<SEC-DOCUMENT>0000914317-13-000431.txt : 20130402
<SEC-HEADER>0000914317-13-000431.hdr.sgml : 20130402
<ACCEPTANCE-DATETIME>20130402100605
ACCESSION NUMBER:		0000914317-13-000431
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20130509
FILED AS OF DATE:		20130402
DATE AS OF CHANGE:		20130402
EFFECTIVENESS DATE:		20130402

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FIRST BANCORP /NC/
		CENTRAL INDEX KEY:			0000811589
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				561421916
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-15572
		FILM NUMBER:		13733618

	BUSINESS ADDRESS:	
		STREET 1:		341 NORTH MAIN ST
		STREET 2:		PO BOX 508
		CITY:			TROY
		STATE:			NC
		ZIP:			27371-0508
		BUSINESS PHONE:		9105766171
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>def14a-128493_fbnc.htm
<DESCRIPTION>DEF 14A
<TEXT>
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<div style="LINE-HEIGHT: 15.95pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt">UNITED STATES</font></div>

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<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Washington, D.C. 20549</font></div>

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<div style="LINE-HEIGHT: 20.5pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 18pt">SCHEDULE 14A INFORMATION</font></div>

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<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934</font></div>

<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(Amendment No. __)</font></div>

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<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font: 10pt Times New Roman">Filed
by the Registrant </FONT><FONT STYLE="font-family: Wingdings 2">&#83;</FONT></div>

<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Filed by a Party other than the Registrant <font style="DISPLAY: inline;" face="Wingdings">o</font></font></div>

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<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Check the appropriate box:</font></div>

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<TD STYLE="width: 0.5in; text-align: left; vertical-align: bottom"><FONT STYLE="font: 10pt Wingdings">o</FONT></TD><TD></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman">Preliminary Proxy Statement</FONT></TD>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left; vertical-align: bottom"><FONT STYLE="font: 10pt Wingdings">o</FONT></TD><TD></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman">Confidential, for Use of the Commission
Only (as permitted by Rule 14a-6(e)(2))</FONT></TD>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left; vertical-align: bottom"><FONT STYLE="font-family: Wingdings 2">&#83;</FONT></TD><TD></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman">Definitive Proxy Statement</FONT></TD>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left; vertical-align: bottom"><FONT STYLE="font: 10pt Wingdings">o</FONT></TD><TD></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman">Definitive Additional Materials</FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left; vertical-align: bottom"><FONT STYLE="font: 10pt Wingdings">o</FONT></TD><TD></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman">Soliciting Material Pursuant to &#167;
240.14A-12</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0; margin-left: 0em; text-indent: 0em; text-align: justify"><br></P>

<DIV STYLE="line-height: 27.35pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center; border-bottom: Black 2px solid"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 24pt">FIRST BANCORP</font></div>

<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(Name of Registrant as Specified in Its Charter)</font></div>

<div style="LINE-HEIGHT: 11pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>

<div style="LINE-HEIGHT: 11pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>

<div>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt times new roman">
<tr>
<TD COLSPAN="3" STYLE="vertical-align: top">
<DIV STYLE="line-height: 11.4pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center; border-top: Black 2px solid"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top; width: 0.5in"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top; width: 0.5in"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD COLSPAN="3" STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Payment of Filing Fee (Check the appropriate box):</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><FONT STYLE="font-family: Wingdings 2">&#83;</FONT></div>
</td>
<TD COLSPAN="2" STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">No fee required.</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: wingdings; FONT-SIZE: 10pt">o</font></div>
</td>
<TD COLSPAN="2" STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(1)</font></div>
</td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Title of each class of securities to which transaction applies:</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">N/A</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top; padding-bottom: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top; padding-bottom: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top; border-bottom: black 2px solid"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(2)</font></div>
</td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Aggregate number of securities to which transactions applies:</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">N/A</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top; padding-bottom: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top; padding-bottom: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top; border-bottom: black 2px solid"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(3)</font></div>
</td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">N/A</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top; padding-bottom: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top; padding-bottom: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top; border-bottom: black 2px solid"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(4)</font></div>
</td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Proposed maximum aggregate value of transaction:</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
<div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">N/A</font></div>
</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top; padding-bottom: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top; padding-bottom: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top; border-bottom: black 2px solid"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
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</td>
<TD STYLE="text-align: left; vertical-align: top">
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</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr><tr>
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<TD STYLE="text-align: left; vertical-align: top"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
<TD STYLE="text-align: left; vertical-align: top">
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</td>
</tr><tr>
<TD STYLE="text-align: left; vertical-align: top; padding-bottom: 2px"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
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<TD STYLE="text-align: left; vertical-align: top; border-bottom: black 2px solid"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160; </font></td>
</tr></table>

<br>
<br>
</div>



<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">&nbsp;</P>

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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><IMG SRC="image_001.jpg" ALT="" STYLE="height: 22px; width: 213px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>341 North Main Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Troy, North Carolina 27371-0508</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Telephone (910) 576-6171</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="border-top: Black 0.75pt solid; font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTICE OF
ANNUAL MEETING OF SHAREHOLDERS</B></P>

