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| California             | 20-4797048      |
|------------------------|-----------------|
| State of incorporation | I.R.S. Employer |

| 14245 Pipeline Avenue                  |     |
|----------------------------------------|----------|
| Chino, California                      | 91710    |
| Address of Principal Executive Offices | Zip Code |

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|                                                                                                    |   | Page   |
|---------------------------------------------------------------------------------------------------------|--------|--------|
| Part I – Financial Information                                                                    |   | 1      |
| Item 1. Financial Statements                                                                            |   | 1      |
| Consolidated Balance Sheets                                                                             |   | 1      |
| Consolidated Statements of Income                                                                       |   | 2      |
| Consolidated Statements of Changes in Stockholders’ Equity                                        |   | 3      |
| Consolidated Statements of Cash Flows                                                                   |   | 4      |
| Notes to the Consolidated Financial Statements                                                          |   | 5      |
|                                                                                                    |   |   |
| Item 2. Management’s Discussion & Analysis of Financial Condition & Results of Operations |   | 19     |
| Item 3. Qualitative & Quantitative Disclosures about Market Risk                                    |   | 39     |
| Item 4. Controls and Procedures                                                                         |   | 39     |
|                                                                                                    |   |   |
| Part II – Other Information                                                                       |   | 40     |
| Item 1 – Legal Proceedings                                                                        |   | 40     |
| Item 1A. – Risk Factors                                                                           |   | 40     |
| Item 2 – Unregistered Sale of Equity Securities and Use of Proceeds                               |   | 40     |
| Item 3 – Defaults upon Senior Securities                                                          |   | 40     |
| Item 4 – (Removed and Reserved)                                                                   |   | 40     |
| Item 5 – Other Information                                                                        |   | 40     |
| Item 6 – Exhibits                                                                                 |   | 40     |
|                                                                                                    |   |   |
| Signatures                                                                                              |   | 41     |

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|                                                                                                                                           |   | June 30, 2011 |        |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|-------------------|--------|
|                                                                                                                                           |   | (unaudited)   |        |   | (audited)         |   |
| ASSETS:                                                                                                                                        |   |          |        |   |              |   |
| Cash and due from banks                                                                                                                        |   | $             | 4,268,706   |   |              | $      | 3,041,114 |   |
| Federal funds sold                                                                                                                             |   |          | 5,296,122   |   |              |   | 4,660,527 |   |
| Total cash and cash equivalents                                                                                                                |   |          | 9,564,828   |   |              |   | 7,701,641 |   |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| Interest-bearing deposits in other banks                                                                                                       |   |          | 12,586,252  |   |              |   | 19,378,252 |   |
| Investment securities available for sale                                                                                                       |   |          | 3,500,663   |   |              |   | 4,706,994 |   |
| Investment securities held to maturity (fair value approximates $11,366,000 at June 30, 2011 and $12,302,000 at December 31, 2010)             |   |          | 11,101,785  |   |              |   | 12,153,915 |   |
| Total investments                                                                                                                              |   |          | 27,188,700  |   |              |   | 36,239,161 |   |
| Loans                                                                                                                                          |   |          |        |   |              |   |   |   |
| Real estate                                                                                                                                    |   |          | 49,471,601  |   |              |   | 51,459,881 |   |
| Commercial                                                                                                                                     |   |          | 8,328,064   |   |              |   | 8,411,117 |   |
| Installment                                                                                                                                    |   |          | 694,199     |   |              |   | 649,455 |   |
| Gross loans                                                                                                                                    |   |          | 58,493,864  |   |              |   | 60,520,453 |   |
| Unearned fees and discounts                                                                                                                    |   |          | (28,196     | )      |              |   | (27,204 | ) |
| Loans net of unearned fees and discount                                                                                                        |   |          | 58,465,668  |   |              |   | 60,493,249 |   |
| Allowance for loan losses                                                                                                                      |   |          | (1,462,136  | )      |              |   | (1,442,153 | ) |
| Net loans                                                                                                                                      |   |          | 57,003,532  |   |              |   | 59,051,096 |   |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| Accrued interest receivable                                                                                                                    |   |          | 284,183     |   |              |   | 382,943 |   |
| Restricted stock                                                                                                                               |   |          | 667,700     |   |              |   | 626,250 |   |
| Fixed assets, net                                                                                                                              |   |          | 6,539,840   |   |              |   | 6,342,670 |   |
| Foreclosed assets                                                                                                                              |   |          | 439,317     |   |              |   | 516,534 |   |
| Prepaid & other assets                                                                                                                     |   |          | 2,924,020   |   |              |   | 3,053,531 |   |
| Total assets                                                                                                                                   |   | $             | 104,612,120 |   |              | $      | 113,913,826 |   |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| LIABILITIES:                                                                                                                                   |   |          |        |   |              |   |   |   |
| Deposits                                                                                                                                       |   |          |        |   |              |   |   |   |
| Non-interest bearing                                                                                                                           |   | $             | 42,460,394  |   |              | $      | 41,909,584 |   |
| Interest bearing                                                                                                                               |   |          |        |   |              |   |   |   |
| NOW and money market                                                                                                                           |   |          | 30,835,817  |   |              |   | 36,241,586 |   |
| Savings                                                                                                                                        |   |          | 1,853,762   |   |              |   | 2,085,092 |   |
| Time deposits less than $100,000                                                                                                               |   |          | 5,357,048   |   |              |   | 6,377,430 |   |
| Time deposits of $100,000 or greater                                                                                                           |   |          | 13,083,091  |   |              |   | 16,385,864 |   |
| Total deposits                                                                                                                                 |   |          | 93,590,112  |   |              |   | 102,999,556 |   |
|                                                                                                                                           |   |          |        |   |              |   |   |   |
| Accrued interest payable                                                                                                                       |   |          | 76,335      |   |              |   | 104,967 |   |
| Accrued expenses & other payables                                                                                                          |   |          | 677,705     |   |              |   | 700,046 |   |
| Subordinated notes payable to subsidiary trust                                                                                                 |   |          | 3,093,000   |   |              |   | 3,093,000 |   |
| Total liabilities                                                                                                                              |   |          | 97,437,152  |   |              |   | 106,897,569 |   |
| STOCKHOLDERS' EQUITY                                                                                                                           |   |          |        |   |              |   |   |   |
| Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 748,314 shares at June 30, 2011 and at December 31, 2010. |   |          | 2,750,285   |   |              |   | 2,750,285 |   |
| Retained earnings                                                                                                                              |   |          | 4,343,568   |   |              |   | 4,190,208 |   |
| Accumulated other comprehensive income                                                                                                         |   |          | 81,115      |   |              |   | 75,764 |   |
| Total stockholders' equity                                                                                                                     |   |          | 7,174,968   |   |              |   | 7,016,257 |   |
| Total liabilities & stockholders' equity                                                                                                   |   | $             | 104,612,120 |   |              | $      | 113,913,826 |   |

----

|                                              |   | For the three months ended June 30, |      |   | For the six months ended June 30, |   |
|---------------------------------------------------|--------|-------------------------------------|-----------|--------|-----------------------------------|--------|
|                                              |   | 2011                                |      |   | 2010                              |   |   | 2011 |   |   | 2010 |   |
| Interest income                                   |   |                                |      |   |                              |   |   |   |   |   |   |   |
| Investment securities and due from banks          |   | $                                   | 152,879   |   |                              | $      | 231,798 |   |   | $ | 322,727 |   |   | $ | 400,390 |   |
| Interest on Federal funds sold                    |   |                                | 1,431     |   |                              |   | 0 |   |   |   | 4,036 |   |   |   | 0 |   |
| Interest and fee income on loans                  |   |                                | 902,996   |   |                              |   | 1,038,996 |   |   |   | 1,915,774 |   |   |   | 2,115,443 |   |
| Total interest income                             |   |                                | 1,057,306 |   |                              |   | 1,270,794 |   |   |   | 2,242,537 |   |   |   | 2,515,833 |   |
| Interest expense                                  |   |                                |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                          |   |                                | 98,829    |   |                              |   | 241,982 |   |   |   | 213,726 |   |   |   | 483,265 |   |
| Other interest expense                            |   |                                | 75        |   |                              |   | 540 |   |   |   | 75 |   |   |   | 569 |   |
| Other borrowings                                  |   |                                | 50,963    |   |                              |   | 50,963 |   |   |   | 101,925 |   |   |   | 101,925 |   |
| Total interest expense                            |   |                                | 149,867   |   |                              |   | 293,485 |   |   |   | 315,726 |   |   |   | 585,759 |   |
| Net interest income                               |   |                                | 907,439   |   |                              |   | 977,309 |   |   |   | 1,926,811 |   |   |   | 1,930,074 |   |
| Provision for loan losses                         |   |                                | 273,917   |   |                              |   | 250,667 |   |   |   | 279,439 |   |   |   | 514,352 |   |
| Net interest income after                         |   |                                |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| provision for loan losses                         |   |                                | 633,522   |   |                              |   | 726,642 |   |   |   | 1,647,372 |   |   |   | 1,415,722 |   |
| Non-interest income                               |   |                                |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts               |   |                                | 289,420   |   |                              |   | 294,500 |   |   |   | 594,076 |   |   |   | 562,140 |   |
| Gain on sale of foreclosed assets                 |   |                                | 0         |   |                              |   | 0 |   |   |   | 61,151 |   |   |   | 149 |   |
| Other miscellaneous income                        |   |                                | 8,257     |   |                              |   | 8,742 |   |   |   | 15,506 |   |   |   | 14,675 |   |
| Dividend income from restricted stock             |   |                                | 2,789     |   |                              |   | (1,679 | ) |   |   | 5,559 |   |   |   | 1,457 |   |
| Income from bank-owned life insurance             |   |                                | 17,596    |   |                              |   | 17,366 |   |   |   | 34,821 |   |   |   | 34,341 |   |
| Total non-interest income                         |   |                                | 318,062   |   |                              |   | 318,929 |   |   |   | 711,113 |   |   |   | 612,762 |   |
| General and administrative expenses               |   |                                |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                    |   |                                | 520,894   |   |                              |   | 570,428 |   |   |   | 1,108,294 |   |   |   | 1,094,450 |   |
| Occupancy and equipment                           |   |                                | 112,221   |   |                              |   | 105,622 |   |   |   | 226,802 |   |   |   | 191,470 |   |
| Data and item processing                          |   |                                | 94,213    |   |                              |   | 91,800 |   |   |   | 191,185 |   |   |   | 171,840 |   |
| Advertising and marketing                         |   |                                | 11,083    |   |                              |   | 15,063 |   |   |   | 27,236 |   |   |   | 28,881 |   |
| Legal and professional fees                       |   |                                | 131,989   |   |                              |   | 39,428 |   |   |   | 202,223 |   |   |   | 84,444 |   |
| Regulatory assessments                            |   |                                | 75,920    |   |                              |   | 53,557 |   |   |   | 151,367 |   |   |   | 105,750 |   |
| Insurance                                         |   |                                | 9,224     |   |                              |   | 9,050 |   |   |   | 19,649 |   |   |   | 17,992 |   |
| Directors' fees and expenses                      |   |                                | 21,175    |   |                              |   | 17,095 |   |   |   | 36,776 |   |   |   | 34,418 |   |
| Other expenses                                    |   |                                | 79,427    |   |                              |   | 143,074 |   |   |   | 173,742 |   |   |   | 244,798 |   |
| Total general & administrative expenses       |   |                                | 1,056,146 |   |                              |   | 1,045,117 |   |   |   | 2,137,274 |   |   |   | 1,974,043 |   |
| Income (loss) before income tax expense (benefit) |   |                                | (104,562  | )      |                              |   | 454 |   |   |   | 221,211 |   |   |   | 54,441 |   |
| Income tax expense (benefit)                      |   |                                | (54,617   | )      |                              |   | (13,738 | ) |   |   | 67,851 |   |   |   | (1,037 | ) |
| Net income (loss)                                 |   | $                                   | (49,945   | )      |                              | $      | 14,192 |   |   | $ | 153,360 |   |   | $ | 55,478 |   |
| Basic earnings (loss) per share                   |   | $                                   | (0.07     | )      |                              | $      | 0.02 |   |   | $ | 0.20 |   |   | $ | 0.08 |   |
| Diluted earnings (loss) per share                 |   | $                                   | (0.07     | )      |                              | $      | 0.02 |   |   | $ | 0.20 |   |   | $ | 0.08 |   |

