
| Interest-bearing deposits in      banks                                   |   |   | 1,868   |   |   |   | — |   |   |   | —  |   |   |   | — |   |   |        | — |   |   |   | 1,868 |   |
|                                                                      |   |   | 509,412 |   |   |   | 66,072  |   |   |   | 78,560   |   |   |   | 63,343  |   |   |        | 78,508  |   |   |   | 795,895 |   |
| Interest-bearing      liabilities (2)                                     |   |   |    |   |   |   |    |   |   |   |     |   |   |   |    |   |   |        |    |   |   |   |   |   |
| Demand deposits    (3)                                                    |   |   | 8,583   |   |   |   | 8,583   |   |   |   | 8,583    |   |   |   | — |   |   |        | — |   |   |   | 25,749 |   |
| Savings deposits    (3)                                                   |   |   | 68,763  |   |   |   | 68,763  |   |   |   | 68,764   |   |   |   | — |   |   |        | — |   |   |   | 206,290 |   |
| Time deposits                                                             |   |   | 31,916  |   |   |   | 71,181  |   |   |   | 264,467  |   |   |   | 81,420  |   |   |        | — |   |   |   | 448,984 |   |
| Short-term      borrowings                                                |   |   | — |   |   |   | — |   |   |   | —  |   |   |   | — |   |   |        | — |   |   |   | — |   |
| Long-term    borrowings                                                   |   |   | — |   |   |   | 10,000  |   |   |   | 5,000    |   |   |   | 20,000  |   |   |        | 50,929  |   |   |   | 85,929 |   |
|                                                                      |   |   | 109,262 |   |   |   | 158,527 |   |   |   | 346,814  |   |   |   | 101,420 |   |   |        | 50,929  |   |   |   | 766,952 |   |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |    |   |   |        |    |   |   |   |   |   |
| Interest      sensitivity gap                                             |   | $      | 400,150 |   |   | $      | (92,455 | )      |   | $      | (268,254 | )      |   | $      | (38,077 | )      |   | $           | 27,579  |   |   | $      | 28,943 |   |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |    |   |   |        |    |   |   |   |   |   |
| Cumulative      interest sensitivity gap                                  |   | $      | 400,150 |   |   | $      | 307,694 |   |   | $      | 39,441   |   |   | $      | 1,364   |   |   | $           | 28,943  |   |   |   |   |   |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |    |   |   |        |    |   |   |   |   |   |
| Ratio      of interest-earning assets toInterest-bearing      liabilities |   |   | 4.66    |   |   |   | 0.42    |   |   |   | 0.23     |   |   |   | 0.62    |   |   |        | 1.54    |   |   |   |   |   |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |    |   |   |        |    |   |   |   |   |   |
| Cumulative      ratio                                                     |   |   | 4.66    |   |   |   | 2.15    |   |   |   | 1.06     |   |   |   | 1.00    |   |   |        | 1.04    |   |   |   |   |   |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |    |   |   |        |    |   |   |   |   |   |
| Ratio      of cumulative gap to totalinterest-earning      assets         |   |   | 0.503   |   |   |   | 0.387   |   |   |   | 0.050    |   |   |   | 0.002   |   |   |        | 0.036   |   |   |   |   |   |

| (1) | Excludes      nonaccrual loans.  Securities maturities are based on projected      re-payments at current interest ratelevels. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Excludes      matured certificates, which have not been redeemed by the customer and on      which no interest is accruing. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (3) | Interests      bearing demand and savings deposits are assumed to be subject to movement      into other deposit instruments in equal amounts during the 0-30 day      period, the 31-90 day period, and the 91-365 day  period. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                                                                                                                                                     |   | Years Ended December 31,    |    |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|
|                                                                                                                                                                                                                                                                     |   | 2007                        |    |   | 2006 |   |   | 2005 |   |   |
|                                                                                                                                                                                                                                                                     |   | AverageBalance              |    |   | InterestIncome/Expense |   |   | AverageYields/Rates |   |   | AverageBalance |   |   | InterestIncome/Expense |   |   | AverageYields/Rates |   |   | AverageBalance |   |   | InterestIncome/Expense |   |   | AverageYields/Rates |
|                                                                                                                                                                                                                                                                     |   | (Dollars      in thousands) |
| Assets:                                                                                                                                                                                                                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earning assets:                                                                                                                                                                                                                                                          |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, net of      unearnedincome      (1)(2)                                                                                |   | $                           | 812,603 |   |   | $ | 70,812 |   |   |   | 8.71 | % |   | $ | 876,604 |   |   | $ | 81,474 |   |   |   | 9.29 | % |   | $ | 670,885 |   |   | $ | 54,709 |   |   |   | 8.15 | % |
| Securities:                                                                                                                                                                                                                                                              |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                            |   |                        | 104,565 |   |   |   | 5,194 |   |   |   | 4.97 |   |   |   | 71,353 |   |   |   | 3,221 |   |   |   | 4.51 |   |   |   | 70,213 |   |   |   | 2,883 |   |   |   | 4.11 |   |
| Tax-exempt      (2)                                                                                                |   |                        | 20,251  |   |   |   | 1,164 |   |   |   | 5.75 |   |   |   | 4,160 |   |   |   | 237 |   |   |   | 5.70 |   |   |   | — |   |   |   | — |   |   |   | 0.00 |   |
| Total      securities                                                                                                        |   |                        | 124,816 |   |   |   | 6,358 |   |   |   | 5.09 |   |   |   | 75,513 |   |   |   | 3,458 |   |   |   | 4.58 |   |   |   | 70,213 |   |   |   | 2,883 |   |   |   | 4.11 |   |
| Interest-bearing      deposits     in      other      banks                               |   |                        | 1,311   |   |   |   | 71 |   |   |   | 5.42 |   |   |   | 1,266 |   |   |   | 66 |   |   |   | 5.21 |   |   |   | 2,288 |   |   |   | 78 |   |   |   | 3.41 |   |
| Federal funds      sold                                                                                  |   |                        | 11,395  |   |   |   | 573 |   |   |   | 5.03 |   |   |   | 14,742 |   |   |   | 686 |   |   |   | 4.65 |   |   |   | 7,047 |   |   |   | 210 |   |   |   | 2.98 |   |
| Total      interest-earning  assets      (2)                                                                       |   |                        | 950,125 |   |   |   | 77,814 |   |   |   | 8.19 |   |   |   | 968,125 |   |   |   | 85,684 |   |   |   | 8.85 |   |   |   | 750,433 |   |   |   | 57,880 |   |   |   | 7.71 |   |
|                                                                                                                                                                                                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      earning assets:                                                                                                                                                                                                                                        |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from      banks                                                                                                                                                                                                                                             |   |                        | 11,765  |   |   |   |   |   |   |   |   |   |   |   | 19,433 |   |   |   |   |   |   |   |   |   |   |   | 24,710 |   |   |   |   |   |   |   |   |   |   |
| Accrued interest and other      assets                                                                                                                                                                                                                                   |   |                        | 34,783  |   |   |   |   |   |   |   |   |   |   |   | 30,502 |   |   |   |   |   |   |   |   |   |   |   | 26,252 |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan      losses                                                                                                                                                                                                                                           |   |                        | (13,738 | )      |   |   |   |   |   |   |   |   |   |   | (14,123 | ) |   |   |   |   |   |   |   |   |   |   | (9,977 | ) |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Assets                                                                                                            |   | $                           | 982,935 |   |   |   |   |   |   |   |   |   |   | $ | 1,003,937 |   |   |   |   |   |   |   |   |   |   | $ | 791,418 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and Shareholders' Equity:                                                                                                                                                                                                                               |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                                                                                                                                                                                                       |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                                                                               |   | $                           | 31,934  |   |   |   | 278 |   |   |   | 0.87 | % |   | $ | 42,533 |   |   |   | 376 |   |   |   | 0.88 | % |   | $ | 42,745 |   |   |   | 203 |   |   |   | 0.47 | % |
| Savings      deposits                                                                                              |   |                        | 223,356 |   |   |   | 10,104 |   |   |   | 4.52 |   |   |   | 201,919 |   |   |   | 8,548 |   |   |   | 4.23 |   |   |   | 154,183 |   |   |   | 3,600 |   |   |   | 2.33 |   |
| Time      deposits                                                                                                 |   |                        | 448,822 |   |   |   | 22,999 |   |   |   | 5.12 |   |   |   | 464,306 |   |   |   | 20,817 |   |   |   | 4.48 |   |   |   | 314,250 |   |   |   | 10,061 |   |   |   | 3.20 |   |
| Total      deposits                                                                                                          |   |                        | 704,112 |   |   |   | 33,381 |   |   |   | 4.74 |   |   |   | 708,758 |   |   |   | 29,741 |   |   |   | 4.20 |   |   |   | 511,178 |   |   |   | 13,864 |   |   |   | 2.71 |   |
|                                                                                                                                                                                                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      borrowings                                                                                |   |                        | 81,491  |   |   |   | 4,672 |   |   |   | 5.73 |   |   |   | 80,369 |   |   |   | 4,347 |   |   |   | 5.41 |   |   |   | 70,912 |   |   |   | 3,021 |   |   |   | 4.26 |   |
| Short-term      borrowings                                                                               |   |                        | 6,201   |   |   |   | 336 |   |   |   | 5.42 |   |   |   | 5,518 |   |   |   | 277 |   |   |   | 5.02 |   |   |   | 13,019 |   |   |   | 500 |   |   |   | 3.84 |   |
| Total      interest-bearing  Liabilities                                                                           |   |                        | 791,804 |   |   |   | 38,389 |   |   |   | 4.85 |   |   |   | 794,645 |   |   |   | 34,365 |   |   |   | 4.32 |   |   |   | 595,109 |   |   |   | 17,385 |   |   |   | 2.92 |   |
|                                                                                                                                                                                                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non interest-bearing      liabilities:                                                                                                                                                                                                                                   |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                                                                               |   |                        | 86,371  |   |   |   |   |   |   |   |   |   |   |   | 122,354 |   |   |   |   |   |   |   |   |   |   |   | 129,326 |   |   |   |   |   |   |   |   |   |   |
| Accrued interest      and  other      liabilities                                                        |   |                        | 6,373   |   |   |   |   |   |   |   |   |   |   |   | 6,825 |   |   |   |   |   |   |   |   |   |   |   | 4,703 |   |   |   |   |   |   |   |   |   |   |
| Shareholders'      equity                                                                                          |   |                        | 98,387  |   |   |   |   |   |   |   |   |   |   |   | 80,113 |   |   |   |   |   |   |   |   |   |   |   | 62,280 |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities      and  Shareholders'      Equity                                                                                                                                                                                                          |   | $                           | 982,935 |   |   |   |   |   |   |   |   |   |   | $ | 1,003,937 |   |   |   |   |   |   |   |   |   |   | $ | 791,418 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest      Income/NetInterest      Spread                                                                   |   |                        |    |   |   |   | 39,425 |   |   |   | 3.34 | % |   |   |   |   |   |   | 51,319 |   |   |   | 4.53 | % |   |   |   |   |   |   | 40,495 |   |   |   | 4.79 | % |
|                                                                                                                                                                                                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net yield on earning      assets                                                                                                                                                                                                                                         |   |                        |    |   |   |   |   |   |   |   | 4.15 | % |   |   |   |   |   |   |   |   |   |   | 5.30 | % |   |   |   |   |   |   |   |   |   |   | 5.39 | % |
|                                                                                                                                                                                                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable      Equivalent adjustments (2):                                                                                                                                                                                                                                 |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities                                                                                               |   |                        |    |   |   |   | 350 |   |   |   |   |   |   |   |   |   |   |   | 71 |   |   |   |   |   |   |   |   |   |   |   | — |   |   |   |   |   |   |
| Loans                                                                                                    |   |                        |    |   |   |   | 48 |   |   |   |   |   |   |   |   |   |   |   | 38 |   |   |   |   |   |   |   |   |   |   |   | 22 |   |   |   |   |   |   |
| Total taxable      equivalent  Adjustment                                                                          |   |                        |    |   |   |   | 398 |   |   |   |   |   |   |   |   |   |   |   | 109 |   |   |   |   |   |   |   |   |   |   |   | 22 |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest      income                                                                  |   |                        |    |   |   | $ | 39,027 |   |   |   |   |   |   |   |   |   |   | $ | 51,210 |   |   |   |   |   |   |   |   |   |   | $ | 40,473 |   |   |   |   |   |   |

| (1) | Average      loans include nonaccrual loans. All loans and deposits are      domestic. |
|-----|----------------------------------------------------------------------------------------|