<P STYLE="border-bottom: Black 0.75pt solid; font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TO BE
HELD THURSDAY, MAY 9, 2013</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>To Our Shareholders:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The annual meeting of shareholders of First
Bancorp (the &ldquo;Company&rdquo;) will be held at the James H. Garner Conference Center, 211 Burnette Street, Troy, North Carolina
(see map on outside back cover) on Thursday, May 9, 2013 at 3:00 p.m. local time, for the purpose of considering and acting on
the following matters:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 13.5pt">1.</TD><TD>A proposal to elect thirteen (13) nominees to the Board of Directors to serve until the 2014 annual meeting of shareholders,
or until their successors are elected and qualified.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 13.5pt">2.</TD><TD>A proposal to ratify the appointment of Elliott Davis, PLLC as the independent auditors of the Company for 2013.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -13.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 13.5pt">3.</TD><TD>To approve, on a non-binding advisory basis, the compensation paid to the Company&rsquo;s named executive officers, as disclosed
in the accompanying proxy statement (&ldquo;say on pay&rdquo;).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -13.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 13.5pt">4.</TD><TD>Such other business as may properly come before the meeting, or any adjournment thereof.</TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">Only shareholders of record as of the close
of business on March 20, 2013 are entitled to notice of and to vote at the annual meeting and any adjournment thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"><B>Whether or not you expect to be present
at the annual meeting, please complete, date and sign the enclosed form of proxy and return it promptly in the enclosed envelope.
If you attend the meeting, your proxy will be returned to you upon request. You may also vote by telephone or on the Internet,
as described in the proxy statement and on the proxy card.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"><B>Please note that the attached form of proxy
includes a request from the Company to indicate whether or not you plan to attend the annual meeting. For planning purposes, management
of the Company would appreciate you filling in the appropriate box indicating whether or not you plan to attend the annual meeting.
If you initially indicate that you are not planning to attend and later want to, or do not indicate one way or the other, you are
still welcome and invited to attend the meeting. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The proxy statement accompanying this notice
sets forth further information concerning the proposals to be considered at the annual meeting. You are urged to study this information
carefully.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.3pt">Included in this package, in compliance with
applicable regulations, is the Company&rsquo;s 2012 Annual Report, which includes a letter from the president, and the Company&rsquo;s
Form 10-K. The Form 10-K includes the Company&rsquo;s financial statements and other required disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; margin-bottom: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 40%; text-align: center">By Order of the Board of Directors</TD>
    <TD STYLE="width: 30%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">Anna G. Hollers</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>April 2, 2013</TD>
    <TD STYLE="text-align: center">Secretary</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Important notice regarding the availability
of proxy materials </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>for the shareholder meeting to be held on
May 9, 2013.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>The Proxy Statement and 2012 Annual Report
on Form 10-K </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>are also available at www.cfpproxy.com/3958.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>First Bancorp</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>341 North Main Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Troy, North Carolina 27371-0508</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Telephone (910) 576-6171</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="border-top: Black 0.75pt solid; font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.75pt solid"><B>PROXY
STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/0.2pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INTRODUCTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">This proxy statement is furnished to the shareholders
of First Bancorp (hereinafter sometimes referred to as the &ldquo;Company&rdquo;) by the Board of Directors in connection with
its solicitation of proxies for use at the annual meeting of shareholders of the Company to be held on Thursday, May 9, 2013 at
3:00 p.m. local time, at the James H. Garner Conference Center, 211 Burnette Street, Troy, North Carolina (see map on outside back
cover), and at any adjournment thereof. Action will be taken at the annual meeting on the items described in this proxy statement
and on any other business that properly comes before the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">This proxy statement and accompanying form
of proxy are first being mailed to shareholders on or about April 2, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The accompanying proxy is for use at the 2013
Annual Meeting if a shareholder either will be unable to attend in person or will attend but wishes to vote by proxy. Most shareholders
have a choice of voting by completing the enclosed proxy card and mailing it in the postage-paid envelope provided, voting over
the Internet or using a toll-free number. Shareholders should refer to the proxy card or the information forwarded by the shareholder&rsquo;s
bank, broker or other holder of record to see which voting options are available. Shareholders who vote over the Internet may incur
costs, such as telephone and Internet access charges, for which the shareholder is responsible. The Internet and telephone voting
facilities for eligible shareholders of record will close at 11:59 p.m. Eastern Daylight Time on May 8, 2013. Specific instructions
to be followed by any eligible shareholder interested in voting via the Internet or telephone are shown on the enclosed proxy card.
The Internet and telephone voting procedures are designed to authenticate the shareholder&rsquo;s identity and to allow shareholders
to vote their shares and confirm that their instructions have been properly recorded. In the event that the proxy card does not
reference Internet or telephone voting information because the recipient is not the registered owner of the shares, the proxy card
must be completed and returned in the self-addressed, postage-paid envelope provided.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">If you hold your shares in street name, it
is critical that you cast your vote if you want it to count in the election of our director nominees (Proposal 1 of this Proxy
Statement). Until recently, if you held your shares in street name and you did not indicate how you wanted your shares voted in
the election of directors, your bank or broker was allowed to vote those shares on your behalf in the election of directors as
they felt appropriate. Recent changes in regulations were made to take away the ability of your bank or broker to vote your uninstructed
shares in the election of directors on a discretionary basis. Thus, if you hold your shares in street name and you do not instruct
your bank or broker how to vote in the election of directors, no votes will be cast on your behalf.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">Any shareholder giving a proxy may revoke it
at any time before a vote is taken by (i) duly executing a proxy bearing a later date; (ii) executing a notice of revocation in
a written instrument filed with the secretary of the Company; or (iii) appearing at the meeting and notifying the secretary of
the shareholder&rsquo;s intention to vote in person. Unless a contrary choice is specified, all shares represented by valid proxies
received pursuant to this solicitation, and not revoked before they are exercised, will be voted as set forth in this proxy statement.
In addition, the proxy confers discretionary authority upon the persons named therein, or their substitutes, with respect to any
other business that may properly come before the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The presence, in person or by proxy, of the
holders of a majority of the outstanding shares of the Company&rsquo;s common stock entitled to vote is necessary to constitute
a quorum at the annual meeting. If a quorum is not present or represented at the annual meeting, the shareholders present and entitled
to vote have the power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a
quorum is present or represented. At any such adjourned meeting at which a quorum is present or represented, any business may be
transacted that might have been transacted at the meeting as originally notified. Abstentions from the vote on a particular proposal
and broker non-votes will be counted as present for purposes of determining if a quorum is present, but will not be counted as
votes on the proposal in question.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The Company will bear the entire cost of preparing
this proxy statement and of soliciting proxies. Proxies may be solicited by employees of the Company, either personally, by special
letter, or by telephone. Employees will not receive additional compensation for the solicitation of proxies. The Company also will
request brokers and others to send solicitation material to beneficial owners of stock and will reimburse their costs for this
purpose.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Only shareholders of record as of the close
of business on March 20, 2013 (the &ldquo;Record Date&rdquo;) will be entitled to vote at the annual meeting or any adjournment
thereof. The number of outstanding shares of the Company&rsquo;s common stock entitled to vote at the annual meeting is 19,671,775.
Shareholders are entitled to one vote for each share of the Company&rsquo;s common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>PRINCIPAL HOLDERS OF VOTING SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Securities Exchange Act of 1934, as amended
(the &ldquo;Exchange Act&rdquo;) , requires that any person who acquires the beneficial ownership of more than five percent of
the Company&rsquo;s common stock notify the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) and the Company.&nbsp; Following
is certain information, as of the Record Date, regarding those persons or groups who held of record, or who are known to the Company
to own beneficially, more than five percent of the Company&rsquo;s outstanding common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Name and Address of Beneficial Owner</P></TD>
    <TD STYLE="width: 29%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Amount and Nature of <BR> Beneficial Ownership</TD>
    <TD STYLE="width: 26%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Percent of Class</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Wellington Management Company, LLP</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">280 Congress Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Boston, MA 02210</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">1,692,500 shares</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">of common stock</P></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">8.60%</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROPOSAL 1 - ELECTION OF DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Section 3.02 of the Company&rsquo;s bylaws
provides that the number of directors on the Board of Directors of the Company will be not less than three nor more than 18, as
may be fixed by resolution duly adopted by the Board of Directors at or prior to the annual meeting at which such directors are
to be elected. In accordance with the bylaws, the size of the board was previously fixed by the Board of Directors at 17 members
until May 9, 2013. Effective with the Annual Meeting of Shareholders on May 9, 2013, the size of the board has been fixed at 13
members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.3pt">In the absence of any specifications to the
contrary, proxies will be voted for the election of all 13 of the nominees listed in the table below by casting an equal number
of votes for each such nominee. If, at or before the time of the meeting, any of the nominees listed below becomes unavailable
for any reason, the proxyholders have the discretion to vote for a substitute nominee or nominees. The board currently knows of
no reason why any nominee listed below is likely to become unavailable. The 13 nominees receiving a plurality of votes cast shall
be elected. This means that the 13 nominees with the most votes will be elected. Only votes &ldquo;FOR&rdquo; a nominee will affect
the outcome.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.3pt">The Company&rsquo;s Articles of Incorporation
provide that, if cumulative voting applies, each shareholder is &ldquo;entitled to multiply the number of votes he is entitled
to cast by the number of directors for whom he is entitled to vote and cast the product for a single candidate or distribute the
product among two or more candidates.&rdquo; Cumulative voting procedures will not be followed at the annual meeting unless a shareholder
calls for cumulative voting as provided in the Company&rsquo;s Articles of Incorporation, by announcing at the meeting before the
voting for directors starts, his or her intention to vote cumulatively. If cumulative voting is properly invoked by a shareholder,
the chair shall declare that all shares entitled to vote have the right to vote cumulatively and shall thereupon grant a recess
of not less than two days, nor more than seven days, as the chair shall determine, or of such other period of time as is unanimously
agreed upon. If cumulative voting applies, the proxyholders may, in their discretion, vote the shares to which such proxies relate
on a basis other than equally for each of the nominees named below and for less than all such nominees, but the proxyholders will
cast such votes in a manner that would tend to elect the greatest number of such nominees (or any substitutes therefor in the case
of unavailability) as the number of votes cast by them would permit.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 22.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>NOMINATIONS FOR DIRECTOR</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Nominees for election to the Board of Directors
are selected by the incumbent board prior to each annual meeting, and the nominees listed below were selected in that manner. Nominations
from shareholders must be made in accordance with the Company&rsquo;s bylaws, which generally require such nominations to be made
in writing and not less than 60 nor more than 90 days prior to the meeting at which directors are to be elected and to include
certain information about the proposed nominee, in addition to other requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">A copy of the bylaw provision setting forth
the complete procedure for shareholder nominations of directors may be obtained upon written request to First Bancorp, Post Office
Box 508, 341 North Main Street, Troy, North Carolina 27371-0508, Attention: Anna G. Hollers, Secretary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Company&rsquo;s bylaws state that no individual
may be elected to, or may serve on, the Board of Directors any time after his or her 75th birthday, except that if a director is
elected to the Board of Directors prior to his or her 75th birthday and reaches the age of 75 while serving as a director, such
director&rsquo;s term shall continue until the next annual meeting of shareholders, at which time the director shall retire. The
bylaws allow the Board of Directors to make exceptions to this limitation in connection with mergers or acquisitions. The bylaws
also state that the foregoing provisions do not apply to any individual during the time such individual is serving as chief executive
officer of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">See also &ldquo;Director Nomination Process&rdquo;
included in the section entitled &ldquo;Corporate Governance Policies and Practices&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>DIRECTORS, NOMINEES AND EXECUTIVE OFFICERS</B><FONT STYLE="font-size: 10pt">
</FONT></P>