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|                                                                   |   | Number of Shares |    |   | Common Stock |   |      | Retained Earnings |   |   | Accumulated Other Comprehensive Income |   |   | Total  |   |
|------------------------------------------------------------------------|--------|------------------|---------|--------|--------------|--------|-----------|-------------------|--------|--------|---------------------------------------------|--------|--------|--------|--------|
| Balance at December 31, 2009 (audited)                                 |   |             | 699,061 |   |         | $      | 2,498,664 |              |   | $      | 3,884,907                                   |   |   | $      | 83,157 |   |   | $ | 6,466,728 |   |
| Comprehensive income:                                                  |   |             |    |   |         |   |      |              |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Net income                                                             |   |             |    |   |         |   |      |              |   |   | 305,301                                     |   |   |   |   |   |   |   | 305,301 |   |
| Change in unrealized gain on securities available for sale, net of tax |   |             |    |   |         |   |      |              |   |   |                                        |   |   |   | (7,393 | ) |   |   | (7,393 | ) |
| Total comprehensive income                                             |   |             |    |   |         |   |      |              |   |   |                                        |   |   |   |   |   |   |   | 297,908 |   |
|                                                                   |   |             |    |   |         |   |      |              |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Exercise of stock options, including tax benefit                       |   |             | 82,541  |   |         |   | 714,043   |              |   |   |                                        |   |   |   |   |   |   |   | 714,043 |   |
| Stock repurchased and retired                                          |   |             | (33,288 | )      |         |   | (462,422  | )                 |   |   |                                        |   |   |   |   |   |   |   | (462,422 | ) |
| Balance at December 31, 2010 (audited)                                 |   |             | 748,314 |   |         |   | 2,750,285 |              |   |   | 4,190,208                                   |   |   |   | 75,764 |   |   |   | 7,016,257 |   |
| Comprehensive income:                                                  |   |             |    |   |         |   |      |              |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Net income                                                             |   |             |    |   |         |   |      |              |   |   | 153,360                                     |   |   |   |   |   |   |   | 153,360 |   |
| Change in unrealized gain on securities available for sale, net of tax |   |             |    |   |         |   |      |              |   |   |                                        |   |   |   | 5,351  |   |   |   | 5,351 |   |
| Total comprehensive income                                             |   |             |    |   |         |   |      |              |   |   |                                        |   |   |   |   |   |   |   | 158,711 |   |
|                                                                   |   |             |    |   |         |   |      |              |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2011 (unaudited)                                   |   |             | 748,314 |   |         | $      | 2,750,285 |              |   | $      | 4,343,568                                   |   |   | $      | 81,115 |   |   | $ | 7,174,968 |   |

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|                                                                              |   | Six Months Ended June 30, |       |
|-----------------------------------------------------------------------------------|--------|---------------------------|------------|
|                                                                              |   | 2011                      |       |   | 2010 |   |
| Cash Flows from Operating Activities                                              |   |                      |       |   |   |   |
| Net income                                                                        |   | $                         | 153,360    |   |   | $ | 55,478 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                      |       |   |   |   |   |   |
| Provision for loan losses                                                         |   |                      | 279,439    |   |   |   | 514,352 |   |
| Depreciation and amortization                                                     |   |                      | 111,360    |   |   |   | 84,737 |   |
| Net amortization of securities                                                    |   |                      | 32,771     |   |   |   | 6,272 |   |
| Amortization of deferred loan (fees) costs                                        |   |                      | 992        |   |   |   | (6,604 | ) |
| Loss on disposition of equipment                                                  |   |                      | 314        |   |   |   | 0 |   |
| Gain on sale of foreclosed assets                                                 |   |                      | (61,151    | ) |   |   | (149 | ) |
| Deferred income taxes (benefit)                                                   |   |                      | (124,082   | ) |   |   | (302,963 | ) |
| Net changes in:                                                                   |   |                      |       |   |   |   |   |   |
| Accrued interest receivable                                                       |   |                      | 98,761     |   |   |   | (26,106 | ) |
| Other assets                                                                      |   |                      | 249,852    |   |   |   | (345,648 | ) |
| Accrued interest payable                                                          |   |                      | (28,632    | ) |   |   | 33,033 |   |
| Other liabilities                                                                 |   |                      | (22,340    | ) |   |   | 69,317 |   |
| Net cash provided by operating activities                                         |   |                      | 690,644    |   |   |   | 81,719 |   |
|                                                                              |   |                      |       |   |   |   |   |   |
| Cash Flows from Investing Activities                                              |   |                      |       |   |   |   |   |   |
| Net change in interest-bearing deposits in other banks                            |   |                      | 6,792,000  |   |   |   | 6,945,350 |   |
| Activity in investment securities available for sale                              |   |                      |       |   |   |   |   |   |
| Purchases                                                                         |   |                      | 0          |   |   |   | 0 |   |
| Repayments and calls                                                              |   |                      | 1,214,376  |   |   |   | 515,421 |   |
| Activity in investment securities held to maturity                                |   |                      |       |   |   |   |   |   |
| Repayments and calls                                                              |   |                      | 1,020,405  |   |   |   | (12,048,803 | ) |
| Purchase of stock investments, restricted                                         |   |                      | (41,450    | ) |   |   | 17,200 |   |
| Loans purchased                                                                   |   |                      | 0          |   |   |   | 0 |   |
| Loan originations and principal collections, net                                  |   |                      | 1,327,816  |   |   |   | 205,788 |   |
| Proceeds from sale of foreclosed assets                                           |   |                      | 577,685    |   |   |   | 25,010 |   |
| Purchase of premises and equipment                                                |   |                      | (308,844   | ) |   |   | (755,547 | ) |
| Net cash provided (used) by investing activities                                  |   |                      | 10,581,987 |   |   |   | (5,095,581 | ) |
|                                                                              |   |                      |       |   |   |   |   |   |
| Cash Flows from Financing Activities                                              |   |                      |       |   |   |   |   |   |
| Net increase in deposits                                                          |   |                      | (9,409,444 | ) |   |   | 10,483,457 |   |
| Net decrease in borrowings                                                        |   |                      | 0          |   |   |   | (994,000 | ) |
| Proceeds from the exercise of stock options                                       |   |                      | 0          |   |   |   | 560,268 |   |
| Payments for stock repurchases                                                    |   |                      | 0          |   |   |   | (431,037 | ) |
| Net cash provided (used) by financing activities                                  |   |                      | (9,409,444 | ) |   |   | 9,618,688 |   |
| Net increase in cash and cash equivalents                                         |   |                      | 1,863,187  |   |   |   | 4,604,826 |   |
|                                                                              |   |                      |       |   |   |   |   |   |
| Cash and Cash Equivalents at Beginning of Period                                  |   |                      | 7,701,641  |   |   |   | 3,089,300 |   |
| Cash and Cash Equivalents at End of Period                                        |   | $                         | 9,564,828  |   |   | $ | 7,694,126 |   |
|                                                                              |   |                      |       |   |   |   |   |   |
| Supplemental Information                                                          |   |                      |       |   |   |   |   |   |
| Interest paid                                                                     |   | $                         | 344,358    |   |   | $ | 552,726 |   |
| Income taxes paid                                                                 |   | $                         | 77,000     |   |   | $ | 129,000 |   |
| Loans transferred to other real estate owned                                      |   | $                         | 439,317    |   |   | $ | 572,734 |   |

----

----

|                           |   | Amortized Cost |       |   | Gross Unrealized Gains |   |    | Gross Unrealized Losses |   |   | Fair Value |   |
|--------------------------------|--------|----------------|------------|--------|------------------------|--------|---------|------------------------------|--------|--------|------------|--------|
| Securities available for sale: |   |           |       |   |                   |   |    |                         |   |   |       |   |
| Municipal bonds                |   | $              | 743,354    |   |                   | $      | 31,415  |                         |   | $      | -          |   |   | $ | 774,769 |   |
| Mortgage-backed securities     |   |           | 2,619,476  |   |                   |   | 106,418 |                         |   |   | -          |   |   |   | 2,725,894 |   |
|                           |   | $              | 3,362,830  |   |                   | $      | 137,833 |                         |   | $      | -          |   |   | $ | 3,500,663 |   |
|                           |   |           |       |   |                   |   |    |                         |   |   |       |   |   |   |   |   |
| Securities held to maturity:   |   |           |       |   |                   |   |    |                         |   |   |       |   |   |   |   |   |
| Municipal bonds                |   | $              | 433,585    |   |                   | $      | 2,732   |                         |   | $      | -          |   |   | $ | 436,317 |   |
| Federal agency                 |   |           | 2,500,000  |   |                   |   | 36,587  |                         |   |   | -          |   |   |   | 2,536,587 |   |
| Mortgage-backed securities     |   |           | 8,086,183  |   |                   |   | 223,876 |                         |   |   | -          |   |   |   | 8,310,059 |   |
| Corporate                      |   |           | 82,017     |   |                   |   | 1,341   |                         |   |   | -          |   |   |   | 83,358 |   |
|                           |   | $              | 11,101,785 |   |                   | $      | 264,536 |                         |   | $      | -          |   |   | $ | 11,366,321 |   |

----

|                            |   | Available for Sale |      |   | Held to Maturity |   |
|---------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                            |   | Amortized          |      |   | Fair             |   |   | Amortized |   |   | Fair |   |
|                            |   | Cost               |      |   | Value            |   |   | Cost |   |   | Value |   |
| Within 1 year                   |   | $                  | -         |   |             | $      | - |   |   | $ | - |   |   | $ | - |   |
| After 1 year through 5 years    |   |               | -         |   |             |   | - |   |   |   | 82,017 |   |   |   | 83,358 |   |
| After 5 years through 10 years  |   |               | -         |   |             |   | - |   |   |   | 2,933,585 |   |   |   | 2,972,904 |   |
| After 10 years through 17 years |   |               | 743,354   |   |             |   | 774,769 |   |   |   | - |   |   |   | - |   |
| Mortgage-backed securities      |   |               | 2,619,476 |   |             |   | 2,725,894 |   |   |   | 8,086,183 |   |   |   | 8,310,059 |   |
|                            |   | $                  | 3,362,830 |   |             | $      | 3,500,663 |   |   | $ |   11,101,785 |   |   | $ |   11,366,321 |   |

|                          |   | Less than 12 Months |   | Over 12 Months |
|-------------------------------|--------|---------------------|--------|----------------|
|                          |   | Gross               |   |           |   | Gross |   |   |
|                          |   | Unrealized          |   | Fair           |   | Unrealized |   | Fair |
|                          |   | Losses              |   | Value          |   | Losses |   | Value |
| Securities available for sale |   |                |   |           |   |   |   |   |
| Mortgage-backed securities    |   |                |   |           |   |   |   |   |
|                          |   | 0                   |   | 0              |   | 0 |   | 0 |

|                      |   | One to Four |   |   | Residential |   |   | Commercial  |   |   | Commercial       |   |   |     |     |   |        |   |   |   |   |   |   |   |
|---------------------------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|--------|------------------|--------|--------|----------|----------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|
|                      |   | Residential |   |   | Income      |   |   | Real Estate |   |   | & Industrial |   |   | Consumer |     |   | Installment |   |   | Other  |   |   | Total  |   |
| Beginning balance         |   | $           | 48,237 |   |        | $      | 9,506  |        |   | $      | 1,136,404        |   |   | $        | 242,898  |   |        | $      | 421    |   |   | $      | 9,391  |   |   | $ | 818 |   |   | $ | 1,447,675 |   |
| April 1. 2011             |   |        |   |   |        |   |   |        |   |   |             |   |   |     |     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses |   |        | 1,298  |   |        |   | 8,370  |        |   |   | 157,247          |   |   |     | 106,533  |   |        |   | 319    |   |   |   | 379    |   |   |   | (229 | ) |   |   | 273,917 |   |
| Loans charged-off         |   |        | (2,213 | )      |        |   | -      |        |   |   | (113,336         | )      |   |     | (143,907 | )      |        |   | -      |   |   |   | -      |   |   |   | - |   |   |   | (259,456 | ) |
| Recoveries                |   |        | -      |   |        |   | -      |        |   |   | -                |   |   |     | -        |   |        |   | -      |   |   |   | -      |   |   |   | - |   |   |   | - |   |
|                      |   |        |   |   |        |   |   |        |   |   |             |   |   |     |     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance            |   | $           | 47,322 |   |        | $      | 17,876 |        |   | $      | 1,180,315        |   |   | $        | 205,524  |   |        | $      | 740    |   |   | $      | 9,770  |   |   | $ | 589 |   |   | $ | 1,462,136 |   |

