----

|  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o                 |
|   | Non-accelerated      filero      (Do not check if a smaller reporting company) | Smaller      reporting companyx |

----

| Item      Numberin Form 10-K                     | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Page      orLocation |   |
|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |   |
| PART      I                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |   |
| Item      1.                                     | Business                                                                                                                                                                                                      |   |                 | 3      |   |
| Item      1A.                                    | Risk      Factors                                                                                                                                                                                             |   |                 | 9      |   |
| Item      1B.                                    | Unresolved      Staff      Comments                                                                                                                                                                           |   |                 | 10     |   |
| Item      2.                                     | Properties                                                                                                                                                                                                    |   |                 | 11     |   |
| Item      3.                                     | Legal      Proceedings                                                                                                                                                                                        |   |                 | 11     |   |
| Item      4.                                     | Submission      of Matters to a Vote of Security      Holders                                                                                                                                                 |   |                 | 11     |   |
| PART      II                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |   |   |
| Item      5.                                     | Market      for the Registrant's Common Equity, Related  Shareholder Matters      and Issuer Purchases of Equity Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 | 11     |   |
| Item      6.                                     | Selected      Financial      Data                                                                                                                                                                             |   |                 | 12     |   |
| Item      7.                                     | Management's      Discussion and Analysis of Financial                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 |   |   |
|                                             | Condition      and Results of      Operations                                                                                                                                                                 |   |                 | 13     |   |
| Item      7A.                                    | Quantitative      and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                 | 13     |   |
| Item      8.                                     | Financial      Statements and Supplementary      Data                                                                                                                                                         |   |                 | 31     |   |
| Item      9.                                     | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 | 82     |   |
| Item      9A.                                    | Controls      and      Procedures                                                                                                                                                                             |   |                 | 82     |   |
| Item      9B.                                    | Other      Information                                                                                                                                                                                        |   |                 | 83     |   |
| PART      III                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |   |   |
| Item      10.                                    | Directors,      Executive Officers and Corporate      Governance                                                                                                                                              |   |                 | 83     |   |
| Item      11.                                    | Executive      Compensation                                                                                                                                                                                   |   |                 | 83     |   |
| Item      12.                                    | Security      Ownership of Certain Beneficial Owners and Managementand      Related Shareholder      Matters                                                                                                  |   |                 | 83     |   |
| Item      13.                                    | Certain      Relationships and Related Transactions and DirectorIndependence                                                                                                                                  |   |                 | 83     |   |
| Item      14.                                    | Principal      Accountant Fees and      Services                                                                                                                                                              |   |                 | 83     |   |
| PART      IV                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                 |   |   |
| Item      15.                                    | Exhibits      and Financial Statements      Schedules                                                                                                                                                         |   |                 | 83     |   |
| Signatures                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 86              |   |
| 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. |
|--------|--------|-------------------------------------------------------------------------------------------------------|

----

----

TemporaryLiquidity Guarantee Program.     In order to promotefinancial stability in the economy, the FDIC adopted the Temporary LiquidityGuarantee Program (TLGP) on October 13, 2008. Participation in the programis voluntary. However, once participation is elected, it can not be revoked. TheBank has chosen to participate in the Transaction Account Guarantee Programcomponent of the TLGP. Under the Transaction Account Guarantee Program, the FDICwill fully insure funds held in noninterest-bearing transaction accounts.Noninterest-bearing transaction accounts are ones that do not accrue or payinterest and for which the institution does not require an advance notice ofwithdrawal. Also covered are interest on lawyers’ trust accounts (IOLTA) andnegotiable order of withdrawal (NOW) accounts with interest rates lower than 50basis points. These revisions are only effective through December 31,2009.

----

|   | § | 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 sheet transactions; |
|--------|--------|----------------------------------------------------|

|   | § | 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      onCommon Stock |   |
|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|
|                |   | High                                                                                                                                                                                                   |   |   | Low                                                                        |   |   | (Per Share) |   |
|                |   |                                                                                                                                                                                                   |   |   |                                                                       |   |   |   |   |
| 2008      :         |   |                                                                                                                                                                                                   |   |   |                                                                       |   |   |   |   |
| First      Quarter  |   | $                                                                                                                                                                                                      | 24.00  |   |                                                                       | $      | 18.00 |   |   | $ | 0.000 |   |
| Second      Quarter |   |                                                                                                                                                                                                   | 23.00  |   |                                                                       |   | 4.00 |   |   |   | 0.000 |   |
| Third      Quarter  |   |                                                                                                                                                                                                   | 7.00   |   |                                                                       |   | 4.85 |   |   |   | 0.000 |   |
| Fourth      Quarter |   |                                                                                                                                                                                                   | 12.00  |   |                                                                       |   | 4.00 |   |   |   | 0.000 |   |

|                        |   |                    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 |   |

| 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                 |   |                                                                                   | 248,564 |   |                                                      | $      | 9.82   |                                                                                                           |   |   | 63,485 |   |
| Equity      Compensation Plans                |   |                                                                                   |    |   |                                                      |   |   |                                                                                                           |   |   |   |   |
|   Not      Approved by Shareholders |   |                                                                                   | — |   |                                                      |   | 0.00   |                                                                                                           |   |   | — |   |
|                                          |   |                                                                                   |    |   |                                                      |   |   |                                                                                                           |   |   |   |   |
| Total                                         |   |                                                                                   | 248,564 |   |                                                      | $      | 9.82   |                                                                                                           |   |   | 63,485 |   |

----

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

|                                                                          |   |                                            Years Ended December 31, |    |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                          |   | 2008                                                                                                                                                                                                                                                         |    |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                                                                          |   | (Dollars      in thousands except per share data)                                                                                                                                                                                                            |    |
|                                                                          |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      Summary:                                                        |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                          |   | $                                                                                                                                                                                                                                                            | 47,235  |   |   | $ | 77,417 |   |   | $ | 85,575 |   |   | $ | 57,788 |   |   | $ | 39,550 |   |
| Interest      expense                                                         |   |                                                                                                                                                                                                                                                         | 33,171  |   |   |   | 38,390 |   |   |   | 34,365 |   |   |   | 17,385 |   |   |   | 9,200 |   |
| Net      interest income                                                      |   |                                                                                                                                                                                                                                                         | 14,064  |   |   |   | 39,027 |   |   |   | 51,210 |   |   |   | 40,403 |   |   |   | 30,350 |   |
| Provision      for loan losses                                                |   |                                                                                                                                                                                                                                                         | 69,130  |   |   |   | 6,868 |   |   |   | 2,296 |   |   |   | 1,762 |   |   |   | 1,971 |   |
| Net      interest income (expense) after provision for loan losses            |   |                                                                                                                                                                                                                                                         | (55,066 | ) |   |   | 32,159 |   |   |   | 48,914 |   |   |   | 38,641 |   |   |   | 28,379 |   |
| Noninterest      income                                                       |   |                                                                                                                                                                                                                                                         | 2,287   |   |   |   | 2,828 |   |   |   | 3,916 |   |   |   | 3,914 |   |   |   | 3,808 |   |
| Noninterest      expense                                                      |   |                                                                                                                                                                                                                                                         | 34,408  |   |   |   | 17,664 |   |   |   | 15,069 |   |   |   | 12,933 |   |   |   | 12,251 |   |
| Income      (loss) before income taxes                                        |   |                                                                                                                                                                                                                                                         | (87,187 | ) |   |   | 17,323 |   |   |   | 37,761 |   |   |   | 29,622 |   |   |   | 19,936 |   |
| Income      tax expense (benefit)                                             |   |                                                                                                                                                                                                                                                         | (33,892 | ) |   |   | 6,414 |   |   |   | 14,615 |   |   |   | 11,404 |   |   |   | 7,694 |   |
| Net      income (loss)                                                        |   |                                                                                                                                                                                                                                                         | (53,295 | ) |   |   | 10,909 |   |   |   | 23,146 |   |   |   | 18,218 |   |   |   | 12,242 |   |
|                                                                          |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per      Common Share Data:                                                   |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Retroactively      adjusted for effects of stock dividends and stock splits) |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) - basic                                                |   | $                                                                                                                                                                                                                                                            | (6.73   | ) |   | $ | 1.38 |   |   | $ | 2.93 |   |   | $ | 2.31 |   |   | $ | 1.57 |   |
| Net      income (loss) - diluted                                              |   |                                                                                                                                                                                                                                                         | (6.70   | ) |   |   | 1.36 |   |   |   | 2.90 |   |   |   | 2.29 |   |   |   | 1.55 |   |
| Cash      dividends declared per common share                                 |   |                                                                                                                                                                                                                                                         | 0.00    |   |   |   | 0.42 |   |   |   | 0.35 |   |   |   | 0.29 |   |   |   | 0.24 |   |
|                                                                          |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Average Balances:                                               |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                             |   | $                                                                                                                                                                                                                                                            | 974,376 |   |   | $ | 982,935 |   |   | $ | 1,003,937 |   |   | $ | 791,418 |   |   | $ | 588,771 |   |
| Total      loans                                                              |   |                                                                                                                                                                                                                                                         | 701,334 |   |   |   | 812,603 |   |   |   | 876,604 |   |   |   | 670,885 |   |   |   | 490,521 |   |
| Securities                                                                    |   |                                                                                                                                                                                                                                                         | 180,574 |   |   |   | 124,816 |   |   |   | 75,513 |   |   |   | 70,213 |   |   |   | 43,567 |   |
| Earning      assets                                                           |   |                                                                                                                                                                                                                                                         | 905,872 |   |   |   | 950,125 |   |   |   | 968,125 |   |   |   | 750,433 |   |   |   | 552,930 |   |
| Deposits                                                                      |   |                                                                                                                                                                                                                                                         | 793,750 |   |   |   | 790,483 |   |   |   | 831,112 |   |   |   | 640,504 |   |   |   | 483,135 |   |
| Long-term      borrowings                                                     |   |                                                                                                                                                                                                                                                         | 82,828  |   |   |   | 81,491 |   |   |   | 80,369 |   |   |   | 70,912 |   |   |   | 50,762 |   |
| Shareholders'      equity                                                     |   |                                                                                                                                                                                                                                                         | 89,437  |   |   |   | 98,387 |   |   |   | 80,113 |   |   |   | 62,280 |   |   |   | 48,365 |   |
| Shares      outstanding (split adjusted, in thousands)                        |   |                                                                                                                                                                                                                                                         | 7,918   |   |   |   | 7,909 |   |   |   | 7,890 |   |   |   | 7,885 |   |   |   | 7,804 |   |
|                                                                          |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Period-End Balances:                                            |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                             |   | $                                                                                                                                                                                                                                                            | 979,369 |   |   | $ | 942,674 |   |   | $ | 1,016,677 |   |   | $ | 907,082 |   |   | $ | 660,864 |   |
| Total      loans                                                              |   |                                                                                                                                                                                                                                                         | 624,635 |   |   |   | 761,431 |   |   |   | 869,608 |   |   |   | 791,609 |   |   |   | 552,509 |   |
| Securities                                                                    |   |                                                                                                                                                                                                                                                         | 206,730 |   |   |   | 141,410 |   |   |   | 106,704 |   |   |   | 66,242 |   |   |   | 74,265 |   |
| Earning      assets                                                           |   |                                                                                                                                                                                                                                                         | 866,060 |   |   |   | 907,043 |   |   |   | 977,911 |   |   |   | 863,042 |   |   |   | 627,722 |   |
| Deposits                                                                      |   |                                                                                                                                                                                                                                                         | 845,429 |   |   |   | 753,658 |   |   |   | 835,462 |   |   |   | 737,256 |   |   |   | 520,585 |   |
| Long-term      borrowings                                                     |   |                                                                                                                                                                                                                                                         | 80,929  |   |   |   | 85,929 |   |   |   | 85,929 |   |   |   | 70,334 |   |   |   | 70,310 |   |
| Shareholders'      equity                                                     |   |                                                                                                                                                                                                                                                         | 44,629  |   |   |   | 98,205 |   |   |   | 90,567 |   |   |   | 70,076 |   |   |   | 52,928 |   |
| Shares      outstanding (split adjusted, in thousands)                        |   |                                                                                                                                                                                                                                                         | 7,918   |   |   |   | 7,909 |   |   |   | 7,909 |   |   |   | 7,885 |   |   |   | 7,804 |   |
|                                                                          |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Ratios:                                                         |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average equity                                                 |   |                                                                                                                                                                                                                                                         | (59.59  | )% |   |   | 11.09 | % |   |   | 28.89 | % |   |   | 29.25 | % |   |   | 25.31 | % |
| Return      on average assets                                                 |   |                                                                                                                                                                                                                                                         | (5.47   | ) |   |   | 1.11 |   |   |   | 2.31 |   |   |   | 2.30 |   |   |   | 2.08 |   |
| Net      interest margin                                                      |   |                                                                                                                                                                                                                                                         | 1.59    |   |   |   | 4.15 |   |   |   | 5.30 |   |   |   | 5.39 |   |   |   | 5.50 |   |
| Allowance      for loan losses to loans                                       |   |                                                                                                                                                                                                                                                         | 5.83    |   |   |   | 2.40 |   |   |   | 1.56 |   |   |   | 1.46 |   |   |   | 1.77 |   |
| Net      charge-offs to average loans                                         |   |                                                                                                                                                                                                                                                         | 7.28    |   |   |   | 0.26 |   |   |   | 0.03 |   |   |   | 0.00 |   |   |   | 0.05 |   |
| Average      equity to average assets                                         |   |                                                                                                                                                                                                                                                         | 9.18    |   |   |   | 10.01 |   |   |   | 7.98 |   |   |   | 7.87 |   |   |   | 8.21 |   |
|                                                                          |   |                                                                                                                                                                                                                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Dividends Declared                                                  |   | $                                                                                                                                                                                                                                                            | 0       |   |   | $ | 3,296 |   |   | $ | 2,747 |   |   | $ | 2,289 |   |   | $ | 1,883 |   |

----

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

| ITEM      7A. | QUANTITIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK |
|---------------|--------------------------------------------------------------|

|                                      |   |                     December 31, |    |
|-------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|---------|
|                                      |   | 2008                                                                                                   |    |   | 2007 |   |   | 2006 |   |
|                                      |   | (In      thousands)                                                                                    |    |
|                                      |   |                                                                                                   |    |   |   |   |   |   |   |
| Interest-bearing      deposits with banks |   | $                                                                                                      | 6,246   |   |   | $ | 1,868 |   |   | $ | 1,499 |   |
| Securities                                |   |                                                                                                   | 206,730 |   |   |   | 141,410 |   |   |   | 106,704 |   |
| Federal      funds sold                   |   |                                                                                                   | 28,450  |   |   |   | 2,334 |   |   |   | 100 |   |
| Loans:                                    |   |                                                                                                   |    |   |   |   |   |   |   |   |   |   |
| Real      estate (1)                      |   |                                                                                                   | 572,706 |   |   |   | 710,951 |   |   |   | 822,540 |   |
| Commercial      and other                 |   |                                                                                                   | 51,928  |   |   |   | 50,480 |   |   |   | 47,068 |   |
| Total      loans                          |   |                                                                                                   | 624,634 |   |   |   | 761,431 |   |   |   | 869,608 |   |
|                                      |   |                                                                                                   |    |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets              |   | $                                                                                                      | 866,060 |   |   | $ | 907,043 |   |   | $ | 977,911 |   |