<P STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The following table sets forth certain information
as of December 31, 2012, with respect to the&nbsp;Company's current directors, the&nbsp;13 nominees for election to the Board of
Directors and the executive officers of the Company (all of these persons may be contacted at Post Office Box 508, 341 North Main
Street, Troy, North Carolina 27371). The 13 nominees are all current directors. Each of the nominees has served on the Board of
Directors since the 2012 Annual Meeting. R. Walton Brown, John F. Burns, R. Winston Dozier, and Jerry L. Ocheltree, each of whom
is currently serving as a director, are not standing for re-election. The Board has not named nominees to succeed these directors,
and pursuant to the Company&rsquo;s bylaws, the Board of Directors has adopted a resolution reducing the size of the Board to 13
effective upon the date of the 2013 Annual Meeting. Accordingly, only 13 directors may be elected at the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">Each&nbsp;of the 13 nominees has indicated
a willingness to serve if elected. The Board of Directors recommends a vote &ldquo;FOR&rdquo; the election of these nominees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">TABLE OF DIRECTORS, NOMINEES AND EXECUTIVE OFFICERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="13" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Common Stock Beneficially Owned (1)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom; padding-left: 2em">&nbsp;&nbsp;&nbsp;Name (Age)**</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Current Director (D), <BR>Nominee (N), or <BR>Position with Company</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Number of <BR>Shares Owned <BR>
(excluding <BR>
options)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Number of <BR>
Shares That <BR>
May Be <BR>
Acquired <BR>
within 60 <BR>
Days by <BR>
Exercising <BR>
Options</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Total <BR>
Number of<BR>
 Shares <BR>
Beneficially <BR>
Owned</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">Percent <BR>of Class</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left"><B><U>Directors and Nominees</U></B></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="width: 35%; text-align: left">Richard H. Moore (52)</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; text-align: center">President and CEO (D) (N)</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="width: 9%; text-align: right">56,636</TD><TD NOWRAP STYLE="width: 1%; text-align: left">(2)</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="width: 9%; text-align: right">&mdash;</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="width: 9%; text-align: right">56,636</TD><TD NOWRAP STYLE="width: 1%; text-align: left"></TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left">Daniel T. Blue, Jr. (64)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">6,382</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">6,382</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">Jack D. Briggs (73)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">130,987</TD><TD NOWRAP STYLE="text-align: left">(3)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">15,750</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">146,737</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left">R. Walton Brown (60)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Exec. Vice President (D)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">22,387</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">18,460</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">40,847</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">David L. Burns (74)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">39,271</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">15,750</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">55,021</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left">John F. Burns (65)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Exec. Vice President (D)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">78,683</TD><TD NOWRAP STYLE="text-align: left">(4)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">4,043</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">82,726</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">Mary Clara Capel (54)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">7,609</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">11,250</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">18,859</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left">James C. Crawford, III (56)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">61,845</TD><TD NOWRAP STYLE="text-align: left">(5)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">4,500</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">66,345</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">R. Winston Dozier (56)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">29,108</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">29,108</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left">James G. Hudson, Jr. (73)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">92,733</TD><TD NOWRAP STYLE="text-align: left">(6)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">4,500</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">97,233</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">Jerry L. Ocheltree (53)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">President of First Bank (D)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">24,937</TD><TD NOWRAP STYLE="text-align: left">(7)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">19,602</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">44,539</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left">George R. Perkins, Jr. (73)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">494,023</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">15,750</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">509,773</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">2.59%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">Thomas F. Phillips (67)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">75,673</TD><TD NOWRAP STYLE="text-align: left">(8)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">15,750</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">91,423</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left">Frederick L. Taylor, II (43)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">17,963</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">11,250</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">29,213</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">Virginia C. Thomasson (61)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">17,336</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">15,750</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">33,086</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left">Dennis A. Wicker (60)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">10,714</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">15,750</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">26,464</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">John C. Willis (70)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">(D) (N)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">311,290</TD><TD NOWRAP STYLE="text-align: left">(9)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">15,750</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">327,040</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom">1.66%</TD></TR>
</TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="13" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Common Stock Beneficially Owned (1)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom; padding-left: 2em">&nbsp;&nbsp;&nbsp;Name (Age)**</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Current Director (D), <BR>Nominee (N), or <BR>Position with Company</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Number of <BR>Shares Owned <BR>
(excluding <BR>
options)</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Number of <BR>
Shares That <BR>
May Be <BR>
Acquired <BR>
within 60 <BR>
Days by <BR>
Exercising <BR>
Options</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Total <BR>
Number of <BR>
Shares <BR>
Beneficially <BR>
Owned</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Percent <BR>of Class</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left"><B><U>Non-Director Executive Officers</U></B></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="width: 35%; text-align: left; vertical-align: top">Eric P. Credle (44)</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; text-align: center">Executive Vice President &amp; <BR>Chief Financial Officer</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="width: 9%; text-align: right; vertical-align: top">22,905</TD><TD NOWRAP STYLE="width: 1%; text-align: left; vertical-align: top">(10)</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="width: 9%; text-align: right; vertical-align: top">9,270</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="width: 9%; text-align: right; vertical-align: top">32,175</TD><TD NOWRAP STYLE="width: 1%; text-align: left"></TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; text-align: center; vertical-align: top">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">Anna G. Hollers (62)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Executive Vice President, <BR>Chief Operating Officer <BR>&amp; Secretary</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">125,957</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">(11)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">16,775</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">142,732</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">Timothy S. Maples (52)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Executive Vice President &amp; <BR>
Assistant Secretary; <BR>Chief Investment Officer of <BR>First Bank</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">32,316</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">(12)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">2,559</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">34,875</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">Lee C. McLaurin (51)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Executive Vice President &amp; <BR>
Controller</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">15,800</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">(13)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">5,559</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">21,359</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">Robert T. Patterson (47)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Executive Vice President &amp; <BR>Co-Chief Credit Officer <BR>of First Bank</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">9,461</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">(14)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&#8213;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">9,461</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">Rex M. Scott (57)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Senior Vice President &amp; <BR>