----

|                      |   | One to Four |   |   | Residential |   |   | CommercialReal |   |   | Commercial&  |   |   |     |     |   |        |   |   |   |   |   |   |   |
|---------------------------|--------|-------------|--------|--------|-------------|--------|--------|----------------|--------|--------|------------------|--------|--------|----------|----------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|
|                      |   | Residential |   |   | Income      |   |   |  Estate   |   |   |  Industrial |   |   | Consumer |     |   | Installment |   |   | Other  |   |   | Total  |   |
| Beginning balance         |   | $           | 46,335 |   |        | $      | 2,876  |           |   | $      | 1,140,786        |   |   | $        | 241,243  |   |        | $      | 746    |   |   | $      | 9,178  |   |   | $ | 989 |   |   | $ | 1,442,153 |   |
| January 1. 2011           |   |        |   |   |        |   |   |           |   |   |             |   |   |     |     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses |   |        | 3,200  |   |        |   | 15,000 |           |   |   | 152,865          |   |   |     | 108,188  |   |        |   | (6     | )      |   |   | 592    |   |   |   | (400 | ) |   |   | 279,439 |   |
| Loans charged-off         |   |        | (2,213 | )      |        |   | -      |           |   |   | (113,336         | )      |   |     | (143,907 | )      |        |   | -      |   |   |   | -      |   |   |   | - |   |   |   | (259,456 | ) |
| Recoveries                |   |        | -      |   |        |   | -      |           |   |   | -                |   |   |     | -        |   |        |   | -      |   |   |   | -      |   |   |   | - |   |   |   | - |   |
|                      |   |        |   |   |        |   |   |           |   |   |             |   |   |     |     |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance            |   | $           | 47,322 |   |        | $      | 17,876 |           |   | $      | 1,180,315        |   |   | $        | 205,524  |   |        | $      | 740    |   |   | $      | 9,770  |   |   | $ | 589 |   |   | $ | 1,462,136 |   |

| Loans serviced for others are portions of loans participated out to other banks. Loan balances reported herein are net of these participated balances. The unpaid principal balance of loans serviced for others was $1,673,128 and $1,692,555 at June 30, 2011 and December 31, 2010, respectively. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | One to Four |      |   | Residential |   |    | CommercialReal |   |   | Commercial and |   |   |     |      |   |        |   |   |   |   |   |    |   |
|---------------------------------------|--------|-------------|-----------|--------|-------------|--------|---------|----------------|--------|--------|----------------|--------|--------|----------|-----------|--------|-------------|--------|--------|--------|--------|--------|---------|--------|
|                                  |   | Residential |      |   | Income      |   |    | Estate         |   |   | Industrial     |   |   | Consumer |      |   | Installment |   |   | Other  |   |   | Total   |   |
| Loans:                                |   |        |      |   |        |   |    |           |   |   |           |   |   |     |      |   |        |   |   |   |   |   |    |   |
| Balance                               |   | $           | 2,693,857 |   |        | $      | 961,101 |           |   | $      | 46,777,744     |   |   | $        | 7,348,590 |   |        | $      | 31,302 |   |   | $      | 662,897 |   |   | $ | 18,373 |   |   | $ | 58,493,864 |   |
| Individually evaluated for impairment |   |        | 938,048   |   |        |   | -       |           |   |   | 1,796,696      |   |   |     | 1,681,378 |   |        |   | -      |   |   |   | -       |   |   |   | - |   |   |   | 4,416,122 |   |
| Collectively evaluated for impairment |   |        | 1,755,809 |   |        |   | 961,101 |           |   |   | 44,981,048     |   |   |     | 5,667,212 |   |        |   | 31,302 |   |   |   | 662,897 |   |   |   | 18,373 |   |   |   | 54,077,742 |   |
| Allowance for loan losses:            |   |        |      |   |        |   |    |           |   |   |           |   |   |     |      |   |        |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance                               |   |        | 47,322    |   |        |   | 17,876  |           |   |   | 1,180,315      |   |   |     | 205,524   |   |        |   | 740    |   |   |   | 9,770   |   |   |   | 589 |   |   |   | 1,462,136 |   |
| Individually evaluated for impairment |   |        | 26,359    |   |        |   | -       |           |   |   | 50,487         |   |   |     | 47,390    |   |        |   | -      |   |   |   | -       |   |   |   | - |   |   |   | 124,236 |   |
| Collectively evaluated for impairment |   | $           | 20,963    |   |        | $      | 17,876  |           |   | $      | 1,129,828      |   |   | $        | 158,134   |   |        | $      | 740    |   |   | $      | 9,770   |   |   | $ | 589 |   |   | $ | 1,337,900 |   |

----

|                                  |   | One to Four |      |   | Residential |   |    | Commercial  |   |   | Commercial and |   |   |     |      |   |        |   |   |   |   |   |    |   |
|---------------------------------------|--------|-------------|-----------|--------|-------------|--------|---------|-------------|--------|--------|----------------|--------|--------|----------|-----------|--------|-------------|--------|--------|--------|--------|--------|---------|--------|
|                                  |   | Residential |      |   | Income      |   |    | Real Estate |   |   | Industrial     |   |   | Consumer |      |   | Installment |   |   | Other  |   |   | Total   |   |
| Loans:                                |   |        |      |   |        |   |    |        |   |   |           |   |   |     |      |   |        |   |   |   |   |   |    |   |
| Balance                               |   | $           | 2,771,247 |   |        | $      | 479,303 |        |   | $      | 48,209,331     |   |   | $        | 8,380,407 |   |        | $      | 28,034 |   |   | $      | 621,420 |   |   | $ | 30,711 |   |   | $ | 60,520,453 |   |
| Individually evaluated for impairment |   |        | 723,115   |   |        |   | -       |        |   |   | 2,372,879      |   |   |     | 1,071,578 |   |        |   | -      |   |   |   | -       |   |   |   | - |   |   |   | 4,167,572 |   |
| Collectively evaluated for impairment |   |        | 2,048,132 |   |        |   | 479,303 |        |   |   | 45,836,452     |   |   |     | 7,308,829 |   |        |   | 28,034 |   |   |   | 621,420 |   |   |   | 30,711 |   |   |   | 56,352,881 |   |
| Allowance for loan losses:            |   |        |      |   |        |   |    |        |   |   |           |   |   |     |      |   |        |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance                               |   |        | 46,335    |   |        |   | 2,876   |        |   |   | 1,140,786      |   |   |     | 241,243   |   |        |   | 746    |   |   |   | 9,178   |   |   |   | 989 |   |   |   | 1,442,153 |   |
| Individually evaluated for impairment |   |        | 17,066    |   |        |   | -       |        |   |   | 56,000         |   |   |     | 25,329    |   |        |   | -      |   |   |   | -       |   |   |   | - |   |   |   | 98,395 |   |
| Collectively evaluated for impairment |   | $           | 29,269    |   |        | $      | 2,876   |        |   | $      | 1,084,786      |   |   | $        | 215,914   |   |        | $      | 746    |   |   | $      | 9,178   |   |   | $ | 989 |   |   | $ | 1,343,758 |   |

----

|                       |   |   |       |   | Special |   |      | Grade       |   |   |      |   |   |   |    |
|----------------------------|--------|--------|------------|--------|---------|--------|-----------|-------------|--------|--------|-----------|--------|--------|--------|---------|
|                       |   | Pass   |       |   | Mention |   |      | Substandard |   |   | Doubtful  |   |   | Total  |    |
| One to four residential:   |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |
| Closed-end                 |   | $      | 1,755,809  |   |    | $      | —   |        |   | $      | 938,048   |   |   | $      | — |   |   | $ | 2,693,857 |   |
| Revolvers                  |   |   |       |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   |   | — |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Residential income         |   |   | 961,101    |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   |   | 961,101 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Commercial real estate:    |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Owner occupied             |   |   | 19,369,918 |   |    |   | 179,107   |        |   |   | 2,512,879 |   |   |   | — |   |   |   | 22,061,904 |   |
| Non-owner occupied         |   |   | 21,091,408 |   |    |   | 1,085,767 |        |   |   | 2,538,665 |   |   |   | — |   |   |   | 24,715,840 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Commercial and industrial: |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Secured                    |   |   | 2,541,164  |   |    |   | -         |        |   |   | 2,234,443 |   |   |   | — |   |   |   | 4,775,607 |   |
| Unsecured                  |   |   | 2,199,931  |   |    |   | 228,378   |        |   |   | 144,674   |   |   |   | — |   |   |   | 2,572,983 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Consumer                   |   |   | 31,302     |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   |   | 31,302 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Installment                |   |   | 662,897    |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   |   | 662,897 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Other                      |   |   | 18,373     |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   |   | 18,373 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Total                      |   | $      | 48,631,903 |   |    | $      | 1,493,252 |        |   | $      | 8,368,709 |   |   | $      | — |   |   | $ | 58,493,864 |   |

|                       |   |   |       |   | Special |   |      | Grade       |   |   |      |   |   |   |    |
|----------------------------|--------|--------|------------|--------|---------|--------|-----------|-------------|--------|--------|-----------|--------|--------|--------|---------|
|                       |   | Pass   |       |   | Mention |   |      | Substandard |   |   | Doubtful  |   |   | Total  |    |
| One to four residential:   |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |
| Closed-end                 |   | $      | 1,795,797  |   |    | $      | —   |        |   | $      | 975,450   |   |   | $      | — |   |   | $ | 2,771,247 |   |
| Revolvers                  |   |   | —    |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   |   | — |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Residential income         |   |   | 479,303    |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   | $ | 479,303 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Commercial real estate:    |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Owner occupied             |   |   | 20,259,055 |   |    |   | 313,041   |        |   |   | 3,081,037 |   |   |   | — |   |   |   | 23,653,133 |   |
| Non-owner occupied         |   |   | 22,206,112 |   |    |   | 802,731   |        |   |   | 1,547,355 |   |   |   | — |   |   |   | 24,556,198 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Commercial and industrial: |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Secured                    |   |   | 2,470,494  |   |    |   | 150,000   |        |   |   | 1,732,331 |   |   |   | — |   |   |   | 4,352,825 |   |
| Unsecured                  |   |   | 3,485,320  |   |    |   | 231,852   |        |   |   | 310,410   |   |   |   | — |   |   |   | 4,027,582 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Consumer                   |   |   | 28,034     |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   |   | 28,034 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Installment                |   |   | 621,420    |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   |   | 621,420 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Other                      |   |   | 30,711     |   |    |   | —   |        |   |   | —   |   |   |   | — |   |   |   | 30,711 |   |
|                       |   |   |       |   |    |   |      |        |   |   |      |   |   |   |    |   |   |   |   |   |
| Total                      |   | $      | 51,376,246 |   |    | $      | 1,497,624 |        |   | $      | 7,646,583 |   |   | $      | — |   |   | $ | 60,520,453 |   |