| (2) | Tax      equivalent adjustments on securities and loans exempt from income taxes      have been based on an assumed tax rate of 30 percent, and give effect to      the disallowance for federal income tax purpose of interest expense      related to certain tax-exempt earningassets. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                       |   |                         Average Volume |    |   |                   Change in Volume |   |    |                            Average Rate |   |
|------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   | 2007                                                                                                                             |    |   | 2006                                                                                           |   |    | 2005                                                                                                                                             |   |   |   | 2007-2006 |   |   |   | 2006-2005 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                       |   | (Dollars      in thousands)                                                                                                      |    |
| Earning      assets:                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      net of unearned income (1)(2)                  |   | $                                                                                                                                | 812,603 |   |                                                                                           | $      | 876,604 |                                                                                                                                             |   | $ | 670,885 |   |   | $ | (64,001 | ) |   | $ | 205,719 |   |   |   | 8.71 | % |   |   | 9.29 | % |   |   | 8.15 | % |
|                                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities                                                 |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                    |   |                                                                                                                             | 104,565 |   |                                                                                           |   | 71,353  |                                                                                                                                             |   |   | 70,213 |   |   |   | 33,212 |   |   |   | 1,140 |   |   |   | 4.97 |   |   |   | 4.51 |   |   |   | 4.11 |   |
| Tax      exempt (2)                                        |   |                                                                                                                             | 20,251  |   |                                                                                           |   | 4,160   |                                                                                                                                             |   |   | — |   |   |   | 16,091 |   |   |   | 4,160 |   |   |   | 5.75 |   |   |   | 5.70 |   |   |   | 0.00 |   |
| Total      Securities                                      |   |                                                                                                                             | 124,816 |   |                                                                                           |   | 75,513  |                                                                                                                                             |   |   | 70,213 |   |   |   | 49,303 |   |   |   | 5,300 |   |   |   | 5.09 |   |   |   | 4.58 |   |   |   | 4.11 |   |
|                                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits  with other banks |   |                                                                                                                             | 1,311   |   |                                                                                           |   | 1,266   |                                                                                                                                             |   |   | 2,288 |   |   |   | 45 |   |   |   | (1,022 | ) |   |   | 5.42 |   |   |   | 5.21 |   |   |   | 3.41 |   |
| Federal      funds sold                                    |   |                                                                                                                             | 11,395  |   |                                                                                           |   | 14,742  |                                                                                                                                             |   |   | 7,047 |   |   |   | (3,347 | ) |   |   | 7,695 |   |   |   | 5.03 |   |   |   | 4.65 |   |   |   | 2.98 |   |
| Total      Earning Assets (2)                              |   | $                                                                                                                                | 950,125 |   |                                                                                           | $      | 968,125 |                                                                                                                                             |   | $ | 750,433 |   |   | $ | (18,000 | ) |   | $ | 217,692 |   |   |   | 8.19 |   |   |   | 8.85 |   |   |   | 7.71 |   |
|                                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing      Liabilities                          |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                  |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                       |   | $                                                                                                                                | 31,934  |   |                                                                                           | $      | 42,533  |                                                                                                                                             |   | $ | 42,745 |   |   | $ | (10,599 | ) |   | $ | (212 | ) |   |   | 0.87 |   |   |   | 0.88 |   |   |   | 0.47 |   |
| Savings                                                    |   |                                                                                                                             | 223,356 |   |                                                                                           |   | 201,919 |                                                                                                                                             |   |   | 154,183 |   |   |   | 21,437 |   |   |   | 47,736 |   |   |   | 4.52 |   |   |   | 4.23 |   |   |   | 2.33 |   |
| Time      certificates                                     |   |                                                                                                                             | 448,822 |   |                                                                                           |   | 464,306 |                                                                                                                                             |   |   | 314,250 |   |   |   | (15,484 | ) |   |   | 150,056 |   |   |   | 5.12 |   |   |   | 4.48 |   |   |   | 3.20 |   |
| Total      Deposits                                        |   |                                                                                                                             | 704,112 |   |                                                                                           |   | 708,758 |                                                                                                                                             |   |   | 511,178 |   |   |   | (4,646 | ) |   |   | 197,580 |   |   |   | 4.74 |   |   |   | 4.20 |   |   |   | 2.71 |   |
|                                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      borrowings                                  |   |                                                                                                                             | 81,491  |   |                                                                                           |   | 80,369  |                                                                                                                                             |   |   | 70,912 |   |   |   | 1,122 |   |   |   | 9,457 |   |   |   | 5.73 |   |   |   | 5.41 |   |   |   | 4.26 |   |
| Other      borrowings                                      |   |                                                                                                                             | 6,201   |   |                                                                                           |   | 5,518   |                                                                                                                                             |   |   | 13,019 |   |   |   | 683 |   |   |   | (7,501 | ) |   |   | 5.42 |   |   |   | 5.02 |   |   |   | 3.84 |   |
|                                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Interest-Bearing Liabilities                    |   | $                                                                                                                                | 791,804 |   |                                                                                           | $      | 794,645 |                                                                                                                                             |   | $ | 595,109 |   |   | $ | (2,841 | ) |   | $ | 199,536 |   |   |   | 4.85 |   |   |   | 4.32 |   |   |   | 2.92 |   |
|                                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income/net interest spread               |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3.34 |   |   |   | 4.53 |   |   |   | 4.79 |   |
|                                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      yield on earning assets                           |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4.15 |   |   |   | 5.30 |   |   |   | 5.39 |   |
|                                                       |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cost of funds                                     |   |                                                                                                                             |    |   |                                                                                           |   |    |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4.04 |   |   |   | 3.55 |   |   |   | 2.32 |   |

|                                                       |   |                                                                                     |   |   |                                         |   |   |   |   |   |    |      |   |   |    |      |                                Variance Attributed to |   |
|------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|--------|--------|--------|---------|-----------|--------|--------|---------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   | Interest                Income/Expense |   |   |            Variance |   |   | 2007   |   |   | 2006    |      |
|                                                       |   | 2007                                                                                     |   |   | 2006                                         |   |   | 2005   |   |   |    | 2007-2006 |   |   |    | 2006-2005 |                                                                                                                                                                               |   | Volume |   |   | Rate |   |   | Mix |   |   | Volume |   |   | Rate |   |   | Mix |   |
|                                                       |   | (Dollars      in thousands)                                                              |   |
| Earning      assets:                                       |   |                                                                                     |   |   |                                         |   |   |   |   |   |    |      |   |   |    |      |                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      net of   unearned income        |   | $                                                                                        | 70,812 |   |                                         | $      | 81,474 |   |   | $      | 54,709  |      |   | $      | (10,662 | )         |                                                                                                                                                                               | $      | 26,765 |   |   | $ | (5,948 | ) |   | $ | (5,085 | ) |   | $ | 371 |   |   | $ | 16,776 |   |   | $ | 7,645 |   |   | $ | 2,344 |   |
| Securities:                                                |   |                                                                                     |   |   |                                         |   |   |   |   |   |    |      |   |   |    |      |                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                    |   |                                                                                     | 5,194  |   |                                         |   | 3,221  |   |   |   | 2,883   |      |   |   | 1,973   |      |                                                                                                                                                                               |   | 338 |   |   |   | 1,499 |   |   |   | 323 |   |   |   | 151 |   |   |   | 47 |   |   |   | 287 |   |   |   | 4 |   |
| Tax      exempt                                            |   |                                                                                     | 1,164  |   |                                         |   | 237    |   |   |   | — |      |   |   | 927     |      |                                                                                                                                                                               |   | 237 |   |   |   | 917 |   |   |   | 2 |   |   |   | 8 |   |   |   | — |   |   |   | — |   |   |   | 237 |   |
| Total securities                                           |   |                                                                                     | 6,358  |   |                                         |   | 3,458  |   |   |   | 2,883   |      |   |   | 2,900   |      |                                                                                                                                                                               |   | 575 |   |   |   | 2,416 |   |   |   | 325 |   |   |   | 159 |   |   |   | 47 |   |   |   | 287 |   |   |   | 241 |   |
| Interest-bearing      deposits  with other banks |   |                                                                                     | 71     |   |                                         |   | 66     |   |   |   | 78      |      |   |   | 5       |      |                                                                                                                                                                               |   | (12 | ) |   |   | 2 |   |   |   | 3 |   |   |   | - |   |   |   | (35 | ) |   |   | 41 |   |   |   | (18 | ) |
| Federal      funds sold                                    |   |                                                                                     | 573    |   |                                         |   | 686    |   |   |   | 210     |      |   |   | (113    | )         |                                                                                                                                                                               |   | 476 |   |   |   | (156 | ) |   |   | 55 |   |   |   | (12 | ) |   |   | 229 |   |   |   | 118 |   |   |   | 129 |   |
| Total earning    assets                                    |   |                                                                                     | 77,814 |   |                                         |   | 85,684 |   |   |   | 57,880  |      |   |   | (7,870  | )         |                                                                                                                                                                               |   | 27,804 |   |   |   | (3,686 | ) |   |   | (4,702 | ) |   |   | 518 |   |   |   | 17,017 |   |   |   | 8,091 |   |   |   | 2,696 |   |
|                                                       |   |                                                                                     |   |   |                                         |   |   |   |   |   |    |      |   |   |    |      |                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                         |   |                                                                                     |   |   |                                         |   |   |   |   |   |    |      |   |   |    |      |                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                  |   |                                                                                     |   |   |                                         |   |   |   |   |   |    |      |   |   |    |      |                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                                                     |   |                                                                                     | 278    |   |                                         |   | 376    |   |   |   | 203     |      |   |   | (98     | )         |                                                                                                                                                                               |   | 173 |   |   |   | (94 | ) |   |   | (6 | ) |   |   | 2 |   |   |   | (1 | ) |   |   | 175 |   |   |   | (1 | ) |
| Savings                                                    |   |                                                                                     | 10,104 |   |                                         |   | 8,548  |   |   |   | 3,600   |      |   |   | 1,556   |      |                                                                                                                                                                               |   | 4,948 |   |   |   | 908 |   |   |   | 586 |   |   |   | 62 |   |   |   | 1,115 |   |   |   | 2,927 |   |   |   | 906 |   |
| Time      certificates                                     |   |                                                                                     | 22,999 |   |                                         |   | 20,817 |   |   |   | 10,061  |      |   |   | 2,182   |      |                                                                                                                                                                               |   | 10,756 |   |   |   | (694 | ) |   |   | 2,975 |   |   |   | (99 | ) |   |   | 4,804 |   |   |   | 4,028 |   |   |   | 1,924 |   |
| Total deposits                                             |   |                                                                                     | 33,381 |   |                                         |   | 29,741 |   |   |   | 13,864  |      |   |   | 3,640   |      |                                                                                                                                                                               |   | 15,877 |   |   |   | 120 |   |   |   | 3,555 |   |   |   | (35 | ) |   |   | 5,918 |   |   |   | 7,130 |   |   |   | 2,829 |   |
|                                                       |   |                                                                                     |   |   |                                         |   |   |   |   |   |    |      |   |   |    |      |                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      borrowings                                  |   |                                                                                     | 4,672  |   |                                         |   | 4,347  |   |   |   | 3,021   |      |   |   | 325     |      |                                                                                                                                                                               |   | 1,326 |   |   |   | 61 |   |   |   | 261 |   |   |   | 3 |   |   |   | 403 |   |   |   | 814 |   |   |   | 109 |   |
| Short-term      borrowings                                 |   |                                                                                     | 336    |   |                                         |   | 277    |   |   |   | 500     |      |   |   | 59      |      |                                                                                                                                                                               |   | (223 | ) |   |   | 34 |   |   |   | 22 |   |   |   | 3 |   |   |   | (288 | ) |   |   | 154 |   |   |   | (89 | ) |
| Total interest-bearing      liabilities                    |   |                                                                                     | 38,389 |   |                                         |   | 34,365 |   |   |   | 17,385  |      |   |   | 4,024   |      |                                                                                                                                                                               |   | 16,980 |   |   |   | 215 |   |   |   | 3,838 |   |   |   | (29 | ) |   |   | 6,033 |   |   |   | 8,098 |   |   |   | 2,849 |   |
|                                                       |   |                                                                                     |   |   |                                         |   |   |   |   |   |    |      |   |   |    |      |                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income/net  interest spread    |   | $                                                                                        | 39,425 |   |                                         | $      | 51,319 |   |   | $      | 40,495  |      |   | $      | (11,894 | )         |                                                                                                                                                                               | $      | 10,824 |   |   | $ | (3,901 | ) |   | $ | (8,540 | ) |   | $ | 547 |   |   | $ | 10,984 |   |   | $ | (7 | ) |   | $ | (153 | ) |

| (1) | Average      loans include nonaccrual loans. All loans and deposits are      domestic. |
|-----|----------------------------------------------------------------------------------------|

| (2) | Tax      equivalent adjustments on securities and loans exempt from income taxes      have been based on an assumed tax rate of 30 percent, and give effect to      the disallowance for federal income tax purpose of interest expense      related to certain tax-exempt earningassets. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Allowance for Loan      Losses |
|--------|--------------------------------|

----

|                                                                   |   | 2007                        |    |   | 2006   |   |    | 2005   |   |   | 2004    |   |   | 2003   |    |
|------------------------------------------------------------------------|--------|-----------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                                                   |   | (Dollars      in thousands) |    |
|                                                                   |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Allowance      for loan losses at beginning of year                    |   | $                           | 13,590  |   |   | $      | 11,523  |   |   | $      | 9,791   |   |   | $      | 8,067   |   |   | $ | 6,319 |   |
| Loans      charged off:                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial,      financial and agricultural                            |   |                        | 734     |   |   |   | 35      |   |   |   | 131     |   |   |   | 209     |   |   |   | 139 |   |
| Real      estate - mortgage                                            |   |                        | 1,485   |   |   |   | 118     |   |   |   | — |   |   |   | 85      |   |   |   | 10 |   |
| Consumer                                                               |   |                        | 122     |   |   |   | 111     |   |   |   | 50      |   |   |   | 161     |   |   |   | 74 |   |
| Total      loans charged off                                           |   |                        | 2,341   |   |   |   | 264     |   |   |   | 181     |   |   |   | 455     |   |   |   | 223 |   |
|                                                                   |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Recoveries      on loans previously charged off:                       |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial,      financial and agricultural                            |   |                        | 9       |   |   |   | 6       |   |   |   | 24      |   |   |   | 143     |   |   |   | 246 |   |
| Real      estate - mortgage                                            |   |                        | 139     |   |   |   | — |   |   |   | 2       |   |   |   | 30      |   |   |   | 2 |   |
| Consumer                                                               |   |                        | 44      |   |   |   | 29      |   |   |   | 125     |   |   |   | 35      |   |   |   | 23 |   |
| Total      recoveries                                                  |   |                        | 192     |   |   |   | 35      |   |   |   | 151     |   |   |   | 208     |   |   |   | 271 |   |
|                                                                   |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      loans charged off (recovered)                                 |   |                        | 2,149   |   |   |   | 229     |   |   |   | 30      |   |   |   | 247     |   |   |   | (48 | ) |
|                                                                   |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Provision      for loan losses                                         |   |                        | 6,868   |   |   |   | 2,296   |   |   |   | 1,762   |   |   |   | 1,971   |   |   |   | 1,700 |   |
|                                                                   |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Allowance      for loan losses at end of period                        |   | $                           | 18,309  |   |   | $      | 13,590  |   |   | $      | 11,523  |   |   | $      | 9,791   |   |   | $ | 8,067 |   |
|                                                                   |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Loans,      net of unearned income, at end of period                   |   | $                           | 761,431 |   |   | $      | 869,608 |   |   | $      | 791,609 |   |   | $      | 552,509 |   |   | $ | 437,593 |   |
|                                                                   |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Average      loans, net of unearned income, outstanding for the period |   |                        | 812,603 |   |   |   | 876,604 |   |   |   | 670,885 |   |   |   | 490,521 |   |   |   | 425,278 |   |
|                                                                   |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Ratio      of net charge-offs to net average loans                     |   |                        | 0.26    | %      |   |   | 0.03    | %      |   |   | 0.00    | %      |   |   | 0.05    | % |   |   | (0.01 | )% |

----

|                                               |   | December 31,_               |   |
|----------------------------------------------------|--------|-----------------------------|--------|
|                                               |   | 2007                        |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
|                                               |   | Amount                      |   |   | Percentof      Loansin      EachCategoryto      TotalLoans |   |   | Amount |   |   | Percentof      Loansin      EachCategoryto      TotalLoans |   |   | Amount |   |   | Percentof      Loansin      EachCategoryto      TotalLoans |   |   | Amount |   |   | Percentof      Loansin      EachCategoryto      TotalLoans |   |   | Amount |   |   | Percentof      Loansin      EachCategoryto      TotalLoans |   |
|                                               |   | (Dollars      in Thousands) |   |
|                                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic      loans:                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,      financial and agricultural        |   | $                           | 455    |   |   |   | 5.60 | % |   | $ | 649 |   |   |   | 4.78 | % |   | $ | 724 |   |   |   | 6.28 | % |   | $ | 271 |   |   |   | 9.26 | % |   | $ | 22 |   |   |   | 10.31 | % |
| Real      estate – mortgage and construction |   |                        | 17,783 |   |   |   | 93.60 |   |   |   | 12,842 |   |   |   | 94.50 |   |   |   | 10,757 |   |   |   | 93.36 |   |   |   | 9,512 |   |   |   | 88.89 |   |   |   | 8,039 |   |   |   | 86.92 |   |
| Consumer                                           |   |                        | 71     |   |   |   | 0.80 |   |   |   | 99 |   |   |   | 0.72 |   |   |   | 42 |   |   |   | 0.36 |   |   |   | 8 |   |   |   | 1.85 |   |   |   | 6 |   |   |   | 2.77 |   |
|                                               |   | $                           | 18,309 |   |   |   | 100.00 | % |   | $ | 13,590 |   |   |   | 100.00 | % |   | $ | 11,523 |   |   |   | 100.00 | % |   | $ | 9,791 |   |   |   | 100.00 | % |   | $ | 8,067 |   |   |   | 100.00 | % |