Chief Information Officer <BR>of First Bank</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">10,670</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">(15)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&#8213;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">10,670</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">Edward F. Soccorso (40)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Executive Vice President &amp; <BR>Co-Chief Credit Officer <BR>of First Bank</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&#8213;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&#8213;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&#8213;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left; vertical-align: top">J. Dorson White, Jr. (62)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">Executive Vice President &amp; <BR>
Chief Retail Banking Officer</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">1,132</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">(16)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&#8213;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">1,132</TD><TD NOWRAP STYLE="text-align: left"></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP COLSPAN="3" STYLE="text-align: left; text-indent: 0"><B>Directors/Nominees and Non-Director Executive Officers
    <BR>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as a Group (25 persons)</B></TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">1,695,818 </TD><TD NOWRAP STYLE="text-align: left; vertical-align: top">(17)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">218,018</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP STYLE="text-align: right; vertical-align: top">1,913,836</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: top">9.73%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt">*</TD><TD>Indicates beneficial ownership of less than 1%.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.5pt">**</TD><TD>Age information is as of April 2, 2013.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Notes to Table of Directors, Nominees and Executive
Officers:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>Unless otherwise indicated, each individual has sole voting and investment power with respect to all shares beneficially owned
by such individual. The &ldquo;Number of Shares Owned&rdquo; in the table above includes executive officers&rsquo; reported shares
in the 401(k) defined contribution plan, which are voted by the plan trustee and not by the shareholder for whom such shares are
listed.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>Mr. Moore&rsquo;s shares include 40,000 shares of restricted stock that are subject to vesting conditions related to the attainment
of earnings goals in calendar year 2015.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD>Mr. Briggs&rsquo; shares include 1,663 shares held as custodian for his daughter, 1,645 shares held as custodian for his grandchildren,
and 41,375 shares held by his spouse.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-indent: -27pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(4)</TD><TD>Mr. J. Burns&rsquo; shares include 9,363 shares held in the Company&rsquo;s 401(k) defined contribution plan.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(5)</TD><TD>Mr. Crawford&rsquo;s shares include 6,325 shares held by his spouse and 6,600 shares held jointly with his children.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(6)</TD><TD>Mr. Hudson&rsquo;s shares include 3,025 shares held by his spouse.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(7)</TD><TD>Mr. Ocheltree&rsquo;s shares include 10,550 shares held in the Company&rsquo;s 401(k) defined contribution plan.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(8)</TD><TD>Mr. Phillips&rsquo; shares include 1,965 shares held by his spouse and 186 shares that his spouse owns jointly with two of
their children.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(9)</TD><TD>Mr. Willis&rsquo; shares include 169,737 shares held by his spouse.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(10)</TD><TD>Mr. Credle&rsquo;s shares include 8,261 shares held in the Company&rsquo;s 401(k) defined contribution plan.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 27pt">(11)</TD><TD>Ms. Hollers&rsquo; shares include 26,998 shares held in the Company&rsquo;s 401(k) defined contribution plan and 23,075 shares
held by her spouse.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27pt">(12)</TD>
    <TD>Mr. Maples&rsquo; shares include 7,189 shares held in the Company&rsquo;s 401(k) defined contribution plan.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(13)</TD><TD>Mr. McLaurin&rsquo;s shares include 9,219 shares held in the Company&rsquo;s 401(k) defined contribution plan.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(14)</TD><TD>Mr. Pattterson&rsquo;s shares include 6,922 shares held in the Company&rsquo;s 401(k) defined contribution plan.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(15)</TD><TD>Mr. Scott&rsquo;s shares include 80 shares held in the Company&rsquo;s 401(k) defined contribution plan.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(16)</TD><TD>Mr. White&rsquo;s shares include 132 shares held in the Company&rsquo;s 401(k) defined contribution plan.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(17)</TD><TD>The number of shares held by directors, nominees, and non-director executive officers includes 194,859 shares of the Company&rsquo;s
stock that have been pledged as collateral by these persons for loans received from the Company and other financial institutions,
as follows: Mr. Brown &ndash; 20,894 shares; Mr. Phillips &ndash; 32,976 shares; Ms. Hollers &ndash; 5,331 shares; and Mr. Credle
&ndash; 12,408 shares.</TD></TR></TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: -27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Director Nominees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Daniel T. Blue, Jr.</B>, 64, is the managing
partner of the law firm Blue Stephens and Fellers LLP, located in Raleigh, North Carolina, where he has been an attorney since
1973. In 1980, Mr. Blue was elected to the North Carolina House of Representatives and was re-elected twelve times. From 1991 &ndash;
1995, Mr. Blue was twice elected Speaker of the North Carolina House of Representatives. Mr. Blue currently serves in the North
Carolina Senate, representing Wake County. Mr. Blue is the immediate past Chair of the Board of Trustees of Duke University. He
is also a member of the Duke University Health System and a former director of Duke University Management Company. Mr. Blue has
been a director of the Company and First Bank since 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Blue has an extensive background in law
and public service, and has skills related to executive decision making, as well as oversight, governance and management of large
organizations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Jack D. Briggs</B>, 73, is a funeral director
and is president and owner of J. Briggs, Inc., Davidson Funeral Home, Inc., Carter Funeral Home, Inc., and Mountain View of Denton,
Inc., and secretary of Piedmont Funeral Home. Mr. Briggs has been in the funeral director business since 1970. Mr. Briggs has been
a director of the Company since its formation in 1983 and a director of First Bank since 1976.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Briggs brings entrepreneurial and business-building
skills and experience to the Company, having successfully founded and acquired several businesses. Additionally, as owner and operator
of a company, Mr. Briggs has over 43 years of experience overseeing the preparation of financial statements and the review of accounting
matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>David L. Burns</B>, 74, served as President
of Z.V. Pate, a Laurel Hill-based holding company for agricultural, timber, restaurant and retail sales interests, with over 1,000
employees, from 1983 until his retirement at the end of 2009. He currently serves as Chair of the Board of Directors of Z.V. Pate
and remains active in large farming operations. Mr. Burns has been a director of the Company since 1988 and a director of First
Bank since 1992.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">During his long tenure as a board member, Mr.&nbsp;Burns
has developed knowledge of the Company&rsquo;s business, history, organization, and executive management that has enhanced his
ability as a director. Mr. Burns also brings executive decision making skills and business acumen resulting from his work history
with Z.V. Pate. He has also demonstrated his leadership skills with his involvement in numerous professional and civic organizations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Mary Clara Capel</B>, 54, is a member of
senior management as the director of administration at Capel, Incorporated, a rug manufacturer, importer and exporter located in
Troy, North Carolina, where she has been employed since 1981, including eleven years in her current position. She is also the owner
of a retail business in Chapel Hill, North Carolina. Ms. Capel has been a director of the Company and First Bank since 2005. In
March 2012, Ms. Capel was appointed by the governor of North Carolina to serve on the North Carolina Banking Commission to fill
a practical banker seat. Ms. Capel is the current chairman of the Board of Directors of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Ms. Capel brings business executive decision
making and oversight skills as a result of her 32 years of experience with a third-generation family business, which has grown
from its rug manufacturing operation in Troy, North Carolina to importing and exporting rugs worldwide.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>James C. Crawford, III</B>, 56, served on
the Board of Directors, including as its Chairman, of Great Pee Dee Bancorp, Inc., a bank holding company headquartered in Cheraw,
South Carolina, from 1992 until its acquisition by the Company in April 2008. Mr. Crawford is the retired Chief Executive Officer
of B.C. Moore and Sons, Inc., a department store chain. Mr. Crawford has been a director of the Company and First Bank since 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Crawford brings extensive experience with
accounting and finance, as well as oversight and management of multiple businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>James G. Hudson, Jr.</B>, 73, served as
a director and President and Chief Executive Officer of Century Bancorp, Inc., a bank holding company headquartered in Thomasville,
North Carolina, at the time of its acquisition by the Company in 2001, having been employed with Century Bancorp since 1972. Mr.
Hudson has served as a director of the Company and First Bank since 2001. He was employed as an Executive Vice President of First
Bank from 2001 until his retirement in May 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Hudson has over 40 years of banking experience
and brings both financial services and corporate governance perspectives as a result of his work history.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Richard H. Moore</B>,<B> </B>52, was named
as President and Chief Executive Officer of the Company in June 2012. Prior to joining the Company, he served as a managing director
of San Diego-based Relational Investors LLC, a Registered Investment Advisor that advises the investment decisions of some of the
largest pension funds in the world. Prior to joining Relational Investors, Mr. Moore served two terms as State Treasurer of North
Carolina. Mr. Moore also previously served as Chair of the North Carolina State Banking Commission for eight years. Mr. Moore served
two terms on the Board of Executives of the New York Stock Exchange and continues to serve on the New York Stock Exchange Regulation
board. Mr. Moore was previously an Assistant U.S. Attorney and also practiced corporate, real estate and tax law for many years.
Mr. Moore is currently a trustee of Wake Forest University and serves on its Investment Committee. Mr. Moore is also a director