----

|                       |   | 30-59 Days Past Due |    |   | 60-89 Days Past Due |   |    | Greater Than 90 Days |   |   | Total Past Due |   |   | Current |    |   | Total Loans |   |       | Recorded Investment 90 Days or more and Accruing |   |
|----------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|----------------------|--------|--------|----------------|--------|--------|---------|---------|--------|-------------|--------|------------|--------------------------------------------------|--------|
| One to four residential:   |   |                |    |   |                |   |    |                 |   |   |           |   |   |    |    |   |        |   |       |                                             |   |
| Closed-end                 |   | $                   | — |   |                | $      | — |                 |   | $      | —        |   |   | $       | — |   |        | $      | 2,693,857  |                                             |   | $ | 2,693,857 |   |   | $ | — |   |
| Residential income         |   |                | — |   |                |   | — |                 |   |   | —        |   |   |    | — |   |        |   | 961,101    |                                             |   |   | 961,101 |   |   |   | — |   |
| Commercial real estate:    |   |                |    |   |                |   |    |                 |   |   |           |   |   |    |    |   |        |   |       |                                             |   |   |   |   |   |   |   |   |
| Owner occupied             |   |                | 277,012 |   |                |   | 184,057 |                 |   |   | —        |   |   |    | 461,069 |   |        |   | 21,600,835 |                                             |   |   | 22,061,904 |   |   |   | — |   |
| Non-owner occupied         |   |                | — |   |                |   | — |                 |   |   | —        |   |   |    | — |   |        |   | 24,715,840 |                                             |   |   | 24,715,840 |   |   |   | — |   |
| Commercial and industrial: |   |                |    |   |                |   |    |                 |   |   |           |   |   |    |    |   |        |   |       |                                             |   |   |   |   |   |   |   |   |
| Secured                    |   |                | — |   |                |   | — |                 |   |   | 240,741        |   |   |    | 240,741 |   |        |   | 4,534,866  |                                             |   |   | 4,775,607 |   |   |   | — |   |
| Unsecured                  |   |                | — |   |                |   | — |                 |   |   | —        |   |   |    | — |   |        |   | 2,572,983  |                                             |   |   | 2,572,983 |   |   |   | — |   |
|                       |   |                |    |   |                |   |    |                 |   |   |           |   |   |    |    |   |        |   |       |                                             |   |   |   |   |   |   |   |   |
| Consumer                   |   |                | — |   |                |   | — |                 |   |   | —        |   |   |    | — |   |        |   | 31,302     |                                             |   |   | 31,302 |   |   |   | — |   |
|                       |   |                |    |   |                |   |    |                 |   |   |           |   |   |    |    |   |        |   |       |                                             |   |   |   |   |   |   |   |   |
| Installment                |   |                | — |   |                |   | — |                 |   |   | —        |   |   |    | — |   |        |   | 662,897    |                                             |   |   | 662,897 |   |   |   | — |   |
|                       |   |                |    |   |                |   |    |                 |   |   |           |   |   |    |    |   |        |   |       |                                             |   |   |   |   |   |   |   |   |
| Other                      |   |                | 1,585   |   |                |   | — |                 |   |   | —        |   |   |    | 1,585   |   |        |   | 16,788     |                                             |   |   | 18,373 |   |   |   | — |   |
| Total                      |   | $                   | 278,597 |   |                | $      | 184,057 |                 |   | $      | 240,741        |   |   | $       | 703,395 |   |        | $      | 57,790,469 |                                             |   | $ | 58,493,864 |   |   | $ | — |   |

----

|                       |   | 30-59 Days Past Due |    |   | 60-89 Days Past Due |   |    | Greater Than 90 Days |   |   | Total Past Due |   |   | Current |    |   | Total Loans |   |       | Recorded Investment 90 Days or more and Accruing |   |
|----------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|--------------------------------|--------|--------|----------------|--------|--------|---------|---------|--------|-------------|--------|------------|--------------------------------------------------|--------|
| One to four residential:   |   |                |    |   |                |   |    |                           |   |   |           |   |   |    |    |   |        |   |       |                                             |   |
| Closed-end                 |   | $                   | — |   |                | $      | — |                           |   | $      | —        |   |   | $       | — |   |        | $      | 2,771,247  |                                             |   | $ | 2,771,247 |   |   | $ | — |   |
| Residential income         |   |                | — |   |                |   | — |                           |   |   | —        |   |   |    | — |   |        |   | 479,303    |                                             |   |   | 479,303 |   |   |   | — |   |
| Commercial real estate:    |   |                |    |   |                |   |    |                           |   |   |           |   |   |    |    |   |        |   |       |                                             |   |   |   |   |   |   |   |   |
| Owner occupied             |   |                | — |   |                |   | — |                           |   |   | 440,723        |   |   |    | 440,723 |   |        |   | 23,212,410 |                                             |   |   | 23,653,133 |   |   |   | — |   |
| Non-owner occupied         |   |                | — |   |                |   | — |                           |   |   | —        |   |   |    | — |   |        |   | 24,556,198 |                                             |   |   | 24,556,198 |   |   |   | — |   |
| Commercial and industrial: |   |                |    |   |                |   |    |                           |   |   |           |   |   |    |    |   |        |   |       |                                             |   |   |   |   |   |   |   |   |
| Secured                    |   |                | — |   |                |   | — |                           |   |   | —        |   |   |    | — |   |        |   | 4,352,825  |                                             |   |   | 4,352,825 |   |   |   | — |   |
| Unsecured                  |   |                | — |   |                |   | — |                           |   |   | —        |   |   |    | — |   |        |   | 4,027,582  |                                             |   |   | 4,027,582 |   |   |   | — |   |
| Consumer                   |   |                | — |   |                |   | — |                           |   |   | —        |   |   |    | — |   |        |   | 28,034     |                                             |   |   | 28,034 |   |   |   | — |   |
| Installment                |   |                | — |   |                |   | — |                           |   |   | —        |   |   |    | — |   |        |   | 621,420    |                                             |   |   | 621,420 |   |   |   | — |   |
| Other                      |   |                | — |   |                |   | — |                           |   |   | —        |   |   |    | — |   |        |   | 30,711     |                                             |   |   | 30,711 |   |   |   | — |   |
| Total                      |   | $                   | — |   |                | $      | — |                           |   | $      | 440,723        |   |   | $       | 440,723 |   |        | $      | 60,079,730 |                                             |   | $ | 60,520,453 |   |   | $ | — |   |

|                        |   |       |      |   | Unpaid    |   |      |      |   |   | Average Recorded Investment |   |   | Interest |      |
|-----------------------------|--------|------------|-----------|--------|-----------|--------|-----------|-----------|--------|--------|-----------------------------|--------|--------|----------|-----------|
|                        |   | Recorded   |      |   | Principal |   |      | Related   |   |   | for three                   |   |   | for six  |      |   | Income |   |
|                        |   | Investment |      |   | Balance   |   |      | Allowance |   |   | Months                      |   |   | Months   |      |   | Recognized |   |
| With an allowance recorded: |   |       |      |   |      |   |      |      |   |   |                        |   |   |     |      |   |   |   |
| One to four residential:    |   |       |      |   |      |   |      |      |   |   |                        |   |   |     |      |   |   |   |
| Closed-end                  |   | $          | 938,048   |   |      | $      | 938,048   |      |   | $      | 26,359                      |   |   | $        | 760,237   |   |   | $ | 748,014 |   |   | $ | — |   |
|                        |   |       |      |   |      |   |      |      |   |   |                        |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Commercial real estate:     |   |       |      |   |      |   |      |      |   |   |                        |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Owner occupied              |   |       | 944,369   |   |      |   | 944,369   |      |   |   | 26,537                      |   |   |     | 1,280,181 |   |   |   | 1,367,508 |   |   |   | — |   |
| Non-owner occupied          |   |       | 852,327   |   |      |   | 852,327   |      |   |   | 23,950                      |   |   |     | 859,332   |   |   |   | 866,298 |   |   |   | — |   |
|                        |   |       |      |   |      |   |      |      |   |   |                        |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Commercial and industrial:  |   |       |      |   |      |   |      |      |   |   |                        |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Secured                     |   |       | 1,681,378 |   |      |   | 1,681,378 |      |   |   | 47,390                      |   |   |     | 1,231,318 |   |   |   | 1,160,316 |   |   |   | — |   |
|                        |   |       |      |   |      |   |      |      |   |   |                        |   |   |     |      |   |   |   |   |   |   |   |   |   |
| Total:                      |   |       |      |   |      |   |      |      |   |   |                        |   |   |     |      |   |   |   |   |   |   |   |   |   |
| One to four residential     |   | $          | 938,048   |   |      | $      | 938,048   |      |   | $      | 26,359                      |   |   | $        | 760,237   |   |   | $ | 748,014 |   |   | $ | — |   |
| Commercial real estate      |   | $          | 1,796,696 |   |      | $      | 1,796,696 |      |   | $      | 50,487                      |   |   | $        | 2,139,514 |   |   | $ | 2,233,806 |   |   | $ | — |   |
| Commercial and industrial   |   | $          | 1,681,378 |   |      | $      | 1,681,378 |      |   | $      | 47,390                      |   |   | $        | 1,231,318 |   |   | $ | 1,160,316 |   |   | $ | — |   |

----

|                        |   |       |      |   | Unpaid    |   |      |      |   |   | Average    |   |   | Interest   |      |
|-----------------------------|--------|------------|-----------|--------|-----------|--------|-----------|-----------|--------|--------|------------|--------|--------|------------|-----------|
|                        |   | Recorded   |      |   | Principal |   |      | Related   |   |   | Recorded   |   |   | Income     |      |
|                        |   | Investment |      |   | Balance   |   |      | Allowance |   |   | Investment |   |   | Recognized |      |
|                        |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |
| With an allowance recorded: |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |
| One to four residential:    |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |
| Closed-end                  |   | $          | 723,115   |   |      | $      | 723,115   |      |   | $      | 17,066     |   |   | $          | 346,484   |   |   | $ | — |   |
|                        |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| Commercial real estate:     |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| Owner occupied              |   |       | 1,492,530 |   |      |   | 1,492,530 |      |   |   | 35,224     |   |   |       | 685,117   |   |   |   | — |   |
| Non-owner occupied          |   |       | 880,349   |   |      |   | 880,349   |      |   |   | 20,776     |   |   |       | 473,639   |   |   |   | — |   |
|                        |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| Commercial and industrial:  |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| Secured                     |   |       | 1,071,578 |   |      |   | 1,071,578 |      |   |   | 25,329     |   |   |       | 302,791   |   |   |   | — |   |
|                        |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| Total:                      |   |       |      |   |      |   |      |      |   |   |       |   |   |       |      |   |   |   |   |   |
| One to four residential     |   | $          | 723,115   |   |      | $      | 723,115   |      |   | $      | 17,066     |   |   | $          | 346,484   |   |   | $ | — |   |
| Commercial real estate      |   | $          | 2,372,879 |   |      | $      | 2,372,879 |      |   | $      | 56,000     |   |   | $          | 1,158,756 |   |   | $ | — |   |
| Commercial and industrial   |   | $          | 1,071,578 |   |      | $      | 1,071,578 |      |   | $      | 25,329     |   |   | $          | 302,791   |   |   | $ | — |   |

|                       |   | June 30, 2011 |      |   | December 31, 2010 |   |
|----------------------------|--------|---------------|-----------|--------|-------------------|--------|
| One to four residential:   |   |          |      |   |              |   |
| Closed-end                 |   | $             | 938,048   |   |              | $      | 723,115 |   |
|                       |   |          |      |   |              |   |   |   |
| Commercial real estate:    |   |          |      |   |              |   |   |   |
| Owner occupied             |   |          | 944,369   |   |              |   | 1,492,530 |   |
| Non-owner occupied         |   |          | 852,327   |   |              |   | 880,349 |   |
|                       |   |          |      |   |              |   |   |   |
| Commercial and industrial: |   |          |      |   |              |   |   |   |
| Secured                    |   |          | 1,681,378 |   |              |   | 1,071,578 |   |
|                       |   |          |      |   |              |   |   |   |
| Total                      |   | $             | 4,416,122 |   |              | $      | 4,167,572 |   |

----

|                                    |   | 2011   |         |   | 2010     |   |
|-----------------------------------------|--------|--------|--------------|--------|----------|--------|
|                                    |   |   |         |   | Weighted |   |   |   |   |   |   |   |   | Weighted |   |   |   |   |
|                                    |   | Net    |         |   | Average  |   |   | Per Share |   |   | Net |   |   | Average |   |   | Per Share |   |
|                                    |   | Income |         |   | Shares   |   |   | Amount |   |   | Income |   |   | Shares |   |   | Amount |   |
| Basic earnings (loss)                   |   | $      | (49,945      | )      |     |   | 748,314 |   |   | $ | (0.07 | ) |   | $ | 14,192 |   |   |   | 701,894 |   |   | $ | 0.02 |   |
|                                    |   |   |         |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect of dilutive shares:              |   |   |         |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assumed exercise of outstanding options |   |   |    |   |     |   | (1,969 | ) |   |   | 0.00 |   |   |   |    |   |   |   | 3,740 |   |   |   | 0.00 |   |
|                                    |   |   |         |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings (loaa)                 |   | $      | (49,945      | )      |     |   | 746,345 |   |   | $ | (0.07 | ) |   | $ | 14,192 |   |   |   | 705,634 |   |   | $ | 0.02 |   |