----

|                                                                        |                                          December      31,                                             |
|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                        |           2007                                                                                                                                                                                                                                                                                                                                                                                                                              |         2006           |        2005           |        2004           | 2003           |
|                                                                        | (Amounts      in thousands, except ratios)                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Nonaccruing      loans                                                      | $          111,147                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $          37,445 | $    194 | $    247 |   $     9,727 |
| Accruing      loans 90 days or more past due                                |                 6,513                                                                                                                                                                                                                                                                                                                                                                                                                                                |               13,142 | 106 | — |           6,420 |
| Restructured      loans                                                     |                257                                                                                                                                                                                                                                                                                                                                                                                                                                                             |              1,592 | 634 |        7,562 | — |
| Total      nonperforming loans                                              |               117,917                                                                                                                                                                                                                                                                                                                                                                                                                                                     |               52,179 | 934 |   7,809 |            16,147 |
| Nonaccruing      securities                                                 | —                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | — | — | — | — |
| Other      real estate                                                      |                1,065                                                                                                                                                                                                                                                                                                                                                                                                                                                 |              2,403 |        2,203 |  2,203 |           6,122 |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Total                                                                       | $118,982                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |        $54,582 |  $3,137 | $10,012 | $  22,269 |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Ratios:                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Loan      loss allowance to total nonperforming assets                      | 0.154                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 0.249 | 3.673 | 0.978 | 0.362 |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Total      nonperforming loans to total loans (net of unearned    interest) | 0.155                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 0.060 | 0.001 | 0.014 | 0.036 |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Total      nonperforming assets to total assets                             | 0.126                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 0.054 | 0.003 | 0.015 | 0.042 |

----

|                                   |                                                                                                                                                                                                         |                             |                                                                                                                                                                                                                         | 2006/2007                                  | 2005/2006                                                                                                                                  |
|----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |                                    Years Ended December 31, |           Percent |                            Percent                                                                                       |
|                                   | 2007                                                                                                                                                  | 2006         |                                     2005      |            Change |                            Change |
|                                   | (Dollars in      thousands)                                                                                                                                                                                  |
|                                   |                                                                                                                                                                                                         |                             |                                                                                                                                                                                                                         |                                       |                                                                                                                                       |
| Service      charges on deposits       | $1,332                                                                                                                                                                                                       | $1,678                           | $1,466                                                                                                                                                                                                                       | (20.6)%                                    | 14.5%                                                                                                                                      |
| Secondary      market fees             | 389                                                                                                                                                                                                          | 751                              | 972                                                                                                                                                                                                                          | (48.2)                                     | (22.7)                                                                                                                                     |
| Exchange      fees                     | 75                                                                                                                                                                                                           | 861                              | 778                                                                                                                                                                                                                          | (91.3)                                     | 10.7                                                                                                                                       |
| Bookkeeping      fees                  | 82                                                                                                                                                                                                           | 151                              | 167                                                                                                                                                                                                                          | (45.7)                                     | (9.6)                                                                                                                                      |
| Income/gains      on other real estate | 405                                                                                                                                                                                                          | —                          | —                                                                                                                                                                                                                      | 100.0                                      | 0.0                                                                                                                                        |
| Gain      on sale of fixed assets      | —                                                                                                                                                                                                      | —                          | 21                                                                                                                                                                                                                           | 0.0                                        | 0.0                                                                                                                                        |
| Safe      deposit box rental           | 62                                                                                                                                                                                                           | 66                               | 68                                                                                                                                                                                                                           | (6.1)                                      | (2.9)                                                                                                                                      |
| Other                                  | 483                                                                                                                                                                                                          | 409                              | 442                                                                                                                                                                                                                          | 16.6                                       | (7.5)                                                                                                                                      |
|                                   |                                                                                                                                                                                                         |                             |                                                                                                                                                                                                                         |                                       |                                                                                                                                       |
|                                   | $2,828                                                                                                                                                                                                       | $3,916                           | $3,914                                                                                                                                                                                                                       | (27.8)                                     | 0.1                                                                                                                                        |

|                                 |   |                                                                                                                                                                           |   |   |                                                                |   |   |                                                                                  |   |   |                                                               | 2006/2007 |   |                                                                                       |   | 2005/2006 |   |
|--------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------|-----------|--------|--------------------------------------------------------------------------------------------|--------|-----------|--------|
|                                 |   |                               Years Ended December 31, |   |   |                Percent |   |   |                   Percent |   |
|                                 |   | 2007                                                                                                                                                                           |   |   | 2006                                                                |   |   | 2005                                                                                  |   |   |                Change |      |   |                    Change |   |
|                                 |   | (Dollars in      thousands)                                                                                                                                                    |   |
|                                 |   |                                                                                                                                                                           |   |   |                                                                |   |   |                                                                                  |   |   |                                                               |      |   |                                                                                       |   |      |   |
| Salaries      and employee benefits  |   | $                                                                                                                                                                              | 10,712 |   |                                                                | $      | 9,608  |                                                                                  |   | $      | 7,851                                                              |      |   |                                                                                       | 11.5   | %         |   |   | 22.4 | % |
| Occupancy      and equipment expense |   |                                                                                                                                                                           | 2,442  |   |                                                                |   | 2,294  |                                                                                  |   |   | 2,206                                                              |      |   |                                                                                       | 6.5    |      |   |   | 4.0 |   |
| Regulatory      fees and assessments |   |                                                                                                                                                                           | 740    |   |                                                                |   | 252    |                                                                                  |   |   | 202                                                                |      |   |                                                                                       | 193.7  |      |   |   | 24.8 |   |
| Professional      fees               |   |                                                                                                                                                                           | 639    |   |                                                                |   | 461    |                                                                                  |   |   | 405                                                                |      |   |                                                                                       | 38.6   |      |   |   | 13.8 |   |
| Advertising                          |   |                                                                                                                                                                           | 481    |   |                                                                |   | 381    |                                                                                  |   |   | 288                                                                |      |   |                                                                                       | 26.2   |      |   |   | 32.3 |   |
| Non-performing      loan expenses    |   |                                                                                                                                                                           | 409    |   |                                                                |   | 75     |                                                                                  |   |   | 66                                                                 |      |   |                                                                                       | 445.3  |      |   |   | 13.6 |   |
| Telephone                            |   |                                                                                                                                                                           | 317    |   |                                                                |   | 251    |                                                                                  |   |   | 264                                                                |      |   |                                                                                       | 26.3   |      |   |   | (4.9 | ) |
| Software      maintenance            |   |                                                                                                                                                                           | 210    |   |                                                                |   | 149    |                                                                                  |   |   | 141                                                                |      |   |                                                                                       | 40.9   |      |   |   | 5.7 |   |
| ATM      expense                     |   |                                                                                                                                                                           | 207    |   |                                                                |   | 178    |                                                                                  |   |   | 188                                                                |      |   |                                                                                       | 16.3   |      |   |   | (5.3 | ) |
| Supplies                             |   |                                                                                                                                                                           | 188    |   |                                                                |   | 181    |                                                                                  |   |   | 224                                                                |      |   |                                                                                       | 3.9    |      |   |   | (19.2 | ) |
| Courier      fees                    |   |                                                                                                                                                                           | 142    |   |                                                                |   | 180    |                                                                                  |   |   | 176                                                                |      |   |                                                                                       | (21.1  | )         |   |   | 2.3 |   |
| Director      and committee fees     |   |                                                                                                                                                                           | 121    |   |                                                                |   | 70     |                                                                                  |   |   | 70                                                                 |      |   |                                                                                       | 72.9   |      |   |   | 0.0 |   |
| Postage                              |   |                                                                                                                                                                           | 120    |   |                                                                |   | 132    |                                                                                  |   |   | 117                                                                |      |   |                                                                                       | (9.1   | )         |   |   | 12.8 |   |
| Correspondent      bank fees         |   |                                                                                                                                                                           | 90     |   |                                                                |   | 142    |                                                                                  |   |   | 117                                                                |      |   |                                                                                       | (36.6  | )         |   |   | 21.4 |   |
| Dues      and subscriptions          |   |                                                                                                                                                                           | 89     |   |                                                                |   | 83     |                                                                                  |   |   | 57                                                                 |      |   |                                                                                       | 7.2    |      |   |   | 45.6 |   |
| Other                                |   |                                                                                                                                                                           | 757    |   |                                                                |   | 632    |                                                                                  |   |   | 561                                                                |      |   |                                                                                       | 19.8   |      |   |   | 12.7 |   |
|                                 |   |                                                                                                                                                                           |   |   |                                                                |   |   |                                                                                  |   |   |                                                               |      |   |                                                                                       |   |      |   |   |   |   |
| Total                                |   | $                                                                                                                                                                              | 17,664 |   |                                                                | $      | 15,069 |                                                                                  |   | $      | 12,933                                                             |      |   |                                                                                       | 17.2   | %         |   |   | 16.5 | % |

----

|                                               |   | Percentage      Increase(Decrease)      in InterestIncome/Expense      Given                   Interest Rate Shifts |   |
|----------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                               |   | Down      200Basis Points                                                                                                                                                            |   |   | Up      200Basis Points |   |
|                                               |   |                                                                                                                                                                                 |   |   |   |   |
| For      the Twelve Months after December 31, 2007 |   |                                                                                                                                                                                 |   |   |   |   |
| Projected      change in:                          |   |                                                                                                                                                                                 |   |   |   |   |
| Interest      income                               |   |                                                                                                                                                                                 | (14.81 | )% |   |   | 17.32 | % |
| Interest      expense                              |   |                                                                                                                                                                                 | (23.17 | ) |   |   | 24.50 |   |
| Net      interest income                           |   |                                                                                                                                                                                 | (7.67  | ) |   |   | 11.19 |   |

----

----

| ITEM      8. | FINANCIAL      STATEMENTS AND SUPPLEMENTARY DATA |
|--------------|--------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Page   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |
| Management's      Report on Internal Control Over Financial      Reporting                                                                                                                              |   |   | 30     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Report      of Independent Registered Public Accounting      Firm                                                                                                                                       |   |   | 31     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Consolidated      Statements of Financial Condition as of December 31, 2007 and      2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 32     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Consolidated      Statements of Income for the Years Ended December 31, 2007, 2006 and      2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 33     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Consolidated      Statements of Shareholders' Equity for the Years Ended December 31, 2007,      2006 and 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 34     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Consolidated      Statements of Cash Flows for the Years Ended December 31, 2007, 2006 and      2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 35     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Notes      to Consolidated Financial      Statements                                                                                                                                                    |   |   | 37     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Quarterly      Results      (Unaudited)                                                                                                                                                                 |   |   | 73     |   |

----

| /s/  Stephen L.      Price                                                       |   | /s/  Guy W.      Harris                                                         |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Stephen      L. Price                                                                                                                                                                                                                                                                                                                                                    |   | Guy      W. Harris                                                                                                                                                                                                                                                                                                                                                                |   |
| Chairman,      President and                                                                                                                                                                                                                                                                                                                                             |   | Chief      Financial Officer                                                                                                                                                                                                                                                                                                                                                      |   |
| Chief      Executive Officer                                                                                                                                                                                                                                                                                                                                             |   | March      17, 2008                                                                                                                                                                                                                                                                                                                                                               |   |
| March      17, 2008                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                              |   |

----

| Birmingham,      Alabama | /s/      Schauer Taylor, P.C. |
|--------------------------|-------------------------------|
| March      17, 2008      |                          |
|                     | Schauer      Taylor, PC       |

----

|   | CONSOLIDATED      STATEMENTS OF FINANCIAL CONDITION |
|--------|-----------------------------------------------------|

|                                                                                                                                                              |   | 2007   |        |   | 2006   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Assets                                                                                                                                                            |   |   |        |   |   |   |
| Cash      and due from banks                                                                                                                                      |   | $      | 10,526,924  |   |   | $      | 19,013,130 |   |
| Interest-bearing      demand deposits with banks                                                                                                                  |   |   | 1,868,391   |   |   |   | 1,499,212 |   |
| Federal      funds sold                                                                                                                                           |   |   | 2,334,000   |   |   |   | 100,000 |   |
| Cash      and Cash Equivalents                                                                                                                                    |   |   | 14,729,315  |   |   |   | 20,612,342 |   |
|                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Securities      held-to-maturity, fair value of $136,499,998 in 2007 and $99,976,028 in      2006                                                                 |   |   | 135,810,057 |   |   |   | 101,109,108 |   |
| Other      investments-securities                                                                                                                                 |   |   | 5,599,965   |   |   |   | 5,595,465 |   |
| Other      investments-partnerships                                                                                                                               |   |   | 1,215,875   |   |   |   | 1,263,875 |   |
| Loans      held-for-sale                                                                                                                                          |   |   | —     |   |   |   | 145,600 |   |
|                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Loans,      net of unearned income                                                                                                                                |   |   | 761,430,961 |   |   |   | 869,462,473 |   |
| Allowance      for loan losses                                                                                                                                    |   |   | (18,309,279 | )      |   |   | (13,590,000 | )) |
| Net      Loans                                                                                                                                                    |   |   | 743,121,682 |   |   |   | 855,872,473 |   |
|                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Premises      and equipment, net                                                                                                                                  |   |   | 21,095,408  |   |   |   | 14,455,093 |   |
| Accrued      interest                                                                                                                                             |   |   | 4,585,201   |   |   |   | 6,640,337 |   |
| Foreclosed      real estate                                                                                                                                       |   |   | 1,065,289   |   |   |   | 2,403,435 |   |
| Deferred      taxes, net                                                                                                                                          |   |   | 13,671,041  |   |   |   | 6,425,467 |   |
| Other      assets                                                                                                                                                 |   |   | 1,779,929   |   |   |   | 2,154,231 |   |
| Total      Assets                                                                                                                                                 |   | $      | 942,673,762 |   |   | $      | 1,016,677,426 |   |
|                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Liabilities      and Shareholders’ Equity                                                                                                                   |   |   |        |   |   |   |   |   |
|                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Liabilities                                                                                                                                                       |   |   |        |   |   |   |   |   |
|                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Deposits                                                                                                                                                          |   |   |        |   |   |   |   |   |
| Noninterest-bearing                                                                                                                                               |   | $      | 72,635,074  |   |   | $      | 109,481,282 |   |
| Interest-bearing                                                                                                                                                  |   |   | 681,023,280 |   |   |   | 725,980,218 |   |
| Total      Deposits                                                                                                                                               |   |   | 753,658,354 |   |   |   | 835,461,500 |   |
|                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Short-term      borrowings                                                                                                                                        |   |   | —     |   |   |   | 694,000 |   |
| Accrued      interest                                                                                                                                             |   |   | 3,509,061   |   |   |   | 2,767,839 |   |
| Deferred      compensation                                                                                                                                        |   |   | 208,358     |   |   |   | 246,635 |   |
| FHLB      advances                                                                                                                                                |   |   | 55,000,000  |   |   |   | 55,000,000 |   |
| Subordinated      debentures                                                                                                                                      |   |   | 30,929,000  |   |   |   | 30,929,000 |   |
| Other      liabilities                                                                                                                                            |   |   | 1,163,952   |   |   |   | 1,011,138 |   |
| Total      Liabilities                                                                                                                                            |   |   | 844,468,725 |   |   |   | 926,110,112 |   |
|                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Shareholders’      Equity                                                                                                                                   |   |   |        |   |   |   |   |   |
| Preferred      stock - par value $0.01 per share, 5,000,000 shares authorized, none      issued and outstanding at December 31, 2007 and 2006                |   |   | —     |   |   |   | — |   |
| Common      stock - par value $0.01 per share, 10,000,000 shares authorized, 7,909,261      shares issued and outstanding at December 31, 2007 and      2006 |   |   | 79,093      |   |   |   | 79,093 |   |
| Paid-in      capital                                                                                                                                              |   |   | 18,456,882  |   |   |   | 18,432,685 |   |
| Retained      earnings                                                                                                                                            |   |   | 79,669,062  |   |   |   | 72,055,536 |   |
| Total      Shareholders’ Equity                                                                                                                             |   |   | 98,205,037  |   |   |   | 90,567,314 |   |
|                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Total      Liabilities and Shareholders’ Equity                                                                                                             |   | $      | 942,673,762 |   |   | $      | 1,016,677,426 |   |