----

|                                                                                                                                                           |   | December      31,           |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                                                                           |   | 2008                        |    |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                                                                                                                                                           |   | Amount                      |    |   | Percentof Total |   |   | Amount |   |   | Percentof Total |   |   | Amount |   |   | Percentof Total |   |   | Amount |   |   | Percentof Total |   |   | Amount |   |   | Percentof Total |   |
|                                                                                                                                                           |   | (Dollars      in Thousands) |    |
|                                                                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial,financial      and agricultural                                                                                                                     |   | $                           | 44,290  |   |   |   | 7.08 | % |   | $ | 42,718 |   |   |   | 5.60 | % |   | $ | 41,575 |   |   |   | 4.77 | % |   | $ | 37,309 |   |   |   | 4.69 | % |   | $ | 51,378 |   |   |   | 9.26 | % |
| Real      estate -  construction                                                                                                                     |   |                        | 328,673 |   |   |   | 52.55 |   |   |   | 414,738 |   |   |   | 54.37 |   |   |   | 478,085 |   |   |   | 54.80 |   |   |   | 467,854 |   |   |   | 58.81 |   |   |   | 270,016 |   |   |   | 48.69 |   |
| Real      estate -mortgage                       |   |                        | 243,877 |   |   |   | 38.99 |   |   |   | 296,213 |   |   |   | 38.83 |   |   |   | 344,309 |   |   |   | 39.47 |   |   |   | 280,230 |   |   |   | 35.22 |   |   |   | 222,374 |   |   |   | 40.10 |   |
| Consumer                                         |   |                        | 6,534   |   |   |   | 1.04 |   |   |   | 6,112 |   |   |   | 0.80 |   |   |   | 6,275 |   |   |   | 0.72 |   |   |   | 7,502 |   |   |   | 0.94 |   |   |   | 8,086 |   |   |   | 1.46 |   |
| Loans      held-for-sale                                                                                                                                       |   |                        | 156     |   |   |   | 0.02 |   |   |   | — |   |   |   | 0.00 |   |   |   | 146 |   |   |   | 0.02 |   |   |   | 300 |   |   |   | 0.04 |   |   |   | 576 |   |   |   | 0.10 |   |
| Other                                            |   |                        | 1,986   |   |   |   | 0.32 |   |   |   | 3,006 |   |   |   | 0.40 |   |   |   | 2,008 |   |   |   | 0.22 |   |   |   | 2,356 |   |   |   | 0.30 |   |   |   | 2,181 |   |   |   | 0.39 |   |
|                                                                                                                                                           |   |                        | 625,516 |   |   |   | 100.00 | % |   |   | 762,787 |   |   |   | 100.00 | % |   |   | 872,398 |   |   |   | 100.00 | % |   |   | 795,551 |   |   |   | 100.00 | % |   |   | 554,611 |   |   |   | 100.00 | % |
|                                                                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unearned      income                                                                                                                                           |   |                        | (881    | ) |   |   |   |   |   |   | (1,356 | ) |   |   |   |   |   |   | (2,790 | ) |   |   |   |   |   |   | (3,942 | ) |   |   |   |   |   |   | (2,102 | ) |   |   |   |   |
| Allowance      for loan  losses                                                                                                                      |   |                        | (36,390 | ) |   |   |   |   |   |   | (18,309 | ) |   |   |   |   |   |   | (13,590 | ) |   |   |   |   |   |   | (11,523 | ) |   |   |   |   |   |   | (9,791 | ) |   |   |   |   |
|                                                                                                                                                           |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loans                                   |   | $                           | 588,245 |   |   |   |   |   |   | $ | 743,122 |   |   |   |   |   |   | $ | 856,018 |   |   |   |   |   |   | $ | 780,086 |   |   |   |   |   |   | $ | 542,718 |   |   |   |   |   |

|                                                   |   |                                           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 |   | $                                                                                                                                                                                                                                      | 30,856  |   |                                                                                                                                                                                            | $      | 13,434 |   |   | $ | — |   |   | $ | 44,290 |   |   | $ | 8,422 |   |   | $ | 5,012 |   |
| Real      estate – construction                  |   |                                                                                                                                                                                                                                   | 219,699 |   |                                                                                                                                                                                            |   | 85,338 |   |   |   | 3,651 |   |   |   | 328,673 |   |   |   | 85,403 |   |   |   | 23,571 |   |
|                                                   |   |                                                                                                                                                                                                                                   |    |   |                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                  |   | $                                                                                                                                                                                                                                      | 250,555 |   |                                                                                                                                                                                            | $      | 118,757 |   |   | $ | 3,651 |   |   | $ | 372,963 |   |   | $ | 93,825 |   |   | $ | 28,583 |   |

----

|                                |   |                      December 31, |    |
|-------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|---------|
|                                |   | 2008                                                                                                         |    |   | 2007 |   |   | 2006 |   |
|                                |   | (In      thousands)                                                                                          |    |
|                                |   |                                                                                                         |    |   |   |   |   |   |   |
| Held-to-Maturity:                   |   |                                                                                                         |    |   |   |   |   |   |   |
| FHLB and FHLMC agency      notes    |   | $                                                                                                            | 19,486  |   |   | $ | 18,491 |   |   | $ | 12,531 |   |
| State and Municipal      securities |   |                                                                                                         | 20,798  |   |   |   | 20,787 |   |   |   | 16,765 |   |
| Mortgage-backed      securities     |   |                                                                                                         | 159,341 |   |   |   | 96,532 |   |   |   | 71,813 |   |
| Total      Held-to-Maturity         |   |                                                                                                         | 199,625 |   |   |   | 135,810 |   |   |   | 101,109 |   |
|                                |   |                                                                                                         |    |   |   |   |   |   |   |   |   |   |
| Other      Investment Securities    |   |                                                                                                         | 7,105   |   |   |   | 5,600 |   |   |   | 5,595 |   |
|                                |   |                                                                                                         |    |   |   |   |   |   |   |   |   |   |
| Total      Securities               |   | $                                                                                                            | 206,730 |   |   | $ | 141,410 |   |   | $ | 106,704 |   |

----

|                                                                                                                                                                                                                                                                                    |   |                                                              Maturing |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                    |   | WithinOne Year                                                                                                                                                                                                                                                                                                                                           |    |   | After      One ButWithin Five Years |   |   | After      Five ButWithin Ten Years |   |   | AfterTen Years |   |
|                                                                                                                                                                                                                                                                                    |   | Amount                                                                                                                                                                                                                                                                                                                                                   |    |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |   | Amount |   |   | Yield |   |
|                                                                                                                                                                                                                                                                                    |   | (Amounts      in thousands, except percentages)                                                                                                                                                                                                                                                                                                          |    |
| Securities      Held-to-Maturity                                                                                                                                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB and FHLMC agency      notes                                                                                                                                                                                                                                                        |   | $                                                                                                                                                                                                                                                                                                                                                        | — |   |   |   | 0.00 | % |   | $ | 9,502 |   |   |   | 4.73 | % |   | $ | 5,970 |   |   |   | 6.08 | % |   | $ | 4,014 |   |   |   | 5.85 | % |
| State and municipal      securities                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                     | — |   |   |   | 0.00 |   |   |   | — |   |   |   | 0.00 |   |   |   | 904 |   |   |   | 5.43 |   |   |   | 19,894 |   |   |   | 5.76 |   |
| Mortgage-backed      securities                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                     | — |   |   |   | 0.00 |   |   |   | — |   |   |   | 0.00 |   |   |   | 30,784 |   |   |   | 4.99 |   |   |   | 128,557 |   |   |   | 5.16 |   |
|                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Investment Securities                                                                                                                                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other investment      securities                                                                                                                                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                     | — |   |   |   | 0.00 |   |   |   | — |   |   |   | 0.00 |   |   |   | — |   |   |   | 0.00 |   |   |   | 7,105 |   |   |   | 3.18 |   |
|                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Securities                                            |   | $                                                                                                                                                                                                                                                                                                                                                        | — |   |   |   | 0.00 |   |   | $ | 9,502 |   |   |   | 4.73 |   |   | $ | 37,658 |   |   |   | 5.17 |   |   | $ | 159,570 |   |   |   | 5.16 |   |

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

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

|                                                       |   |                   December 31, |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
|                                                       |   | 2008                                                                                  |   |   | 2007                        2006 |   |   |
|                                                       |   | (In      thousands)                                                                   |
|                                                       |   |                                                                                  |   |   |   |   |   |
| Noninterest-bearing      deposits:                         |   |                                                                                  |   |   |   |   |   |
| Individuals partnerships and      corporations             |   | $                                                                                     | 51,334 |   |   | $ | 59,415 |   |   | $ | 96,885 |   |
| U.S. Government and states and      political subdivisions |   |                                                                                  | 7,473 |   |   |   | 7,213 |   |   |   | 8,127 |   |
| Certified and official      checks                         |   |                                                                                  | 1,667 |   |   |   | 6,007 |   |   |   | 4,469 |   |
| Total noninterest bearing      deposits                    |   |                                                                                  | 60,474 |   |   |   | 72,635 |   |   |   | 109,481 |   |
|                                                       |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits:                            |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest - bearing demand      accounts                    |   |                                                                                  | 22,386 |   |   |   | 25,749 |   |   |   | 40,624 |   |
| Savings accounts                                           |   |                                                                                  | 107,279 |   |   |   | 206,290 |   |   |   | 219,013 |   |
| Certificates of deposit, less      than $100,000           |   |                                                                                  | 284,837 |   |   |   | 93,705 |   |   |   | 63,246 |   |
| Certificates of deposit, more      than $100,000           |   |                                                                                  | 370,453 |   |   |   | 355,279 |   |   |   | 403,098 |   |
| Total interest bearing      deposits                       |   |                                                                                  | 784,955 |   |   |   | 681,023 |   |   |   | 725,981 |   |
|                                                       |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Total deposits                                             |   | $                                                                                     | 845,429 |   |   | $ | 753,658 |   |   | $ | 835,462 |   |

----

|                                  |   |                                                                        Years Ended December 31, |    |
|---------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                  |   | 2008                                                                                                                                                                                                                                                                                                                                                                                                                                 |    |   | 2007 |   |   | 2006 |   |
|                                  |   | Amount                                                                                                                                                                                                                                                                                                                                                                                                                               |    |   | Rate |   |   | Amount |   |   | Rate |   |   | Amount |   |   | Rate |   |
|                                  |   | (Dollars      in thousands)                                                                                                                                                                                                                                                                                                                                                                                                          |    |
|                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      bearing deposits     |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                    | 64,233  |   |   |   | 0.00 | % |   | $ | 86,371 |   |   |   | 0.00 | % |   | $ | 122,354 |   |   |   | 0.00 | % |
| Interest-bearing      demand deposits |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 | 23,381  |   |   |   | 0.84 |   |   |   | 31,934 |   |   |   | 0.87 |   |   |   | 42,533 |   |   |   | 0.88 |   |
| Savings      deposits                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 | 165,772 |   |   |   | 2.64 |   |   |   | 223,356 |   |   |   | 4.52 |   |   |   | 201,919 |   |   |   | 4.23 |   |
| Time      deposits                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 | 540,364 |   |   |   | 4.55 |   |   |   | 448,822 |   |   |   | 5.12 |   |   |   | 464,306 |   |   |   | 4.48 |   |
|                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total deposits                        |   | $                                                                                                                                                                                                                                                                                                                                                                                                                                    | 793,750 |   |   |   | 3.67 |   |   | $ | 790,483 |   |   |   | 4.22 |   |   | $ | 831,112 |   |   |   | 3.58 |   |

| Three      months or less           |   | $      | 68,720  |   |
|-------------------------------------|--------|--------|---------|--------|
| Over      three through six months  |   |   | 39,479  |   |
| Over      six through twelve months |   |   | 64,220  |   |
| Over      twelve months             |   |   | 198,034 |   |
|                                |   |   |    |   |
| Total                               |   | $      | 370,453 |   |

----

|                                                                                                                                                                                                                                                                                                                               |   |                                                        Years Ended December 31, |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                               |   | 2009                                                                                                                                                                                                                                                                                                                                 |    |   | 2010 |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |
|                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on      indebtedness                                                 |   | $                                                                                                                                                                                                                                                                                                                                    | 2,792   |   |   | $ | 2,548 |   |   | $ | 2,466 |   |   | $ | 2,139 |   |   | $ | 1,676 |   |
| Repayment      of      principal                                                   |   |                                                                                                                                                                                                                                                                                                                                 | — |   |   |   | 5,000 |   |   |   | 5,000 |   |   |   | 20,000 |   |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                               |   | $                                                                                                                                                                                                                                                                                                                                    | 2,792   |   |   | $ | 7,548 |   |   | $ | 7,466 |   |   | $ | 22,139 |   |   | $ | 1,676 |   |

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

----

|                                                               |   |                  December 31, |
|--------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|
|                                                               |   | 2008                                                                                 |   |   | 2007                           2006 |   |     |
|                                                               |   |                                                                                 |   |   |   |   |   |
| Return      on average assets                                      |   |                                                                                 | (5.47 | )% |   |   | 1.11 | % |   |   | 2.31 | % |
| Return      on average common equity                               |   |                                                                                 | (59.59 | ) |   |   | 11.09 |   |   |   | 28.89 |   |
| Dividend      payout ratio                                         |   |                                                                                 | 0 .00 |   |   |   | 30.21 |   |   |   | 11.87 |   |
| Average      common shareholders' equity toaverage assets    ratio |   |                                                                                 | 9.18 |   |   |   | 10.01 |   |   |   | 7.98 |   |
|                                                               |   |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |

|                                                                        |   | Statutory |   |   |                            Years ended December 31, |      |
|-----------------------------------------------------------------------------|--------|-----------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                        |   | Minimum   |   |   | 2008                                                                                                                                                         |      |   | 2007 |   |   | 2006 |   |
|                                                                        |   |      |   |   | (Amounts in      thousands)                                                                                                                                  |      |
|                                                                        |   |      |   |   |                                                                                                                                                         |      |   |   |   |   |   |   |
| Tier      I Capital                                                         |   |      |   |   | $                                                                                                                                                            | 34,319    |   |   | $ | 128,205 |   |   | $ | 120,567 |   |
| Tier      II Capital                                                        |   |      |   |   |                                                                                                                                                         | 24,768    |   |   |   | 10,487 |   |   |   | 12,267 |   |
| Total      Qualifying Capital                                               |   |      |   |   | $                                                                                                                                                            | 59,087    |   |   | $ | 138,692 |   |   | $ | 132,834 |   |
| Risk      Adjusted Total Assets (includingoff-balance sheet      exposures) |   |      |   |   | $                                                                                                                                                            | 754,333   |   |   | $ | 831,138 |   |   | $ | 980,017 |   |
| Adjusted      quarterly average assets                                      |   |      |   |   | $                                                                                                                                                            | 1,021,230 |   |   | $ | 958,338 |   |   | $ | 1,023,119 |   |
| Tier      I Capital Ratio                                                   |   |      | 4.00   | %      |                                                                                                                                                         |      | 7.83 | % |   |   | 15.43 | % |   |   | 12.30 | % |
| Total      Capital Ratio                                                    |   |      | 8.00   |   |                                                                                                                                                         |      | 4.55 |   |   |   | 16.69 |   |   |   | 13.55 |   |
| Leverage      Ratio                                                         |   |      | 4.00   |   |                                                                                                                                                         |      | 3.36 |   |   |   | 13.38 |   |   |   | 11.78 |   |

|   | 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                                                 |   | $                                                                                                                                                                                                                                                                                                                                           | 111,498 |   |   | $ | 2,792 |   |   | $ | 15,014 |   |   | $ | 23,815 |   |   | $ | 69,877 |   |
| Operating      Lease Obligations                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                        | 14,181  |   |   |   | 1,096 |   |   |   | 2,222 |   |   |   | 2,263 |   |   |   | 8,600 |   |
| Time      Deposits                                                  |   |                                                                                                                                                                                                                                                                                                                                        | 693,993 |   |   |   | 308,338 |   |   |   | 327,111 |   |   |   | 58,542 |   |   |   | 2 |   |
|                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                               |   | $                                                                                                                                                                                                                                                                                                                                           | 819,672 |   |   | $ | 312,226 |   |   | $ | 344,347 |   |   | $ | 84,620 |   |   | $ | 78,479 |   |

----

|                                                                      |   |   | 0-30    |   |   |   | 31-90   |   |   |   | 91-365   |   |   |   | 1-5      |   |   | Over      5 |     |   |   |   |
|---------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|----------|--------|--------|-------------|----------|--------|--------|--------|
|                                                                      |   | Days   |    |   | Days   |   |    | Days   |   |   | Years    |   |   | Years  |     |   | Total  |        |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |     |   |   |        |     |   |   |   |
| Interest-earning      assets (1)                                          |   |   |    |   |   |   |    |   |   |   |     |   |   |   |     |   |   |        |     |   |   |   |
| Loans                                                                     |   | $      | 92,510  |   |   | $      | 28,221  |   |   | $      | 135,315  |   |   | $      | 195,330  |   |   | $           | 18,619   |   |   | $      | 469,995 |   |
| Securities and federal funds      sold                                    |   |   | 35,902  |   |   |   | — |   |   |   | —  |   |   |   | 21,450   |   |   |        | 177,828  |   |   |   | 235,180 |   |
| Interest-bearing deposits in      banks                                   |   |   | 6,246   |   |   |   | — |   |   |   | —  |   |   |   | —  |   |   |        | —  |   |   |   | 6,246 |   |
|                                                                      |   |   | 134,658 |   |   |   | 28,221  |   |   |   | 135,315  |   |   |   | 216,780  |   |   |        | 196,447  |   |   |   | 711,421 |   |
| Interest-bearing      liabilities (2)                                     |   |   |    |   |   |   |    |   |   |   |     |   |   |   |     |   |   |        |     |   |   |   |   |   |
| Demand deposits    (3)                                                    |   |   | 7,462   |   |   |   | 7,462   |   |   |   | 7,462    |   |   |   | —  |   |   |        | —  |   |   |   | 22,386 |   |
| Savings deposits    (3)                                                   |   |   | 35,760  |   |   |   | 35,760  |   |   |   | 35,759   |   |   |   | —  |   |   |        | —  |   |   |   | 107,279 |   |
| Time deposits                                                             |   |   | 39,034  |   |   |   | 52,700  |   |   |   | 210,314  |   |   |   | 353,240  |   |   |        | 2        |   |   |   | 655,290 |   |
| Long-term    borrowings                                                   |   |   | — |   |   |   | 10,000  |   |   |   | —  |   |   |   | 20,000   |   |   |        | 50,929   |   |   |   | 80,929 |   |
|                                                                      |   |   | 82,256  |   |   |   | 105,922 |   |   |   | 253,535  |   |   |   | 373,240  |   |   |        | 50,931   |   |   |   | 865,884 |   |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |     |   |   |        |     |   |   |   |   |   |
| Interest      sensitivity gap                                             |   | $      | 52,402  |   |   | $      | (77,701 | )      |   | $      | (118,221 | )      |   | $      | (156,460 | )      |   | $           | 145,516  |   |   | $      | (154,463 | ) |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |     |   |   |        |     |   |   |   |   |   |
| Cumulative      interest sensitivity gap                                  |   | $      | 52,402  |   |   | $      | (25,298 | )      |   | $      | (143,519 | )      |   | $      | (299,979 | )      |   | $           | (154,463 | )      |   |   |   |   |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |     |   |   |        |     |   |   |   |   |   |
| Ratio      of interest-earning assets toInterest-bearing      liabilities |   |   | 1.64    |   |   |   | 0.27    |   |   |   | 0.53     |   |   |   | 0.58     |   |   |        | 3.86     |   |   |   |   |   |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |     |   |   |        |     |   |   |   |   |   |
| Cumulative      ratio                                                     |   |   | 1.64    |   |   |   | 0.87    |   |   |   | 0.68     |   |   |   | 0.63     |   |   |        | 0.82     |   |   |   |   |   |
|                                                                      |   |   |    |   |   |   |    |   |   |   |     |   |   |   |     |   |   |        |     |   |   |   |   |   |
| Ratio      of cumulative gap to totalinterest-earning      assets         |   |   | 0.074   |   |   |   | (0.036  | )      |   |   | (0.202   | )      |   |   | (0.422   | )      |   |        | (0.217   | )      |   |   |   |   |