----

|                                    |   | 2011   |         |   | 2010     |   |
|-----------------------------------------|--------|--------|--------------|--------|----------|--------|
|                                    |   |   |         |   | Weighted |   |   |   |   |   |   |   |   | Weighted |   |   |   |   |
|                                    |   | Net    |         |   | Average  |   |   | Per Share |   |   | Net |   |   | Average |   |   | Per Share |   |
|                                    |   | Income |         |   | Shares   |   |   | Amount |   |   | Income |   |   | Shares |   |   | Amount |   |
| Basic earnings                          |   | $      | 153,360      |   |     |   | 748,314 |   |   | $ | 0.20 |   |   | $ | 55,478 |   |   |   | 700,257 |   |   | $ | 0.08 |   |
|                                    |   |   |         |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect of dilutive shares:              |   |   |         |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assumed exercise of outstanding options |   |   |    |   |     |   | (198 | ) |   |   | 0.00 |   |   |   |    |   |   |   | 3,616 |   |   |   | 0.00 |   |
|                                    |   |   |         |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share              |   | $      | 153,360      |   |     |   | 748,116 |   |   | $ | 0.20 |   |   | $ | 55,478 |   |   |   | 703,873 |   |   | $ | 0.08 |   |

| ·     | Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Level 2 Inputs - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·     | Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Description                   |   | Balance |      |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
|-------------------------------|--------|---------|-----------|--------|--------------------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|--------|
| Securities Available for Sale |   |    |      |   |                                                                     |   |   |                                          |   |   |                                           |   |
| at June 30, 2011              |   |    |      |   |                                                                     |   |   |                                          |   |   |                                           |   |
| Municipal bonds               |   | $       | 774,769   |   |                                                                     | $      | -      |                                          |   | $      | 774,769                                        |   |   | $ | - |   |
| Mortgage-backed securities    |   |    | 2,725,894 |   |                                                                     |   | -      |                                          |   |   | 2,725,894                                      |   |   |   | - |   |
| Total                         |   | $       | 3,500,663 |   |                                                                     | $      | -      |                                          |   | $      | 3,500,663                                      |   |   | $ | - |   |
|                          |   |    |      |   |                                                                     |   |   |                                          |   |   |                                           |   |   |   |   |   |
| at December 31, 2010          |   |    |      |   |                                                                     |   |   |                                          |   |   |                                           |   |   |   |   |   |
| Municipal bonds               |   | $       | 753,616   |   |                                                                     | $      | -      |                                          |   | $      | 753,616                                        |   |   | $ | - |   |
| Mortgage-backed securities    |   |    | 3,953,378 |   |                                                                     |   | -      |                                          |   |   | 3,953,378                                      |   |   |   | - |   |
| Total                         |   | $       | 4,706,994 |   |                                                                     | $      | -      |                                          |   | $      | 4,706,994                                      |   |   | $ | - |   |

----

| Description                |   | Balance |      |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
|----------------------------|--------|---------|-----------|--------|------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|--------|
| Impaired loans net of ALLL |   |    |      |   |                                                                               |   |   |                                          |   |   |                                           |   |
| at June 30, 2011           |   | $       | 4,291,886 |   |                                                                               | $      | -      |                                          |   | $      | 1,778,619                                      |   |   | $ | 2,513,267 |   |
| at December 31, 2010       |   | $       | 4,069,177 |   |                                                                               | $      | -      |                                          |   | $      | 1,108,110                                      |   |   | $ | 2,961,067 |   |

| Description                                        |   | Balance |    |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
|----------------------------------------------------|--------|---------|---------|--------|--------------------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|--------|
| Other real estate owned net of valuation allowance |   |    |    |   |                                                                     |   |   |                                          |   |   |                                           |   |
| at June 30, 2011                                   |   | $       | 439,317 |   |                                                                     | $      | -      |                                          |   | $      | 439,317                                        |   |   | $ | - |   |
| at December 31, 2010                               |   | $       | 516,534 |   |                                                                     | $      | -      |                                          |   | $      | 516,534                                        |   |   | $ | - |   |

----

|                                       |   | June 30, 2011 |       |   | December 31, 2010 |   |
|--------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                       |   | Carrying      |       |   | Fair              |   |   | Carrying |   |   | Fair |   |
|                                       |   | Amount        |       |   | Value             |   |   | Amount |   |   | Value |   |
| Financial assets:                          |   |          |       |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                  |   | $             | 9,564,828  |   |              | $      | 9,564,828 |   |   | $ | 7,701,641 |   |   | $ | 7,701,641 |   |
| Interest-bearing deposits with other banks |   |          | 12,586,252 |   |              |   | 12,602,606 |   |   |   | 19,378,252 |   |   |   | 19,407,125 |   |
| Investment securities available for sale   |   |          | 3,500,663  |   |              |   | 3,500,663 |   |   |   | 4,706,994 |   |   |   | 4,706,994 |   |
| Investment securities held to maturity     |   |          | 11,101,785 |   |              |   | 11,366,321 |   |   |   | 12,153,915 |   |   |   | 12,301,643 |   |
| Stock investments                          |   |          | 667,700    |   |              |   | 667,700 |   |   |   | 626,250 |   |   |   | 626,250 |   |
| Loans, net                                 |   |          | 57,003,532 |   |              |   | 57,076,919 |   |   |   | 59,051,096 |   |   |   | 59,014,061 |   |
| Trups common securities                    |   |          | 93,000     |   |              |   | 95,263 |   |   |   | 93,000 |   |   |   | 97,475 |   |
| Accrued interest receivable                |   |          | 284,183    |   |              |   | 284,183 |   |   |   | 382,943 |   |   |   | 382,943 |   |
|                                       |   |          |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                     |   |          |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                   |   |          | 93,590,112 |   |              |   | 93,607,421 |   |   |   | 102,999,556 |   |   |   | 103,053,843 |   |
| Subordinated Debentures                    |   |          | 3,093,000  |   |              |   | 3,168,271 |   |   |   | 3,093,000 |   |   |   | 3,241,835 |   |
| Accrued interest payable                   |   |          | 76,335     |   |              |   | 76,335 |   |   |   | 104,967 |   |   |   | 104,967 |   |

----

----

| ·   | The provision for loan losses increased to $273,917 during the second quarter of 2011, an increase of $23,250 or 9.3%, as compared to $250,667 for the three months ended June 30, 2010. Net loan charge-offs decreased $72,333 for the relative periods. The increase in the provision was related to an increase in nonperforming loans from $2.3 million at June 30, 2010 to $4.4 million at June 30, 2011. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Non-interest income totaled $318,062 for the second quarter of 2011, a decrease of $867, or 0.3%, compared to $318,929 in the second quarter of 2010. Included were service charges on deposits which decreased by $5,080 or 1.7% for the second quarter of 2011 compared to the second quarter of 2010, due to decreased analysis charges and reduced returned items causing returned items charges to decline. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company posted net interest income of $907,439 for the quarter ended June 30, 2011 as compared to $977,310 for the quarter ended June 30, 2010. The decrease was caused by a decline in average balances and yields on earning assets.  Average interest-earning assets were $91.1 million with average interest-bearing liabilities of $55.7 million, yielding a net interest margin of 4.00% for the second quarter of 2011; as compared to the average interest-earning assets of $101.0 million with average interest-bearing liabilities of $67.0 million, yielding a net interest margin of 3.88% for the second quarter of 2010. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Non-interest expenses were $1,056,146 for the three months ended June 30, 2011 as compared to $1,045,117 for the three months ended June 30, 2010, a 1.1% increase. The largest component of non-interest expense was salaries and benefits expense of $520,894 for the second quarter of 2011 compared to $570,428 for the same period in 2010, representing an 8.7% decrease. The reduction in salary expense was due to a reduction in staff accomplished through attrition. Included in non-interest expenses are legal and other professional fees which increased 234.8% or $92,561 in the three months ended June 30, 2011 compared to the same period in 2010 as a result of increased loan collection activity, regulatory matters, and complexity of SEC related filings. Also included were other expenses which decreased $63,647 to $79,427 in the second quarter of 2011 due primarily to decreases in other lending expenses and expenses paid for deposit accounts with analysis charge arrangements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The provision for loan losses decreased to $279,439 during the first half of 2011, a reduction of $234,913 or 45.7%, as compared to $514,352 for the six months ended June 30, 2010. The decrease in the provision was related to an decrease in charged-off loans by $219,450 from $478,906 at June 30, 2010 to $259,602 at June 30, 2011 |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Non-interest income totaled $711,113 for the first half of 2011, an increase of $98,351, or 16.1%, compared to $612,762 in the first half of 2010. Included in this increase was a $61,151 gain on sale of foreclosed assets in the first half of 2011 compared to $149 gain recognized in the first half of 2010. Also included were service charges on deposits which increased by $31,936 or 5.7% for the first half of 2011 compared to the first half of 2010. This is consistent with the 9.5% growth in average non-interest bearing deposits in the first half of 2011 over the first half of 2010. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company posted net interest income of $1,926,811 for the six months ended June 30, 2011 as compared to $1,930,074 for the same period in 2010. Average interest-earning assets were $94.9 million with average interest-bearing liabilities of $58.0 million, yielding a net interest margin of 4.09% for the first half of 2011; as compared to the average interest-earning assets of $98.8 million with average interest-bearing liabilities of $65.3 million, yielding a net interest margin of 3.94% for the first half of 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Non-interest expenses increased $163,231 to $2,137,274 for the first half of 2011 compared to the same period in 2010. The largest component of non-interest expense was salaries and benefits expense of $1,108,294 for the first half of 2011 compared to $1,094,450 for the same periods in 2010, representing an a 1.3% increase. Included in non-interest expenses is legal and other professional fees which increased 139.5% or $117,779 in the six months ended June 30, 2011 compared to the same period in 2010 as a result of increased loan collection activity, regulatory matters, and complexity of SEC related filings. Also included were other expenses which decreased $71,056 to $173,742 in the first half of 2011 due primarily decreases in other lending expenses and expenses paid for deposit accounts with analysis charge arrangements. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Total deposits decreased from $103.0 million at December 31, 2010 to $93.6 million at June 30, 2011, a   9.1% decrease. Noninterest-bearing deposits increased to $42.5 million at June 30, 2011, an increase of $550,810 or 1.3% from December 31, 2010. Total interest-bearing deposits decreased from $61.1 million at December 31, 2010 to $51.1 million at June 30, 2011, a 16.3% decrease in the first half of 2011. This was done by design to eliminate higher yielding deposits. The ratio of non-interest bearing deposits to total deposits increased from 40.7% at December 31, 2010 to 45.4% at June 30, 2011. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company experienced a decrease in interest-earning assets of 11.4% to $85.7 million in the first half of 2011, primarily in total investments which decreased to $27.2 million at June 30, 2011, compared to $36.2 million at December 31, 2010. This was caused by the liquidation of lower-yielding interest earning deposits in other banks to pay off higher-yielding interest bearing deposits. The reduction in assets was in response to the request that the Bank maintain its tier 1 leverage capital ratio at or above 9.0%. (See Recent Developments, above) |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Nonperforming assets were comprised of 14 loans and one foreclosed property totaling $4.9 million at June 30, 2011, compared to 11 loans and one foreclosed property totaling $4.7 million at December 31, 2010. All but two of the loans classified as nonperforming as of June 30, 2011, totaling $424,797, are current and paying as agreed. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   | For the three months ended June 30, 2011 |    |   | For the three months ended June 30, 2010 |   |
|----------------------------------------------|--------|------------------------------------------|---------|--------|------------------------------------------|--------|
|                                         |   | Average                                  |    |   | Income/                                  |   |   | Average |   |   | Average |   |   | Income/ |   |   | Average |   |
|                                         |   | Balance                                  |    |   | Expense                                  |   |   | Yield/Rate 4 |   |   | Balance |   |   | Expense |   |   | Yield/Rate 4 |   |
|                                         |   | ($ in thousands)                         |    |
| Assets                                       |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earnings assets                     |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans1                                       |   | $                                        | 59,336  |   |                                     | $      | 903 |   |   |   | 6.10 | % |   | $ | 60,816 |   |   | $ | 1,039 |   |   |   | 6.85 | % |
| U.S. government agencies securities          |   |                                     | 2,500   |   |                                     |   | 15 |   |   |   | 2.51 | % |   |   | 1,786 |   |   |   | 11 |   |   |   | 2.50 | % |
| Mortgage-backed securities                   |   |                                     | 11,489  |   |                                     |   | 91 |   |   |   | 3.15 | % |   |   | 13,581 |   |   |   | 121 |   |   |   | 3.56 | % |
| Other securities & Due from banks time   |   |                                     | 15,497  |   |                                     |   | 47 |   |   |   | 1.22 | % |   |   | 24,793 |   |   |   | 100 |   |   |   | 1.62 | % |
| Federal funds sold                           |   |                                     | 2,253   |   |                                     |   | 1 |   |   |   | 0.25 | % |   |   | 0 |   |   |   | 0 |   |   |   | 0.00 | % |
| Total interest-earning assets                |   |                                     | 91,075  |   |                                     | $      | 1,057 |   |   |   | 4.66 | % |   |   | 100,976 |   |   | $ | 1,271 |   |   |   | 5.05 | % |
| Non-interest earning assets                  |   |                                     | 13,578  |   |                                     |   |   |   |   |   |   |   |   |   | 12,865 |   |   |   |   |   |   |   |   |   |
| Total assets                                 |   | $                                        | 104,653 |   |                                     |   |   |   |   |   |   |   |   | $ | 113,841 |   |   |   |   |   |   |   |   |   |
|                                         |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity         |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities                 |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market and NOW deposits                |   | $                                        | 31,461  |   |                                     | $      | 59 |   |   |   | 0.75 | % |   | $ | 35,653 |   |   | $ | 142 |   |   |   | 1.60 | % |
| Savings                                      |   |                                     | 1,969   |   |                                     |   | 1 |   |   |   | 0.25 | % |   |   | 1,275 |   |   |   | 1 |   |   |   | 0.31 | % |
| Time deposits < $100,000                  |   |                                     | 5,326   |   |                                     |   | 10 |   |   |   | 0.76 | % |   |   | 7,437 |   |   |   | 28 |   |   |   | 1.49 | % |
| Time deposits equal to or > $100,000      |   |                                     | 13,435  |   |                                     |   | 29 |   |   |   | 0.86 | % |   |   | 18,763 |   |   |   | 70 |   |   |   | 1.52 | % |
| Other borrowings                             |   |                                     | 404     |   |                                     |   | 0 |   |   |   | 0.07 | % |   |   | 802 |   |   |   | 1 |   |   |   | 0.27 | % |
| Subordinated debenture                       |   |                                     | 3,093   |   |                                     |   | 51 |   |   |   | 6.61 | % |   |   | 3,093 |   |   |   | 51 |   |   |   | 6.61 | % |
| Total interest-bearing liabilities           |   |                                     | 55,688  |   |                                     | $      | 150 |   |   |   | 1.08 | % |   |   | 67,023 |   |   | $ | 293 |   |   |   | 1.76 | % |
| Non-interest bearing deposits                |   |                                     | 40,918  |   |                                     |   |   |   |   |   |   |   |   |   | 39,364 |   |   |   |   |   |   |   |   |   |
| Other liabilities                            |   |                                     | 1,040   |   |                                     |   |   |   |   |   |   |   |   |   | 1,002 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                         |   |                                     | 7,007   |   |                                     |   |   |   |   |   |   |   |   |   | 6,452 |   |   |   |   |   |   |   |   |   |
| Total liabilities & stockholders' equity |   | $                                        | 104,653 |   |                                     |   |   |   |   |   |   |   |   | $ | 113,841 |   |   |   |   |   |   |   |   |   |
|                                         |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                          |   |                                     |    |   |                                     | $      | 907 |   |   |   |   |   |   |   |   |   |   | $ | 978 |   |   |   |   |   |
|                                         |   |                                     |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest spread 2                        |   |                                     |    |   |                                     |   |   |   |   |   | 3.58 | % |   |   |   |   |   |   |   |   |   |   | 3.29 | % |
| Net interest margin 3                        |   |                                     |    |   |                                     |   |   |   |   |   | 4.00 | % |   |   |   |   |   |   |   |   |   |   | 3.88 | % |