----

|   | CONSOLIDATED      STATEMENTS OF INCOME |
|--------|----------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2007   |       |   | 2006   |   |       | 2005   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Interest      Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |
| Interest      and fees on loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 70,764,215 |   |   | $      | 81,434,704 |   |   | $ | 54,686,904 |   |
| Interest      and dividends on taxable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 5,194,119  |   |   |   | 3,221,155  |   |   |   | 2,813,360 |   |
| Interest      on tax-exempt securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 814,007    |   |   |   | 166,262    |   |   |   | — |   |
| Interest      on federal funds sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 573,133    |   |   |   | 686,231    |   |   |   | 210,213 |   |
| Interest      on deposits in banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 70,790     |   |   |   | 66,177     |   |   |   | 78,047 |   |
| Total      Interest Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 77,416,264 |   |   |   | 85,574,529 |   |   |   | 57,788,524 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest      on deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 33,380,771 |   |   |   | 29,741,087 |   |   |   | 13,863,702 |   |
| Interest      on short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 336,318    |   |   |   | 277,152    |   |   |   | 500,749 |   |
| Interest      on FHLB advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 2,313,438  |   |   |   | 2,492,831  |   |   |   | 2,308,069 |   |
| Interest      on subordinated debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 2,359,063  |   |   |   | 1,853,679  |   |   |   | 712,617 |   |
| Total      Interest Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 38,389,590 |   |   |   | 34,364,749 |   |   |   | 17,385,137 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      Interest Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 39,026,674 |   |   |   | 51,209,780 |   |   |   | 40,403,387 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Provision      for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 6,867,600  |   |   |   | 2,296,270  |   |   |   | 1,762,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      Interest Income After Provision  For Loan Losses                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 32,159,074 |   |   |   | 48,913,510 |   |   |   | 38,641,387 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Noninterest      Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Customer      service fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 1,414,400  |   |   |   | 1,678,478  |   |   |   | 1,465,639 |   |
| Secondary      market loan fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 388,816    |   |   |   | 750,686    |   |   |   | 972,349 |   |
| Other      operating income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 1,024,988  |   |   |   | 1,487,078  |   |   |   | 1,475,698 |   |
| Total      Noninterest Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 2,828,204  |   |   |   | 3,916,242  |   |   |   | 3,913,686 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Noninterest      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |       |   |   |   |       |   |   |   |   |   |
| Salaries      and employee benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 10,712,122 |   |   |   | 9,608,072  |   |   |   | 7,851,022 |   |
| Occupancy      and equipment expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 2,442,141  |   |   |   | 2,293,985  |   |   |   | 2,205,868 |   |
| Expenses,      write-downs, and losses on  sale from other real estate      owned                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 161,873    |   |   |   | —    |   |   |   | 126,082 |   |
| Investment      security losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 7,816      |   |   |   | —    |   |   |   | — |   |
| Other      operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 4,340,416  |   |   |   | 3,167,277  |   |   |   | 2,750,343 |   |
| Total      Noninterest Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 17,664,368 |   |   |   | 15,069,334 |   |   |   | 12,933,315 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Income      before income      taxes                                                                                |   |   | 17,322,910 |   |   |   | 37,760,418 |   |   |   | 29,621,758 |   |
| Income      tax      expense                                                                                        |   |   | 6,413,691  |   |   |   | 14,614,349 |   |   |   | 11,403,727 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 10,909,219 |   |   | $      | 23,146,069 |   |   | $ | 18,218,031 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Earnings      Per Common Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 1.38       |   |   | $      | 2.93       |   |   | $ | 2.31 |   |
| Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 1.36       |   |   |   | 2.90       |   |   |   | 2.29 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      Dividends Declared Per Common Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 0.42       |   |   |   | 0.35       |   |   |   | 0.29 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |       |   |   |   |   |   |
| Weighted      Average Shares Outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 7,909,261  |   |   |   | 7,890,427  |   |   |   | 7,885,735 |   |
| Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 8,040,860  |   |   |   | 7,987,134  |   |   |   | 7,962,014 |   |

----

|   | CONSOLIDATED      STATEMENTS OF SHAREHOLDERS' EQUITY |
|--------|------------------------------------------------------|

|                                               |   | PreferredStock |    |   | CommonStock |   |    | Paid-inCapital |   |   | RetainedEarnings |   |   | Total  |       |
|----------------------------------------------------|--------|----------------|---------|--------|-------------|--------|---------|----------------|--------|--------|------------------|--------|--------|--------|------------|
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |
| Balance      at December 31, 2004                  |   | $              | — |   |        | $      | 78,085  |           |   | $      | 17,122,642       |   |   | $      | 35,726,972 |   |   | $ | 52,927,699 |   |
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |   |   |   |   |   |
| Net      income - 2005                             |   |           | — |   |        |   | — |           |   |   | —          |   |   |   | 18,218,031 |   |   |   | 18,218,031 |   |
| Comprehensive      income                          |   |           | — |   |        |   | — |           |   |   | —          |   |   |   | —    |   |   |   | 18,218,031 |   |
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |   |   |   |   |   |
| Sale      of common stock                          |   |           | — |   |        |   | 1,008   |           |   |   | 1,161,225        |   |   |   | —    |   |   |   | 1,162,233 |   |
| Stock-based      compensation expense              |   |           | — |   |        |   | — |           |   |   | 56,783           |   |   |   | —    |   |   |   | 56,783 |   |
| Cash      dividends – Common $0.29 per share |   |           | — |   |        |   | — |           |   |   | —          |   |   |   | (2,288,964 | ) |   |   | (2,288,964 | ) |
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |   |   |   |   |   |
| Balance      at December 31, 2005                  |   |           | — |   |        |   | 79,093  |           |   |   | 18,340,650       |   |   |   | 51,656,039 |   |   |   | 70,075,782 |   |
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |   |   |   |   |   |
| Net      income – 2006                       |   |           | — |   |        |   | — |           |   |   | —          |   |   |   | 23,146,069 |   |   |   | 23,146,069 |   |
| Comprehensive      income                          |   |           | — |   |        |   | — |           |   |   | —          |   |   |   | —    |   |   |   | 23,146,069 |   |
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |   |   |   |   |   |
| Stock-based      compensation expense              |   |           | — |   |        |   | — |           |   |   | 92,035           |   |   |   | —    |   |   |   | 92,035 |   |
| Cash      dividends – Common $0.35 per share |   |           | — |   |        |   | — |           |   |   | —          |   |   |   | (2,746,572 | ) |   |   | (2,746,572 | ) |
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |   |   |   |   |   |
| Balance      at December 31, 2006                  |   |           | — |   |        |   | 79,093  |           |   |   | 18,432,685       |   |   |   | 72,055,536 |   |   |   | 90,567,314 |   |
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |   |   |   |   |   |
| Net      income – 2007                       |   |           | — |   |        |   | — |           |   |   | —          |   |   |   | 10,909,219 |   |   |   | 10,909,219 |   |
| Comprehensive      income                          |   |           | — |   |        |   | — |           |   |   | —          |   |   |   | —    |   |   |   | 10,909,219 |   |
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |   |   |   |   |   |
| Stock-based      compensation expense              |   |           | — |   |        |   | — |           |   |   | 36,299           |   |   |   | —    |   |   |   | 36,299 |   |
| Cash      paid in lieu of fractional shares        |   |           |    |   |        |   |    |           |   |   | (12,102          | )      |   |   | —    |   |   |   | (12,102 | ) |
| Cash      dividends – Common $0.42 per share |   |           | — |   |        |   | — |           |   |   | —          |   |   |   | (3,295,693 | ) |   |   | (3,295,693 | ) |
|                                               |   |           |    |   |        |   |    |           |   |   |             |   |   |   |       |   |   |   |   |   |
| Balance      at  December 31, 2007       |   | $              | — |   |        | $      | 79,093  |           |   | $      | 18,456,882       |   |   | $      | 79,669,062 |   |   | $ | 98,205,037 |   |

----

|                                                                                                                |   | 2007   |        |   | 2006   |   |         | 2005   |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|--------------|--------|--------|
|                                                                                                                |   |   |        |   |   |   |         |   |   |
| Operating      Activities                                                                                           |   |   |        |   |   |   |         |   |   |
| Net      income                                                                                                     |   | $      | 10,909,219  |   |   | $      | 23,146,069   |   |   | $ | 18,218,031 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                         |   |   |        |   |   |   |         |   |   |   |   |   |
| Provision      for loan losses                                                                                      |   |   | 6,867,600   |   |   |   | 2,296,270    |   |   |   | 1,762,000 |   |
| Depreciation,      amortization, and accretion, net                                                                 |   |   | 1,024,050   |   |   |   | 1,093,979    |   |   |   | 1,181,656 |   |
| Deferred      tax benefit                                                                                           |   |   | (7,245,573  | )      |   |   | (595,242     | )      |   |   | (1,512,872 | ) |
| Loss      on sale of securities                                                                                     |   |   | 7,816       |   |   |   | —      |   |   |   | — |   |
| Gain      on disposition of other real estate owned property                                                        |   |   | (404,921    | )      |   |   | —      |   |   |   | — |   |
| Writedown      on other real estate owned property                                                                  |   |   | 90,310      |   |   |   | —      |   |   |   | — |   |
| (Gain)      loss on disposition of  premises and equipment                                                |   |   | (2,808      | )      |   |   | 33,911       |   |   |   | (21,216 | ) |
| Compensation      associated with the issuance of options                                                           |   |   | 36,299      |   |   |   | 92,035       |   |   |   | 56,783 |   |
| Decrease      (increase) in accrued interest receivable                                                             |   |   | 2,055,136   |   |   |   | (1,699,096   | )      |   |   | (1,651,563 | ) |
| Increase      in accrued interest payable                                                                           |   |   | 741,222     |   |   |   | 368,559      |   |   |   | 991,717 |   |
| Other,      net                                                                                                     |   |   | 733,635     |   |   |   | (1,230,584   | )      |   |   | (157,099 | ) |
| Net      Cash Provided By Operating Activities                                                                      |   |   | 14,811,985  |   |   |   | 23,505,901   |   |   |   | 18,867,437 |   |
|                                                                                                                |   |   |        |   |   |   |         |   |   |   |   |   |
| Investing      Activities                                                                                           |   |   |        |   |   |   |         |   |   |   |   |   |
| Purchases      of investment securities held-to-maturity                                                            |   |   | (43,971,875 | )      |   |   | (46,020,950  | )      |   |   | — |   |
| Proceeds      from sales, maturities, calls and pay-downs of      investment  securities held-to-maturity |   |   | 9,190,410   |   |   |   | 5,770,415    |   |   |   | 7,950,335 |   |
| Proceeds      from other investments                                                                                |   |   | 48,000      |   |   |   | —      |   |   |   | — |   |
| Purchases      of other investments, net                                                                            |   |   | (4,500      | )      |   |   | (1,750,075   | )      |   |   | (274,188 | ) |
| Net      decrease (increase) in loans to customers                                                                  |   |   | 104,927,592 |   |   |   | (78,282,798  | )      |   |   | (239,099,700 | ) |
| Purchase      of premises and equipment                                                                             |   |   | (7,751,826  | )      |   |   | (1,738,733   | )      |   |   | (1,329,146 | ) |
| Proceeds      from disposition of premises and equipment                                                            |   |   | 63,772      |   |   |   | —      |   |   |   | 41,000 |   |
| Proceeds      from disposition of foreclosed real estate                                                            |   |   | 2,608,456   |   |   |   | —      |   |   |   | — |   |
| Net      Cash Provided By (Used In) Investing Activities                                                            |   |   | 65,109,929  |   |   |   | (122,022,141 | )      |   |   | (232,711,699 | ) |

----

|                                                                                               |   | 2007   |        |   | 2006   |   |        | 2005   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                                                                                               |   |   |        |   |   |   |        |   |   |
| Financing      Activities                                                                          |   |   |        |   |   |   |        |   |   |
| Net      (decrease) increase in demand deposits, NOW  accounts and      savings accounts |   | $      | (64,443,555 | )      |   | $      | 34,697,815  |   |   | $ | 16,342,434 |   |
| Net      (decrease) increase in certificates of deposit                                            |   |   | (17,359,591 | )      |   |   | 63,507,929  |   |   |   | 200,327,891 |   |
| Net      (decrease) increase in short-term borrowings                                              |   |   | (694,000    | )      |   |   | (24,294,000 | )      |   |   | 11,031,000 |   |
| Issuance      of FHLB advances                                                                     |   |   | 10,000,000  |   |   |   | 5,000,000   |   |   |   | — |   |
| Repayments      of FHLB advances                                                                   |   |   | (10,000,000 | )      |   |   | (10,000,000 | )      |   |   | — |   |
| Increase      (decrease) in other debt, net                                                        |   |   | —     |   |   |   | (23,939     | )      |   |   | 23,939 |   |
| Issuance      of subordinated debentures                                                           |   |   | —     |   |   |   | 20,619,000  |   |   |   | — |   |
| Sale      of common stock                                                                          |   |   | —     |   |   |   | —     |   |   |   | 1,162,233 |   |
| Costs      associated with stock split-fractional share payout                                     |   |   | (12,102     | )      |   |   | —     |   |   |   | — |   |
| Cash      dividends                                                                                |   |   | (3,295,693  | )      |   |   | (2,746,572  | )      |   |   | (2,288,964 | ) |
| Net      Cash Provided By (Used In) FinancingActivities                                            |   |   | (85,804,941 | )      |   |   | 86,760,233  |   |   |   | 226,598,533 |   |
|                                                                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Net      (Decrease) Increase in Cash and Cash Equivalents                                          |   |   | (5,883,027  | )      |   |   | (11,756,007 | )      |   |   | 12,754,271 |   |
|                                                                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents  at Beginning of Year                                     |   |   | 20,612,342  |   |   |   | 32,368,349  |   |   |   | 19,614,078 |   |
|                                                                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents  at End of Year                                           |   | $      | 14,729,315  |   |   | $      | 20,612,342  |   |   | $ | 32,368,349 |   |