| (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, |    |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|
|                                                                                                                                                                                                                                                                     |   | 2008                                                                                                                                                                                                                                                                                                                                                                                                   |    |   | 2007 |   |   | 2006 |   |   |
|                                                                                                                                                                                                                                                                     |   | Average          Balance                                                                                                                                                                                                                                                                                                                                                           |    |   |           Interest          Income/           Expense |   |   |          Average          Yields/    Rates |   |   | Average            Balance |   |   | InterestIncome/          Expense |   |   | Average          Yields/    Rates |   |   | Average    Balance |   |   |   Interest        Income/          Expense |   |   |         Average         Yields/Rates |
|                                                                                                                                                                                                                                                                     |   | (Dollars      in thousands)                                                                                                                                                                                                                                                                                                                                                                            |
| Assets:                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earning assets:                                                                                                                                                                                                                                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, net of      unearnedincome      (1)(2)                                                                                |   | $                                                                                                                                                                                                                                                                                                                                                                                                      | 701,334 |   |   | $ | 38,087 |   |   |   | 5.43 | % |   | $ | 812,603 |   |   | $ | 70,812 |   |   |   | 8.71 | % |   | $ | 876,604 |   |   | $ | 81,474 |   |   |   | 9.29 | % |
| Securities:                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 159,782 |   |   |   | 8,021 |   |   |   | 5.02 |   |   |   | 104,565 |   |   |   | 5,194 |   |   |   | 4.97 |   |   |   | 71,353 |   |   |   | 3,221 |   |   |   | 4.51 |   |
| Tax-exempt      (2)                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 20,792  |   |   |   | 1,129 |   |   |   | 5.43 |   |   |   | 20,251 |   |   |   | 1,164 |   |   |   | 5.75 |   |   |   | 4,160 |   |   |   | 237 |   |   |   | 5.70 |   |
| Total      securities                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 180,574 |   |   |   | 9,150 |   |   |   | 5.07 |   |   |   | 124,816 |   |   |   | 6.358 |   |   |   | 5.09 |   |   |   | 75,513 |   |   |   | 3,458 |   |   |   | 4.58 |   |
| Interest-bearing      deposits     in      other      banks                               |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 2,486   |   |   |   | 49 |   |   |   | 1.97 |   |   |   | 1,311 |   |   |   | 71 |   |   |   | 5.42 |   |   |   | 1,266 |   |   |   | 66 |   |   |   | 5.21 |   |
| Federal funds      sold                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 21,478  |   |   |   | 269 |   |   |   | 1.25 |   |   |   | 11,395 |   |   |   | 573 |   |   |   | 5.03 |   |   |   | 14,742 |   |   |   | 686 |   |   |   | 4.65 |   |
| Total      interest-earning  assets      (2)                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 905,872 |   |   |   | 47,555 |   |   |   | 5.25 |   |   |   | 950,125 |   |   |   | 77,814 |   |   |   | 8.19 |   |   |   | 968,125 |   |   |   | 85,684 |   |   |   | 8.85 |   |
|                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      earning assets:                                                                                                                                                                                                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and due from      banks                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 10,586  |   |   |   |   |   |   |   |   |   |   |   | 11,765 |   |   |   |   |   |   |   |   |   |   |   | 19,433 |   |   |   |   |   |   |   |   |   |   |
| Accrued interest and other      assets                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 81,169  |   |   |   |   |   |   |   |   |   |   |   | 34,783 |   |   |   |   |   |   |   |   |   |   |   | 30,502 |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan      losses                                                                                                                                                                                                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                   | (23,445 | )      |   |   |   |   |   |   |   |   |   |   | (13.738 | ) |   |   |   |   |   |   |   |   |   |   | (14,123 | ) |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Assets                                                                                                            |   | $                                                                                                                                                                                                                                                                                                                                                                                                      | 974,376 |   |   |   |   |   |   |   |   |   |   | $ | 982,935 |   |   |   |   |   |   |   |   |   |   | $ | 1,003,937 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and Shareholders' Equity:                                                                                                                                                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                                                                               |   | $                                                                                                                                                                                                                                                                                                                                                                                                      | 23,381  |   |   |   | 196 |   |   |   | 0.84 | % |   | $ | 31,934 |   |   |   | 278 |   |   |   | 0.87 | % |   | $ | 42,533 |   |   |   | 376 |   |   |   | 0.88 | % |
| Savings      deposits                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 165,772 |   |   |   | 4,374 |   |   |   | 2.64 |   |   |   | 223,356 |   |   |   | 10,104 |   |   |   | 4.52 |   |   |   | 201,919 |   |   |   | 8,548 |   |   |   | 4.23 |   |
| Time      deposits                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 540,364 |   |   |   | 24,599 |   |   |   | 4.55 |   |   |   | 448,822 |   |   |   | 22,999 |   |   |   | 5.12 |   |   |   | 464,306 |   |   |   | 20,817 |   |   |   | 4.48 |   |
| Total      deposits                                                                                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 729,517 |   |   |   | 29,169 |   |   |   | 4.00 |   |   |   | 704,112 |   |   |   | 33,381 |   |   |   | 4.74 |   |   |   | 708,758 |   |   |   | 29,741 |   |   |   | 4.20 |   |
|                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      borrowings                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 82,828  |   |   |   | 3,867 |   |   |   | 4.67 |   |   |   | 81,491 |   |   |   | 4,672 |   |   |   | 5.73 |   |   |   | 80,369 |   |   |   | 4,347 |   |   |   | 5.41 |   |
| Short-term      borrowings                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 4,123   |   |   |   | 135 |   |   |   | 3.27 |   |   |   | 6,201 |   |   |   | 336 |   |   |   | 5.42 |   |   |   | 5,518 |   |   |   | 277 |   |   |   | 5.02 |   |
| Total      interest-bearing  Liabilities                                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 816,468 |   |   |   | 33,171 |   |   |   | 4.06 |   |   |   | 791,804 |   |   |   | 38,389 |   |   |   | 4.85 |   |   |   | 794,645 |   |   |   | 34,365 |   |   |   | 4.32 |   |
|                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non interest-bearing      liabilities:                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 64,233  |   |   |   |   |   |   |   |   |   |   |   | 86,371 |   |   |   |   |   |   |   |   |   |   |   | 122,354 |   |   |   |   |   |   |   |   |   |   |
| Accrued interest      and  other      liabilities                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 4,238   |   |   |   |   |   |   |   |   |   |   |   | 6,373 |   |   |   |   |   |   |   |   |   |   |   | 6,825 |   |   |   |   |   |   |   |   |   |   |
| Shareholders'      equity                                                                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                   | 89,437  |   |   |   |   |   |   |   |   |   |   |   | 98,387 |   |   |   |   |   |   |   |   |   |   |   | 80,113 |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities      and  Shareholders'      Equity                                                                                                                                                                                                          |   | $                                                                                                                                                                                                                                                                                                                                                                                                      | 974,376 |   |   |   |   |   |   |   |   |   |   | $ | 982,935 |   |   |   |   |   |   |   |   |   |   | $ | 1,003,937 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest      Income/NetInterest      Spread                                                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   | 14,384 |   |   |   | 1.19 | % |   |   |   |   |   |   | 39,425 |   |   |   | 3.34 | % |   |   |   |   |   |   | 51,319 |   |   |   | 4.53 | % |
|                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net yield on earning      assets                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   | 1.59 | % |   |   |   |   |   |   |   |   |   |   | 4.15 | % |   |   |   |   |   |   |   |   |   |   | 5.30 | % |
|                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable      Equivalent adjustments (2):                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities                                                                                               |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   | 293 |   |   |   |   |   |   |   |   |   |   |   | 350 |   |   |   |   |   |   |   |   |   |   |   | 71 |   |   |   |   |   |   |
| Loans                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   | 27 |   |   |   |   |   |   |   |   |   |   |   | 48 |   |   |   |   |   |   |   |   |   |   |   | 38 |   |   |   |   |   |   |
| Total taxable      equivalent  Adjustment                                                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   | 320 |   |   |   |   |   |   |   |   |   |   |   | 398 |   |   |   |   |   |   |   |   |   |   |   | 109 |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest      income                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                   |    |   |   | $ | 14,064 |   |   |   |   |   |   |   |   |   |   | $ | 39,027 |   |   |   |   |   |   |   |   |   |   | $ | 51,210 |   |   |   |   |   |   |

| (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 |   |
|------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------|--------|---------|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   | 2008                                                                                                                 |    |   | 2007                                                                               |   |    | 2006                                                                                                                           |   |   |   | 2008-2007 |   |   |   | 2007-2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                       |   | (Dollars      in thousands)                                                                                          |    |
| Earning      assets:                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      net of unearned income (1)(2)                  |   | $                                                                                                                    | 701,334 |   |                                                                               | $      | 812,603 |                                                                                                                           |   | $ | 876,604 |   |   | $ | (111,269 | ) |   | $ | (64,001 | ) |   |   | 5.43 | % |   |   | 8.71 | % |   |   | 9.29 | % |
|                                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities                                                 |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                    |   |                                                                                                                 | 159,782 |   |                                                                               |   | 104,565 |                                                                                                                           |   |   | 71,353 |   |   |   | 55,217 |   |   |   | 33,212 |   |   |   | 5.02 |   |   |   | 4.97 |   |   |   | 4.51 |   |
| Tax      exempt (2)                                        |   |                                                                                                                 | 20,792  |   |                                                                               |   | 20,251  |                                                                                                                           |   |   | 4,160 |   |   |   | 541 |   |   |   | 16,091 |   |   |   | 5.43 |   |   |   | 5.75 |   |   |   | 5.70 |   |
| Total      Securities                                      |   |                                                                                                                 | 180,574 |   |                                                                               |   | 124,816 |                                                                                                                           |   |   | 75,513 |   |   |   | 55,758 |   |   |   | 49,303 |   |   |   | 5.07 |   |   |   | 5.09 |   |   |   | 4.58 |   |
|                                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits  with other banks |   |                                                                                                                 | 2,486   |   |                                                                               |   | 1,311   |                                                                                                                           |   |   | 1,266 |   |   |   | 1,175 |   |   |   | 45 |   |   |   | 1.97 |   |   |   | 5.42 |   |   |   | 5.21 |   |
| Federal      funds sold                                    |   |                                                                                                                 | 21,478  |   |                                                                               |   | 11,395  |                                                                                                                           |   |   | 14,742 |   |   |   | 10,083 |   |   |   | (3,347 | ) |   |   | 1.25 |   |   |   | 5.03 |   |   |   | 4.65 |   |
| Total      Earning Assets (2)                              |   | $                                                                                                                    | 905,872 |   |                                                                               | $      | 950,125 |                                                                                                                           |   | $ | 968,125 |   |   | $ | (44,253 | ) |   | $ | (18,000 | ) |   |   | 5.31 |   |   |   | 8.19 |   |   |   | 8.85 |   |
|                                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing      Liabilities                          |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                  |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                       |   | $                                                                                                                    | 23,381  |   |                                                                               | $      | 31,934  |                                                                                                                           |   | $ | 42,533 |   |   | $ | (8,553 | ) |   | $ | (10,599 | ) |   |   | 0.84 |   |   |   | 0.87 |   |   |   | 0.88 |   |
| Savings                                                    |   |                                                                                                                 | 165,772 |   |                                                                               |   | 223,356 |                                                                                                                           |   |   | 201,919 |   |   |   | (57,584 | ) |   |   | 21,437 |   |   |   | 2.64 |   |   |   | 4.52 |   |   |   | 4.23 |   |
| Time      certificates                                     |   |                                                                                                                 | 540,364 |   |                                                                               |   | 448,822 |                                                                                                                           |   |   | 464,306 |   |   |   | 91,542 |   |   |   | (15,484 | ) |   |   | 4.55 |   |   |   | 5.12 |   |   |   | 4.48 |   |
| Total      Deposits                                        |   |                                                                                                                 | 729,517 |   |                                                                               |   | 704,112 |                                                                                                                           |   |   | 708,758 |   |   |   | 25,405 |   |   |   | (4,646 | ) |   |   | 4.00 |   |   |   | 4.74 |   |   |   | 4.20 |   |
|                                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      borrowings                                  |   |                                                                                                                 | 82,828  |   |                                                                               |   | 81,491  |                                                                                                                           |   |   | 80,369 |   |   |   | 1,337 |   |   |   | 1,122 |   |   |   | 4.67 |   |   |   | 5.73 |   |   |   | 5.41 |   |
| Other      borrowings                                      |   |                                                                                                                 | 4,123   |   |                                                                               |   | 6,201   |                                                                                                                           |   |   | 5,518 |   |   |   | (2,078 | ) |   |   | 683 |   |   |   | 3.27 |   |   |   | 5.42 |   |   |   | 5.02 |   |
|                                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Interest-Bearing Liabilities                    |   | $                                                                                                                    | 816,468 |   |                                                                               | $      | 791,804 |                                                                                                                           |   | $ | 794,645 |   |   | $ | 24,664 |   |   | $ | (2,841 | ) |   |   | 4.06 |   |   |   | 4.85 |   |   |   | 4.32 |   |
|                                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income/net interest spread               |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.19 |   |   |   | 3.34 |   |   |   | 4.53 |   |
|                                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      yield on earning assets                           |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1.59 |   |   |   | 4.15 |   |   |   | 5.30 |   |
|                                                       |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cost of funds                                     |   |                                                                                                                 |    |   |                                                                               |   |    |                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3.66 |   |   |   | 4.04 |   |   |   | 3.55 |   |