----

----

|                                         |   | For the six months endedJune 30, 2011 |    |   | For the six months endedJune 30, 2010 |   |
|----------------------------------------------|--------|---------------------------------------|---------|--------|---------------------------------------|--------|
|                                         |   | Average                               |    |   | Income/                               |   |   | Average |   |   | Average |   |   | Income/ |   |   | Average |   |
|                                         |   | Balance                               |    |   | Expense                               |   |   | Yield/Rate 4 |   |   | Balance |   |   | Expense |   |   | Yield/Rate 4 |   |
|                                         |   | ($ in thousands)                      |    |
| Assets                                       |   |                                  |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earnings assets                     |   |                                  |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans1                                       |   | $                                     | 59,804  |   |                                  | $      | 1,916 |   |   |   | 6.46 | % |   | $ | 61,149 |   |   | $ | 2,115 |   |   |   | 6.98 | % |
| U.S. government agencies securities          |   |                                  | 2,500   |   |                                  |   | 31 |   |   |   | 2.52 | % |   |   | 1,786 |   |   |   | 11 |   |   |   | 1.25 | % |
| Mortgage-backed securities                   |   |                                  | 12,031  |   |                                  |   | 188 |   |   |   | 3.15 | % |   |   | 9,887 |   |   |   | 181 |   |   |   | 3.68 | % |
| Other securities & Due from banks time   |   |                                  | 17,359  |   |                                  |   | 104 |   |   |   | 1.21 | % |   |   | 25,519 |   |   |   | 209 |   |   |   | 1.65 | % |
| Federal funds sold                           |   |                                  | 3,197   |   |                                  |   | 4 |   |   |   | 0.25 | % |   |   | 411 |   |   |   | 0 |   |   |   | 0.00 | % |
| Total interest-earning assets                |   |                                  | 94,891  |   |                                  | $      | 2,243 |   |   |   | 4.77 | % |   |   | 98,752 |   |   | $ | 2,516 |   |   |   | 5.14 | % |
| Non-interest earning assets                  |   |                                  | 14,014  |   |                                  |   |   |   |   |   |   |   |   |   | 13,679 |   |   |   |   |   |   |   |   |   |
| Total assets                                 |   | $                                     | 108,905 |   |                                  |   |   |   |   |   |   |   |   | $ | 112,431 |   |   |   |   |   |   |   |   |   |
|                                         |   |                                  |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity         |   |                                  |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities                 |   |                                  |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market and NOW deposits                |   | $                                     | 32,828  |   |                                  | $      | 121 |   |   |   | 0.74 | % |   | $ | 34,469 |   |   | $ | 274 |   |   |   | 1.62 | % |
| Savings                                      |   |                                  | 2,019   |   |                                  |   | 3 |   |   |   | 0.26 | % |   |   | 1,160 |   |   |   | 2 |   |   |   | 0.29 | % |
| Time deposits < $100,000                  |   |                                  | 5,670   |   |                                  |   | 24 |   |   |   | 0.84 | % |   |   | 7,274 |   |   |   | 58 |   |   |   | 1.60 | % |
| Time deposits equal to or > $100,000      |   |                                  | 14,229  |   |                                  |   | 66 |   |   |   | 0.94 | % |   |   | 18,859 |   |   |   | 149 |   |   |   | 1.58 | % |
| Other borrowings                             |   |                                  | 203     |   |                                  |   | 0 |   |   |   | 0.07 | % |   |   | 454 |   |   |   | 1 |   |   |   | 0.25 | % |
| Subordinated debenture                       |   |                                  | 3,093   |   |                                  |   | 102 |   |   |   | 6.65 | % |   |   | 3,093 |   |   |   | 102 |   |   |   | 6.65 | % |
| Total interest-bearing liabilities           |   |                                  | 58,042  |   |                                  | $      | 316 |   |   |   | 1.10 | % |   |   | 65,309 |   |   | $ | 586 |   |   |   | 1.81 | % |
| Non-interest bearing deposits                |   |                                  | 42,851  |   |                                  |   |   |   |   |   |   |   |   |   | 39,141 |   |   |   |   |   |   |   |   |   |
| Non-interest bearing liabilities             |   |                                  | 965     |   |                                  |   |   |   |   |   |   |   |   |   | 1,551 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                         |   |                                  | 7,047   |   |                                  |   |   |   |   |   |   |   |   |   | 6,430 |   |   |   |   |   |   |   |   |   |
| Total liabilities & stockholders' equity |   | $                                     | 108,905 |   |                                  |   |   |   |   |   |   |   |   | $ | 112,431 |   |   |   |   |   |   |   |   |   |
|                                         |   |                                  |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                          |   |                                  |    |   |                                  | $      | 1,927 |   |   |   |   |   |   |   |   |   |   | $ | 1,930 |   |   |   |   |   |
|                                         |   |                                  |    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest spread2                         |   |                                  |    |   |                                  |   |   |   |   |   | 3.67 | % |   |   |   |   |   |   |   |   |   |   | 3.33 | % |
| Net interest margin3                         |   |                                  |    |   |                                  |   |   |   |   |   | 4.09 | % |   |   |   |   |   |   |   |   |   |   | 3.94 | % |

----

----

|                                       |   | For the quarter ended June 30 2011 vs. 2010 |   |   | For the six months ended June 30 2011 vs. 2010 |   |
|--------------------------------------------|--------|--------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                       |   | Increase (Decrease) Due to                       |   |   | Increase (Decrease) Due to                          |   |
|                                       |   | ($ in thousands)                                 |   |   | ($ in thousands)                                    |   |
|                                       |   | Volume                                           |   |   | Rate                                                |   |   | Net |   |   | Volume |   |   | Rate |   |   | Net |   |
| Interest-earnings assets                   |   |                                             |   |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                      |   | $                                                | (24    | )      |                                                | $      | (112 | ) |   | $ | (136 | ) |   | $ | (47 | ) |   | $ | (152 | ) |   | $ | (199 | ) |
| Securities of U.S. government agencies     |   |                                             | 4      |   |                                                |   | 0 |   |   |   | 4 |   |   |   | 5 |   |   |   | 15 |   |   |   | 20 |   |
| Mortgage-backed securities                 |   |                                             | (18    | )      |                                                |   | (12 | ) |   |   | (30 | ) |   |   | 35 |   |   |   | (28 | ) |   |   | 7 |   |
| Other securities & Due from banks time |   |                                             | (33    | )      |                                                |   | (20 | ) |   |   | (53 | ) |   |   | (57 | ) |   |   | (48 | ) |   |   | (105 | ) |
| Federal funds sold                         |   |                                             | 1      |   |                                                |   | 0 |   |   |   | 1 |   |   |   | 0 |   |   |   | 4 |   |   |   | 4 |   |
| Total interest-earning assets              |   |                                             | (70    | )      |                                                |   | (144 | ) |   |   | (214 | ) |   |   | (64 | ) |   |   | (209 | ) |   |   | (273 | ) |
|                                       |   |                                             |   |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities               |   |                                             |   |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market & NOW                     |   |                                             | (16    | )      |                                                |   | (67 | ) |   |   | (83 | ) |   |   | (13 | ) |   |   | (140 | ) |   |   | (153 | ) |
| Savings                                    |   |                                             | 2      |   |                                                |   | (2 | ) |   |   | 0 |   |   |   | 1 |   |   |   | 0 |   |   |   | 1 |   |
| Time deposits < $100,000                |   |                                             | (7     | )      |                                                |   | (11 | ) |   |   | (18 | ) |   |   | (11 | ) |   |   | (23 | ) |   |   | (34 | ) |
| Time deposits equal to or > $100,000    |   |                                             | (17    | )      |                                                |   | (24 | ) |   |   | (41 | ) |   |   | (30 | ) |   |   | (53 | ) |   |   | (83 | ) |
| Other borrowed funds                       |   |                                             | (1     | )      |                                                |   | 0 |   |   |   | (1 | ) |   |   | (1 | ) |   |   | 0 |   |   |   | (1 | ) |
| Subordinated debenture                     |   |                                             | 0      |   |                                                |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Total interest-bearing liabilities         |   |                                             | (39    | )      |                                                |   | (104 | ) |   |   | (143 | ) |   |   | (54 | ) |   |   | (216 | ) |   |   | (270 | ) |
| Change in net interest income              |   | $                                                | (31    | )      |                                                | $      | (40 | ) |   | $ | (71 | ) |   | $ | (10 | ) |   | $ | 7 |   |   | $ | (3 | ) |