----

----

----

----

----

----

----

|                                 |   | Years      Ended December 31, |    |
|--------------------------------------|--------|-------------------------------|---------|
|                                 |   | 2007                          |    |   | 2006 |   |   |            2005 |   |
|                                 |   |                          |    |   |   |   |   |   |   |
| Assumptions:                         |   |                          |    |   |   |   |   |   |   |
| Average      risk free interest rate |   |                          | — |   |   |   | — |   |   |   | 4.47 | % |
| Average      expected volatility     |   |                          | — |   |   |   | — |   |   |   | 13.00 |   |
| Expected      dividend yield         |   |                          | — |   |   |   | — |   |   |   | 1.50 |   |
| Expected      life                   |   |                          | — |   |   |   | — |   |   |              8.0 Years |   |

----

|                                                                                     |   | 2007   |      |   | 2006   |   |      | 2005   |   |
|------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                                                     |   |   |      |   |   |   |      |   |   |
| Weighted      average of common  shares outstanding                            |   |   | 7,909,261 |   |   |   | 7,890,427 |   |   |   | 7,885,735 |   |
| Effect      of dilutive options                                                          |   |   | 131,599   |   |   |   | 96,707    |   |   |   | 76,279 |   |
|                                                                                     |   |   |      |   |   |   |      |   |   |   |   |   |
| Weighted      average of common shares  outstanding effected for      dilution |   |   | 8,040,860 |   |   |   | 7,987,134 |   |   |   | 7,962,014 |   |

----

|                                                                             |   | Years Ended December 31, |       |
|----------------------------------------------------------------------------------|--------|--------------------------|------------|
|                                                                             |   | 2007                     |       |   | 2006 |   |   | 2005 |   |
|                                                                             |   |                     |       |   |   |   |   |   |   |
| Cash      paid during the year for interest                                      |   | $                        | 37,648,368 |   |   | $ | 33,996,190 |   |   | $ | 16,393,420 |   |
| Cash      paid during the year for income taxes, net                             |   |                     | 13,468,880 |   |   |   | 16,244,978 |   |   |   | 12,644,132 |   |
|                                                                             |   |                     |       |   |   |   |   |   |   |   |   |   |
| Non-cash Disclosures:                                                            |   |                     |       |   |   |   |   |   |   |   |   |   |
|                                                                             |   |                     |       |   |   |   |   |   |   |   |   |   |
| Loans      transferred to foreclosed  real estate during the      year |   |                     | 955,599    |   |   |   | 200,000 |   |   |   | — |   |

----

----

----

|                             |   |          AmortizedCost |        |   |   Gross         Unrealized       Gains |   |      |    Gross           Unrealized    Losses |   |   |            EstimatedFair        Value |   |
|----------------------------------|--------|---------------------------------------|-------------|--------|-----------------------------------------------------------------|--------|-----------|-------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------|--------|
|                             |   |                                  |        |   |                                                            |   |      |                                                                                      |   |   |                                                                               |   |
| Securities Held-to-Maturity      |   |                                  |        |   |                                                            |   |      |                                                                                      |   |   |                                                                               |   |
|                             |   |                                  |        |   |                                                            |   |      |                                                                                      |   |   |                                                                               |   |
| December      31, 2007:          |   |                                  |        |   |                                                            |   |      |                                                                                      |   |   |                                                                               |   |
| FHLB and FHLMCagency    notes    |   | $                                     | 18,491,643  |   |                                                            | $      | 570,623   |                                                                                      |   | $      | 9,166                                                                              |   |   | $ | 19,053,100 |   |
| Municipal    securities          |   |                                  | 20,786,520  |   |                                                            |   | 63,186    |                                                                                      |   |   | 88,627                                                                             |   |   |   | 20,761,079 |   |
| Mortgage-backed      securities  |   |                                  | 96,531,894  |   |                                                            |   | 663,977   |                                                                                      |   |   | 510,052                                                                            |   |   |   | 96,685,819 |   |
|                             |   |                                  |        |   |                                                            |   |      |                                                                                      |   |   |                                                                               |   |   |   |   |   |
|                             |   | $                                     | 135,810,057 |   |                                                            | $      | 1,297,786 |                                                                                      |   | $      | 607,845                                                                            |   |   | $ | 136,499,998 |   |
|                             |   |                                  |        |   |                                                            |   |      |                                                                                      |   |   |                                                                               |   |   |   |   |   |
| December      31, 2006:          |   |                                  |        |   |                                                            |   |      |                                                                                      |   |   |                                                                               |   |   |   |   |   |
| FHLB and FHLMC agency      notes |   | $                                     | 12,530,776  |   |                                                            | $      | 28,181    |                                                                                      |   | $      | 43,207                                                                             |   |   | $ | 12,515,750 |   |
| Municipal    securities          |   |                                  | 16,765,363  |   |                                                            |   | 136,498   |                                                                                      |   |   | 19,021                                                                             |   |   |   | 16,882,840 |   |
| Mortgage-backed      securities  |   |                                  | 71,812,969  |   |                                                            |   | 53,473    |                                                                                      |   |   | 1,289,004                                                                          |   |   |   | 70,577,438 |   |
|                             |   |                                  |        |   |                                                            |   |      |                                                                                      |   |   |                                                                               |   |   |   |   |   |
|                             |   | $                                     | 101,109,108 |   |                                                            | $      | 218,152   |                                                                                      |   | $      | 1,351,232                                                                          |   |   | $ | 99,976,028 |   |
|                             |   |                                  |        |   |                                                            |   |      |                                                                                      |   |   |                                                                               |   |   |   |   |   |

----

|                                               | Less Than 12 Months                                                                     | 12 Months or More                                                                                       | Total                      |                                                                                           |
|----------------------------------------------------|-----------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| Description of Securities                          | FairValue              | UnrealizedLosses                       | FairValue                                                     | UnrealizedLosses              | FairValue              | UnrealizedLosses              |   |
|                                               |                                                                                    |                                                                                                    |                                                                                                                                |                                                                                           |   |   |   |
| December      31, 2007:                            |                                                                                    |                                                                                                    |                                                                                                                                |                                                                                           |   |   |   |
| FHLB and      FHLMC  agencynotes         | $          —                    | $        —                                                | $         1,990,200                                                                                                  | $         9,166                                                                 | $           1,990,200 | $          9,166 |   |
| Municipal      securities                          |             9,280,680                                     |            58,860                                                              |          3,406,613                                                                     |   29,767                                                                                  |               12,687,293 |       88,627 |   |
| Mortgage-backed      securities                    |           4,090,572                                                 |         5,487                                                                       |     47,845,717                                                                                                  |   504,565                                                                                 |             51,936,289 |    510,052 |   |
|                                               |                                                                                    |                                                                                                    |                                                                                                                                |                                                                                           |   |   |   |
|                                               | $13,371,252                                                                             | $    64,347                                                                              | $      53,242,530                                                                                                                   | $      543,498                                                                                 | $    66,613,782 | $      607,845 |   |
|                                               |                                                                                    |                                                                                                    |                                                                                                                                |                                                                                           |   |   |   |
| December      31, 2006:                            |                                                                                    |                                                                                                    |                                                                                                                                |                                                                                           |   |   |   |
| FHLB      and FHLMC  agency notes        | $          —                    | $        —                                                | $           1,955,200                                                                                      | $           43,207                                                         |        $      1,955,200 | $           43,207 |   |
| Municipal      securities                          |              3,422,888                                    |               19,021                                            | —                                                                                                                             | —                                                                                        |                3,422,888 |            19,021 |   |
|          Mortgage-backed securities |              6,757,074                               |            21,428                           |              50,736,789                                                                          |          1,267,576                                                              |              57,493,863 |          1,289,004 |   |
|                                               |   $       10,179,962                                                |   $            40,449        |   $         52,691,989                                                                                     |  $      1,310,783                                                                         |        $    62,871,951 |        $1,351,232 |   |

----

|                                        |   |         Amortized |        |   | Fair   |   |
|---------------------------------------------|--------|-----------------------------|-------------|--------|--------|--------|
|                                        |   | Cost                        |        |   | Value  |   |
|                                        |   |                        |        |   |   |   |
| Due      in one year or less                |   | $                           | 2,099,156   |   |   | $      | 2,039,990 |   |
| Due      after one year through five years  |   |                        | —     |   |   |   | — |   |
| Due      after five years through ten years |   |                        | 14,708,554  |   |   |   | 15,096,508 |   |
| Due      after ten years                    |   |                        | 119,002,347 |   |   |   | 119,313,500 |   |
|                                        |   |                        |        |   |   |   |   |   |
|                                        |   | $                           | 135,810,057 |   |   | $      | 136,499,998 |   |

----

| Other Investments -    Securities              |   |   |      |   |   |   |
|------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                           |   | 2007   |      |   | 2006   |   |
|                                           |   |   |      |   |   |   |
| Federal      Home Loan Bank stock              |   | $      | 4,291,800 |   |   | $      | 4,287,300 |   |
| Independent      Bankers Bank of Florida stock |   |   | 308,058   |   |   |   | 308,058 |   |
| Investment      in FCBI Capital Trust I        |   |   | 310,000   |   |   |   | 310,000 |   |
| Investment      in FCBI Capital Trust II       |   |   | 619,000   |   |   |   | 619,000 |   |
| Community      Financial Services, Inc. stock  |   |   | 71,107    |   |   |   | 71,107 |   |
|                                           |   |   |      |   |   |   |   |   |
|                                           |   | $      | 5,599,965 |   |   | $      | 5,595,465 |   |

| Other Investments -      Partnerships              |   |   |      |   |   |   |
|----------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                               |   |   |      |   |   |   |
|                                               |   | 2007   |      |   | 2006   |   |
|                                               |   |   |      |   |   |   |
| Investment      in Capital Security Investors, LLC |   | $      | 352,000   |   |   | $      | 400,000 |   |
| Investment      in AMD-FCB, LLP                    |   |   | 863,875   |   |   |   | 863,875 |   |
|                                               |   |   |      |   |   |   |   |   |
|                                               |   | $      | 1,215,875 |   |   | $      | 1,263,875 |   |

----

|                                         |   | 2007   |        |   | 2006   |   |
|----------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                         |   |   |        |   |   |   |
| Commercial,      financial, and agricultural |   | $      | 42,718,370  |   |   | $      | 41,574,878 |   |
| Real      estate - construction              |   |   | 414,737,975 |   |   |   | 478,084,665 |   |
| Real      estate - mortgage                  |   |   | 296,213,418 |   |   |   | 344,310,383 |   |
| Consumer                                     |   |   | 6,111,974   |   |   |   | 6,275,352 |   |
| Other                                        |   |   | 3,006,024   |   |   |   | 2,007,518 |   |
| Total                                        |   |   | 762,787,761 |   |   |   | 872,252,796 |   |
| Unearned      income                         |   |   | (1,356,800  | )      |   |   | (2,790,323 | ) |
| Allowance      for loan losses               |   |   | (18,309,279 | )      |   |   | (13,590,000 | ) |
|                                         |   |   |        |   |   |   |   |   |
| Net      loans                               |   | $      | 743,121,682 |   |   | $      | 855,872,473 |   |

----

|                                                         |   | 2007   |        |   | 2006   |   |
|--------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                         |   |   |        |   |   |   |
| Impaired      loans with a specific valuation allowance      |   | $      | 36,431,688  |   |   | $      | 4,453,562 |   |
| Impaired      loans without a specific valuation allowance   |   |   | 76,730,076  |   |   |   | 32,991,205 |   |
|                                                         |   |   |        |   |   |   |   |   |
| Total      impaired loans                                    |   | $      | 113,161,764 |   |   | $      | 37,444,767 |   |
|                                                         |   |   |        |   |   |   |   |   |
| Related      allowance on impaired loans                     |   | $      | 8,635,084   |   |   | $      | 1,488,000 |   |
| Total      nonaccrual loans                                  |   |   | 111,146,557 |   |   |   | 37,445,000 |   |
| Total      loans past due 90 days or more and still accruing |   |   | 6,513,000   |   |   |   | 13,142,000 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2007   |       |   | 2006   |   |      | 2005   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |       |   |   |   |      |   |   |
| Average      monthly balance of impaired loans (basedon month-end      balances)                                                                    |   | $      | 52,233,405 |   |   | $      | 7,597,033 |   |   | $ | 1,061,913 |   |
| Interest      income recognized on impaired loans                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 5,118,250  |   |   |   | 1,676,649 |   |   |   | 3,412 |   |
| Interest      income recognized on the cash basis onimpaired      loans                                                                             |   |   | 5,118,250  |   |   |   | 1,676,649 |   |   |   | — |   |

----

|                              |   | 2007   |       |   | 2006   |   |       | 2005   |   |
|-----------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                              |   |   |       |   |   |   |       |   |   |
| Balance      at beginning of year |   | $      | 13,590,000 |   |   | $      | 11,522,910 |   |   | $ | 9,791,269 |   |
|                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Charge-offs                       |   |   | (2,340,470 | )      |   |   | (264,326   | )      |   |   | (180,471 | ) |
| Recoveries                        |   |   | 192,149    |   |   |   | 35,146     |   |   |   | 150,112 |   |
| Net      (charge-offs) recoveries |   |   | (2,148,321 | )      |   |   | (229,180   | )      |   |   | (30,359 | ) |
| Provision      for loan losses    |   |   | 6,867,600  |   |   |   | 2,296,270  |   |   |   | 1,762,000 |   |
|                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Balance      at end of year       |   | $      | 18,309,279 |   |   | $      | 13,590,000 |   |   | $ | 11,522,910 |   |

|                             |   | 2007   |       |   | 2006   |   |
|----------------------------------|--------|--------|------------|--------|--------|--------|
|                             |   |   |       |   |   |   |
| Land                             |   | $      | 4,993,070  |   |   | $      | 3,128,438 |   |
| Land      improvements           |   |   | 895,508    |   |   |   | 625,618 |   |
| Building                         |   |   | 13,983,175 |   |   |   | 10,842,765 |   |
| Furniture      and equipment     |   |   | 5,378,314  |   |   |   | 4,864,211 |   |
| Automobiles                      |   |   | 605,011    |   |   |   | 425,929 |   |
| Construction      in progress    |   |   | 2,857,300  |   |   |   | 1,468,560 |   |
|                             |   |   | 28,712,378 |   |   |   | 21,355,521 |   |
| Accumulated      depreciation    |   |   | (7,616,969 | )      |   |   | (6,900,428 | ) |
|                             |   |   |       |   |   |   |   |   |
| Premises      and equipment, net |   | $      | 21,095,409 |   |   | $      | 14,455,093 |   |

| Year Ending December 31, |   |   |        |
|--------------------------|--------|--------|-------------|
| 2008                     |   | $      | 367,564,220 |   |
| 2009                     |   |   | 70,086,307  |   |
| 2010                     |   |   | 4,597,793   |   |
| 2011                     |   |   | 2,613,055   |   |
| 2012                     |   |   | 4,122,897   |   |
|                     |   |   |        |   |
|                     |   | $      | 448,984,272 |   |