of the Durham-based North Carolina Mutual Life Insurance Company. Mr. Moore has been a director of the Company and First Bank since
2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Moore&rsquo;s career has provided him with
extensive financial and accounting experience and gives him keen insight with respect to budget and audit matters, as well as the
oversight, governance and management of larger organizations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>George R. Perkins, Jr.</B>, 73, is the retired
Chief Executive Officer of Frontier Spinning Mills, Inc., a yarn manufacturer located in Sanford, North Carolina. Mr. Perkins served
in this role from 1996 until his retirement in 2009. Mr. Perkins has been a director of the Company and First Bank since 1996.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Perkins brings executive decision making
skills and business acumen to the Company as a result of his professional experience in the textile industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Thomas F. Phillips</B>, 67, is an automobile
dealer and owner of Phillips Ford, located in Carthage, North Carolina. He served as a director of First Savings Bancorp, Inc.
from 1985 until its merger with the Company in 2000. Mr. Phillips has served as a director of the Company and First Bank since
2000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Phillips brings over 28 years of financial
experience gained during his director terms with First Savings Bancorp and the Company. Mr. Phillips has extensive skills in accounting,
finance and risk management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Frederick L. Taylor, II</B>, 43, is President
of Troy Lumber Company, located in Troy, North Carolina, where he has been employed since 1992. Mr. Taylor has been a director
of the Company and First Bank since 2005.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Taylor brings business-building skills
and experience to the Company. Additionally, Mr. Taylor has experience in overseeing the preparation of financial statements and
review of accounting matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Virginia Thomasson</B>, 61, is a Certified
Public Accountant with the firm Holden, Thomasson, &amp; Longfellow, P.C., located in Southern Pines, North Carolina, where she
has been a partner since 1988. She served as a director of First Savings Bancorp, Inc. from 1997 until its merger with the Company
in 2000. Ms. Thomasson has served as a director of the Company and First Bank since 2000. Ms. Thomasson has been designated as
an &ldquo;audit committee financial expert&rdquo; in accordance with SEC regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Ms. Thomasson brings to the Company experience
and skills in public accounting and over 15 years of financial industry experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Dennis A. Wicker</B>, 60, is a partner in
the law firm Nelson Mullins Riley and Scarborough, LLP, located in Raleigh, North Carolina, a position he has held since 2009.
From 2008 to 2009, Mr. Wicker was a shareholder and a member of the Executive Committee of the law firm of SZD Wicker, LPA, and
from 2001 to 2008 he was a partner in the law firm of Helms, Mullis &amp; Wicker, LLP. Mr. Wicker served as Lieutenant Governor
of North Carolina from 1993 to 2001. Mr. Wicker has been a director of the Company and First Bank since 2001. For each of the past
five years, Mr. Wicker has also been a director of the following public companies: Coca Cola Bottling Company Consolidated and
Air T, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Wicker has an extensive background in law
and public service and brings to the Company executive decision making, governance and risk assessment skills.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in"><B>John C. Willis</B>, 70,
is a private investor in restaurant and real estate interests. Mr. Willis has been a director of the Company since its formation
in 1983 and a director of First Bank since 1980.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">During his long tenure as a board member, Mr.&nbsp;Willis
has developed knowledge of the Company&rsquo;s business, history, organization, and executive management that has enhanced his
ability as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Executive Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In addition to Mr. Moore, the executive officers
of the Company and First Bank are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>R. Walton Brown</B>, 60, is an Executive
Vice President of the Company and First Bank and has served in those positions since joining the Company in 2003. Mr. Brown was
the chairman of the Board of Directors, President, and Chief Executive Officer of Carolina Community Bancshares, Inc., a bank holding
company headquartered in Latta, South Carolina, from its inception in 1995 until its acquisition by the Company in January 2003.
He served as the president of Carolina Community Bank, the bank subsidiary of Carolina Community Bancshares, and its predecessors
from 1979 until January 2003. Mr. Brown served as a director of the Company from 2003 to 2013. Mr. Brown has been a director of
First Bank since 2000 and continues to serve in that role.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>John F. Burns</B>, 65, is an Executive Vice
President of the Company and First Bank and has served in those positions since joining the Company in 2000. Mr. Burns served as
a director and President and Chief Executive Officer of First Savings Bancorp, Inc. when First Savings merged with the Company
in 2000, having been employed by First Savings since 1972. Mr. Burns served as director of the Company from 2000 until 2013. Mr.
Burns has been a director of First Bank since 2000 and continues to serve in that role.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Eric P. Credle</B>, 44, is an Executive
Vice President of the Company and First Bank and has served as the Chief Financial Officer of the Company and First Bank since
joining the Company in 1997.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Anna G. Hollers</B>, 62, is Chief Operating
Officer, Executive Vice President, and Secretary of the Company and First Bank. Ms. Hollers has served as Secretary of the Company
and First Bank since 1983, as Executive Vice President of the Company and First Bank since 1994, and was named Chief Operating
Officer in 2005. She has been employed by the Company since its formation in 1983 and by First Bank since 1972.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Timothy S. Maples</B>, 52, is an Executive
Vice President and Assistant Secretary of the Company and First Bank and Chief Investment Officer of First Bank. He served as Senior
Vice President of the Company and First Bank from 2000 to 2010 and has served as Investment Officer of First Bank since joining
the Company in 2000. He has served as Assistant Secretary of the Company and First Bank since 2005.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Lee C. McLaurin</B>, 51, is an Executive
Vice President of the Company and First Bank and has served as the Controller of the Company and First Bank since joining the Company
in 1987. He served as Senior Vice President of the Company and First Bank from 1987 to 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Jerry L. Ocheltree</B>, 53, is the President
of First Bank, a position he has held since September 2005. Mr. Ocheltree joined First Bank in 1998, serving as a Senior Vice President
&ndash; Regional Executive until his election as President. Mr. Ocheltree served as the President and Chief Executive Officer of
the Company from 2007 until June 2012 and served as a director of the Company from 2006 until 2013. Mr. Ocheltree has been a director
of First Bank since 2005 and continues to serve in that role.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Robert T. Patterson</B>, 47, is an Executive
Vice President of First Bank and serves as the Co-Chief Credit Officer of First Bank.&nbsp; Mr. Patterson has served in this position
since April 2012.&nbsp; Prior to April 2012, Mr. Patterson served as a Senior Vice President in First Bank&rsquo;s credit administration
department beginning in January 2009, after having been a branch officer since joining First Bank in 1997.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Rex M. Scott</B>, 57, is a Senior Vice President
of First Bank and serves as the Chief Information Officer of First Bank. Mr. Scott was named Chief Information Officer of First
Bank in October 2012 after joining First Bank in October 2011 as an information technology officer. Prior to joining First Bank,
Mr. Scott served as the Chief Operating Officer for CapStone Bank, a community bank headquartered in Raleigh, North Carolina.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Edward F. Soccorso</B>, 40, is an Executive
Vice President of First Bank and serves as the Co- Chief Credit Officer of First Bank.&nbsp; Mr. Soccorso joined the Company in
2012.&nbsp; Prior to joining First Bank, Mr. Soccorso was Director at Piedmont Investment Advisors, LLC where he managed the team
dedicated to advising the U.S. Treasury on bank investments made under the Troubled Asset Relief Program (TARP).&nbsp; Prior to
joining Piedmont in 2009, Mr. Soccorso was a Senior Vice President at Four Corners Capital Management, LLC, a Registered Investment
Advisor that managed asset backed and fixed income portfolios for institutional investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>J. Dorson White, Jr.</B>, 62, is an Executive
Vice President of First Bank and has served as the Chief Retail Banking Officer of First Bank since joining the Company in July
2011. Prior to joining First Bank, Mr. White served as the Chief Operating Officer of East Carolina Bank, a community bank headquartered
in Engelhard, North Carolina.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>BOARD COMMITTEES AND ATTENDANCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Board of Directors has established four
standing committees: the Executive Committee, the Audit Committee, the Compensation Committee, and the Nominating and Corporate
Governance Committee. In addition, the Board of Directors may establish other committees from time to time for specific purposes.
The following table presents the 2013 membership of the committees that are described below. The chair of each committee is noted
with a &ldquo;(c)&rdquo;. Following the table is additional information regarding each committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 16%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Executive</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">and Loan<BR>
 Committee</P></TD>
    <TD STYLE="width: 14%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Audit<BR>
 Committee</P></TD>
    <TD STYLE="width: 17%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Compensation<BR>
 Committee</P></TD>
    <TD STYLE="width: 21%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Nominating and<BR>
 Corporate<BR>
 Governance <BR>
Committee</P></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Daniel T. Blue, Jr.</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Jack D. Briggs</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">David L. Burns</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Mary Clara Capel</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X (c)</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X (c)</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X (c)</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">James C. Crawford, III</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">James G. Hudson, Jr.</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Richard H. Moore</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">George R. Perkins, Jr.</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Thomas F. Phillips</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Frederick L. Taylor, II</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Virginia C. Thomasson</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X (c)</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Dennis A. Wicker</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">John C. Willis</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Executive and Loan Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Executive and Loan Committee is authorized,