----

----

|                                      |   | Non-Interest Income for the three months ended June 30, |   |   | Non-Interest Income for the six months ended June 30, |   |
|-------------------------------------------|--------|---------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|
|                                      |   | 2011                                                    |   |   | 2010                                                  |   |   | 2011 |   |   | 2010 |   |
|                                      |   | Amount                                                  |   |   | % of Total                                            |   |   | Amount |   |   | % of Total |   |   | Amount |   |   | % of Total |   |   | Amount |   |   | % of Total |   |
|                                      |   | (Dollars in thousands)                                  |   |   | (Dollars in thousands)                                |   |
| Service charges ondeposit accounts        |   | $                                                       | 289    |   |                                                  |   | 91.0 | % |   | $ | 295 |   |   |   | 92.4 | % |   | $ | 593 |   |   |   | 83.5 | % |   | $ | 563 |   |   |   | 91.8 | % |
| Gain on sale of foreclosed assets         |   |                                                    | 0      |   |                                                  |   | 0.0 | % |   |   | 0 |   |   |   | 0.0 | % |   |   | 61 |   |   |   | 8.6 | % |   |   | 0 |   |   |   | 0.0 | % |
| Other miscellaneous income                |   |                                                    | 8      |   |                                                  |   | 2.6 | % |   |   | 9 |   |   |   | 2.7 | % |   |   | 16 |   |   |   | 2.2 | % |   |   | 15 |   |   |   | 2.4 | % |
| Dividend income from restricted stock     |   |                                                    | 3      |   |                                                  |   | 0.9 | % |   |   | (2 | ) |   |   | -0.5 | % |   |   | 6 |   |   |   | 0.8 | % |   |   | 1 |   |   |   | 0.2 | % |
| Income from bank owned life insurance     |   |                                                    | 18     |   |                                                  |   | 5.5 | % |   |   | 17 |   |   |   | 5.4 | % |   |   | 35 |   |   |   | 4.9 | % |   |   | 34 |   |   |   | 5.6 | % |
| Total non-interest income                 |   | $                                                       | 318    |   |                                                  |   | 100.0 | % |   | $ | 319 |   |   |   | 100.0 | % |   | $ | 711 |   |   |   | 100.0 | % |   | $ | 613 |   |   |   | 100.0 | % |
| As a percentage of average earning assets |   |                                                    |   |   |                                                  |   | 1.4 | % |   |   |   |   |   |   | 1.3 | % |   |   |   |   |   |   | 1.5 | % |   |   |   |   |   |   | 1.2 | % |

----

|                                                           |   | Non-Interest Expense for the quarter ended June 30 |   |   | Non-Interest Expense for the six months June 30 |   |
|----------------------------------------------------------------|--------|----------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                           |   | 2011                                               |   |   | 2010                                            |   |   | 2011 |   |   | 2010 |   |
|                                                           |   | Amount                                             |   |   | % of Total                                      |   |   | Amount |   |   | % of Total |   |   | Amount |   |   | % of Total |   |   | Amount |   |   | % of Total |   |
|                                                           |   | (Dollars in thousands)                             |   |   | (Dollars in thousands)                          |   |
| Salaries and employee benefits                                 |   | $                                                  | 521    |   |                                            |   | 49.3 | % |   | $ | 570 |   |   |   | 54.6 | % |   | $ | 1,108 |   |   |   | 51.9 | % |   | $ | 1,094 |   |   |   | 55.3 | % |
| Occupancy and equipment                                        |   |                                               | 112    |   |                                            |   | 10.6 | % |   |   | 106 |   |   |   | 10.1 | % |   |   | 227 |   |   |   | 10.6 | % |   |   | 191 |   |   |   | 9.7 | % |
| Data and item processing                                       |   |                                               | 94     |   |                                            |   | 8.9 | % |   |   | 92 |   |   |   | 8.8 | % |   |   | 191 |   |   |   | 8.9 | % |   |   | 172 |   |   |   | 8.7 | % |
| Deposit products and services                                  |   |                                               | 6      |   |                                            |   | 0.6 | % |   |   | 28 |   |   |   | 2.7 | % |   |   | 18 |   |   |   | 0.8 | % |   |   | 51 |   |   |   | 2.6 | % |
| Legal and other professional fees                              |   |                                               | 132    |   |                                            |   | 12.5 | % |   |   | 39 |   |   |   | 3.7 | % |   |   | 202 |   |   |   | 9.5 | % |   |   | 84 |   |   |   | 4.3 | % |
| Regulatory assessments                                         |   |                                               | 76     |   |                                            |   | 7.2 | % |   |   | 54 |   |   |   | 5.2 | % |   |   | 151 |   |   |   | 7.1 | % |   |   | 106 |   |   |   | 5.4 | % |
| Advertising and marketing                                      |   |                                               | 11     |   |                                            |   | 1.0 | % |   |   | 15 |   |   |   | 1.4 | % |   |   | 27 |   |   |   | 1.3 | % |   |   | 29 |   |   |   | 1.5 | % |
| Directors’ fees and expenses                             |   |                                               | 21     |   |                                            |   | 2.0 | % |   |   | 17 |   |   |   | 1.6 | % |   |   | 37 |   |   |   | 1.7 | % |   |   | 34 |   |   |   | 1.7 | % |
| Printing and supplies                                          |   |                                               | 10     |   |                                            |   | 0.9 | % |   |   | 20 |   |   |   | 1.9 | % |   |   | 22 |   |   |   | 1.0 | % |   |   | 35 |   |   |   | 1.8 | % |
| Telephone                                                      |   |                                               | 9      |   |                                            |   | 0.9 | % |   |   | 9 |   |   |   | 0.9 | % |   |   | 19 |   |   |   | 0.9 | % |   |   | 18 |   |   |   | 0.9 | % |
| Insurance                                                      |   |                                               | 9      |   |                                            |   | 0.9 | % |   |   | 9 |   |   |   | 0.9 | % |   |   | 20 |   |   |   | 0.9 | % |   |   | 18 |   |   |   | 0.9 | % |
| Reserve for undisbursed lines of credit                        |   |                                               | 2      |   |                                            |   | 0.2 | % |   |   | (1 | ) |   |   | -0.1 | % |   |   | (3 | ) |   |   | -0.1 | % |   |   | 6 |   |   |   | 0.3 | % |
| Other expenses                                                 |   |                                               | 53     |   |                                            |   | 5.0 | % |   |   | 87 |   |   |   | 8.3 | % |   |   | 118 |   |   |   | 5.5 | % |   |   | 136 |   |   |   | 6.9 | % |
| Total non-interest expenses                                    |   | $                                                  | 1,056  |   |                                            |   | 100.0 | % |   | $ | 1,045 |   |   |   | 100.0 | % |   | $ | 2,137 |   |   |   | 100.0 | % |   | $ | 1,974 |   |   |   | 100.0 | % |
| Non-interest expense as a percentage of average earning assets |   |                                               |   |   |                                            |   | 4.6 | % |   |   |   |   |   |   | 4.1 | % |   |   |   |   |   |   | 4.5 | % |   |   |   |   |   |   | 4.0 | % |
| Efficiency ratio                                               |   |                                               |   |   |                                            |   | 86.2 | % |   |   |   |   |   |   | 80.6 | % |   |   |   |   |   |   | 82.9 | % |   |   |   |   |   |   | 77.6 | % |

----

|        |   | June 30, 2011 |   |   | December 31, 2010 |   |
|-------------|--------|---------------|--------|--------|-------------------|--------|
|        |   | Amount        |   |   | Percentage        |   |   | Amount |   |   | Percentage |   |
| Real estate |   | $             | 49,472 |   |              |   | 84.6 | % |   | $ | 51,460 |   |   |   | 85.0 | % |
| Commercial  |   |          | 8,328  |   |              |   | 14.2 | % |   |   | 8,411 |   |   |   | 13.9 | % |
| Installment |   |          | 694    |   |              |   | 1.2 | % |   |   | 649 |   |   |   | 1.1 | % |
| Gross loans |   | $             | 58,494 |   |              |   | 100.0 | % |   | $ | 60,520 |   |   |   | 100.0 | % |

----

----

|                                                         |   | June 30          |   |   | December 31 |   |   | June 30 |   |
|--------------------------------------------------------------|--------|------------------|--------|--------|-------------|--------|--------|---------|--------|
|                                                         |   | 2011             |   |   | 2010        |   |   | 2010    |   |
|                                                         |   | ($ in thousands) |   |
| NON-ACCRUAL LOANS: 1                                         |   |             |   |   |        |   |   |    |   |
| Real estate                                                  |   | $                | 2,735  |   |        | $      | 3,096  |    |   | $ | 2,184 |   |
| Commercial                                                   |   |             | 1,681  |   |        |   | 1,071  |    |   |   | 99 |   |
| Installment                                                  |   |             | 0      |   |        |   | 0      |    |   |   | 0 |   |
| TOTAL NON-ACCRUAL LOANS                                      |   |             | 4,416  |   |        |   | 4,167  |    |   |   | 2,283 |   |
| LOANS 90 DAYS OR MORE PAST DUE& STILL ACCRUING:          |   |             |   |   |        |   |   |    |   |   |   |   |
| Real estate                                                  |   |             | 0      |   |        |   | 0      |    |   |   | 0 |   |
| Commercial                                                   |   |             | 0      |   |        |   | 0      |    |   |   | 0 |   |
| Installment                                                  |   |             | 0      |   |        |   | 0      |    |   |   | 0 |   |
| TOTAL LOANS 90 DAYS OR MORE PAST DUE & STILL ACCRUING    |   |             | 0      |   |        |   | 0      |    |   |   | 0 |   |
|                                                         |   |             |   |   |        |   |   |    |   |   |   |   |
| TOTAL NONPERFORMING LOANS                                    |   |             | 4,416  |   |        |   | 4,167  |    |   |   | 2,283 |   |
| OREO                                                         |   |             | 439    |   |        |   | 517    |    |   |   | 573 |   |
|                                                         |   |             |   |   |        |   |   |    |   |   |   |   |
| TOTAL NONPERFORMING ASSETS                                   |   | $                | 4,855  |   |        | $      | 4,684  |    |   | $ | 2,856 |   |
| Nonperforming loans as a percentage of total loans2          |   |             | 7.55   | %      |        |   | 6.89   | %       |   |   | 3.80 | % |
| Nonperforming assets as a percentage of total loans and OREO |   |             | 8.24   | %      |        |   | 7.67   | %       |   |   | 4.70 | % |