|                                                       |   |                                                                                           |   |   |     |   |   |   |   |   |   |      |   |   |    |      |                                 Variance Attributed to |   |
|------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|---------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   | Interest                 Income/Expense |   |   | Variance |   |   | 2008   |   |   | 2007   |      |
|                                                       |   |        2008                                                                               |   |   | 2007     |   |   | 2006   |   |   |   | 2008-2007 |   |   |    | 2007-2006 |                                                                                                                                                                                     |   | Volume |   |   | Rate |   |   | Mix |   |   | Volume |   |   | Rate |   |   | Mix |   |
|                                                       |   | (Dollars      in thousands)                                                                    |   |
| Earning      assets:                                       |   |                                                                                           |   |   |     |   |   |   |   |   |   |      |   |   |    |      |                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      net of  unearned income              |   | $                                                                                              | 38,087 |   |     | $      | 70,812 |   |   | $      | 81,474 |      |   | $      | (32,725 | )         |                                                                                                                                                                                     | $      | (10,662 | ) |   | $ | (9,695 | ) |   | $ | (26,673 | ) |   | $ | 3,643 |   |   | $ | (5,948 | ) |   | $ | (5,085 | ) |   | $ | 371 |   |
| Securities:                                                |   |                                                                                           |   |   |     |   |   |   |   |   |   |      |   |   |    |      |                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                    |   |                                                                                           | 8,021  |   |     |   | 5,194  |   |   |   | 3,221  |      |   |   | 2,827   |      |                                                                                                                                                                                     |   | 1,973 |   |   |   | 2,743 |   |   |   | 55 |   |   |   | 29 |   |   |   | 1,499 |   |   |   | 323 |   |   |   | 151 |   |
| Tax      exempt                                            |   |                                                                                           | 1,129  |   |     |   | 1,164  |   |   |   | 237    |      |   |   | (35     | )         |                                                                                                                                                                                     |   | 927 |   |   |   | 31 |   |   |   | (65 | ) |   |   | (1 | ) |   |   | 917 |   |   |   | 2 |   |   |   | 8 |   |
| Total securities                                           |   |                                                                                           | 9,150  |   |     |   | 6,358  |   |   |   | 3,458  |      |   |   | 2,792   |      |                                                                                                                                                                                     |   | 2,900 |   |   |   | 2,774 |   |   |   | (10 | ) |   |   | 28 |   |   |   | 2,416 |   |   |   | 325 |   |   |   | 159 |   |
| Interest-bearing      deposits  with other banks |   |                                                                                           | 49     |   |     |   | 71     |   |   |   | 66     |      |   |   | (22     | )         |                                                                                                                                                                                     |   | 5 |   |   |   | 64 |   |   |   | (45 | ) |   |   | (41 | ) |   |   | 2 |   |   |   | 3 |   |   |   | - |   |
| Federal      funds sold                                    |   |                                                                                           | 269    |   |     |   | 573    |   |   |   | 686    |      |   |   | (304    | )         |                                                                                                                                                                                     |   | (113 | ) |   |   | 507 |   |   |   | (430 | ) |   |   | (381 | ) |   |   | (156 | ) |   |   | 55 |   |   |   | (12 | ) |
| Total earning    assets                                    |   |                                                                                           | 47,555 |   |     |   | 77,814 |   |   |   | 85,684 |      |   |   | (30,259 | )         |                                                                                                                                                                                     |   | (7,870 | ) |   |   | (6,350 | ) |   |   | (27,158 | ) |   |   | 3,249 |   |   |   | (3,686 | ) |   |   | (4,702 | ) |   |   | 518 |   |
|                                                       |   |                                                                                           |   |   |     |   |   |   |   |   |   |      |   |   |    |      |                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                         |   |                                                                                           |   |   |     |   |   |   |   |   |   |      |   |   |    |      |                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                  |   |                                                                                           |   |   |     |   |   |   |   |   |   |      |   |   |    |      |                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                                                     |   |                                                                                           | 196    |   |     |   | 278    |   |   |   | 376    |      |   |   | (82     | )         |                                                                                                                                                                                     |   | (98 | ) |   |   | (74 | ) |   |   | (10 | ) |   |   | 2 |   |   |   | (94 | ) |   |   | (6 | ) |   |   | 2 |   |
| Savings                                                    |   |                                                                                           | 4,374  |   |     |   | 10,104 |   |   |   | 8,548  |      |   |   | (5,730  | )         |                                                                                                                                                                                     |   | 1,556 |   |   |   | (2,605 | ) |   |   | (4,211 | ) |   |   | 1,086 |   |   |   | 908 |   |   |   | 586 |   |   |   | 62 |   |
| Time      certificates                                     |   |                                                                                           | 24,599 |   |     |   | 22,999 |   |   |   | 20,817 |      |   |   | 1,600   |      |                                                                                                                                                                                     |   | 2,182 |   |   |   | 4,691 |   |   |   | (2,567 | ) |   |   | (524 | ) |   |   | (694 | ) |   |   | 2,975 |   |   |   | (99 | ) |
| Total deposits                                             |   |                                                                                           | 29,169 |   |     |   | 33,381 |   |   |   | 29,741 |      |   |   | (4,212  | )         |                                                                                                                                                                                     |   | 3,640 |   |   |   | 2,012 |   |   |   | (6,788 | ) |   |   | 564 |   |   |   | 120 |   |   |   | 3,555 |   |   |   | (35 | ) |
|                                                       |   |                                                                                           |   |   |     |   |   |   |   |   |   |      |   |   |    |      |                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      borrowings                                  |   |                                                                                           | 3,867  |   |     |   | 4,672  |   |   |   | 4,347  |      |   |   | (805    | )         |                                                                                                                                                                                     |   | 325 |   |   |   | 77 |   |   |   | (867 | ) |   |   | (15 | ) |   |   | 61 |   |   |   | 261 |   |   |   | 3 |   |
| Short-term      borrowings                                 |   |                                                                                           | 135    |   |     |   | 336    |   |   |   | 277    |      |   |   | (201    | )         |                                                                                                                                                                                     |   | 59 |   |   |   | (113 | ) |   |   | (133 | ) |   |   | 45 |   |   |   | 34 |   |   |   | 22 |   |   |   | 3 |   |
| Total interest-bearing      liabilities                    |   |                                                                                           | 33,171 |   |     |   | 38,389 |   |   |   | 34,365 |      |   |   | (5,218  | )         |                                                                                                                                                                                     |   | 4,024 |   |   |   | 1,976 |   |   |   | (7,788 | ) |   |   | 594 |   |   |   | 215 |   |   |   | 3,838 |   |   |   | (29 | ) |
|                                                       |   |                                                                                           |   |   |     |   |   |   |   |   |   |      |   |   |    |      |                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income/net  interest spread    |   | $                                                                                              | 14,384 |   |     | $      | 39,425 |   |   | $      | 51,319 |      |   | $      | (25,041 | )         |                                                                                                                                                                                     | $      | (11,894 | ) |   | $ | (8,326 | ) |   | $ | (19,370 | ) |   | $ | 2,655 |   |   | $ | (3,901 | ) |   | $ | (8,540 | ) |   | $ | 547 |   |

| (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 |
|--------|--------------------------------|

----

|                                                                   |   |              2008 |    |   |              2007 |   |    |              2006 |   |   |              2005 |   |   |               2004 |    |
|------------------------------------------------------------------------|--------|------------------------------------------------------|---------|--------|------------------------------------------------------|--------|---------|------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|------------------------------------------------------------|---------|
|                                                                   |   | (Dollars      in thousands)                          |    |
|                                                                   |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |
| Allowance      for loan losses at beginning of year                    |   | $                                                    | 18,309  |   |                                                 | $      | 13,590  |                                                 |   | $      | 11,523                                               |   |   | $                                                          | 9,791   |   |   | $ | 8,067 |   |
| Loans      charged off:                                                |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |   |   |   |   |   |
| Commercial,      financial and agricultural                            |   |                                                 | 1,475   |   |                                                 |   | 734     |                                                 |   |   | 35                                                   |   |   |                                                       | 131     |   |   |   | 209 |   |
| Real      estate - mortgage                                            |   |                                                 | 49,548  |   |                                                 |   | 1,485   |                                                 |   |   | 118                                                  |   |   |                                                       | — |   |   |   | 85 |   |
| Consumer                                                               |   |                                                 | 193     |   |                                                 |   | 122     |                                                 |   |   | 111                                                  |   |   |                                                       | 50      |   |   |   | 161 |   |
| Total      loans charged off                                           |   |                                                 | 51,216  |   |                                                 |   | 2,341   |                                                 |   |   | 264                                                  |   |   |                                                       | 181     |   |   |   | 455 |   |
|                                                                   |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |   |   |   |   |   |
| Recoveries      on loans previously charged off:                       |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |   |   |   |   |   |
| Commercial,      financial and agricultural                            |   |                                                 | 123     |   |                                                 |   | 9       |                                                 |   |   | 6                                                    |   |   |                                                       | 24      |   |   |   | 143 |   |
| Real      estate - mortgage                                            |   |                                                 | 28      |   |                                                 |   | 139     |                                                 |   |   | —                                              |   |   |                                                       | 2       |   |   |   | 30 |   |
| Consumer                                                               |   |                                                 | 16      |   |                                                 |   | 44      |                                                 |   |   | 29                                                   |   |   |                                                       | 125     |   |   |   | 35 |   |
| Total      recoveries                                                  |   |                                                 | 167     |   |                                                 |   | 192     |                                                 |   |   | 35                                                   |   |   |                                                       | 151     |   |   |   | 208 |   |
|                                                                   |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |   |   |   |   |   |
| Net      loans charged off (recovered)                                 |   |                                                 | 51,049  |   |                                                 |   | 2,149   |                                                 |   |   | 229                                                  |   |   |                                                       | 30      |   |   |   | 247 |   |
|                                                                   |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |   |   |   |   |   |
| Provision      for loan losses                                         |   |                                                 | 69,130  |   |                                                 |   | 6,868   |                                                 |   |   | 2,296                                                |   |   |                                                       | 1,762   |   |   |   | 1,971 |   |
|                                                                   |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |   |   |   |   |   |
| Allowance      for loan losses at end of period                        |   | $                                                    | 36,390  |   |                                                 | $      | 18,309  |                                                 |   | $      | 13,590                                               |   |   | $                                                          | 11,523  |   |   | $ | 9,791 |   |
|                                                                   |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |   |   |   |   |   |
| Loans,      net of unearned income, at end of period                   |   | $                                                    | 624,635 |   |                                                 | $      | 761,431 |                                                 |   | $      | 869,608                                              |   |   | $                                                          | 791,609 |   |   | $ | 552,509 |   |
|                                                                   |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |   |   |   |   |   |
| Average      loans, net of unearned income, outstanding for the period |   |                                                 | 701,334 |   |                                                 |   | 812,603 |                                                 |   |   | 876,604                                              |   |   |                                                       | 670,885 |   |   |   | 490,521 |   |
|                                                                   |   |                                                 |    |   |                                                 |   |    |                                                 |   |   |                                                 |   |   |                                                       |    |   |   |   |   |   |
| Ratio      of net charge-offs to net average loans                     |   |                                                 | 7.28    | %      |                                                 |   | 0.26    | %                                                    |   |   | 0.03                                                 | %      |   |                                                       | 0.00    | % |   |   | 0.05 | % |

----

|                                               |   |                                        December 31,_ |   |
|----------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                               |   | 2008                                                                                                                                                                                                                      |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   |             2004 |   |
|                                               |   | 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        |   | $                                                                                                                                                                                                                         | 2,590  |   |   |   | 7.09 | % |   | $ | 455 |   |   |   | 5.60 | % |   | $ | 649 |   |   |   | 4.78 | % |   | $ | 724 |   |   |   | 6.28 | % |   | $ | 271 |   |   |   | 9.26 | % |
| Real      estate – mortgage and construction |   |                                                                                                                                                                                                                      | 33,419 |   |   |   | 91.86 |   |   |   | 17,783 |   |   |   | 93.60 |   |   |   | 12,842 |   |   |   | 94.50 |   |   |   | 10,757 |   |   |   | 93.36 |   |   |   | 9,512 |   |   |   | 88.89 |   |
| Consumer                                           |   |                                                                                                                                                                                                                      | 381    |   |   |   | 1.05 |   |   |   | 71 |   |   |   | 0.80 |   |   |   | 99 |   |   |   | 0.72 |   |   |   | 42 |   |   |   | 0.36 |   |   |   | 8 |   |   |   | 1.85 |   |
|                                               |   | $                                                                                                                                                                                                                         | 36,390 |   |   |   | 100.00 | % |   | $ | 18,309 |   |   |   | 100.00 | % |   | $ | 13,590 |   |   |   | 100.00 | % |   | $ | 11,523 |   |   |   | 100.00 | % |   | $ | 9,791 |   |   |   | 100.00 | % |

----

|                                                                        |                                            December      31,                                             |
|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                        | 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2007           | 2006           | 2005           | 2004           |
|                                                                        | (Amounts      in thousands, except ratios)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| Nonaccruing      loans                                                      | $155,521                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $111,147 | $37,445 | $    194 | $    247 |
| Accruing      loans 90 days or more past due                                | 891                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 6,513 | 13,142 | 106 | — |
| Restructured      loans                                                     | 4,206                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 257 | 1,592 | 634 | 7,562 |
| Total      nonperforming loans                                              | 160,618                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 117,917 | 52,179 | 934 | 7,809 |
| Nonaccruing      securities                                                 | —                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | — | — | — | — |
| Other      real estate                                                      | 52,005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 1,065 | 2,403 | 2,203 | 2,203 |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| Total                                                                       | $212,623                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $118,982 | $  54,582 | $3,137 | $10,012 |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| Ratios:                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| Loan      loss allowance to total nonperforming assets                      | 0.171                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 0.154 | 0.249 | 3.673 | 0.978 |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| Total      nonperforming loans to total loans (net of unearned    interest) | 0.257                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 0.155 | 0.060 | 0.001 | 0.014 |
|                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |
| Total      nonperforming assets to total assets                             | 0.217                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 0.126 | 0.054 | 0.003 | 0.015 |

----

|                                   |                                                                                                                                                                                             |                                                             |                                                                                                                                                                                                                                                                         |  2007/2008                                        | 2006/2007                                                                                                                            |
|----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                   |                                  Years Ended December 31, |             Percent                |                           Percent                                                                                                                                        |
|                                   | 2008                                                                                                                                      | 2007           |                                        2006           |              Change |                           Change |
|                                   | (Dollars in      thousands)                                                                                                                                                                      |
|                                   |                                                                                                                                                                                             |                                                             |                                                                                                                                                                                                                                                                         |                                                   |                                                                                                                                 |
| Service      charges on deposits       | $1,577                                                                                                                                                                                           | $ 1,332                                                          | $ 1,678                                                                                                                                                                                                                                                                      | 18.4%                                                  | (20.6)%                                                                                                                              |
| Secondary      market fees             | 144                                                                                                                                                                                              |  389                                                        |  751                                                                                                                                                                                                                                                                    | (63.0)                                                 | (48.2)                                                                                                                               |
| Exchange      fees                     | 38                                                                                                                                                                                               | 75                                                               |  861                                                                                                                                                                                                                                                                    | (49.3)                                                 | (91.3)                                                                                                                               |
| Bookkeeping      fees                  | 65                                                                                                                                                                                               | 82                                                               |  151                                                                                                                                                                                                                                                                    | (20.7)                                                 | (45.7)                                                                                                                               |
| Income/gains      on other real estate | 65                                                                                                                                                                                               |  405                                                        | —                                                                                                                                                                                                                                                                      | (84.1)                                                 | 100.0                                                                                                                                |
| Safe      deposit box rental           | 62                                                                                                                                                                                               | 62                                                               | 66                                                                                                                                                                                                                                                                           | 0.0                                                    | (6.1)                                                                                                                                |
| Other                                  | 336                                                                                                                                                                                              |  483                                                        |  409                                                                                                                                                                                                                                                                    | (30.4)                                                 | 16.6                                                                                                                                 |
|                                   |                                                                                                                                                                                             |                                                             |                                                                                                                                                                                                                                                                         |                                                   |                                                                                                                                 |
|                                   | $2,287                                                                                                                                                                                           | $      2,828                                                     | $      3,916                                                                                                                                                                                                                                                                 | (19.1)                                                 | (27.8)                                                                                                                               |

|                                                              |   |                                                                                                                                                               |   |   |                                              |   |   |                                                           |   |   |                                                         | 2007/2008 |   |                                                          |    | 2006/2007 |   |
|-------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|--------------------------------------------------------------|-----------|--------|---------------------------------------------------------------|---------|-----------|--------|
|                                                              |   |                             Years Ended December 31, |   |   |             Percent |   |   |                Percent |   |
|                                                              |   | 2008                                                                                                                                                               |   |   | 2007                                              |   |   | 2006                                                           |   |   |               Change |      |   |                Change |    |
|                                                              |   |                        (Dollars in thousands)                                 |   |
|                                                              |   |                                                                                                                                                               |   |   |                                              |   |   |                                                           |   |   |                                                         |      |   |                                                          |    |      |   |
| Salaries      and employee benefits                               |   | $                                                                                                                                                                  | 10,466 |   |                                              | $      | 10,712 |                                                           |   | $      | 9,608                                                        |      |   |                                                          | (2.3    | )%        |   |   | 11.5 | % |
| Oreo      expenses & writedowns.............. |   |                                                                                                                                                               | 12,530 |   |                                              |   | 162    |                                                           |   |   | —                                                      |      |   |                                                          | 7,634.6 |      |   |   | 100.0 |   |
| Occupancy      and equipment expense                              |   |                                                                                                                                                               | 3,378  |   |                                              |   | 2,442  |                                                           |   |   | 2,294                                                        |      |   |                                                          | 38.3    |      |   |   | 6.5 |   |
| Non-performing      loan expenses                                 |   |                                                                                                                                                               | 3,064  |   |                                              |   | 409    |                                                           |   |   | 75                                                           |      |   |                                                          | 641.9   |      |   |   | 445.3 |   |
| Regulatory      fees and assessments                              |   |                                                                                                                                                               | 1,495  |   |                                              |   | 740    |                                                           |   |   | 252                                                          |      |   |                                                          | 102.0   |      |   |   | 193.7 |   |
| Professional      fees                                            |   |                                                                                                                                                               | 790    |   |                                              |   | 639    |                                                           |   |   | 461                                                          |      |   |                                                          | 23.6    |      |   |   | 38.6 |   |
| Advertising                                                       |   |                                                                                                                                                               | 412    |   |                                              |   | 481    |                                                           |   |   | 381                                                          |      |   |                                                          | (14.4   | )         |   |   | 26.2 |   |
| Telephone                                                         |   |                                                                                                                                                               | 359    |   |                                              |   | 317    |                                                           |   |   | 251                                                          |      |   |                                                          | 13.3    |      |   |   | 26.3 |   |
| Software      maintenance                                         |   |                                                                                                                                                               | 320    |   |                                              |   | 210    |                                                           |   |   | 149                                                          |      |   |                                                          | 52.4.   |      |   |   | 40.9 |   |
| ATM      expense                                                  |   |                                                                                                                                                               | 203    |   |                                              |   | 207    |                                                           |   |   | 178                                                          |      |   |                                                          | (1.9    | )         |   |   | 16.3 |   |
| Supplies                                                          |   |                                                                                                                                                               | 177    |   |                                              |   | 188    |                                                           |   |   | 181                                                          |      |   |                                                          | (5.9    | )         |   |   | 3.9 |   |
| Director      and committee fees                                  |   |                                                                                                                                                               | 170    |   |                                              |   | 121    |                                                           |   |   | 70                                                           |      |   |                                                          | 40.5    |      |   |   | 72.9 |   |
| Postage                                                           |   |                                                                                                                                                               | 137    |   |                                              |   | 120    |                                                           |   |   | 132                                                          |      |   |                                                          | 14.2    |      |   |   | (9.1 | ) |
| Courier      fees                                                 |   |                                                                                                                                                               | 124    |   |                                              |   | 142    |                                                           |   |   | 180                                                          |      |   |                                                          | (12.7   | )         |   |   | (21.1 | ) |
| Dues      and subscriptions                                       |   |                                                                                                                                                               | 89     |   |                                              |   | 89     |                                                           |   |   | 83                                                           |      |   |                                                          | 0.0     |      |   |   | 7.2 |   |
| Correspondent      bank fees                                      |   |                                                                                                                                                               | 54     |   |                                              |   | 90     |                                                           |   |   | 142                                                          |      |   |                                                          | (40.0   | )         |   |   | (36.6 | ) |
| Other                                                             |   |                                                                                                                                                               | 640    |   |                                              |   | 595    |                                                           |   |   | 632                                                          |      |   |                                                          | (7.6    | )         |   |   | 19.8 |   |
|                                                              |   |                                                                                                                                                               |   |   |                                              |   |   |                                                           |   |   |                                                         |      |   |                                                          |    |      |   |   |   |   |
| Total                                                             |   | $                                                                                                                                                                  | 34,408 |   |                                              | $      | 17,664 |                                                           |   | $      | 15,069                                                       |      |   |                                                          | 94.8    | %         |   |   | 17.2 | % |