between meetings of the Board of Directors, to perform all duties and exercise all authority of the Board of Directors, except
those duties and authorities exclusively reserved to the Board of Directors by the Company&rsquo;s bylaws or by statute. The Executive
and Loan Committee also serves as Loan Committee for First Bank. The Executive and Loan Committee held 12 meetings during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Audit Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Audit Committee is responsible for the
appointment, compensation and oversight of the Company&rsquo;s independent auditors, and must approve in advance all audit fees
and the terms of all non-audit services provided by the independent auditors. The Audit Committee also reviews and presents to
the Board of Directors information regarding the effectiveness of the Company&rsquo;s policies and procedures with respect to auditing,
accounting, and internal controls. The Audit Committee also reviews the Company&rsquo;s financial reporting process on behalf of
the Board of Directors. All of the current members of the Audit Committee are independent, as defined by the Nasdaq Stock Market
(&ldquo;NASDAQ&rdquo;) and the Securities Exchange Act, as well as the Company&rsquo;s Corporate Governance Guidelines. The Audit
Committee held 10 meetings during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Board of Directors has determined that
Ms. Thomasson is an &ldquo;audit committee financial expert&rdquo; within the meaning of SEC rules and regulations. The Audit Committee
reviews and ratifies its charter on an annual basis. The Audit Committee charter is available on the Company&rsquo;s website at
www.FirstBancorp.com under the tab &ldquo;Investor Relations &ndash; Governance Documents.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Compensation Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Generally, the Compensation Committee is responsible
for reviewing the compensation policies and benefit plans of the Company and for making recommendations regarding the compensation
of its executive officers. The Compensation Committee also administers the Company&rsquo;s equity compensation plans. The Compensation
Committee has the authority to delegate any of its responsibilities to subcommittees. Each of the current members of this committee
are independent under the rules and regulations of NASDAQ. The Compensation Committee held six meetings during 2012. The Compensation
Committee operates under a charter that has been approved by the Board of Directors. The Compensation Committee reviews and ratifies
its charter on an annual basis, and the charter is available on the Company&rsquo;s website at www.FirstBancorp.com under the tab
&ldquo;Investor Relations &ndash; Governance Documents.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Nominating and Corporate Governance Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Nominating and Corporate Governance Committee
is responsible for i) identifying qualified individuals to become Board members, ii) determining the composition of the Board and
its committees, and iii) developing and implementing the Company&rsquo;s corporate governance guidelines. The Nominating and Corporate
Governance Committee will consider shareholder nominees for Board membership. Any shareholder wishing to nominate a candidate for
director must follow the procedures described in the section &ldquo;Nominations For Director&rdquo; above. The section below entitled
&ldquo;Corporate Governance Policies and Practices - Director Nomination Process&rdquo; describes the process utilized by the Nominating
and Corporate Governance Committee for identifying and evaluating candidates to be nominated as directors. The Nominating and Corporate
Governance Committee reviews and ratifies its charter on an annual basis, and the charter is available on the Company&rsquo;s website
at www.FirstBancorp.com under the tab &ldquo;Investor Relations &ndash; Governance Documents.&rdquo; Each of the current members
of this committee are independent as defined by NASDAQ rules and the Company&rsquo;s Corporate Governance Guidelines. The Nominating
and Corporate Governance Committee held three meetings during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Attendance</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Board of Directors held 19 meetings during
2012. All of the directors and nominees for re-election attended at least 75% of the aggregate of the meetings of the Board of
Directors and the committees described above on which they served during the period they were directors and members of such committees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">CORPORATE GOVERNANCE POLICIES AND PRACTICES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in">The Company has developed,
and operates under, corporate governance principles and practices that are designed to maximize long-term shareholder value, align
the interests of the board and management with those of the Company&rsquo;s shareholders, and promote the highest ethical conduct
among the Company&rsquo;s directors and employees. Highlights of the Company&rsquo;s corporate governance policies, practices and
procedures are described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Director Independence</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Board of Directors believes that a substantial
majority of the board should consist of directors who are independent under rules set forth by NASDAQ and as defined in our Corporate
Governance Guidelines. The Board of Directors makes an annual determination regarding the independence of each of the Company&rsquo;s
directors. The Board last made these determinations for each member of the board in March 2013, based on the review of director
questionnaires designed to elicit information regarding independence. The Board has determined that 12 of its 17 current directors
are independent as contemplated by NASDAQ. The five individuals who are not independent are Mr. Brown, Mr. J. Burns, Mr. Moore,
Mr. Ocheltree, and Mr. Wicker. Mr. Brown, Mr. J. Burns, Mr. Moore and Mr. Ocheltree are not independent because they are current
employees of the Company. Mr. Wicker is not considered independent due to payments made by the Company to a family member during
2011 and 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Annual Director Re-Election</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in">Since the Company&rsquo;s
inception, its bylaws have required that directors must stand for re-election to the Board of Directors at each annual shareholders&rsquo;
meeting. The Board of Directors believes that this policy makes it easier for shareholders to hold directors more directly accountable
for corporate performance compared to the staggered-board structure in use at many public companies, which permits directors to
hold their positions for several years.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Separation of the Offices of Chairman and
Chief Executive Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in">The Board of Directors believes
that one of its main purposes is to protect shareholders&rsquo; interests by providing independent oversight of management, including
the Chief Executive Officer. Although not required by the Company&rsquo;s bylaws, the Board of Directors has historically believed,
and continues to believe, that this objective is facilitated by having an independent director serve as Chairman, thereby separating
the offices of Chairman of the Board of Directors and Chief Executive Officer. The Chairman of the Board is responsible for approving
meeting schedules and agendas, as well as acting as a liaison between the Chief Executive Officer and the independent directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><B>The Board&rsquo;s Role in Risk Oversight</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; background-color: white">The Board of Directors
believes that each member in his or her fiduciary capacity has a responsibility to monitor and manage risks faced by the Company.
At a minimum, this requires the members of our Board of Directors to be actively engaged in board discussions, review materials
provided to them, and know when it is appropriate to request further information from management and/or engage the assistance of
outside advisors. Furthermore, because the banking industry is highly regulated, certain risks to the Company are monitored by
the Board of Directors and the Audit Committee through its review of the Company&rsquo;s compliance with regulations set forth
by its regulatory authorities, including the FDIC, and recommendations contained in regulatory examinations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; background-color: white">Because we believe
risk oversight is a responsibility for each member of the Board of Directors, we do not concentrate the Board&rsquo;s responsibility
for risk oversight in a single committee. Instead, each of our committees concentrates on specific risks for which they have an
expertise, and each committee is required to regularly report to the Board of Directors on its findings. For example, the Audit
Committee regularly monitors the Company&rsquo;s exposure to fraud and internal control risk. Our Compensation Committee&rsquo;s
role in monitoring the risks related to our compensation structure is discussed in further detail below. See &ldquo;Compensation
Committee Report&rdquo; on page 26.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Executive Sessions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in">The Board of Directors has
adopted a resolution requiring that the independent directors of the Company meet at least twice a year in executive session with
no non-independent directors or employees of the Company present. At these meetings, the independent directors discuss strategic
or other key issues regarding the Company. Two of these executive sessions were held in 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Director Nomination Process</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Nominating and Corporate Governance Committee
is responsible for identifying individuals qualified to become Board members and recommending to the Board the individuals for
nomination as members of the Board. The goal of the Nominating and Corporate Governance Committee is to create a Board that will
demonstrate objectivity and the highest degree of integrity on an individual and collective basis. In evaluating current members
and new candidates, the Nominating and Corporate Governance Committee considers the needs of the Board and the Company in light
of the current mix of director skills and attributes. In addition to requiring that each director possess the highest integrity
and character, the Nominating and Corporate Governance Committee&rsquo;s evaluation of director candidates includes an assessment
of issues and factors regarding an individual&rsquo;s familiarity with the Company&rsquo;s geographic market area, independence
as defined by the various regulatory authorities, business experience, accounting and financial expertise, diversity, and awareness