----

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|                                                                                    |   | As of and for the Quarter Ended June 30 |   |   | As of and for the Six-Month Period Ended June 30 |   |   | Year Ended December 31, |   |
|-----------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|--------------------------------------------------|--------|--------|-------------------------|--------|
|                                                                                    |   | 2011                                    |   |   | 2010                                             |   |   | 2011                    |   |   | 2010 |   |   | 2010 |   |
|                                                                                    |   | ($ in thousands)                        |   |
| Balances:                                                                               |   |                                    |   |   |                                             |   |   |                    |   |   |   |   |   |   |   |
| Average total loans outstanding during period                                           |   | $                                       | 29,336 |   |                                             | $      | 60,816 |                    |   | $ | 59,804 |   |   | $ | 61,149 |   |   | $ | 60,679 |   |
|                                                                                    |   |                                    |   |   |                                             |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans outstanding at end of the period                                            |   | $                                       | 58,494 |   |                                             | $      | 60,151 |                    |   | $ | 58,494 |   |   | $ | 60,151 |   |   | $ | 60,520 |   |
| Allowance for loan losses:                                                              |   |                                    |   |   |                                             |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at the beginning of period                                                      |   | $                                       | 1,448  |   |                                             | $      | 1,394  |                    |   | $ | 1,442 |   |   | $ | 1,278 |   |   | $ | 1,278 |   |
| Provision charged to expense                                                            |   |                                    | 274    |   |                                             |   | 251    |                    |   |   | 280 |   |   |   | 514 |   |   |   | 770 |   |
| Charge-offs                                                                             |   |                                    |   |   |                                             |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans                                                                        |   |                                    | 144    |   |                                             |   | 0      |                    |   |   | 144 |   |   |   | 148 |   |   |   | 263 |   |
| Commercial real estate loans                                                            |   |                                    | 116    |   |                                             |   | 335    |                    |   |   | 116 |   |   |   | 335 |   |   |   | 355 |   |
| Installment loans                                                                       |   |                                    | 0      |   |                                             |   | 0      |                    |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Total                                                                                   |   |                                    | 260    |   |                                             |   | 335    |                    |   |   | 260 |   |   |   | 483 |   |   |   | 618 |   |
| Recoveries                                                                              |   |                                    |   |   |                                             |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans                                                                        |   |                                    | 0      |   |                                             |   | 3      |                    |   |   | 0 |   |   |   | 4 |   |   |   | 12 |   |
| Commercial real estate loans                                                            |   |                                    | 0      |   |                                             |   | 0      |                    |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Installment loans                                                                       |   |                                    | 0      |   |                                             |   | 0      |                    |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Total                                                                                   |   |                                    | 0      |   |                                             |   | 3      |                    |   |   | 0 |   |   |   | 4 |   |   |   | 12 |   |
|                                                                                    |   |                                    |   |   |                                             |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loan chage-offs(recoveries)                                                         |   |                                    | 260    |   |                                             |   | 332    |                    |   |   | 260 |   |   |   | 479 |   |   |   | 606 |   |
| Balance                                                                                 |   | $                                       | 1,462  |   |                                             | $      | 1,313  |                    |   | $ | 1,462 |   |   | $ | 1,313 |   |   | $ | 1,442 |   |
|                                                                                    |   |                                    |   |   |                                             |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratios:                                                                                 |   |                                    |   |   |                                             |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loan charge-offs to average total loans                                             |   |                                    | 0.44   | %      |                                             |   | 0.55   | %                       |   |   | 0.43 | % |   |   | 0.78 | % |   |   | 1.00 | % |
| Provision for loan losses to average total loans                                        |   |                                    | 0.46   | %      |                                             |   | 0.41   | %                       |   |   | 0.47 | % |   |   | 0.84 | % |   |   | 1.27 | % |
| Allowance for loan losses to total loans at the end of the period                       |   |                                    | 2.50   | %      |                                             |   | 2.18   | %                       |   |   | 2.50 | % |   |   | 2.18 | % |   |   | 2.38 | % |
| Allowance for loan losses to non-performing loans                                       |   |                                    | 33.11  | %      |                                             |   | 57.50  | %                       |   |   | 33.11 | % |   |   | 57.50 | % |   |   | 34.60 | % |
| Net loan charge-offs (recoveries) to allowance for loan losses at the end of the period |   |                                    | 17.75  | %      |                                             |   | 25.27  | %                       |   |   | 17.75 | % |   |   | 36.47 | % |   |   | 42.03 | % |
| Net loan charge-offs (recoveries) to provision for loan losses                          |   |                                    | 94.72  | %      |                                             |   | 132.36 | %                       |   |   | 92.85 | % |   |   | 93.11 | % |   |   | 78.77 | % |

----

|                       |   | June 30, 2011    |   |   | December 31, 2010 |   |
|----------------------------|--------|------------------|--------|--------|-------------------|--------|
|                       |   | Carrying         |   |   | Fair              |   |   | Carrying |   |   | Fair |   |
|                       |   | Value            |   |   | Value             |   |   | Value |   |   | Value |   |
|                       |   | ($ in thousands) |   |
| Held to maturity:          |   |             |   |   |              |   |   |   |   |   |   |   |
| Municipal                  |   | $                | 434    |   |              | $      | 436 |   |   | $ | 435 |   |   | $ | 437 |   |
| Federal agency             |   |             | 2,500  |   |              |   | 2,537 |   |   |   | 2,500 |   |   |   | 2,538 |   |
| Mortgage-backed securities |   |             | 8,086  |   |              |   | 8,310 |   |   |   | 9,137 |   |   |   | 9,243 |   |
| Corporate bonds            |   |             | 82     |   |              |   | 83 |   |   |   | 82 |   |   |   | 84 |   |
| Total held to maturity     |   |             | 11,102 |   |              |   | 11,366 |   |   |   | 12,154 |   |   |   | 12,302 |   |
|                       |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Available for sale:        |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Municipal                  |   |             | 775    |   |              |   | 775 |   |   |   | 754 |   |   |   | 754 |   |
| Mortgage-backed securities |   |             | 2,726  |   |              |   | 2,726 |   |   |   | 3,953 |   |   |   | 3,953 |   |
| Total available for sale   |   |             | 3,501  |   |              |   | 3,501 |   |   |   | 4,707 |   |   |   | 4,707 |   |
| Total                      |   | $                | 14,603 |   |              | $      | 14,867 |   |   | $ | 16,861 |   |   | $ | 17,009 |   |

----

|                          |   | June 30, 2011    |   |   | December 31, 2010 |   |
|-------------------------------|--------|------------------|--------|--------|-------------------|--------|
|                          |   | Amount           |   |   | Percentage        |   |   | Amount |   |   | Percentage |   |
|                          |   | ($ in thousands) |   |
|                          |   |             |   |   |              |   |   |   |   |   |   |   |
| Demand                        |   | $                | 42,460 |   |              |   | 45.4 | % |   | $ | 41,910 |   |   |   | 40.8 | % |
| NOW                           |   |             | 1,072  |   |              |   | 1.1 | % |   |   | 1,697 |   |   |   | 1.6 | % |
| Savings                       |   |             | 1,854  |   |              |   | 2.0 | % |   |   | 2,085 |   |   |   | 2.0 | % |
| Money Market                  |   |             | 29,764 |   |              |   | 31.8 | % |   |   | 34,545 |   |   |   | 33.5 | % |
| Time Deposits < $100,000   |   |             | 5,357  |   |              |   | 5.7 | % |   |   | 6,377 |   |   |   | 6.2 | % |
| Time Deposits   $100,000 |   |             | 13,083 |   |              |   | 14.0 | % |   |   | 16,386 |   |   |   | 15.9 | % |
|                          |   | $                | 93,590 |   |              |   | 100.0 | % |   | $ | 103,000 |   |   |   | 100.0 | % |

----

----

|                                         |   | June 30, 2011 |   |   | December 31, 2010 |   |   | Minimum Requirement to be Well Capitalized |   |
|----------------------------------------------|--------|---------------|--------|--------|-------------------|--------|--------|--------------------------------------------|--------|
| Chino Commercial Bancorp                     |   |          |   |   |              |   |   |                                       |   |
| Total capital to total risk-weighted assets  |   |          | 15.35  | %      |              |   | 14.72  | %                                          |   |   | 10.00 | % |
| Tier 1 capital to total risk-weighted assets |   |          | 13.08  | %      |              |   | 12.43  | %                                          |   |   | 6.00 | % |
| Tier 1 leverage ratio                        |   |          | 9.04   | %      |              |   | 8.28   | %                                          |   |   | 5.00 | % |
|                                         |   |          |   |   |              |   |   |                                       |   |   |   |   |
| Chino Commercial Bank                        |   |          |   |   |              |   |   |                                       |   |   |   |   |
| Total capital to total risk-weighted assets  |   |          | 15.28  | %      |              |   | 14.48  | %                                          |   |   | 10.00 | % |
| Tier 1 capital to total risk-weighted assets |   |          | 14.00  | %      |              |   | 13.22  | %                                          |   |   | 6.00 | % |
| Tier 1 leverage ratio                        |   |          | 9.67   | %      |              |   | 8.80   | %                                          |   |   | 5.00 | % |

----

|                                            |   |   | -300 bp |   |   |   | -200 bp |   |   |   | -100 bp |   |   |   | +100 bp |   |   |   | +200 bp |   |   |   | +300 bp |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| Change in net interest income (in $000’s) |   | $      | 134     |   |   | $      | 181     |   |   | $      | 146     |   |   | $      | 122     |   |   | $      | 221     |   |   | $      | 310     |   |
| % Change                                        |   |   | 3.53    | %      |   |   | 4.77    | %      |   |   | 3.85    | %      |   |   | 3.21    | %      |   |   | 5.82    | %      |   |   | 8.17    | %      |

----

|                       |   |   | -300  bp |   |   |   | -200  bp |   |   |   | -100  bp |   |   |   | +100  bp |   |   |   | +200  bp |   |   |   | +300  bp |   |
|----------------------------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------|--------|
| Changes in EVE (in $000's) |   | $      | 3,741         |   |   | $      | 2,321         |   |   | $      | 965           |   |   | $      | 42            |   |   | $      | (710          | )      |   | $      | (1,423        | )      |
| % Change                   |   |   | 39.3          | %      |   |   | 24.4          | %      |   |   | 10.1          | %      |   |   | 0.4           | %      |   |   | -7.5          | %      |   |   | -15.0         | %      |

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| Exhibit # |   | Description                                                                                                                            |
|-----------|--------|----------------------------------------------------------------------------------------------------------------------------------------|
| 3.1       |   | Articles of Incorporation of Chino Commercial Bancorp1                                                                                 |
| 3.2       |   | Bylaws of Chino Commercial Bancorp1                                                                                                    |
| 10.1      |   | 2000 Stock Option Plan1                                                                                                                |
| 10.2      |   | Chino Commercial Bank, N.A. Salary Continuation Plan1                                                                                  |
| 10.3      |   | Salary Continuation and Split Dollar Agreements for Dann H. Bowman1                                                                    |
| 10.4      |   | Employment Agreement for Dann H. Bowman2                                                                                               |
| 10.5      |   | Salary Continuation and Split Dollar Agreements for Roger Caberto1                                                                     |
| 10.6      |   | Item Processing Agreement between the Bank and InterCept Group1                                                                        |
| 10.7      |   | Data Processing Agreement between the Bank and InterCept Group1                                                                        |
| 10.8      |   | Indenture dated as of October 27, 2006 between U.S. Bank National Association, as Trustee and Chino Commercial Bancorp as Issuer3 |
| 10.9      |   | Amended and Restated Declaration of Trust of Chino Statutory Trust I, dated as of October 27, 20063                                    |
| 10.10     |   | Guarantee Agreement between Chino commercial Bancorp and U.S. Bank National Association dated as of October 27, 20063             |
| 10.11     |   | Amendment to Salary Continuation Agreement for Dann H. Bowman4                                                                         |
| 10.12     |   | Amendment to Salary Continuation Agreement for Roger Caberto4                                                                          |
| 11        |   | Statement Regarding Computation of Net Income Per Share5                                                                               |
| 21        |   | Subsidiaries of Registrant6                                                                                                            |
| 31.1      |   | Certification of Chief Executive Officer (Section 302 Certification)                                                                   |
| 31.2      |   | Certification of Chief Financial Officer (Section 302 Certification)                                                                   |
| 32        |   | Certification of Periodic Financial Report (Section 906 Certification)                                                                 |

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|                                                      | CHINO COMMERCIAL BANCORP |                                  |
|-----------------------------------------------------------|--------------------------|---------------------------------------|
|                                                      |                     |                                  |   |
| Dated:  August 12, 2011     | By:                      | /s/ Dann H. Bowman                    |   |
|                                                      |                     | Dann H. Bowman                        |   |
|                                                      |                     | President and Chief Executive Officer |   |
|                                                      |                     | (Principal Executive Officer)         |   |

|   |   |                                           |   |
|--------|--------|------------------------------------------------|--------|
|   | By:    | /s/ Sandra F. Pender                           |   |
|   |   | Sandra F. Pender                               |   |
|   |   | Senior Vice President, Chief Financial Officer |   |
|   |   | (Principal Financial and Accounting Officer)   |   |

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