----

|                         |   | 2007   |    |   | 2006   |   |
|------------------------------|--------|--------|---------|--------|--------|--------|
|                         |   |   |    |   |   |   |
| Federal      funds purchased |   | $      | — |   |   | $      | 694,000 |   |

|                                                                                                                                                                                                                                                          |   | 2007                                                2006 |       |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------------------------|
| Long-term      FHLB advances, with varying maturities from May 2008 through December      2014, the interest rates have a variable base or are at a fixed rate      between 3.77% to 6.18%, secured by real estate mortgage loans and pledged      securities |   | $                                                                                                                                                                                                                                                                     | 55,000,000 |                                 |   | $ | 55,000,000 |   |
|                                                                                                                                                                                                                                                          |   |                                                                                                                                                                                                                                                                  |       |                                 |   |   |   |   |   |
| Long-term      subordinated debentures; interest rate prime plus 0.5%, the debenture has      a 30-year life with a call option of 5 years, subject to regulatory      approval                                                                               |   |                                                                                                                                                                                                                                                                  | 10,310,000 |                                 |   |   | 10,310,000 |   |
|                                                                                                                                                                                                                                                          |   |                                                                                                                                                                                                                                                                  |       |                                 |   |   |   |   |   |
| Long-term      subordinated debentures; interest rate three month LIBOR plus 1.55%, the      debenture has a 30-year life with a call option of 5 years, subject to      regulatory approval                                                                  |   |                                                                                                                                                                                                                                                                  | 20,619,000 |                                 |   |   | 20,619,000 |   |
|                                                                                                                                                                                                                                                          |   |                                                                                                                                                                                                                                                                  |       |                                 |   |   |   |   |   |
|                                                                                                                                                                                                                                                          |   | $                                                                                                                                                                                                                                                                     | 85,929,000 |                                 |   | $ | 85,929,000 |   |

----

| Year Ending December 31, |   |   |       |
|--------------------------|--------|--------|------------|
| 2008                     |   | $      | 5,000,000  |   |
| 2009                     |   |   | —    |   |
| 2010                     |   |   | 5,000,000  |   |
| 2011                     |   |   | 5,000,000  |   |
| 2012                     |   |   | 20,000,000 |   |
| Thereafter               |   |   | 50,929,000 |   |
|                     |   |   |       |   |
|                     |   | $      | 85,929,000 |   |

----

----

|                             |   |                    Actual |    |   |                         For Capital                   Adequacy Purposes |   |   |                     To Be Well                 Capitalized Under                 Prompt Corrective                    Action Provisions |   |
|----------------------------------|--------|--------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                             |   | Amount                                                                                     |    |   | Ratio                                                                                                                                                                                                                              |   |   | Amount                                                                                                                                                                                                                                                                                                                                                                                            |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                             |   | (Dollars      in thousands)                                                                |    |
|                             |   |                                                                                       |    |   |                                                                                                                                                                                                                               |   |   |                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2007:         |   |                                                                                       |    |   |                                                                                                                                                                                                                               |   |   |                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
|                             |   |                                                                                       |    |   |                                                                                                                                                                                                                               |   |   |                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |
| Total      CapitalConsolidated   |   | $                                                                                          | 138,692 |   |                                                                                                                                                                                                                               |   | 16.69  | %                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | 66,491 |   |   |   | 8.00 | % |   |   | N/A |   |   |   | N/A |   |
| Florida    CommunityBank         |   |                                                                                       | 128,841 |   |                                                                                                                                                                                                                               |   | 15.64  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 65,894 |   |   |   | 8.00 |   |   | $ | 82,368 |   |   |   | 10.00 | % |
| Tier      1 CapitalConsolidated  |   |                                                                                       | 128,205 |   |                                                                                                                                                                                                                               |   | 15.43  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 33,246 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Florida Community      Bank      |   |                                                                                       | 118,448 |   |                                                                                                                                                                                                                               |   | 14.38  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 32,947 |   |   |   | 4.00 |   |   |   | 49,421 |   |   |   | 6.00 |   |
| Tier      1 LeverageConsolidated |   |                                                                                       | 128,205 |   |                                                                                                                                                                                                                               |   | 13.38  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 38,334 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Florida Community      Bank      |   |                                                                                       | 118,448 |   |                                                                                                                                                                                                                               |   | 12.50  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 37,907 |   |   |   | 4.00 |   |   |   | 47,383 |   |   |   | 5.00 |   |
|                             |   |                                                                                       |    |   |                                                                                                                                                                                                                               |   |   |                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2006:         |   |                                                                                       |    |   |                                                                                                                                                                                                                               |   |   |                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             |   |                                                                                       |    |   |                                                                                                                                                                                                                               |   |   |                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      CapitalConsolidated   |   | $                                                                                          | 132,834 |   |                                                                                                                                                                                                                               |   | 13.55  | %                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | 78,401 |   |   |   | 8.00 | % |   |   | N/A |   |   |   | N/A |   |
| Florida      CommunityBank       |   |                                                                                       | 122,278 |   |                                                                                                                                                                                                                               |   | 12.57  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 77,825 |   |   |   | 8.00 |   |   | $ | 97,282 |   |   |   | 10.00 | % |
| Tier      1 CapitalConsolidated  |   |                                                                                       | 120,567 |   |                                                                                                                                                                                                                               |   | 12.30  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 39,201 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Florida      Community Bank      |   |                                                                                       | 110,290 |   |                                                                                                                                                                                                                               |   | 11.34  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 38,913 |   |   |   | 4.00 |   |   |   | 58,369 |   |   |   | 6.00 |   |
| Tier      1 LeverageConsolidated |   |                                                                                       | 120,567 |   |                                                                                                                                                                                                                               |   | 11.78  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 40,925 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Florida      Community Bank      |   |                                                                                       | 110,290 |   |                                                                                                                                                                                                                               |   | 10.90  |                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 40,456 |   |   |   | 4.00 |   |   |   | 50,570 |   |   |   | 5.00 |   |

----

| Plan      Category                                     |   | Number      of Sharesto      be Issued Uponthe      Exercise ofOutstanding Options |    |   | Weighted-averageExercise      Price ofOutstanding Options |   |   | Number      of SharesRemaining      AvailableFor      Future IssuanceUnder      EquityCompensation Plan |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|---------|--------|-----------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                       |   |                                                                               |    |   |                                                      |   |   |                                                                                                    |   |
| Equity      Compensation Plans Approved by Shareholders                                                                                                                                                                                    |   |                                                                               | 232,522 |   |                                                      | $      | 10.19  |                                                                                                    |   |   | 88,485 |   |
| Equity      Compensation Plans Not Approved by Shareholders                                                                                                                                                                                |   |                                                                               | — |   |                                                      |   | 0.00   |                                                                                                    |   |   | — |   |
|                                                                                                                                                                                                                                       |   |                                                                               | 232,522 |   |                                                      | $      | 10.19  |                                                                                                    |   |   | 88,485 |   |

----

|                                                      |   | Options |    |   | WeightedAverageExercisePrice |   |
|-----------------------------------------------------------|--------|---------|---------|--------|------------------------------|--------|
|                                                      |   |    |    |   |                         |   |
| Outstanding      as of December 31, 2006                  |   |    | 232,522 |   |                         | $      | 10.19 |   |
| Granted                                                   |   |    | — |   |                         |   | 0.00 |   |
| Exercised                                                 |   |    | — |   |                         |   | 0.00 |   |
| Cancelled/Forfeited                                       |   |    | — |   |                         |   | 0.00 |   |
|                                                      |   |    |    |   |                         |   |   |   |
| Outstanding      as of December 31, 2007                  |   |    | 232,522 |   |                         |   | 10.19 |   |
|                                                      |   |    |    |   |                         |   |   |   |
| Fully      vested and exercisable as of December 31, 2007 |   |    | 206,855 |   |                         |   | 9.56 |   |

|                                                           |   | 2007   |    |   |         2006                                           2005 |   |           |   |
|----------------------------------------------------------------|--------|--------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                           |   |   |    |   |                                                                                                                                                                                                                                                      |   |                                                   |   |
| Weighted      average grant date fair value of options granted |   | $      | — |   |                                                                                                                                                                                                                                                      | $      | —                                                |   |   | $ | 5.93 |   |
| Total      intrinsic value of options exercised                |   |   | — |   |                                                                                                                                                                                                                                                      |   | —                                                |   |   |   | 468,789 |   |
| Total      fair value of options vested                        |   |   | 518,854 |   |                                                                                                                                                                                                                                                      |   | 844,484                                                |   |   |   | 1,810,676 |   |

|                                                        |   |                          As of December 31, 2007 |    |
|-------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                        |   | TotalOptions          Outstanding                                                                                           |    |   | Options      Fully Vestedand      Expected      to      Vest |   |   | Options      FullyVested      andExercisable |   |
|                                                        |   |                                                                                                                                            |    |   |   |   |   |   |   |
| Number                                                      |   |                                                                                                                                            | 232,522 |   |   |   | 232,522 |   |   |   | 206,855 |   |
| Weighted      average exercise price                        |   | $                                                                                                                                               | 10.19   |   |   | $ | 10.19 |   |   | $ | 9.56 |   |
| Aggregate      intrinsic value (in thousands)               |   |                                                                                                                                            | 2,455   |   |   |   | 2,455 |   |   |   | 2,315 |   |
| Weighted      average remaining contractual life (in years) |   |                                                                                                                                            | 5.42    |   |   |   | 5.42 |   |   |   | 4.36 |   |

----

|                      |                    2007               |                              2006                                   2005 |                                                                           |   |
|--------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                     |                                                                                                                       |                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                  |
| Examination      and assessment                                                                                          | $                  740                                         | $                  252                                                                                                                                                                                                                                                           | $                   202                                              |
| Professional      fees                                                                                                   | 639                                                                                                                        | 461                                                                                                                                                                                                                                                                                                                                          | 405                                                                                                                                   |
| Promotions      and public relations                                                                                     | 481                                                                                                                        | 381                                                                                                                                                                                                                                                                                                                                          | 288                                                                                                                                   |
| Non-performing      loan expenses                                                                                        | 409                                                                                                                        | 149                                                                                                                                                                                                                                                                                                                                          |                            8 |
| Telephone                                                                                                                | 317                                                                                                                        | 251                                                                                                                                                                                                                                                                                                                                          | 264                                                                                                                                   |
| Software      maintenance                                                                                                | 210                                                                                                                        | 149                                                                                                                                                                                                                                                                                                                                          | 141                                                                                                                                   |
| ATM      expense                                                                                                         | 207                                                                                                                        | 178                                                                                                                                                                                                                                                                                                                                          | 188                                                                                                                                   |
| Supplies                                                                                                                 | 188                                                                                                                        | 181                                                                                                                                                                                                                                                                                                                                          | 224                                                                                                                                   |
| Courier                                                                                                                  | 142                                                                                                                        | 180                                                                                                                                                                                                                                                                                                                                          | 176                                                                                                                                   |
| Director's      board and committee fees                                                                                 | 121                                                                                                                        |                          70                                                                                                                                                                                                                   |                          70            |
| Postage                                                                                                                  | 120                                                                                                                        | 132                                                                                                                                                                                                                                                                                                                                          | 117                                                                                                                                   |
| Bank      charges                                                                                                        |                          90 | 142                                                                                                                                                                                                                                                                                                                                          | 117                                                                                                                                   |
| Dues      and subscriptions                                                                                              |                          89 |                          83                                                                                                                                                                                                                   |                          57            |
| Other                                                                                                                    | 587                                                                                                                        | 558                                                                                                                                                                                                                                                                                                                                          | 493                                                                                                                                   |
|                                                                                                                     |                                                                                                                       |                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                  |
|                                                                                                                     | $                4,340                                                   | $                3,167                                                                                                                                                                                                                                                                     | $                2,750                                                              |

----

|     |   | 2007   |    |   | 2006   |   |
|----------|--------|--------|---------|--------|--------|--------|
| Current: |   |   |    |   |   |   |
| Federal  |   | $      | 182,446 |   |   | $      | 338,120 |   |
| State    |   |   | 36,426  |   |   |   | 71,136 |   |

|                                     |   | 2007   |       |   | 2006   |   |      |
|------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|
|                                     |   |   |       |   |   |
| Deferred      tax asset:                 |   |   |       |   |   |
| Federal                                  |   | $      | 12,003,921 |   |   | $      | 5,801,460 |   |
| State                                    |   |   | 2,000,886  |   |   |   | 967,081   |   |
| Total deferred income tax      asset     |   |   | 14,004,807 |   |   |   | 6,768,541 |   |
|                                     |   |   |       |   |   |   |      |   |   |
| Deferred      tax liability:             |   |   |       |   |   |   |      |   |   |
| Federal                                  |   |   | (286,085   | )      |   |   | (294,063  | ) |
| State                                    |   |   | (47,681    | )      |   |   | (49,011   | ) |
| Total      deferred income tax liability |   |   | (333,766   | )      |   |   | (343,074  | ) |
|                                     |   |   |       |   |   |   |      |   |   |
| Net      deferred tax asset              |   | $      | 13,671,041 |   |   | $      | 6,425,467 |   |

|                                       |   | 2007   |       |   | 2006   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                       |   |   |       |   |   |   |
| Allowance      for loan losses             |   | $      | 7,049,072  |   |   | $      | 5,197,500 |   |
| Nonaccrual      loan interest income       |   |   | 6,140,905  |   |   |   | — |   |
| Deferred      loan fees                    |   |   | 521,899    |   |   |   | 1,074,275 |   |
| Write-down      of other real estate owned |   |   | 34,769     |   |   |   | 249,741 |   |
| Accrued      sick time                     |   |   | 137,223    |   |   |   | 118,875 |   |
| Directors      benefit plan                |   |   | 80,218     |   |   |   | 94,955 |   |
| Issuance      of stock options             |   |   | 40,721     |   |   |   | 33,195 |   |
| Depreciation                               |   |   | (333,766   | )      |   |   | (343,074 | ) |
|                                       |   |   |       |   |   |   |   |   |
| Net      deferred tax asset                |   | $      | 13,671,041 |   |   | $      | 6,425,467 |   |

----

|     |              2007                |                      2006                                                         2005 |                                          |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|
| Current  |                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                        |                                          |
| Federal  | $11,665,883                                                                                                                                    | $13,044,737                                                                                                                                                                                                                                                                                                                                                                                                                 | $11,071,080                                   |
| State    |            1,993,381                                                                                                  |           2,164,855                                                                                                                                                                                                                                                                                                                                                                                     |            1,845,519 |
|     |                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                        |                                          |
| Deferred |                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                        |                                          |
| Federal  |           (6,210,437)                                                                                                      |            (510,062)                                                                                                                                                                                                                                                                                                                                                                               |           (1,296,782)     |
| State    |    (1,035,136)                                                                                                                       |             (85,181)                                                                                                                                                                                                                                                                                                                                                                          |            (216,090) |
|     |                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                        |                                          |
|     | $      6,413,691                                                                                                                               | $  14,614,349                                                                                                                                                                                                                                                                                                                                                                                                          | $   11,403,727                      |

|                                                |   | 2007   |      |   | 2006   |   |    | 2005   |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|
|                                                |   |   |      |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Federal      income tax at statutoryrates           |   | $      | 6,063,019 |   |   |   | 35.0    | %      |   | $ | 13,216,146 |   |   |   | 35.0 | % |   | $ | 10,367,615 |   |   |   | 35.0 | % |
| Add      (deduct):                                  |   |   |      |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt      income                              |   |   | (271,382  | )      |   |   | (1.6    | )      |   |   | (86,403 | ) |   |   | (0.2 | ) |   |   | (22,140 | ) |   |   | (0.1 | ) |
| State      income tax, net offederal tax    benefit |   |   | 620,110   |   |   |   | 3.6     |   |   |   | 1,351,788 |   |   |   | 3.6 |   |   |   | 1,059,129 |   |   |   | 3.6 |   |
| Other                                               |   |   | 1,944     |   |   |   | — |   |   |   | 132,818 |   |   |   | 0.3 |   |   |   | (877 | ) |   |   | — |   |
|                                                |   |   |      |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | $      | 6,413,691 |   |   |   | 37.0    | %      |   | $ | 14,614,349 |   |   |   | 38.7 | % |   | $ | 11,403,727 |   |   |   | 38.5 | % |