of the Company&rsquo;s responsibilities to its customers, employees, regulatory bodies, and the communities in which it operates.
The Nominating and Corporate Governance Committee also takes into consideration the Board&rsquo;s established policies relating
to the Board&rsquo;s retirement policy and the ability of directors to devote adequate time to Board and committee matters. When
the Nominating and Corporate Governance Committee is considering current Board members for nomination for re-election, the Committee
also considers prior Board contributions and performance, as well as meeting attendance records.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Nominating and Corporate Governance Committee
does not have any formal guidelines regarding how it should consider diversity in identifying nominees for director. However, the
Committee values the diversity on our current board and is generally cognizant of the benefits of a diverse board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Nominating and Corporate Governance Committee
may seek the input of the other members of the Board and management in identifying and attracting director candidates that are
consistent with the criteria outlined above. In addition, the Committee may use the services of consultants or a search firm, although
it has not done so in the past. The Nominating and Corporate Governance Committee also will consider recommendations by Company
shareholders of qualified director candidates for possible nomination to the Board. Shareholders may recommend qualified director
candidates by writing to the Company&rsquo;s Corporate Secretary at 341 North Main Street, Troy, North Carolina 27371. Submissions
should include information regarding a candidate&rsquo;s background, qualifications, experience, and willingness to serve as a
director. Based on a preliminary assessment of a candidate&rsquo;s qualifications, the Nominating and Corporate Governance Committee
may conduct interviews with the candidate and request additional information from the candidate. The Committee uses the same process
for evaluating all nominees, including those recommended by shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In addition, the Company&rsquo;s bylaws contain
specific conditions under which persons may be nominated directly by shareholders as directors at an annual meeting of shareholders.
The provisions include the condition that shareholders comply with the advance notice time-frame requirements described under the
section entitled &ldquo;Nominations for Director&rdquo; above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Stock Ownership Requirements </B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Company&rsquo;s Board of Directors has
adopted a common stock ownership policy for members of the Board. This policy requires that any candidate for the Board must either
own, or commit to acquire, common stock of the Company with a monetary value of at least $50,000. Newly elected directors have
one year from the date of their election to acquire the necessary stock. Once the $50,000 ownership requirement is met, the Board
member is deemed to have satisfied this requirement even if subsequent decreases in the Company&rsquo;s stock price cause the value
of the member&rsquo;s holdings to fall below $50,000. All directors are currently in compliance with this policy. The Board believes
that this stock ownership policy substantially enhances shareholder value by materially aligning the Board&rsquo;s interests with
those of the shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0">Mandatory Retirement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Company&rsquo;s bylaws state that no individual
may be elected to, or may serve on, the Board of Directors any time after his or her 75th birthday, except that if a director is
elected to the Board prior to his or her 75th birthday and reaches the age of 75 while serving as a director, such director&rsquo;s
term shall continue until the next annual meeting of shareholders, at which time the director shall retire. The bylaws allow for
the Board to make exceptions to this limitation in connection with mergers or acquisitions. The bylaws also state that the foregoing
provisions do not apply to any individual during the time such individual is serving as chief executive officer of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Communications with Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Board of Directors believes that it is
important that a direct and open line of communication exist between the Board and the shareholders and other interested parties.
Any shareholder or other interested party who desires to contact one or more of the Company&rsquo;s directors may send a letter
to the following address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">First Bancorp Board of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">PO Box 417</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Troy, North Carolina 27371</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In addition, any shareholder or other interested
party who has any concerns or complaints relating to accounting, internal controls or auditing matters may contact the Audit Committee
by writing to the following address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">First Bancorp Audit Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">PO Box 417</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Troy, North Carolina 27371</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">All such communications will be forwarded to
the appropriate party as soon as practicable without being screened.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Annual Meeting Policy</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in">Directors are expected to
attend the Company&rsquo;s annual meeting of shareholders. All members of the 2012 Board attended the Company&rsquo;s 2012 annual
meeting of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Cumulative Voting</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in">The Company&rsquo;s bylaws
provide for the availability of &ldquo;cumulative voting&rdquo; in the election of directors. Under cumulative voting, each shareholder
calculates the number of votes available to such shareholder by multiplying the number of votes to which his or her shares are
normally entitled by the number of directors for whom the shareholder is entitled to vote. The shareholder can then cast the sum
for a single candidate or can distribute it in any manner among any number of candidates. For example, if 13 directors are to be
elected, a shareholder who owns 1,000 shares will have 13,000 votes. This shareholder can cast all of these votes for one candidate,
or 1,000 for 13 candidates, or 2,166 for each of six candidates, or any other mathematically possible combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The purpose of cumulative voting is to preserve
the right of minority shareholders, or a group of shareholders acting together, to obtain representation on the Board of Directors
that is roughly proportional to their ownership interest in the corporation. The Company&rsquo;s Board of Directors believes that
the minority representation guaranteed by cumulative voting is an appropriate feature of corporate democracy and is not likely
to cause harmful factionalism on the board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Cumulative voting procedures will not be followed
at the annual meeting unless a shareholder calls for cumulative voting as provided in the Company&rsquo;s Articles of Incorporation,
by announcing at the meeting before the voting for directors starts, his or her intention to vote cumulatively. See the third paragraph
under &ldquo;Proposal 1- Election of Directors&rdquo; above for additional information regarding cumulative voting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">Code of Ethics</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Board of Directors has adopted a Code of
Ethics that applies to the Company&rsquo;s directors and employees, including the Chief Executive Officer, Chief Financial Officer
and Principal Accounting Officer. The Code includes guidelines relating to ethical handling of actual or potential conflicts of
interest, compliance with laws, accurate financial reporting, and procedures for promoting compliance with, and reporting violations
of, the Code of Ethics. The Code of Ethics is available on the Company&rsquo;s website <FONT STYLE="color: windowtext">at www.FirstBancorp.com</FONT>
under the tab &ldquo;Investor Relations-Governance Documents.&rdquo; Any amendments or waivers to the Code of Ethics will be disclosed
in the same location on the Company&rsquo;s website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>The nominees who receive the highest number
of votes cast, up to the number of directors to be elected, shall be elected as directors. The Board of Directors recommends that
shareholders vote &ldquo;FOR&rdquo; the proposal to elect the 13 nominees as directors. Unless indicated to the contrary, proxies
will be voted &ldquo;FOR&rdquo; the 13 nominees listed above.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXECUTIVE COMPENSATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Compensation Discussion and Analysis</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In this section, we discuss our compensation
program as it pertains to our principal executive officer, our principal financial officer and our three other most highly compensated
executive officers in 2012 (NEOs). As discussed below, the compensation policies relating to our current Chief Executive Officer,
who joined our company in June 2012, are discussed separately in cases where they differ materially from those for our other four
named executive officers (Other NEOs, which include Mr. Ocheltree, who served as Chief Executive Officer until June 2012). Our
discussion focuses on compensation and practices relating to 2012, our most recently completed fiscal year.<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><U>Structure and Role of
the Compensation Committee</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The Compensation Committee
of our Board of Directors consists entirely of independent directors. It operates under a written charter that the board has adopted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Compensation Committee is primarily responsible
for the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>reviewing the Company&#8217;s overall compensation practices as they relate to the Company&#8217;s risks;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>reviewing the performance of our chief executive officer, or CEO;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>determining, or recommending to the Board for its determination, the CEO&#8217;s compensation, including salary, bonus, incentive
and equity compensation</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>reviewing and approving the CEO&#8217;s recommendations about the compensation of our other executive officers;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>recommending to the board the performance targets for our annual incentive bonus plan;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>periodically reviewing our equity-based and other incentive plans and recommending any revisions to the board of directors;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>recommending to the board any discretionary 401(k) contributions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>recommending director compensation to the board;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>approving any equity compensation grants;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>approving employment or other agreements with the Company&#8217;s executive officers; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>reviewing the Company&#8217;s compliance with legal and regulatory requirements related to compensation arrangements or practices.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><U>Compensation Philosophy