----

|                                               |   | Percentage      Increase(Decrease)      in InterestIncome/Expense      Given                  Interest Rate Shifts |   |
|----------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                               |   | Down      200Basis Points                                                                                                                                                      |   |   | Up      200Basis Points |   |
|                                               |   |                                                                                                                                                                           |   |   |   |   |
| For      the Twelve Months after December 31, 2008 |   |                                                                                                                                                                           |   |   |   |   |
| Projected      change in:                          |   |                                                                                                                                                                           |   |   |   |   |
| Interest      income                               |   |                                                                                                                                                                           | (8.00  | )% |   |   | 12.49 | % |
| Interest      expense                              |   |                                                                                                                                                                           | (9.57  | ) |   |   | 12.30 |   |
| Net      interest income                           |   |                                                                                                                                                                           | (4.11  | ) |   |   | 12.94 |   |

----

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Page   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |
| Management's      Report on Internal Control Over Financial      Reporting                                                                                                                              |   |   | 32     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Report      of Independent Registered Public Accounting      Firm                                                                                                                                       |   |   | 33     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Consolidated      Statements of Financial Condition as of December 31, 2008 and      2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 34     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Consolidated      Statements of Operations for the Years Ended December 31, 2008, 2007 and      2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 35     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Consolidated      Statements of Shareholders' Equity for the Years Ended December 31, 2008,      2007 and 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 36     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Consolidated      Statements of Cash Flows for the Years Ended December 31, 2008, 2007 and      2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 37     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Notes      to Consolidated Financial      Statements                                                                                                                                                    |   |   | 39     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Quarterly      Results      (Unaudited)                                                                                                                                                                 |   |   | 81     |   |

----

| /s/  Stephen L.      Price                                                       |   | /s/  Guy W.      Harris                                                         |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Stephen      L. Price                                                                                                                                                                                                                                                                                                                                                    |   | Guy      W. Harris                                                                                                                                                                                                                                                                                                                                                                |   |
| Principal      Executive Officer, Chairman, President and Chief Executive      Officer                                                                                                                                                                                                                                                                                   |   | Principal      Financial Officer and Chief Financial Officer                                                                                                                                                                                                                                                                                                                      |   |
| April      15, 2009                                                                                                                                                                                                                                                                                                                                                      |   | April      15, 2009                                                                                                                                                                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                              |   |

----

| Birmingham,      Alabama | /s/      Warren, Averett, Kimbrough & Marino, LLC |
|--------------------------|-------------------------------------------------------|
| April      15, 2009      |                                                  |
|                     | Warren,      Averett, Kimbrough & Marino ,LLC     |

----

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

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2008   |        |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |        |   |   |   |
| Cash      and due from banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 11,169,731  |   |   | $      | 10,526,924 |   |
| Interest-bearing      demand deposits with banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 6,245,791   |   |   |   | 1,868,391 |   |
| Federal      funds sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 28,450,000  |   |   |   | 2,334,000 |   |
| Cash      and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 45,865,522  |   |   |   | 14,729,315 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Securities      held-to-maturity, fair value of $203,310,589 in 2008 and $136,499,998 in      2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 199,625,229 |   |   |   | 135,810,057 |   |
| Other      investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 7,987,869   |   |   |   | 6,815,840 |   |
| Loans      held-for-sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 156,231     |   |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Loans,      net of unearned income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 624,478,243 |   |   |   | 761,430,961 |   |
| Allowance      for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (36,389,744 | )      |   |   | (18,309,279 | )) |
| Net      Loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 588,088,499 |   |   |   | 743,121,682 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Premises      and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 24,867,557  |   |   |   | 21,095,408 |   |
| Accrued      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 3,511,261   |   |   |   | 4,585,201 |   |
| Foreclosed      real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 52,005,241  |   |   |   | 1,065,289 |   |
| Deferred      taxes, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 25,657,711  |   |   |   | 13,671,041 |   |
| Income      taxes receivable.......................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 29,123,997  |   |   |   | 218,872 |   |
| Other      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 2,479,226   |   |   |   | 1,561,057 |   |
| Total      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | 979,368,343 |   |   | $      | 942,673,762 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Liabilities      and Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |        |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |        |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |        |   |   |   |   |   |
| Noninterest-bearing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $      | 60,474,172  |   |   | $      | 72,635,074 |   |
| Interest-bearing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 784,954,433 |   |   |   | 681,023,280 |   |
| Total      Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 845,428,605 |   |   |   | 753,658,354 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Accrued      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 4,853,139   |   |   |   | 3,509,061 |   |
| Deferred      compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 166,491     |   |   |   | 208,358 |   |
| FHLB      advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 50,000,000  |   |   |   | 55,000,000 |   |
| Subordinated      debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 30,929,000  |   |   |   | 30,929,000 |   |
| Other      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 3,362,046   |   |   |   | 1,163,952 |   |
| Total      Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 934,739,281 |   |   |   | 844,468,725 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Shareholders’      Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |        |   |   |   |   |   |
| Preferred      stock - par value $0.01 per share, 5,000,000 shares authorized, none      issued and outstanding at December 31, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | —     |   |   |   | — |   |
| Common      stock - par value $0.01 per share, 25,000,000 shares authorized, 7,918,217      shares issued and outstanding at December 31, 2008 and 7,909,261      shares issued and outstanding at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 79,182      |   |   |   | 79,093 |   |
| Paid-in      capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 18,529,677  |   |   |   | 18,456,882 |   |
| Retained      earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 26,374,386  |   |   |   | 79,669,062 |   |
|   Accumulated      other comprehensive income      (loss)                                                                                              |   |   | (354,183    | )      |   |   | — |   |
| Total      Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 44,629,062  |   |   |   | 98,205,037 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |   |   |
| Total      Liabilities and Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 979,368,343 |   |   | $      | 942,673,762 |   |

----

|   | CONSOLIDATED      STATEMENTS OF OPERATIONS |
|--------|--------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2008   |        |   | 2007   |   |       | 2006   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| Interest      Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |
| Interest      and fees on loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $      | 38,060,139  |   |   | $      | 70,764,215 |   |   | $ | 81,434,704 |   |
| Interest      and dividends on taxable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 8,020,957   |   |   |   | 5,194,119  |   |   |   | 3,221,155 |   |
| Interest      on tax-exempt securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 835,703     |   |   |   | 814,007    |   |   |   | 166,262 |   |
| Interest      on federal funds sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 269,172     |   |   |   | 573,133    |   |   |   | 686,231 |   |
| Interest      on deposits in banks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 48,740      |   |   |   | 70,790     |   |   |   | 66,177 |   |
| Total      Interest Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 47,234,711  |   |   |   | 77,416,264 |   |   |   | 85,574,529 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Interest      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
| Interest      on deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 29,169,128  |   |   |   | 33,380,771 |   |   |   | 29,741,087 |   |
| Interest      on short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 134,592     |   |   |   | 336,318    |   |   |   | 277,152 |   |
| Interest      on FHLB advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 2,144,654   |   |   |   | 2,313,438  |   |   |   | 2,492,831 |   |
| Interest      on subordinated debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 1,721,689   |   |   |   | 2,359,063  |   |   |   | 1,853,679 |   |
| Total      Interest Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 33,170,063  |   |   |   | 38,389,590 |   |   |   | 34,364,749 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Net      Interest Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 14,064,648  |   |   |   | 39,026,674 |   |   |   | 51,209,780 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Provision      for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 69,130,400  |   |   |   | 6,867,600  |   |   |   | 2,296,270 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Net      Interest Income (Expense) After Provision  For Loan      Losses                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (55,065,752 | )      |   |   | 32,159,074 |   |   |   | 48,913,510 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Noninterest      Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Customer      service fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 1,577,305   |   |   |   | 1,414,400  |   |   |   | 1,678,478 |   |
| Secondary      market loan fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 143,978     |   |   |   | 388,816    |   |   |   | 750,686 |   |
| Other      operating income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 565,901     |   |   |   | 1,024,988  |   |   |   | 1,487,078 |   |
| Total      Noninterest Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 2,287,184   |   |   |   | 2,828,204  |   |   |   | 3,916,242 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Noninterest      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Salaries      and employee benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 10,466,029  |   |   |   | 10,712,122 |   |   |   | 9,608,072 |   |
| Occupancy      and equipment expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 3,378,355   |   |   |   | 2,442,141  |   |   |   | 2,293,985 |   |
| Expenses,      write-downs, and losses on  sale from other real estate      owned                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 12,530,436  |   |   |   | 161,873    |   |   |   | — |   |
| Investment      security losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | —     |   |   |   | 7,816      |   |   |   | — |   |
| Other      operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 8,033,085   |   |   |   | 4,340,416  |   |   |   | 3,167,277 |   |
| Total      Noninterest Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 34,407,905  |   |   |   | 17,664,368 |   |   |   | 15,069,334 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Income      (loss) before income      taxes                                                                                |   |   | (87,186,473 | )      |   |   | 17,322,910 |   |   |   | 37,760,418 |   |
| Income      tax (benefit)      expense                                                                                     |   |   | (33,891,797 | )      |   |   | 6,413,691  |   |   |   | 14,614,349 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Net      Income (Loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | (53,294,676 | )      |   | $      | 10,909,219 |   |   | $ | 23,146,069 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Earnings      (Loss) Per Common Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | (6.73       | )      |   | $      | 1.38       |   |   | $ | 2.93 |   |
| Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (6.70       | )      |   |   | 1.36       |   |   |   | 2.90 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Cash      Dividends Declared Per Common Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 0.00        |   |   |   | 0.42       |   |   |   | 0.35 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Weighted      Average Shares Outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |        |   |   |   |       |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 7,918,144   |   |   |   | 7,909,261  |   |   |   | 7,890,427 |   |
| Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 7,951,647   |   |   |   | 8,040,860  |   |   |   | 7,987,134 |   |

----

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

|                                                    |   | PreferredStock |    |   | Common                 Shares |   |      |               Stock  Par Value |   |   | Paid-inCapital |   |   | RetainedEarnings |       |   | Accumulated      OtherComprehensiveIncome      (Loss) |   |        | Total  |   |
|---------------------------------------------------------|--------|----------------|---------|--------|---------------------------------------------------------------------------------|--------|-----------|-----------------------------------------------------------------------------|--------|--------|----------------|--------|--------|------------------|------------|--------|-------------------------------------------------------|--------|-------------|--------|--------|
|                                                    |   |           |    |   |                                                                            |   |      |                                                                        |   |   |           |   |   |             |       |   |                                                  |   |        |   |   |
| Balance      at December 31, 2005                       |   | $              | — |   |                                                                            |   | 7,909,261 |                                                                        |   | $      | 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                       |   |           | — |   |                                                                            |   | 7,909,261 |                                                                        |   |   | 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                       |   |           | — |   |                                                                            |   | 7,909,261 |                                                                        |   |   | 79,093         |   |   |             | 18,456,882 |   |                                                  |   | 79,669,062  |   |   |   | — |   |   |   | 98,205,037 |   |
| Net      loss – 2008                              |   |           | — |   |                                                                            |   | —   |                                                                        |   |   | —        |   |   |             | —    |   |                                                  |   | (53,294,676 | )      |   |   | — |   |   |   | (53,294,676 | ) |
| Unrealized      losses on available-for-sale securities |   |           | — |   |                                                                            |   | —   |                                                                        |   |   | —        |   |   |             | —    |   |                                                  |   | —     |   |   |   | (354,183 | ) |   |   | (354,183 | ) |
| Comprehensive      (loss)                               |   |           |    |   |                                                                            |   |      |                                                                        |   |   |           |   |   |             |       |   |                                                  |   |        |   |   |   |   |   |   |   | (53,648,859 | ) |
|                                                    |   |           |    |   |                                                                            |   |      |                                                                        |   |   |           |   |   |             |       |   |                                                  |   |        |   |   |   |   |   |   |   |   |   |
| Exercise      of stock options                          |   |           | — |   |                                                                            |   | 8,956     |                                                                        |   |   | 89             |   |   |             | 53,911     |   |                                                  |   | —     |   |   |   | — |   |   |   | 54,000 |   |
| Stock-based      compensation expense                   |   |           | — |   |                                                                            |   | —   |                                                                        |   |   | —        |   |   |             | 18,884     |   |                                                  |   | —     |   |   |   | — |   |   |   | 18,884 |   |
|                                                    |   |           |    |   |                                                                            |   |      |                                                                        |   |   |           |   |   |             |       |   |                                                  |   |        |   |   |   |   |   |   |   |   |   |
| Balance      at  December 31, 2008            |   | $              | — |   |                                                                            |   | 7,918,217 |                                                                        |   | $      | 79,182         |   |   | $                | 18,529,677 |   |                                                  | $      | 26,374,386  |   |   | $ | (354,183 | ) |   | $ | 44,629,062 |   |

----

|                                                                                                                |   | 2008   |        |   | 2007   |   |        | 2006   |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                                                                                                                |   |   |        |   |   |   |        |   |   |
| Operating      Activities                                                                                           |   |   |        |   |   |   |        |   |   |
| Net      income (loss)                                                                                              |   | $      | (53,294,676 | )      |   | $      | 10,909,219  |   |   | $ | 23,146,069 |   |
| Adjustments      to reconcile net income (loss) to net cash      provided (used) by operating activities:      |   |   |        |   |   |   |        |   |   |   |   |   |
| Provision      for loan losses                                                                                      |   |   | 69,130,400  |   |   |   | 6,867,600   |   |   |   | 2,296,270 |   |
| Depreciation,      amortization, and accretion, net                                                                 |   |   | 1,028,208   |   |   |   | 1,024,050   |   |   |   | 1,093,979 |   |
| Deferred      tax benefit                                                                                           |   |   | (11,986,670 | )      |   |   | (7,245,573  | )      |   |   | (595,242 | ) |
| Loss      on sale of securities                                                                                     |   |   | —     |   |   |   | 7,816       |   |   |   | — |   |
| Gain      on disposition of other real estate owned property                                                        |   |   | (64,821     | )      |   |   | (404,921    | )      |   |   | — |   |
| Writedown      on other real estate owned property                                                                  |   |   | 9,529,259   |   |   |   | 90,310      |   |   |   | — |   |
| (Gain)      loss on disposition of  premises and equipment                                                |   |   | —     |   |   |   | (2,808      | )      |   |   | 33,911 |   |
| Compensation      associated with the issuance of options                                                           |   |   | 18,884      |   |   |   | 36,299      |   |   |   | 92,035 |   |
| Decrease      (increase) in accrued interest receivable                                                             |   |   | 1,073,940   |   |   |   | 2,055,136   |   |   |   | (1,699,096 | ) |
| Increase      in accrued interest payable                                                                           |   |   | 1,344,078   |   |   |   | 741,222     |   |   |   | 368,559 |   |
| (Increase)      in income taxes receivable.....................                             |   |   | (28,905,125 | )      |   |   | 190,384     |   |   |   | (1,035,386 | ) |
| Other,      net                                                                                                     |   |   | 1,488,730   |   |   |   | 543,251     |   |   |   | (195,198 | ) |
| Net      Cash Provided (Used) By Operating Activities                                                               |   |   | (10,637,793 | )      |   |   | 14,811,985  |   |   |   | 23,505,901 |   |
|                                                                                                                |   |   |        |   |   |   |        |   |   |   |   |   |
| Investing      Activities                                                                                           |   |   |        |   |   |   |        |   |   |   |   |   |
| Purchases      of investment securities held-to-maturity                                                            |   |   | (85,718,391 | )      |   |   | (43,971,875 | )      |   |   | (46,020,950 | ) |
| Proceeds      from sales, maturities, calls and pay-downs of      investment  securities held-to-maturity |   |   | 21,962,055  |   |   |   | 9,190,410   |   |   |   | 5,770,415 |   |
| Proceeds      from other investments                                                                                |   |   | —     |   |   |   | 48,000      |   |   |   | — |   |
| Purchases      of other investments, net                                                                            |   |   | (1,504,636  | )      |   |   | (4,500      | )      |   |   | (1,750,075 | ) |
| Net      decrease (increase) in loans to customers                                                                  |   |   | 21,170,984  |   |   |   | 104,927,592 |   |   |   | (78,282,798 | ) |
| Purchase      of premises and equipment                                                                             |   |   | (5,089,062  | )      |   |   | (7,751,826  | )      |   |   | (1,738,733 | ) |
| Proceeds      from disposition of premises and equipment                                                            |   |   | —     |   |   |   | 63,772      |   |   |   | — |   |
| Proceeds      from disposition of foreclosed real estate                                                            |   |   | 4,128,799   |   |   |   | 2,608,456   |   |   |   | — |   |
| Net      Cash Provided (Used) By Investing Activities                                                               |   |   | (45,050,251 | )      |   |   | 65,109,929  |   |   |   | (122,022,141 | ) |