----

|                           |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                           |   |   |   |   |   |   |   |   |   |
| Service      cost (benefit)    |   | $      | (3,212 | )      |   | $      | (315   | )      |   | $ | (315 | ) |
| Interest      cost             |   |   | 20,205 |   |   |   | 23,488 |   |   |   | 26,489 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      periodic pension cost |   | $      | 16,993 |   |   | $      | 23,173 |   |   | $ | 26,174 |   |

|                                                  |   | 2007   |    |   | 2006   |   |
|-------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                  |   |   |    |   |   |   |
| Present      value of benefit obligation:             |   |   |    |   |   |   |
| Vested                                                |   | $      | 208,358 |   |   | $      | 246,635 |   |
| Non-vested                                            |   |   | — |   |   |   | — |   |
|                                                  |   |   |    |   |   |   |   |   |
| Accumulated      benefit obligation/pension liability |   | $      | 208,358 |   |   | $      | 246,635 |   |

|                                                                                             Year Ending December 31,                                                                                                                       |             |   |   |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|--------|--------|---------|
|                                                                                                                    2008 |             |   | $      | 58,482  |   |
|                                                                                                                    2009 |             |   |   | 58,482  |   |
|                                                                                                                    2010 |             |   |   | 39,351  |   |
|                                                                                                                    2011 |             |   |   | 21,750  |   |
|                                                                                                                    2012 |             |   |   | 21,750  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2013      - 2017 |   |   |    | 68,875 |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |             |   |   |    |   |   |
|                                                                            Total expected benefit payments                                                                                                                                                                                                                      |             |   | $      | 268,690 |   |

----

|                            |   | Contract orNotional      Amount |        |
|---------------------------------|--------|---------------------------------|-------------|
|                            |   | 2007                            |        |   | 2006 |   |
|                            |   |                            |        |   |   |   |
| Loan      commitments           |   | $                               | 105,465,000 |   |   | $ | 203,088,000 |   |
| Standby      letters of credit  |   |                            | 1,879,000   |   |   |   | 2,427,000 |   |
|                            |   |                            |        |   |   |   |   |   |
| Total      unfunded commitments |   | $                               | 107,344,000 |   |   | $ | 205,515,000 |   |

----

----

| Year Ending December 31,          |   |   |       |
|-----------------------------------|--------|--------|------------|
| 2008                              |   | $      | 739,137    |   |
| 2009                              |   |   | 961,495    |   |
| 2010                              |   |   | 978,978    |   |
| 2011                              |   |   | 996,871    |   |
| 2012                              |   |   | 1,015,188  |   |
| Thereafter                        |   |   | 8,960,302  |   |
|                              |   |   |       |   |
| Total      minimum lease payments |   | $      | 13,651,971 |   |

----

|                              |   |                 2007 |       |   |         2006 |   |
|-----------------------------------|--------|------------------------------------------------------------------------|------------|--------|----------------------------------|--------|
|                              |   |                                                                   |       |   |                             |   |
| Balance      at Beginning of Year |   | $                                                                      | 4,554,238  |   |                             | $      | 3,567,133 |   |
| New      loans                    |   |                                                                   | 1,290,355  |   |                             |   | 2,847,488 |   |
| Repayments                        |   |                                                                   | (1,448,068 | )      |                             |   | (1,304,667 | ) |
| Change      in related parties    |   |                                                                   | —    |   |                             |   | (555,716 | ) |
|                              |   |                                                                   |       |   |                             |   |   |   |
| Balance      at End of Year       |   | $                                                                      | 4,396,525  |   |                             | $      | 4,554,238 |   |

----

|                                  |   | 2007                                                                                   |    |   | 2006                                        |   |
|---------------------------------------|--------|----------------------------------------------------------------------------------------|---------|--------|---------------------------------------------|--------|
|                                  |   |            Carrying           Amount |    |   |     Fair     Value |   |   |              Carrying            Amount |   |   |  Fair  Value |   |
|                                  |   | (in      thousands)                                                                    |    |   | (in      thousands)                         |   |
| Financial      Assets                 |   |                                                                                   |    |   |                                        |   |   |   |   |   |   |   |
| Cash      and short-term investments  |   | $                                                                                      | 14,729  |   |                                        | $      | 14,729 |   |   | $ | 20,612 |   |   | $ | 20,612 |   |
| Securities                            |   |                                                                                   | 135,810 |   |                                        |   | 136,500 |   |   |   | 101,109 |   |   |   | 99,976 |   |
| Other      investments - securities   |   |                                                                                   | 5,600   |   |                                        |   | 5,600 |   |   |   | 5,595 |   |   |   | 5,595 |   |
| Other      investments - partnerships |   |                                                                                   | 1,216   |   |                                        |   | 1,216 |   |   |   | 1,264 |   |   |   | 1,264 |   |
| Loans      held-for-sale              |   |                                                                                   | — |   |                                        |   | — |   |   |   | 146 |   |   |   | 146 |   |
| Loans                                 |   |                                                                                   | 761,431 |   |                                        |   | 762,783 |   |   |   | 869,462 |   |   |   | 878,157 |   |
| Accrued      interest receivable      |   |                                                                                   | 4,585   |   |                                        |   | 4,585 |   |   |   | 6,640 |   |   |   | 6,640 |   |
|                                  |   |                                                                                   |    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Liabilities            |   |                                                                                   |    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                              |   | $                                                                                      | 753,658 |   |                                        | $      | 757,853 |   |   | $ | 835,462 |   |   | $ | 803,327 |   |
| Short-term      borrowings            |   |                                                                                   | — |   |                                        |   | — |   |   |   | 694 |   |   |   | 694 |   |
| Accrued      interest payable         |   |                                                                                   | 3,509   |   |                                        |   | 3,509 |   |   |   | 2,768 |   |   |   | 2,768 |   |
| Long-term      debt                   |   |                                                                                   | 85,929  |   |                                        |   | 87,088 |   |   |   | 85,929 |   |   |   | 85,929 |   |
|                                  |   |                                                                                   |    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Instruments            |   |                                                                                   |    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Commitments      to extend credit     |   | $                                                                                      | 105,465 |   |                                        | $      | 1,055 |   |   | $ | 203,088 |   |   | $ | 2,031 |   |
| Standby      letters of credit        |   |                                                                                   | 1,879   |   |                                        |   | 20 |   |   |   | 2,427 |   |   |   | 26 |   |

----

|                                                                           |   | 2007   |        |   | 2006   |   |
|--------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Assets                                                                         |   |   |        |   |   |   |
|                                                                           |   |   |        |   |   |   |
| Cash      and due from banks                                                   |   | $      | 639,727     |   |   | $      | 3,591,579 |   |
| Other      investments – securities                                      |   |   | 929,000     |   |   |   | 929,000 |   |
| Other      investments – partnerships                                    |   |   | 1,215,875   |   |   |   | 1,263,875 |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Loans                                                                          |   |   | 8,500,000   |   |   |   | 6,000,000 |   |
| Allowance      for loan losses                                                 |   |   | (139,600    | )      |   |   | (90,000 | ) |
| Net      Loans                                                                 |   |   | 8,360,400   |   |   |   | 5,910,000 |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Investment      in subsidiaries (equity method) - eliminated uponconsolidation |   |   | 118,447,600 |   |   |   | 110,289,571 |   |
| Other      assets                                                              |   |   | 133,615     |   |   |   | 104,577 |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Total      Assets                                                              |   | $      | 129,726,217 |   |   | $      | 122,088,602 |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Liabilities      and Shareholders' Equity                                      |   |   |        |   |   |   |   |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Liabilities                                                                    |   |   |        |   |   |   |   |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Subordinated      debentures                                                   |   | $      | 30,929,000  |   |   | $      | 30,929,000 |   |
| Other      liabilities                                                         |   |   | 592,180     |   |   |   | 592,288 |   |
| Total      Liabilities                                                         |   |   | 31,521,180  |   |   |   | 31,521,288 |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Total      Shareholders' Equity                                                |   |   | 98,205,037  |   |   |   | 90,567,314 |   |
|                                                                           |   |   |        |   |   |   |   |   |
| Total      Liabilities and Shareholders' Equity                                |   | $      | 129,726,217 |   |   | $      | 122,088,602 |   |

----

|                                                                                    |   | 2007   |       |   | 2006   |   |
|-----------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Income                                                                                  |   |   |       |   |   |   |
| Dividends      from subsidiaries - eliminated upon consolidation                        |   | $      | 3,904,686  |   |   | $      | 1,796,156 |   |
| Interest      on loans                                                                  |   |   | 715,651    |   |   |   | 646,815 |   |
| Investment      interest and other operating income                                     |   |   | 176,311    |   |   |   | 127,022 |   |
| Total      Income                                                                       |   |   | 4,796,648  |   |   |   | 2,569,993 |   |
|                                                                                    |   |   |       |   |   |   |   |   |
| Expenses                                                                                |   |   |       |   |   |   |   |   |
| Interest                                                                                |   |   | 2,327,974  |   |   |   | 1,791,936 |   |
| Salaries      and employee benefits                                                     |   |   | 70,799     |   |   |   | 62,105 |   |
| Provision      for loan losses                                                          |   |   | 49,600     |   |   |   | 90,000 |   |
| Other      operating expenses                                                           |   |   | 262,386    |   |   |   | 264,794 |   |
| Total      Expenses                                                                     |   |   | 2,710,759  |   |   |   | 2,208,835 |   |
|                                                                                    |   |   |       |   |   |   |   |   |
| Income      before income taxes and equity in undistributed earnings of      subsidiary |   |   | 2,085,889  |   |   |   | 361,158 |   |
| Income      tax benefit                                                                 |   |   | 701,600    |   |   |   | 553,551 |   |
|                                                                                    |   |   |       |   |   |   |   |   |
| Income      before equity in undistributed  earnings of      subsidiary       |   |   | 2,787,489  |   |   |   | 914,709 |   |
| Equity      in undistributed earnings of subsidiary                                     |   |   | 8,121,730  |   |   |   | 22,231,360 |   |
|                                                                                    |   |   |       |   |   |   |   |   |
| Net      Income                                                                         |   | $      | 10,909,219 |   |   | $      | 23,146,069 |   |

----

|                                                                                        |   | 2007   |       |   | 2006   |   |
|---------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Operating      Activities                                                                   |   |   |       |   |   |   |
| Net      income                                                                             |   | $      | 10,909,219 |   |   | $      | 23,146,069 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |       |   |   |   |   |   |
| Provision      for loan losses                                                              |   |   | 49,600     |   |   |   | 90,000 |   |
| Deferred      tax benefit                                                                   |   |   | (53,746    | )      |   |   | — |   |
| Equity      in undistributed income of subsidiary                                           |   |   | (8,121,730 | )      |   |   | (22,231,360 | ) |
| (Decrease)      increase in accrued interest receivable                                     |   |   | (2,980     | )      |   |   | (1,510 | ) |
| Increase      in accrued interest payable                                                   |   |   | (2,349     | )      |   |   | 329,143 |   |
| Other,      net                                                                             |   |   | 29,929     |   |   |   | (5,636 | ) |
| Net      Cash Provided By Operating Activities                                              |   |   | 2,807,943  |   |   |   | 1,326,706 |   |
|                                                                                        |   |   |       |   |   |   |   |   |
| Investing      Activities                                                                   |   |   |       |   |   |   |   |   |
| Investment      in subsidiary bank                                                          |   |   | —    |   |   |   | (8,500,000 | ) |
| Investment      in FCBI Capital Trust II                                                    |   |   | —    |   |   |   | (619,000 | ) |
| Net      increase in loans                                                                  |   |   | (2,500,000 | )      |   |   | (6,000,000 | ) |
| Investment      in partnership                                                              |   |   | —    |   |   |   | (863,875 | ) |
| Proceeds      from other investments                                                        |   |   | 48,000     |   |   |   | — |   |
| Net      Cash Used In Investing Activities                                                  |   |   | (2,452,000 | )      |   |   | (15,982,875 | ) |
|                                                                                        |   |   |       |   |   |   |   |   |
| Financing      Activities                                                                   |   |   |       |   |   |   |   |   |
| Issuance      of subordinated debentures                                                    |   |   | —    |   |   |   | 20,619,000 |   |
| Costs      associated with the issuance of stock split                                      |   |   | (12,102    | )      |   |   | — |   |
| Cash      dividends                                                                         |   |   | (3,295,693 | )      |   |   | (2,746,572 | ) |
| Net      Cash Provided By (Used In) Financing Activities                                    |   |   | (3,307,795 | )      |   |   | 17,872,428 |   |
|                                                                                        |   |   |       |   |   |   |   |   |
| Net      (Decrease) Increase In Cash and Cash Equivalents                                   |   |   | (2,951,852 | )      |   |   | 3,216,259 |   |
|                                                                                        |   |   |       |   |   |   |   |   |
| Cash      and Cash Equivalents at Beginning of Year                                         |   |   | 3,591,579  |   |   |   | 375,320 |   |
|                                                                                        |   |   |       |   |   |   |   |   |
| Cash      and Cash Equivalents at End of Year                                               |   | $      | 639,727    |   |   | $      | 3,591,579 |   |
|                                                                                        |   |   |       |   |   |   |   |   |
|                                                                                        |   |   |       |   |   |   |   |   |
| Cash      Paid During the Year For:                                                         |   |   |       |   |   |   |   |   |
| Interest                                                                                    |   | $      | 2,330,323  |   |   | $      | 1,462,793 |   |
| Taxes                                                                                       |   |   | 13,468,880 |   |   |   | 16,244,978 |   |

----

|                                                        |   | First             Quarter |    |   | Second             Quarter |   |    | Third             Quarter |   |   | Fourth         Quarter |   |   |               Total |   |
|-------------------------------------------------------------|--------|--------------------------------------------------------------|---------|--------|---------------------------------------------------------------|--------|---------|--------------------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
|                                                        |   | (In      Thousands)                                          |    |
| 2007:                                                       |   |                                                         |    |   |                                                          |   |    |                                                         |   |   |                                                                |   |   |                                                        |   |
| Total      interest income                                  |   | $                                                            | 20,695  |   |                                                          | $      | 20,307  |                                                         |   | $      | 19,613                                                              |   |   | $                                                           | 16,802 |   |   | $ | 77,417 |   |
| Total      interest expense                                 |   |                                                         | 9,643   |   |                                                          |   | 9,602   |                                                         |   |   | 9,866                                                               |   |   |                                                        | 9,279  |   |   |   | 38,390 |   |
| Provision      for loan losses                              |   |                                                         | 299     |   |                                                          |   | — |                                                         |   |   | 550                                                                 |   |   |                                                        | 6,019  |   |   |   | 6,868 |   |
| Net interest income      afterprovision      forloan losses |   |                                                         | 10,753  |   |                                                          |   | 10,705  |                                                         |   |   | 9,197                                                               |   |   |                                                        | 1,504  |   |   |   | 32,159 |   |
| Other      noninterest income                               |   |                                                         | 627     |   |                                                          |   | 1,011   |                                                         |   |   | 579                                                                 |   |   |                                                        | 611    |   |   |   | 2,828 |   |
| Other      noninterest expense                              |   |                                                         | 3,887   |   |                                                          |   | 4,453   |                                                         |   |   | 4,497                                                               |   |   |                                                        | 4,827  |   |   |   | 17,664 |   |
| Income      tax expense                                     |   |                                                         | 2,826   |   |                                                          |   | 2,733   |                                                         |   |   | 1,983                                                               |   |   |                                                        | (1,128 | ) |   |   | 6,414 |   |
| Net      income                                             |   |                                                         | 4,667   |   |                                                          |   | 4,530   |                                                         |   |   | 3,296                                                               |   |   |                                                        | (1,584 | ) |   |   | 10,909 |   |
| Per      common share                                       |   |                                                         |    |   |                                                          |   |    |                                                         |   |   |                                                                |   |   |                                                        |   |   |   |   |   |   |
| Basic      earnings                                         |   |                                                         | 0.59    |   |                                                          |   | 0.57    |                                                         |   |   | 0.42                                                                |   |   |                                                        | (0.20  | ) |   |   | 1.38 |   |
| Diluted      earnings                                       |   |                                                         | 0.58    |   |                                                          |   | 0.56    |                                                         |   |   | 0.41                                                                |   |   |                                                        | (0.19  | ) |   |   | 1.36 |   |
|                                                        |   |                                                         |    |   |                                                          |   |    |                                                         |   |   |                                                                |   |   |                                                        |   |   |   |   |   |   |
| 2006:                                                       |   |                                                         |    |   |                                                          |   |    |                                                         |   |   |                                                                |   |   |                                                        |   |   |   |   |   |   |
| Total      interest income                                  |   | $                                                            | 18,899  |   |                                                          | $      | 21,919  |                                                         |   | $      | 22,882                                                              |   |   | $                                                           | 21,874 |   |   | $ | 85,574 |   |
| Total      interest expense                                 |   |                                                         | 6,973   |   |                                                          |   | 8,516   |                                                         |   |   | 9,224                                                               |   |   |                                                        | 9,652  |   |   |   | 34,365 |   |
| Provision      for loan losses                              |   |                                                         | 980     |   |                                                          |   | 2,410   |                                                         |   |   | 1,225                                                               |   |   |                                                        | (2,319 | ) |   |   | 2,296 |   |
| Net      interest income after provision for loan losses    |   |                                                         | 10,946  |   |                                                          |   | 10,993  |                                                         |   |   | 12,433                                                              |   |   |                                                        | 14,541 |   |   |   | 48,913 |   |
| Other      noninterest income                               |   |                                                         | 959     |   |                                                          |   | 1,139   |                                                         |   |   | 962                                                                 |   |   |                                                        | 856    |   |   |   | 3,916 |   |
| Other      noninterest expense                              |   |                                                         | 3,462   |   |                                                          |   | 3,741   |                                                         |   |   | 3,762                                                               |   |   |                                                        | 4,104  |   |   |   | 15,069 |   |
| Income      tax expense                                     |   |                                                         | 3,249   |   |                                                          |   | 3,231   |                                                         |   |   | 3,699                                                               |   |   |                                                        | 4,435  |   |   |   | 14,614 |   |
| Net      income                                             |   |                                                         | 5,194   |   |                                                          |   | 5,160   |                                                         |   |   | 5,934                                                               |   |   |                                                        | 6,858  |   |   |   | 23,146 |   |
| Per      common share                                       |   |                                                         |    |   |                                                          |   |    |                                                         |   |   |                                                                |   |   |                                                        |   |   |   |   |   |   |
| Basic      earnings                                         |   |                                                         | 0.66    |   |                                                          |   | 0.65    |                                                         |   |   | 0.75                                                                |   |   |                                                        | 0.87   |   |   |   | 2.93 |   |
| Diluted      earnings                                       |   |                                                         | 0.65    |   |                                                          |   | 0.64    |                                                         |   |   | 0.74                                                                |   |   |                                                        | 0.87   |   |   |   | 2.90 |   |
|                                                        |   |                                                         |    |   |                                                          |   |    |                                                         |   |   |                                                                |   |   |                                                        |   |   |   |   |   |   |
| 2005:                                                       |   |                                                         |    |   |                                                          |   |    |                                                         |   |   |                                                                |   |   |                                                        |   |   |   |   |   |   |
| Total      interest income                                  |   | $                                                            | 11,734  |   |                                                          | $      | 13,667  |                                                         |   | $      | 15,113                                                              |   |   | $                                                           | 17,344 |   |   | $ | 57,788 |   |
| Total      interest expense                                 |   |                                                         | 3,172   |   |                                                          |   | 3,821   |                                                         |   |   | 4,577                                                               |   |   |                                                        | 5,815  |   |   |   | 17,385 |   |
| Provision      for loan losses                              |   |                                                         | — |   |                                                          |   | — |                                                         |   |   | 32                                                                  |   |   |                                                        | 1,730  |   |   |   | 1,762 |   |
| Net      interest income after provision forloan losses     |   |                                                         | 8,562   |   |                                                          |   | 9,846   |                                                         |   |   | 10,504                                                              |   |   |                                                        | 9,799  |   |   |   | 38,641 |   |
| Other      noninterest income                               |   |                                                         | 901     |   |                                                          |   | 1,023   |                                                         |   |   | 847                                                                 |   |   |                                                        | 1,073  |   |   |   | 3,914 |   |
| Other      noninterest expense                              |   |                                                         | 2,885   |   |                                                          |   | 3,162   |                                                         |   |   | 3,354                                                               |   |   |                                                        | 3,532  |   |   |   | 12,933 |   |
| Income      tax expense                                     |   |                                                         | 2,535   |   |                                                          |   | 2,970   |                                                         |   |   | 3,080                                                               |   |   |                                                        | 2,819  |   |   |   | 11,404 |   |
| Net      income                                             |   |                                                         | 4,043   |   |                                                          |   | 4,737   |                                                         |   |   | 4,917                                                               |   |   |                                                        | 4,521  |   |   |   | 18,218 |   |
| Per      common share                                       |   |                                                         |    |   |                                                          |   |    |                                                         |   |   |                                                                |   |   |                                                        |   |   |   |   |   |   |
| Basic      earnings                                         |   |                                                         | 0.51    |   |                                                          |   | 0.60    |                                                         |   |   | 0.63                                                                |   |   |                                                        | 0.57   |   |   |   | 2.31 |   |
| Diluted      earnings                                       |   |                                                         | 0.51    |   |                                                          |   | 0.60    |                                                         |   |   | 0.61                                                                |   |   |                                                        | 0.57   |   |   |   | 2.29 |   |

|   |   |
|--------|--------|

----

| ITEM      9. | CHANGES      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE. |
|--------------|-------------------------------------------------------------------------------------------------|

| ITEM      9A. | CONTROLS      AND PROCEDURES |
|---------------|------------------------------|

| ITEM      9B. | OTHER      INFORMATION |
|---------------|------------------------|

| ITEM      10. | DIRECTORS,      EXECUTIVE OFFICERS AND CORPORATEGOVERNANCE |
|---------------|------------------------------------------------------------|

| ITEM      11. | EXECUTIVE      COMPENSATION |
|---------------|-----------------------------|

|   |   |
|--------|--------|

| ITEM      12. | SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      SHAREHOLDER MATTERS |
|---------------|----------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| ITEM      13. | CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR      INDEPENDENCE |
|---------------|------------------------------------------------------------------------------------|

| ITEM      14. | PRINCIPAL      ACCOUNTANT FEES AND SERVICES |
|---------------|---------------------------------------------|

----

| ITEM      15. | EXHIBITS      AND FINANCIAL STATEMENTS SCHEDULES |
|---------------|--------------------------------------------------|

|   | (a) | 1. | Financial      Statements. |
|--------|-----|----|----------------------------|

|   | 2. | Financial Statement      Schedules. |
|--------|----|-------------------------------------|

|   | 3. | Exhibits. |
|--------|----|-----------|

| Exhibit No. |   | Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Page   |
|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| 3.1         |   | Articles      of Incorporation of FCBI (included as Exhibit 3.1 to FCBI's Registration      Statement on Form 8-A filed with the SEC on April 15, 2002 and      incorporated herein by reference).                                                                                                                                                                                                                                           |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| 3.2         |   | By-laws      of FCBI (included as Exhibit 3.2 to FCBI's Registration Statement on Form      8-A filed with the SEC on April 15, 2002 and incorporated herein by      reference).                                                                                                                                                                                                                                                             |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| 4.1         |   | Subordinated      Promissory Note, dated December 24, 2001, between Florida Community Bank      and Independent Bankers Bank of Florida (included as Exhibit 4.1 to the      Bank's Form 10-KSB for the year ended December 31, 2001, and incorporated      herein by reference).                                                                                                                                                            |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| 4.2         |   | Specimen      Common Stock Certificate of FCBI (included as Exhibit 4.1 to FCBI's      Registration Statement on Form 8-A filed with the SEC on April 15, 2002      and incorporated herein by reference).                                                                                                                                                                                                                                   |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| 10.1        |   | 2002      Key Employee Stock Compensation Program of FCBI (included as Appendix D to      the Bank's Definitive Schedule 14-A filed with the FDIC on March 22, 2002      and incorporated herein by reference ). *                                                                                                                                                                                                                           |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| 10.2        |   | Amended      and Restated Trust Agreement among Florida Community Banks, Inc. as      depositor, Wilmington Trust Company as property trustee, Wilmington Trust      Company, as Delaware trustee, and Stephen L. Price, and Thomas V. Ogletree      as administrators, dated as of June 21, 2002 (included as Exhibit 10.3 to      the Company's Form 10-Q for the quarter ended June 30, 2002, and      incorporated herein by reference). |   |   |

----

| Exhibit No. |   | Exhibit                                                                                                                                                                                                                                                                                                                                                                                         |   | Page   |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 10.3        |   | Guarantee      Agreement between Florida Community Banks, Inc. as guarantor, and      Wilmington Trust Company as guarantee trustee, dated as of June 21, 2002      (included as Exhibit 10.4 to the Company's Form 10-Q for the quarter ended      June 30, 2002, and incorporated herein by reference).                                                                                       |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 10.4        |   | Junior      Subordinated Indenture between Florida Community Banks, Inc. (as Company)      and Wilmington Trust Company (as trustee), dated as of June 21, 2002      (included as Exhibit 10.5 to the Company's Form 10-Q for the quarter ended      June 30, 2002, and incorporated herein by reference).                                                                                      |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 10.5        |   | Employee      Stock Ownership Plan (included as Exhibit 10.5 to the Company's Form S-8      filed May 6, 2004, and incorporated herein by reference ).                                                                                                                                                                                                                                          |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 10.6        |   | Amended      and Restated Declaration of Trust, dated as of May 12, 2006, by and among      the Company, as Depositor, Wells Fargo Bank, National Association, as      Institutional Trustee and Delaware Trustee, and the Administrators named      therein (included as Exhibit 10.3 to the Company's Form 8-K filed with the      SEC on May 12, 2006, and incorporated herein byreference). |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 10.7        |   | Guarantee      Agreement, dated as of May 12, 2006, by and between the Company, as      Guarantor, and Wells Fargo Bank, National Association, as Guarantee      Trustee (included as Exhibit 10.2 to the Company's Form 8-K filed with the      SEC on May 12, 2006, and incorporated herein byreference).                                                                                     |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 10.8        |   | Indenture,      dated as of May 12, 2006, by and between the Company and Wells Fargo Bank,      National Association, as Trustee (included as Exhibit 10.1 to the      Company's Form 8-K filed with the SEC on May 12, 2006, and incorporated      herein by reference).                                                                                                                       |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 10.9        |   | Stipulation      and Consent Agreement dated May 25, 2007 (included as Exhibit 10.9 to the      Company’s Form 10-Q filed with the SEC on August 9, 2007, and incorporated      herein by reference).                                                                                                                                                                                     |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 11          |   | Statement      re: computation of per share earnings                                                                                                                                                                                                                                                                                                                                            |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 12          |   | Statement      re: computation of ratios                                                                                                                                                                                                                                                                                                                                                        |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 14          |   | Code      of Ethics (included as Exhibit 99.1 to the Company's Form 8-K filed on      March 3, 2003, and incorporated herein by reference.)                                                                                                                                                                                                                                                     |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 21          |   | Subsidiaries      of the Registrant                                                                                                                                                                                                                                                                                                                                                             |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 24          |   | Power      of Attorney                                                                                                                                                                                                                                                                                                                                                                          |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 31.1        |   | Chief      Executive Officer - Certification of principal executive officer pursuant      to the Exchange Act Rule 13(a) – 14(a) or 15(d) – 14(a).                                                                                                                                                                                                                                  |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 31.2        |   | Chief      Financial Officer - Certification of principal financial officer pursuant      to the Exchange Act Rule 13(a) – 14(a) or 15(d) – 14(a).                                                                                                                                                                                                                                  |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 32.1        |   | Chief      Executive Officer - Certification pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002                                                                                                                                                                                                                            |   |   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
| 32.2        |   | Chief      Financial Officer - Certification pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002                                                                                                                                                                                                                            |   |   |

----

|   |                |   |   | FLORIDA      COMMUNITY BANKS, INC.        |
|--------|---------------------|--------|--------|-------------------------------------------|
|   |                |   |   |                                      |
| Date:  | March      17, 2008 |   | By:    |   /s/ Stephen L.      Price     |
|   |                |   |   | Stephen      L. Price                     |
|   |                |   |   | Chairman      and Chief Executive Officer |
|   |                |   |   |                                      |
|   |                |   |   |                                      |
| Date:  | March      17, 2008 |   | By:    |   /s/ Guy W.    Harris          |
|   |                |   |   | Guy      W. Harris                        |
|   |                |   |   | Chief      Financial Officer              |

----

| Exhibit Number |   | Description of      Exhibit                                                                           |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 11             |   | Statement      re: Computation of Per Share Earnings                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 12             |   | Statement      re: Computation of Ratios                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 21             |   | Subsidiaries      of the Registrant                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 24             |   | Power      of Attorney                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 31.1           |   | Certification      of President and Chief Executive Officer Pursuant to Section 302 of      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                 |
| 31.2           |   | Certification      of Chief Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act      of 2002.                                                                                                                                                                                                                                                                                                                                                                               |
| 32.1           |   | Certification      of President and Chief Executive Officer Pursuant to Section 906 of      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                 |
| 32.2           |   | Certification      of Chief Financial Officer Pursuant to Section 906 of Sarbanes-Oxley Act      of 2002.                                                                                                                                                                                                                                                                                                                                                                               |

----