----

|                                                                                               |   | 2008   |         |   | 2007   |   |        | 2006   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|-------------|--------|--------|
|                                                                                               |   |   |         |   |   |   |        |   |   |
| Financing      Activities                                                                          |   |   |         |   |   |   |        |   |   |
| Net      (decrease) increase in demand deposits, NOW  accounts and      savings accounts |   | $      | (114,535,477 | )      |   | $      | (64,443,555 | )      |   | $ | 34,697,815 |   |
| Net      (decrease) increase in certificates of deposit                                            |   |   | 206,305,728  |   |   |   | (17,359,591 | )      |   |   | 63,507,929 |   |
| Net      (decrease) increase in short-term borrowings                                              |   |   | —      |   |   |   | (694,000    | )      |   |   | (24,294,000 | ) |
| Issuance      of FHLB advances                                                                     |   |   | —      |   |   |   | 10,000,000  |   |   |   | 5,000,000 |   |
| Repayments      of FHLB advances                                                                   |   |   | (5,000,000   | )      |   |   | (10,000,000 | )      |   |   | (10,000,000 | ) |
| Increase      (decrease) in other debt, net                                                        |   |   | —      |   |   |   | —     |   |   |   | (23,939 | ) |
| Issuance      of subordinated debentures                                                           |   |   | —      |   |   |   | —     |   |   |   | 20,619,000 |   |
| Exercise      of stock options                                                                     |   |   | 54,000       |   |   |   | —     |   |   |   | — |   |
| Costs      associated with stock split-fractional share payout                                     |   |   | —      |   |   |   | (12,102     | )      |   |   | — |   |
| Cash      dividends                                                                                |   |   | —      |   |   |   | (3,295,693  | )      |   |   | (2,746,572 | ) |
| Net      Cash Provided (Used) By FinancingActivities                                               |   |   | 86,824,251   |   |   |   | (85,804,941 | )      |   |   | 86,760,233 |   |
|                                                                                               |   |   |         |   |   |   |        |   |   |   |   |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents                                          |   |   | 31,136,207   |   |   |   | (5,883,027  | )      |   |   | (11,756,007 | ) |
|                                                                                               |   |   |         |   |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents  at Beginning of Year                                     |   |   | 14,729,315   |   |   |   | 20,612,342  |   |   |   | 32,368,349 |   |
|                                                                                               |   |   |         |   |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents  at End of Year                                           |   | $      | 45,865,522   |   |   | $      | 14,729,315  |   |   | $ | 20,612,342 |   |

----

|   | • |   | Adherance      to a Capital Plan to maintain the Tier 1 Leverage Ratio and the Total Risk      Based Capital Ratio of at least 8% and 12%, respectively, which are above      current levels and the levels necessary to be categorized as “well      capitalized” as defined by Prompt Corrective Action      regulations. |
|--------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • |   | The      ratio of certain “classified assets” to Tier 1 Risk Based Capital and Loan      Loss Reserves must be reduced to prescribed levels by dates beginning      February 28, 2009.                                                                                                                                      |
|   | • |   | Reduce      the Bank’s credit concentrationrisk.                                                                                                                                                                                                                                                                                  |

----

|   | • |    | FCBI’s      resources will be used to support the Bank.                         |                                                                         |
|--------|---------|---------|---------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
|   | • |    | No      dividends may be paid on common stock without prior regulatory      approval. |                                                                         |
|   |    | • |                                                                                  | Additional      debt may not be incurred without prior regulatory  approval. |

Liquidity

----

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|                                 |   |                            Years Ended December 31, |   |
|--------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                 |   | 2008                                                                                                                                                         |   |   | 2007 |   |   | 2006 |   |
|                                 |   |                                                                                                                                                         |   |   |   |   |   |   |   |
| Assumptions:                         |   |                                                                                                                                                         |   |   |   |   |   |   |   |
| Average      risk free interest rate |   |                                                                                                                                                         | 2.07   | % |   |   | — |   |   |   | — |   |
| Average      expected volatility     |   |                                                                                                                                                         | 15.00  | % |   |   | — |   |   |   | — |   |
| Expected      dividend yield         |   |                                                                                                                                                         | 0.00   | % |   |   | — |   |   |   | — |   |
| Expected      life                   |   |                     9.0 years                                                          |   |   |   | — |   |   |   | — |   |

|                                                                                     |   | 2008   |      |   | 2007   |   |      | 2006   |   |
|------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                                                     |   |   |      |   |   |   |      |   |   |
| Weighted      average of common  shares outstanding                            |   |   | 7,918,144 |   |   |   | 7,909,261 |   |   |   | 7,890,427 |   |
| Effect      of dilutive options                                                          |   |   | 33,503    |   |   |   | 131,599   |   |   |   | 96,707 |   |
|                                                                                     |   |   |      |   |   |   |      |   |   |   |   |   |
| Weighted      average of common shares  outstanding effected for      dilution |   |   | 7,951,647 |   |   |   | 8,040,860 |   |   |   | 7,987,134 |   |

----

|                                                                             |   |                         Years Ended December 31, |       |
|----------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                             |   | 2008                                                                                                                                       |       |   | 2007 |   |   | 2006 |   |
|                                                                             |   |                                                                                                                                       |       |   |   |   |   |   |   |
| Cash      paid during the year for interest                                      |   | $                                                                                                                                          | 31,825,985 |   |   | $ | 37,648,368 |   |   | $ | 33,996,190 |   |
| Cash      paid during the year for income taxes, net                             |   |                                                                                                                                       | 7,000,000  |   |   |   | 13,468,880 |   |   |   | 16,244,978 |   |
|                                                                             |   |                                                                                                                                       |       |   |   |   |   |   |   |   |   |   |
| Non-cash Disclosures:                                                            |   |                                                                                                                                       |       |   |   |   |   |   |   |   |   |   |
|                                                                             |   |                                                                                                                                       |       |   |   |   |   |   |   |   |   |   |
| Loans      transferred to foreclosed  real estate during the      year |   |                                                                                                                                       | 79,638,829 |   |   |   | 955,599 |   |   |   | 200,000 |   |

| Net      increase in unrealized losses on available-for-sale    securities |   |   | 354,183 |   |   |   | — |   |   |   | — |   |
|----------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|

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

----

----

----

----

----

|                             |   | AmortizedCost |        |   | GrossUnrealizedGains |   |      | GrossUnrealizedLosses |   |   | EstimatedFairValue |   |
|----------------------------------|--------|---------------|-------------|--------|----------------------|--------|-----------|-----------------------|--------|--------|--------------------|--------|
|                             |   |          |        |   |                 |   |      |                  |   |   |               |   |
| Securities Held-to-Maturity      |   |          |        |   |                 |   |      |                  |   |   |               |   |
|                             |   |          |        |   |                 |   |      |                  |   |   |               |   |
| December      31, 2008:          |   |          |        |   |                 |   |      |                  |   |   |               |   |
| FHLB and FHLMCagency    notes    |   | $             | 19,486,401  |   |                 | $      | 546,204   |                  |   | $      | —            |   |   | $ | 20,032,605 |   |
| Municipal    securities          |   |          | 20,797,848  |   |                 |   | 10,965    |                  |   |   | 725,515            |   |   |   | 20,083,298 |   |
| Mortgage-backed      securities  |   |          | 159,340,980 |   |                 |   | 4,025,482 |                  |   |   | 171,776            |   |   |   | 163,194,686 |   |
|                             |   |          |        |   |                 |   |      |                  |   |   |               |   |   |   |   |   |
|                             |   | $             | 199,625,229 |   |                 | $      | 4,582,651 |                  |   | $      | 897,291            |   |   | $ | 203,310,589 |   |
|                             |   |          |        |   |                 |   |      |                  |   |   |               |   |   |   |   |   |
| December      31, 2007:          |   |          |        |   |                 |   |      |                  |   |   |               |   |   |   |   |   |
| FHLB and FHLMC agency      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 |   |
|                             |   |          |        |   |                 |   |      |                  |   |   |               |   |   |   |   |   |

----

|                                        |   |         Less      Than 12 Months |       |   |                 12 Months or      More                                              Total |                 |    |
|---------------------------------------------|--------|---------------------------------------------------------------------|------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|---------|
| Description of Securities                   |   | FairValue                                                           |       |   | UnrealizedLosses                                                                                                                                                                                                                                                                                                                                    |                                                                                       |    | Fair                    UnrealizedValue                    Losses  |   |   |         Fair                                 Unrealized     Value                                    Losses |   |    |   |
|                                        |   |                                                                |       |   |                                                                                                                                                                                                                                                                                                                                                |                                                                                       |    |   |   |   |   |   |   |   |
| December      31, 2008:                     |   |                                                                |       |   |                                                                                                                                                                                                                                                                                                                                                |                                                                                       |    |   |   |   |   |   |   |   |
| Municipal      securities                   |   | $                                                                   | 16,818,776 |   |                                                                                                                                                                                                                                                                                                                                                | $                                                                                          | 662,332 |   |   | $ | 813,565 |   |   | $ | 63,183 |   |   | $ | 17,632,341 |   |   | $ | 725,515 |   |
| Mortgage-backed      securities             |   |                                                                | 12,771,403 |   |                                                                                                                                                                                                                                                                                                                                                |                                                                                       | 171,776 |   |   |   | — |   |   |   | — |   |   |   | 12,771,403 |   |   |   | 171,776 |   |
|                                        |   |                                                                |       |   |                                                                                                                                                                                                                                                                                                                                                |                                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | $                                                                   | 29,590,179 |   |                                                                                                                                                                                                                                                                                                                                                | $                                                                                          | 834,108 |   |   | $ | 813,565 |   |   | $ | 63,183 |   |   | $ | 30,403,744 |   |   | $ | 897,291 |   |
|                                        |   |                                                                |       |   |                                                                                                                                                                                                                                                                                                                                                |                                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2007:                     |   |                                                                |       |   |                                                                                                                                                                                                                                                                                                                                                |                                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB      and FHLMC  agency notes |   | $                                                                   | —    |   |                                                                                                                                                                                                                                                                                                                                                | $                                                                                          | — |   |   | $ | 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 |   |   |   | 51,963,289 |   |   |   | 510,052 |   |
|                                        |   |                                                                |       |   |                                                                                                                                                                                                                                                                                                                                                |                                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | $                                                                   | 13,371,252 |   |                                                                                                                                                                                                                                                                                                                                                | $                                                                                          | 64,347  |   |   | $ | 53,242,530 |   |   | $ | 543,498 |   |   | $ | 66,613,782 |   |   | $ | 607,845 |   |

----

|                                        |   |                Amortized |        |   |            Fair  |   |
|---------------------------------------------|--------|-----------------------------------------------------------------------|-------------|--------|-------------------------------------------|--------|
|                                        |   |            Cost                              |        |   |            Value |   |
|                                        |   |                                                                  |        |   |                                      |   |
| Due      in one year or less                |   | $                                                                     | —     |   |                                      | $      | — |   |
| Due      after one year through five years  |   |                                                                  | 9,501,704   |   |                                      |   | 9,614,215 |   |
| Due      after five years through ten years |   |                                                                  | 37,658,437  |   |                                      |   | 38,930,080 |   |
| Due      after ten years                    |   |                                                                  | 152,465,088 |   |                                      |   | 154,766,294 |   |
|                                        |   |                                                                  |        |   |                                      |   |   |   |
|                                        |   | $                                                                     | 199,625,229 |   |                                      | $      | 203,310,589 |   |

----

|                                |   | 2008   |      |   | 2007   |   |
|-------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                |   |   |      |   |   |   |
| Other      investments-securities   |   | $      | 7,104,601 |   |   | $      | 5,599,965 |   |
| Other      investments-partnerships |   |   | 883,268   |   |   |   | 1,215,875 |   |
|                                |   |   |      |   |   |   |   |   |
|                                |   | $      | 7,987,869 |   |   | $      | 6,815,840 |   |

----

|                                         |   | 2008   |        |   | 2007   |   |
|----------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                         |   |   |        |   |   |   |
| Commercial,      financial, and agricultural |   | $      | 44,290,030  |   |   | $      | 42,718,370 |   |
| Real      estate - construction              |   |   | 328,673,278 |   |   |   | 414,737,975 |   |
| Real      estate - mortgage                  |   |   | 243,876,855 |   |   |   | 296,213,418 |   |
| Consumer                                     |   |   | 6,533,643   |   |   |   | 6,111,974 |   |
| Other                                        |   |   | 1,985,873   |   |   |   | 3,006,024 |   |
| Total                                        |   |   | 625,359,679 |   |   |   | 762,787,761 |   |
| Unearned      income                         |   |   | (881,436    | )      |   |   | (1,356,800 | ) |
| Allowance      for loan losses               |   |   | (36,389,744 | )      |   |   | (18,309,279 | ) |
|                                         |   |   |        |   |   |   |   |   |
| Net      loans                               |   | $      | 588,088,499 |   |   | $      | 743,121,682 |   |

|                                                         |   | 2008   |        |   | 2007   |   |
|--------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                         |   |   |        |   |   |   |
| Impaired      loans with a specific valuation allowance      |   | $      | 114,697,079 |   |   | $      | 36,431,688 |   |
| Impaired      loans without a specific valuation allowance   |   |   | 50,792,628  |   |   |   | 76,730,076 |   |
|                                                         |   |   |        |   |   |   |   |   |
| Total      impaired loans                                    |   | $      | 165,489,707 |   |   | $      | 113,161,764 |   |
|                                                         |   |   |        |   |   |   |   |   |
| Related      allowance on impaired loans                     |   | $      | 21,226,107  |   |   | $      | 8,635,084 |   |
| Total      nonaccrual loans                                  |   |   | 155,520,915 |   |   |   | 111,146,557 |   |
| Total      loans past due 90 days or more and still accruing |   |   | 890,781     |   |   |   | 6,513,000 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2008   |        |   | 2007   |   |       | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |        |   |   |   |       |   |   |
| Average      monthly balance of impaired loans (basedon month-end      balances)                                                                    |   | $      | 131,958,981 |   |   | $      | 52,233,405 |   |   | $ | 7,597,033 |   |
| Interest      income recognized on impaired loans                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 1,751,131   |   |   |   | 5,118,250  |   |   |   | 1,676,649 |   |
| Interest      income recognized on the cash basis onimpaired      loans                                                                             |   |   | 1,751,131   |   |   |   | 5,118,250  |   |   |   | 1,676,649 |   |

----

|                              |   | 2008   |        |   | 2007   |   |       | 2006   |   |
|-----------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
|                              |   |   |        |   |   |   |       |   |   |
| Balance      at beginning of year |   | $      | 18,309,279  |   |   | $      | 13,590,000 |   |   | $ | 11,522,910 |   |
|                              |   |   |        |   |   |   |       |   |   |   |   |   |
| Charge-offs                       |   |   | (51,215,611 | )      |   |   | (2,340,470 | )      |   |   | (264,326 | ) |
| Recoveries                        |   |   | 165,676     |   |   |   | 192,149    |   |   |   | 35,146 |   |
| Net      (charge-offs) recoveries |   |   | (51,049,935 | )      |   |   | (2,148,321 | )      |   |   | (229,180 | ) |
| Provision      for loan losses    |   |   | 69,130,400  |   |   |   | 6,867,600  |   |   |   | 2,296,270 |   |
|                              |   |   |        |   |   |   |       |   |   |   |   |   |
| Balance      at end of year       |   | $      | 36,389,744  |   |   | $      | 18,309,279 |   |   | $ | 13,590,000 |   |

|                             |   | 2008   |       |   | 2007   |   |
|----------------------------------|--------|--------|------------|--------|--------|--------|
|                             |   |   |       |   |   |   |
| Land                             |   | $      | 6,940,840  |   |   | $      | 4,993,070 |   |
| Land      improvements           |   |   | 1,038,013  |   |   |   | 895,508 |   |
| Building                         |   |   | 14,462,303 |   |   |   | 13,983,175 |   |
| Furniture      and equipment     |   |   | 5,729,713  |   |   |   | 5,378,314 |   |
| Automobiles                      |   |   | 628,927    |   |   |   | 605,010 |   |
| Construction-in-progress         |   |   | 4,766,469  |   |   |   | 2,857,300 |   |
|                             |   |   | 33,566,265 |   |   |   | 28,712,377 |   |
| Accumulated      depreciation    |   |   | (8,698,708 | )      |   |   | (7,616,969 | ) |
|                             |   |   |       |   |   |   |   |   |
| Premises      and equipment, net |   | $      | 24,867,557 |   |   | $      | 21,095,408 |   |

----

|     Year Ending December      31, |                                                                                                                                                                                  |   |   |        |
|--------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|
|           2009               |                                                                                                                                                                                  |   | $      | 302,053,155 |   |
|           2010               |                                                                                                                                                                                  |   |   | 212,093,963 |   |
|           2011               |                                                                                                                                                                                  |   |   | 91,571,923  |   |
|           2012               |                                                                                                                                                                                  |   |   | 38,580,432  |   |
|                                             | 2013............................................................................. |   |   |        | 10,989,051 |   |
|     2014                     |                                                                                                                                                                                  |   |   | 1,476       |   |
|                                             |                                                                                                                                                                                  |   |   |        |   |   |
|                                             |                                                                                                                                                                                  |   |   | $           | 655,290,000 |   |

----

|                                                                                                                                                                                                                                                 |   | 2008                                                   2007 |       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|
| Long-term      FHLB advances, with varying maturities from March 2010 through December      2014, with interest rates at variable base or fixed rates between 1.53% to      6.18%, secured by real estate mortgage loans and pledged      securities |   | $                                                                                                                                                                                                                                                                                            | 50,000,000 |   |   | $ | 55,000,000 |   |
|                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                         |       |   |   |   |   |   |   |
| 2002      Long-term subordinated debentures; interest rate prime plus      0.5%,  30-year life with a call option of 5 years, subject to      regulatory approval                                                                          |   |                                                                                                                                                                                                                                                                                         | 10,310,000 |   |   |   | 10,310,000 |   |
|                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                         |       |   |   |   |   |   |   |
| 2006      Long-term subordinated debentures; interest rate at three month LIBOR plus      1.55%, 30-year life with a call option of 5 years, subject to regulatory      approval                                                                     |   |                                                                                                                                                                                                                                                                                         | 20,619,000 |   |   |   | 20,619,000 |   |
|                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                         |       |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                 |   | $                                                                                                                                                                                                                                                                                            | 80,929,000 |   |   | $ | 85,929,000 |   |

----

| Year Ending December 31, |   |   |       |
|--------------------------|--------|--------|------------|
| 2009                     |   | $      | —    |   |
| 2010                     |   |   | 5,000,000  |   |
| 2011                     |   |   | 5,000,000  |   |
| 2012                     |   |   | 20,000,000 |   |
| 2013                     |   |   | —    |   |
| Thereafter               |   |   | 50,929,000 |   |
|                     |   |   |       |   |
|                     |   | $      | 80,929,000 |   |

----

----

|                             |   |                   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, 2008:         |   |                                                                                 |   |   |                                                                                                                                                                                                                                                                                     |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Total      CapitalConsolidated   |   | $                                                                                    | 59,087 |   |                                                                                                                                                                                                                                                                                     |   | 7.83   | %                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 60,347 |   |   |   | 8.00 | % |   |   | N/A |   |   |   | N/A |   |
| Florida Community    Bank        |   |                                                                                 | 57,275 |   |                                                                                                                                                                                                                                                                                     |   | 7.60   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 60,292 |   |   |   | 8.00 |   |   | $ | 75,365 |   |   |   | 10.00 | % |
| Tier      1 CapitalConsolidated  |   |                                                                                 | 34,319 |   |                                                                                                                                                                                                                                                                                     |   | 4.55   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 30,173 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Florida Community      Bank      |   |                                                                                 | 47,521 |   |                                                                                                                                                                                                                                                                                     |   | 6.31   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 30,146 |   |   |   | 4.00 |   |   |   | 45,219 |   |   |   | 6.00 |   |
| Tier      1 LeverageConsolidated |   |                                                                                 | 34,319 |   |                                                                                                                                                                                                                                                                                     |   | 3.45   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 40,849 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Florida Community      Bank      |   |                                                                                 | 47,521 |   |                                                                                                                                                                                                                                                                                     |   | 4.78   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 39,740 |   |   |   | 4.00 |   |   |   | 49,674 |   |   |   | 5.00 |   |
|                             |   |                                                                                 |   |   |                                                                                                                                                                                                                                                                                     |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|   |                     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      Community Bank      | 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      |

| 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                                                                                                                                                                                    |   |                                                                               | 248,564 |   |                                                      | $      | 9.82   |                                                                                                    |   |   | 63,485 |   |
| Equity      Compensation Plans Not Approved by Shareholders                                                                                                                                                                                |   |                                                                               | — |   |                                                      |   | 0.00   |                                                                                                    |   |   | — |   |
|                                                                                                                                                                                                                                       |   |                                                                               | 248,564 |   |                                                      | $      | 9.82   |                                                                                                    |   |   | 63,485 |   |

----

|                                                      |   | Options |    |   |            Weighted           Average             Exercise           Price |   |
|-----------------------------------------------------------|--------|---------|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                      |   |    |    |   |                                                                                                                                                                                |   |
| Outstanding      as of December 31, 2007                  |   |    | 232,522 |   |                                                                                                                                                                                | $      | 10.19 |   |
| Granted                                                   |   |    | 25,000  |   |                                                                                                                                                                                |   | 5.00 |   |
| Exercised                                                 |   |    | 8,956   |   |                                                                                                                                                                                |   | 6.03 |   |
| Cancelled/Forfeited                                       |   |    | 2       |   |                                                                                                                                                                                |   | 6.03 |   |
|                                                      |   |    |    |   |                                                                                                                                                                                |   |   |   |
| Outstanding      as of December 31, 2008                  |   |    | 248,564 |   |                                                                                                                                                                                |   | 9.82 |   |
|                                                      |   |    |    |   |                                                                                                                                                                                |   |   |   |
| Fully      vested and exercisable as of December 31, 2008 |   |    | 218,092 |   |                                                                                                                                                                                |   | 10.17 |   |

|                                                           |   | 2008   |    |   |            2007                                        2006 |   |    |   |
|----------------------------------------------------------------|--------|--------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|
| Weighted      average grant date fair value of options granted |   | $      | 1.31    |   |                                                                                                                                                                                                                                                      | $      | — |   |   | $ | — |   |
| Total      intrinsic value of options exercised                |   |   | — |   |                                                                                                                                                                                                                                                      |   | — |   |   |   | — |   |
| Total      fair value of options vested                        |   |   | 85,829  |   |                                                                                                                                                                                                                                                      |   | 518,854 |   |   |   | 844,484 |   |

|                                           |   | Nonvested      Options |    |   | WeightedAverageFair Value |   |
|------------------------------------------------|--------|------------------------|---------|--------|---------------------------|--------|
|                                           |   |                   |    |   |                      |   |
| Nonvested      options as of December 31, 2007 |   |                   | 25,667  |   |                      | $      | 3.00 |   |
| Granted                                        |   |                   | 25,000  |   |                      |   | 1.31 |   |
| Vested                                         |   |                   | 20,195  |   |                      |   | 2.20 |   |
| Cancelled,      forfeited or expired           |   |                   | — |   |                      |   | 0.00 |   |
|                                           |   |                   |    |   |                      |   |   |   |
| Nonvested      options as of December 31, 2008 |   |                   | 30,472  |   |                      |   | 2.14 |   |

----

|                                                        |   |                             As of December 31, 2008 |    |
|-------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                        |   | TotalOptions          Outstanding                                                                                                             |    |   | Options      Fully Vestedand      Expected     to      Vest |   |   | Options      FullyVested      andExercisable |   |
|                                                        |   |                                                                                                                                                              |    |   |   |   |   |   |   |
| Number                                                      |   |                                                                                                                                                              | 248,564 |   |   |   | 248,564 |   |   |   | 218,092 |   |
| Weighted      average exercise price                        |   | $                                                                                                                                                                 | 9.82    |   |   | $ | 9.82 |   |   | $ | 10.17 |   |
| Aggregate      intrinsic value (in thousands)               |   |                                                                                                                                                              | — |   |   |   | — |   |   |   | — |   |
| Weighted      average remaining contractual life (in years) |   |                                                                                                                                                              | 5.03    |   |   |   | 5.03 |   |   |   | 4.42 |   |

|                                                                                                                                                                                                                                           2008 |   |   |                     2007                                        2006 |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |                                                                                                                                                                                                                                                                                                                 |   |   |   |   |
| Non-performing      loan expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $      | 3,064                                                                                                                                                                                                                                                                                                                |   |   | $ | 409 |   |   | $ | 149 |   |
| Examination      and assessment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 1,495                                                                                                                                                                                                                                                                                                                |   |   |   | 740 |   |   |   | 252 |   |
| Professional      fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 790                                                                                                                                                                                                                                                                                                                  |   |   |   | 639 |   |   |   | 461 |   |

----

|     |   | 2008   |       |   | 2007   |   |
|----------|--------|--------|------------|--------|--------|--------|
| Current: |   |   |       |   |   |   |
| Federal  |   | $      | 28,087,572 |   |   | $      | 182,446 |   |
| State    |   |   | 1,036,425  |   |   |   | 36,426 |   |

|                                     |   | 2008   |       |   | 2007   |   |       |
|------------------------------------------|--------|--------|------------|--------|--------|--------|------------|
|                                     |   |   |       |   |   |
| Deferred      tax asset:                 |   |   |       |   |   |
| Federal                                  |   | $      | 19,196,141 |   |   | $      | 12,003,921 |   |
| State                                    |   |   | 6,792,789  |   |   |   | 2,000,886  |   |
| Total deferred income tax      asset     |   |   | 25,988,930 |   |   |   | 14,004,807 |   |
|                                     |   |   |       |   |   |   |       |   |   |
| Deferred      tax liability:             |   |   |       |   |   |   |       |   |   |
| Federal                                  |   |   | (283,902   | )      |   |   | (286,085   | ) |
| State                                    |   |   | (47,317    | )      |   |   | (47,681    | ) |
| Total      deferred income tax liability |   |   | (331,219   | )      |   |   | (333,766   | ) |
|                                     |   |   |       |   |   |   |       |   |   |
| Net      deferred tax asset              |   | $      | 25,657,711 |   |   | $      | 13,671,041 |   |

|                                       |   | 2008   |       |   | 2007   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                       |   |   |       |   |   |   |
| Allowance      for loan losses             |   | $      | 14,010,061 |   |   | $      | 7,049,072 |   |
| Nonaccrual      loan interest income       |   |   | 4,068,340  |   |   |   | 6,140,905 |   |
| Net      operating loss carryforward       |   |   | 3,593,432  |   |   |   | — |   |
| Write-down      of other real estate owned |   |   | 3,703,534  |   |   |   | 34,769 |   |
| Deferred      loan fees                    |   |   | 339,352    |   |   |   | 521,899 |   |
| Accrued      sick time                     |   |   | 150,512    |   |   |   | 137,223 |   |
| Depreciation                               |   |   | (331,219   | )      |   |   | (333,766 | ) |
| Other                                      |   |   | 123,699    |   |   |   | 120,939 |   |
|                                       |   |   |       |   |   |   |   |   |
| Net      deferred tax asset                |   | $      | 25,657,711 |   |   | $      | 13,671,041 |   |

----

|                                                                                                                                                                                                                                                   2008 |   |   | 2007                      2006 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------|--------|
| Current                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |                                                                                                           |   |   |   |   |
| Federal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | (21,907,673                                                                                                    | )      |   | $ | 11,665,883 |   |   | $ | 13,044,737 |   |
| State                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | —                                                                                                        |   |   |   | 1,993,381 |   |   |   | 2,164,855 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Deferred                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |                                                                                                           |   |   |   |   |   |   |   |   |   |   |
| Federal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (7,192,220                                                                                                     | )      |   |   | (6,210,437 | ) |   |   | (510,062 | ) |
| State                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (4,791,903                                                                                                     | )      |   |   | (1,035,136 | ) |   |   | (85,181 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |                                                                                                           |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $      | (33,891,796                                                                                                    | )      |   | $ | 6,413,691 |   |   | $ | 14,614,349 |   |

|                                                |   |                           2008 |        |   |                        2007 |   |   |                      2006 |   |
|-----------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------|-------------|--------|------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------|--------|
|                                                |   |                                                                                                                               |        |   |                                                                                                             |   |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Federal      income tax at statutoryrates           |   | $                                                                                                                                  | (30,515,266 | )      |                                                                                                             |   | 35.0   | %                                                                                                    |   | $ | 6,063,019 |   |   |   | 35.0 | % |   | $ | 13,216,146 |   |   |   | 35.0 | % |
| Add      (deduct):                                  |   |                                                                                                                               |        |   |                                                                                                             |   |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt      income                              |   |                                                                                                                               | (318,942    | )      |                                                                                                             |   | 0.4    |                                                                                                 |   |   | (271,382 | ) |   |   | (1.6 | ) |   |   | (86,403 | ) |   |   | (0.2 | ) |
| State      income tax, net offederal tax    benefit |   |                                                                                                                               | (3,114,972  | )      |                                                                                                             |   | 3.6    |                                                                                                 |   |   | 620,110 |   |   |   | 3.6 |   |   |   | 1,351,788 |   |   |   | 3.6 |   |
| Other                                               |   |                                                                                                                               | 57,384      |   |                                                                                                             |   | (0.1   | )                                                                                                    |   |   | 1,944 |   |   |   | — |   |   |   | 132,818 |   |   |   | 0.3 |   |
|                                                |   |                                                                                                                               |        |   |                                                                                                             |   |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | $                                                                                                                                  | 33,891,796  |   |                                                                                                             |   | 38.9   | %                                                                                                    |   | $ | 6,413,691 |   |   |   | 37.0 | % |   | $ | 14,614,349 |   |   |   | 38.7 | % |

----

|                           |   | 2008   |    |   | 2007   |   |   | 2006   |   |
|--------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                           |   |   |    |   |   |   |   |   |   |
| Service      cost (benefit)    |   | $      | — |   |   | $      | (3,212 | )      |   | $ | (315 | ) |
| Interest      cost             |   |   | 16,615  |   |   |   | 20,205 |   |   |   | 23,488 |   |
|                           |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      periodic pension cost |   | $      | 16,615  |   |   | $      | 16,993 |   |   | $ | 23,173 |   |

|                                                  |   | 2008   |    |   | 2007   |   |
|-------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                  |   |   |    |   |   |   |
| Present      value of benefit obligation:             |   |   |    |   |   |   |
| Vested                                                |   | $      | 166,491 |   |   | $      | 208,358 |   |
| Non-vested                                            |   |   | — |   |   |   | — |   |
|                                                  |   |   |    |   |   |   |   |   |
| Accumulated      benefit obligation/pension liability |   | $      | 166,491 |   |   | $      | 208,358 |   |

| Year Ending December 31,             |     |
|--------------------------------------|----------|
| 2009                                 | $58,482  |
| 2010                                 | 39,351   |
| 2011                                 | 21,750   |
| 2012                                 | 21,750   |
| 2013                                 | 21,750   |
| 2014      – 2016               | 47,125   |
|                                 |     |
| Total      expected benefit payments | $210,208 |

----

|                            |   |                Contract or                Notional Amount |       |
|---------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                            |   | 2008                                                                                                                                                     |       |   | 2007 |   |
|                            |   |                                                                                                                                                     |       |   |   |   |
| Loan      commitments           |   | $                                                                                                                                                        | 48,190,000 |   |   | $ | 105,465,000 |   |
| Standby      letters of credit  |   |                                                                                                                                                     | 1,471,000  |   |   |   | 1,879,000 |   |
|                            |   |                                                                                                                                                     |       |   |   |   |   |   |
| Total      unfunded commitments |   | $                                                                                                                                                        | 49,661,000 |   |   | $ | 107,344,000 |   |

----

----

| Year Ending December 31,          |        |
|-----------------------------------|-------------|
| 2009                              | $1,095,789  |
| 2010                              | 1,111,667   |
| 2011                              | 1,110,168   |
| 2012                              | 1,113,725   |
| 2013                              | 1,148,936   |
| Thereafter                        | 8,950,492   |
|                              |        |
| Total      minimum lease payments | $14,530,777 |

|                              |   | 2008   |       |   | 2007   |   |
|-----------------------------------|--------|--------|------------|--------|--------|--------|
|                              |   |   |       |   |   |   |
| Balance      at Beginning of Year |   | $      | 4,396,525  |   |   | $      | 4,554,238 |   |
| New      loans                    |   |   | 1,553,597  |   |   |   | 1,290,355 |   |
| Repayments                        |   |   | (2,022,210 | )      |   |   | (1,448,068 | ) |
| Change      in related parties    |   |   | (2,050,527 | )      |   |   | — |   |
|                              |   |   |       |   |   |   |   |   |
| Balance      at End of Year       |   | $      | 1,877,385  |   |   | $      | 4,396,525 |   |

----

----

----

|                                 |   |               2008                                               |    |   |                2007    |   |
|--------------------------------------|--------|----------------------------------------------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------|--------|
|                                 |   |              Carrying            Amount |    |   |           Fair        Value |   |   |            Carrying        Amount |   |   |           Fair        Value |   |
|                                 |   | (in      thousands)                                                                                      |    |   | (in      thousands)                                                 |   |
| Financial      Assets                |   |                                                                                                     |    |   |                                                                |   |   |   |   |   |   |   |
| Cash      and short-term investments |   | $                                                                                                        | 45,866  |   |                                                                | $      | 45,866 |   |   | $ | 14,729 |   |   | $ | 14,729 |   |
| Securities                           |   |                                                                                                     | 199,625 |   |                                                                |   | 203,311 |   |   |   | 135,810 |   |   |   | 136,500 |   |
| Other      investments               |   |                                                                                                     | 7,988   |   |                                                                |   | 7,988 |   |   |   | 6,816 |   |   |   | 6,816 |   |
| Loans      held-for-sale             |   |                                                                                                     | 156     |   |                                                                |   | 156 |   |   |   | — |   |   |   | — |   |
| Loans                                |   |                                                                                                     | 624,478 |   |                                                                |   | 628,562 |   |   |   | 761,431 |   |   |   | 762,783 |   |
| Accrued      interest receivable     |   |                                                                                                     | 3,511   |   |                                                                |   | 3,511 |   |   |   | 4,585 |   |   |   | 4,585 |   |
|                                 |   |                                                                                                     |    |   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Liabilities           |   |                                                                                                     |    |   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                             |   | $                                                                                                        | 845,429 |   |                                                                | $      | 863,237 |   |   | $ | 753,658 |   |   | $ | 757,853 |   |
| Accrued      interest payable        |   |                                                                                                     | 4,853   |   |                                                                |   | 4,853 |   |   |   | 3,509 |   |   |   | 3,509 |   |
| Long-term      debt                  |   |                                                                                                     | 80,929  |   |                                                                |   | 85,513 |   |   |   | 85,929 |   |   |   | 87,088 |   |
|                                 |   |                                                                                                     |    |   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Instruments           |   |                                                                                                     |    |   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Commitments      to extend credit    |   | $                                                                                                        | 48,190  |   |                                                                | $      | 482 |   |   | $ | 105,465 |   |   | $ | 1,055 |   |
| Standby      letters of credit       |   |                                                                                                     | 1,471   |   |                                                                |   | 15 |   |   |   | 1,879 |   |   |   | 20 |   |

----

|                           |   |            |        |   | Fair      Value Measurement at Report Date Using |   |
|--------------------------------|--------|-----------------|-------------|--------|--------------------------------------------------|--------|
|     ASSETS |   | Fair      Value |        |   | Quoted      Prices in Active MarketsLevel      1 |   |   | Significant      Other Observable InputsLevel      2 |   |   | Significant      Unobservable InputsLevel      3 |   |
|                           |   |            |        |   |                                             |   |   |   |   |   |   |   |
| Loans      held for sale       |   | $               | 156,231     |   |                                             | $      | — |   |   | $ | 156,231 |   |   | $ | — |   |
| Impaired      loans            |   |            | 165,489,707 |   |                                             |   | — |   |   |   | — |   |   |   | 165,489,707 |   |
| Foreclosed      real estate    |   |            | 52,005,241  |   |                                             |   | — |   |   |   | — |   |   |   | 52,005,241 |   |
| Total      Assets              |   | $               | 217,651,179 |   |                                             | $      | — |   |   | $ | 156,231 |   |   | $ | 217,494,948 |   |
|                           |   |            |        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                                           |   | 2008   |       |   | 2007   |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Assets                                                                         |   |   |       |   |   |   |
|                                                                           |   |   |       |   |   |   |
| Cash      and due from banks                                                   |   | $      | 1,051,798  |   |   | $      | 639,727 |   |
| Other      investments – securities                                      |   |   | 929,000    |   |   |   | 929,000 |   |
| Other      investments – partnerships                                    |   |   | 883,268    |   |   |   | 1,215,875 |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Loans                                                                          |   |   | —    |   |   |   | 8,500,000 |   |
| Allowance      for loan losses                                                 |   |   | —    |   |   |   | (139,600 | ) |
| Net      Loans                                                                 |   |   | —    |   |   |   | 8,360,400 |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Investment      in subsidiaries (equity method) - eliminated uponconsolidation |   |   | 73,088,535 |   |   |   | 118,447,600 |   |
| Other      assets                                                              |   |   | 60,926     |   |   |   | 133,615 |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Total      Assets                                                              |   | $      | 76,013,527 |   |   | $      | 129,726,217 |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Liabilities      and Shareholders' Equity                                      |   |   |       |   |   |   |   |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Liabilities                                                                    |   |   |       |   |   |   |   |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Subordinated      debentures                                                   |   | $      | 30,929,000 |   |   | $      | 30,929,000 |   |
| Other      liabilities                                                         |   |   | 455,465    |   |   |   | 592,180 |   |
| Total      Liabilities                                                         |   |   | 31,384,465 |   |   |   | 31,521,180 |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Total      Shareholders' Equity                                                |   |   | 44,629,062 |   |   |   | 98,205,037 |   |
|                                                                           |   |   |       |   |   |   |   |   |
| Total      Liabilities and Shareholders' Equity                                |   | $      | 76,013,527 |   |   | $      | 129,726,217 |   |

----

|                                                                                                  |   | 2008   |        |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Income                                                                                                |   |   |        |   |   |   |
| Dividends      from subsidiaries - eliminated upon consolidation                                      |   | $      | 250,000     |   |   | $      | 3,904,686 |   |
| Interest      on loans                                                                                |   |   | 311,986     |   |   |   | 715,651 |   |
| Investment      interest and other operating income                                                   |   |   | 220,084     |   |   |   | 176,311 |   |
| Total      Income                                                                                     |   |   | 782,070     |   |   |   | 4,796,648 |   |
|                                                                                                  |   |   |        |   |   |   |   |   |
| Expenses                                                                                              |   |   |        |   |   |   |   |   |
| Interest                                                                                              |   |   | 1,722,137   |   |   |   | 2,327,974 |   |
| Salaries      and employee benefits                                                                   |   |   | 75,959      |   |   |   | 70,799 |   |
| Provision      for loan losses                                                                        |   |   | (139,600    | )      |   |   | 49,600 |   |
| Other      operating expenses                                                                         |   |   | 126,638     |   |   |   | 262,386 |   |
| Total      Expenses                                                                                   |   |   | 1,785,134   |   |   |   | 2,710,759 |   |
|                                                                                                  |   |   |        |   |   |   |   |   |
| Income      (loss) before income taxes and equity in undistributed earnings (loss) of      subsidiary |   |   | (1,003,064  | )      |   |   | 2,085,889 |   |
| Income      tax benefit                                                                               |   |   | 486,336     |   |   |   | 701,600 |   |
|                                                                                                  |   |   |        |   |   |   |   |   |
| Income      (loss) before equity in undistributed earnings (loss) of      subsidiary                  |   |   | (516,728    | )      |   |   |  2,787,489 |   |
| Equity      in undistributed earnings (loss) of subsidiary                                            |   |   | (52,777,948 | )      |   |   | 8,121,730 |   |
|                                                                                                  |   |   |        |   |   |   |   |   |
| Net      Income (Loss)                                                                                |   | $      | (53,294,676 | )      |   | $      | 10,909,219 |   |

----

|                                                                                                                                |   | 2008   |        |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Operating      Activities                                                                                                           |   |   |        |   |   |   |
| Net      income (loss)                                                                                                              |   | $      | (53,294,676 | )      |   | $      | 10,909,219 |   |
| Adjustments      to reconcile net income (loss) to net cash provided by operating      activities:                                  |   |   |        |   |   |   |   |   |
| Provision      for loan losses                                                                                                      |   |   | (139,600    | )      |   |   | 49,600 |   |
| Deferred      tax benefit                                                                                                           |   |   | (21,607     | )      |   |   | (53,746 | ) |
| Equity      in undistributed income (loss) of subsidiary                                                                            |   |   | 52,777,948  |   |   |   | (8,121,730 | ) |
| (Decrease)      increase in accrued interest receivable                                                                             |   |   | 51,603      |   |   |   | (2,980 | ) |
| (Increase)      decrease in income tax receivable........................                               |   |   | (213,104    | )      |   |   | 26,902 |   |
| Increase      (decrease) in accrued interest payable                                                                                |   |   | 128,671     |   |   |   | (2,349 | ) |
| Other,      net                                                                                                                     |   |   | (31,164     | )      |   |   | 3,027 |   |
| Net      Cash (Used) Provided By Operating Activities                                                                               |   |   | (741,929    | )      |   |   | 2,807,943 |   |
|                                                                                                                                |   |   |        |   |   |   |   |   |
| Investing      Activities                                                                                                           |   |   |        |   |   |   |   |   |
| Investment      in subsidiary bank                                                                                                  |   |   | (7,400,000  | )      |   |   | — |   |
| Net      (increase) decrease in loans                                                                                               |   |   | 8,500,000   |   |   |   | (2,500,000 | ) |
| Proceeds      from other investments                                                                                                |   |   | —     |   |   |   | 48,000 |   |
| Net      Cash Provided (Used) By Investing Activities                                                                               |   |   | 1,100,000   |   |   |   | (2,452,000 | ) |
|                                                                                                                                |   |   |        |   |   |   |   |   |
| Financing      Activities                                                                                                           |   |   |        |   |   |   |   |   |
| Issuance      of common stock.............................................. |   |   | 54,000      |   |   |   | — |   |
| Costs      associated with the issuance of stock split                                                                              |   |   | —     |   |   |   | (12,102 | ) |
| Cash      dividends                                                                                                                 |   |   | —     |   |   |   | (3,295,693 | ) |
| Net      Cash Provided (Used) By Financing Activities                                                                               |   |   | 54,000      |   |   |   | (3,307,795 | ) |
|                                                                                                                                |   |   |        |   |   |   |   |   |
| Net      Increase (Decrease) In Cash and Cash Equivalents                                                                           |   |   | 412,071     |   |   |   | (2,951,852 | ) |
|                                                                                                                                |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents at Beginning of Year                                                                                 |   |   | 639,727     |   |   |   | 3,591,579 |   |
|                                                                                                                                |   |   |        |   |   |   |   |   |
| Cash      and Cash Equivalents at End of Year                                                                                       |   | $      | 1,051,798   |   |   | $      | 639,727 |   |
|                                                                                                                                |   |   |        |   |   |   |   |   |
|                                                                                                                                |   |   |        |   |   |   |   |   |
| Cash      Paid During the Year For:                                                                                                 |   |   |        |   |   |   |   |   |
| Interest                                                                                                                            |   | $      | 1,593,466   |   |   | $      | 2,330,323 |   |
| Taxes                                                                                                                               |   |   | 7,000,000   |   |   |   | 13,468,880 |   |

----

|                                                                   |   | First             Quarter |   |   | Second            Quarter |   |    | Third             Quarter |   |   | Fourth               Quarter |   |   |               Total |    |
|------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|---------|--------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------|---------|
|                                                                   |   | (In      Thousands)                                          |   |
| 2008:                                                                  |   |                                                         |   |   |                                                    |   |    |                                                         |   |   |                                                                      |   |   |                                                        |    |
| Total      interest income                                             |   | $                                                            | 14,281 |   |                                                    | $      | 12,686  |                                                         |   | $      | 12,515                                                                    |   |   | $                                                           | 7,753   |   |   | $ | 47,235 |   |
| Total      interest expense                                            |   |                                                         | 8,403  |   |                                                    |   | 7,582   |                                                         |   |   | 8,222                                                                     |   |   |                                                        | 8,963   |   |   |   | 33,170 |   |
| Provision      for loan losses                                         |   |                                                         | 906    |   |                                                    |   | 9,606   |                                                         |   |   | 29,290                                                                    |   |   |                                                        | 29,328  |   |   |   | 69,130 |   |
| Net interest income (expense)      afterprovision      for loan losses |   |                                                         | 4,972  |   |                                                    |   | (4,502  | )                                                            |   |   | (24,997                                                                   | )      |   |                                                        | (30,538 | ) |   |   | (55,065 | ) |
| Other      noninterest income                                          |   |                                                         | 596    |   |                                                    |   | 612     |                                                         |   |   | 506                                                                       |   |   |                                                        | 572     |   |   |   | 2,286 |   |
| Other      noninterest expense                                         |   |                                                         | 5,211  |   |                                                    |   | 5,942   |                                                         |   |   | 6,505                                                                     |   |   |                                                        | 16,750  |   |   |   | 34,408 |   |
| Income      tax expense                                                |   |                                                         | 62     |   |                                                    |   | (3,859  | )                                                            |   |   | (12,023                                                                   | )      |   |                                                        | (18,072 | ) |   |   | (33,892 | ) |
| Net      income (loss)                                                 |   |                                                         | 295    |   |                                                    |   | (5,973  | )                                                            |   |   | (18,973                                                                   | )      |   |                                                        | (28,644 | ) |   |   | (53,295 | ) |
| Per      common share                                                  |   |                                                         |   |   |                                                    |   |    |                                                         |   |   |                                                                      |   |   |                                                        |    |   |   |   |   |   |
| Basic      earnings                                                    |   |                                                         | 0.04   |   |                                                    |   | (0.75   | )                                                            |   |   | (2.40                                                                     | )      |   |                                                        | (3.62   | ) |   |   | (6.73 | ) |
| Diluted      earnings                                                  |   |                                                         | 0.04   |   |                                                    |   | (0.75   | )                                                            |   |   | (2.40                                                                     | )      |   |                                                        | (3.59   | ) |   |   | (6.70 | ) |
|                                                                   |   |                                                         |   |   |                                                    |   |    |                                                         |   |   |                                                                      |   |   |                                                        |    |   |   |   |   |   |
| 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 after provision for loan 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 (loss)                                                 |   |                                                         | 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 forloan 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 |   |

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

----

| 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).                                                                        |   |

----

| Exhibit No. |   | Exhibit | Page                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-------------|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|        | 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). |   |

|   | 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 of Entry of Order to Cease and Desist. Dated October 17, 2008      (included as Exhibit 10.9 to the Company’s Form 8-K filed with the SEC on      November 4, 2008, and incorporated herein by reference).                                                                                                                                                   |   |   |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |
|   | 10.10  |   | Written      Agreement with the Federal Reserve Bank of Atlanta Dated February 13,      2009.                                                                                                                                                                                                                                                                                                   |   |   |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |
|   | 11     |   | Statement      re: computation of per share earnings                                                                                                                                                                                                                                                                                                                                            |   |   | 100    |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|   | 12     |   | Statement      re: computation of ratios                                                                                                                                                                                                                                                                                                                                                        |   |   | 101    |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|   | 13     |   | Annual      Report to Security Holders                                                                                                                                                                                                                                                                                                                                                          |   |   | 102    |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|   | 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.)                                                                                                                                                                                                                                                     |   |   |   |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|   | 16     |   | Letter      re: change in certifying accountant (included as Exhibit 16.1 to the      Company's Form 8-K filed with the SEC on July 1, 2009, and incorporated      herein by reference).                                                                                                                                                                                                        |   |   |   |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|   | 21     |   | Subsidiaries      of the Registrant                                                                                                                                                                                                                                                                                                                                                             |   |   | 104    |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|   | 23.1   |   | Consent      of Schauer Taylor, P.C.                                                                                                                                                                                                                                                                                                                                                            |   |   | 105    |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
|   | 24     |   | Power      of Attorney                                                                                                                                                                                                                                                                                                                                                                          |   |   | 109    |   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |

----

| Exhibit No. |   | Exhibit |                                                                                                                                                                 | Page   |   |
|-------------|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|        |   |    |                                                                                                                                                                 |   |   |
|        | 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).       |   |   | 106 |   |
|        |   |    |                                                                                                                                                                 |   |   |   |   |
|        | 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).       |   |   | 107 |   |
|        |   |    |                                                                                                                                                                 |   |   |   |   |
|        | 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 |   |   | 108 |   |
|        |   |    |                                                                                                                                                                 |   |   |   |   |
|        | 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 |   |   | 108 |   |

----

|   |                |   |   | FLORIDA      COMMUNITY BANKS, INC.                                                     |
|--------|---------------------|--------|--------|----------------------------------------------------------------------------------------|
|   |                |   |   |                                                                                   |
| Date:  | April      15, 2009 |   | By:    |   /s/ Stephen L.      Price                                                  |
|   |                |   |   | Stephen      L. Price                                                                  |
|   |                |   |   | Principal      Executive Officer, Chairman, President and Chief Executive      Officer |
|   |                |   |   |                                                                                   |
|   |                |   |   |                                                                                   |
| Date:  | April      15, 2009 |   | By:    |   /s/ Guy W.    Harris                                                       |
|   |                |   |   | Guy      W. Harris                                                                     |
|   |                |   |   | Principal      Financial Officer and Chief FinancialOfficer                            |

----

| Exhibit Number |   | Description of      Exhibit                                                                           |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|           | 10.10  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Written      Agreement with Federal Reserve Bank of Atlanta |
|           | 11     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Statement      re: Computation of Per Share Earnings |
|           | 12     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Statement      re: Computation of Ratios |
|           | 13     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Annual      Report to Security Holders |
|           | 21     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Subsidiaries      of the Registrant |
|           | 23.1   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Consent      of Schauer Taylor, P.C. |
|           | 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. |

----