and Objectives</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The objectives of our
executive compensation programs are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">fairly compensating executives for their efforts;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">attracting and retaining quality executive leadership;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">rewarding the achievement of annual corporate performance targets; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">aligning officers&#8217; long-term interests with those of our shareholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The committee&rsquo;s general philosophy is
that we should compensate our executive officers at approximately the same average level as corresponding officers at similarly
situated peer financial service companies. While that is our general philosophy, we may position a base salary in the upper quartile
of the market due to experience, performance, or competitive situations. Also, we provide incentives that may result in compensation
reaching the upper quartile of the market when performance exceeds targets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Because the committee bases its compensation
decisions on the objectives and philosophy described above, it does not take into account an individual&rsquo;s net worth or the
wealth the individual has accumulated from prior compensation.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><U>Competitive Positioning</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Periodically, the committee engages outside
compensation consultants to evaluate whether our compensation practices are consistent with meeting our objectives. In these engagements,
the outside consultant typically compares our compensation practices and compensation levels to those of a peer group of similarly
situated financial service companies. The consultant then provides the committee with analysis and recommendations. See additional
discussion below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><U>Executive Compensation
Program Overview</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The five primary components
of our executive compensation program are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Base salary</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Annual cash incentives</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Equity grants</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Benefits</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Post-termination compensation</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In the information that follows, we discuss
the compensation of our Chief Executive Officer and then we discuss the compensation of our Other NEOs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in"><U>Compensation of Richard H. Moore, Chief Executive
Officer</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">On May 25, 2012, Richard H. Moore was named
by the board of directors to replace Jerry L. Ocheltree as President and Chief Executive Officer of the Company effective June
11, 2012. Mr. Moore had been a director of the Company since 2010. Upon his hiring, Mr. Moore and the Compensation Committee agreed
that the Company would temporarily pay Mr. Moore a salary of $40,000 per month, plus reimbursement of expenses, until a formal
employment agreement was negotiated. It was also agreed that Mr. Moore would continue to be employed by another company until the
employment agreement was executed and Mr. Moore could arrange an orderly transition for his other employer. From June to August
2012, the Compensation Committee met three times with Blanchard Consulting Group in order to review and study possible compensation
arrangements for Mr. Moore. As part of the review, Blanchard Consulting Group prepared a peer analysis using the same 25 peer bank
holding companies noted on page 19. This review included salary levels, annual bonus structures, and long term incentive compensation
practices at the peer banks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Based on the review of the aforementioned analysis
and discussions with Mr. Moore, the following terms were negotiated as part of Mr. Moore&rsquo;s employment agreement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Base Salary</B> - Mr. Moore&rsquo;s initial
annual base salary was set at $475,000, which Blanchard Consulting Group concluded was slightly below the estimated average of
the peer group. As an offset to the below-market salary and as an inducement to Mr. Moore to enter into an employment agreement
with the Company and resign from his other employment, it was agreed that Mr. Moore would have the opportunity to earn annual bonuses
and long-term incentive compensation at levels at, or above, the peer group if the Company achieved significantly improved performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Annual Incentive Plan</B> &ndash; Annually,
beginning January 1, 2013, Mr. Moore has the opportunity to earn an annual bonus with a value of between $150,000 and $600,000
based on the Company&rsquo;s attainment of an annual earnings goal established by the Committee for that year (discussed below).
This equates to between 32% and 126% of Mr. Moore&rsquo;s current annual salary of $475,000. Based on their review of an analysis
provided by Blanchard Consulting Group, the Committee concluded that the annual incentive bonus percentages were in approximately
the 75<SUP>th</SUP> percentile when compared to the peer group, which, as noted above, was contemplated when determining Mr. Moore&rsquo;s
base salary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Any bonus earned is paid 50% in cash and 50%
in restricted stock, with the stock vesting in one-third increments at each of the following three year ends. If the actual earnings
for a year are at the &ldquo;Threshold&rdquo; level, Mr. Moore will earn a bonus with a value of $150,000; if they are at the &ldquo;Target&rdquo;
level, he will earn a bonus with a value of $300,000; and if they are at the &ldquo;Maximum&rdquo; level, he will earn a bonus
with a value of $600,000. The amount payable where performance is greater than Threshold but less than Target or greater than Target
but less than Maximum are to be determined on the basis of straight line interpolation between points. The payment of the bonus
is conditioned on the Company having achieved a satisfactory regulatory review as of such date as determined by the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">As noted above, the bonus is based on the Company&rsquo;s
attainment of an earnings goal. The earnings goal for 2013 has been defined by the Compensation Committee to be measured in a manner
consistent with generally accepted accounting principles, except that it excludes certain items of income and expense that are
volatile, unpredictable and generally relate to actions taken by the Company that occurred prior to Mr. Moore&rsquo;s employment
and are almost entirely out of his control. Accordingly, loan discount accretion related to two-failed bank transactions, provisions
for loan losses, securities gains/losses, foreclosed property write-downs, indemnification asset income/expense and other gains/losses
are all excluded from the measurement. For 2013, the Compensation Committee established a threshold goal that the Compensation
Committee believed was an appropriate estimate of earnings (as adjusted) for 2013. The target goal was set at a level 10% higher
than the threshold and the maximum goal represented an additional 10% improvement over the target goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>Long-Term Incentive Compensation</B> &ndash;
Mr. Moore was granted 75,000 options to buy Company stock at an exercise price of $9.76 per share, which was the price of the Company&rsquo;s
common stock on the date of grant, and 40,000 shares of restricted stock of the Company. The 75,000 options will vest on December
31, 2014 if the Company achieves an earnings goal in 2014 (calculated the same as described above), which the Committee estimated
would be a 30% improvement from the Company&rsquo;s approximate level of performance at the time the award was granted. The 40,000
shares of restricted stock will vest on December 31, 2015 if the Company achieves an earnings goal in 2015 (calculated the same
as described above) that would be a 50% improvement from the approximate level of performance at the time the award was granted.
Assuming the awards vest, the option grant was estimated to have a value of approximately $274,000, which was approximately 58%
of Mr. Moore&rsquo;s base salary, while the restricted stock grant was valued at $394,000, or approximately 83% of base salary.
The Compensation Committee determined that the value of the awards was at or near the top of the range compared to summary database
statistics provided by Blanchard Consulting Group for banks across the nation with between $1-$5 billion in assets as it relates
to long-term incentive plan opportunity levels. The database statistics were used instead of the peer group listed on page 19 because
it was believed by Blanchard Consulting Group to have more complete data for incentive-based long-term equity compensation grants.
Based on the below market base salary accepted by Mr. Moore and the fact that the Compensation Committee believed that the earnings
targets were very challenging, the Compensation Committee determined these elements of long-term incentive compensation to be appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In addition to the financial terms discussed
above, other provisions of Mr. Moore&rsquo;s employment agreement include the following:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>One year term, automatically renews unless either party gives written notice of non-renewal.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Mr. Moore is entitled to participate in Company benefit plans made available to other employees &#8211; see discussion of these
benefits in the &#8220;Other NEO&#8221; compensation discussion below.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Reimbursement of the costs of participation in the North Carolina State Health Plan.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Upon termination upon the occurrence of certain adverse conditions for Mr. Moore within twelve months of a change in control,
Mr. Moore would be entitled to two times his base salary, continuation of health insurance reimbursements for twelve months, and
his long term incentive compensation awards vest in full.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>In the event Mr. Moore is terminated by the Company without cause, Mr. Moore&#8217;s long term incentive compensation awards
vest in full.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>For twelve months following termination of employment, Mr. Moore is subject to non-competition and non-solicitation obligations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Company and Mr. Moore executed an employment
agreement on the above terms on August 28, 2012 and the Company compensated Mr. Moore in accordance with the agreement for the
remainder of 2012, except that the Compensation Committee granted Mr. Moore a discretionary bonus of $300,000 for the year, which
was paid to Mr. Moore in March 2013. The Compensation Committee granted Mr. Moore this bonus primarily in recognition of his efforts
in the Company&rsquo;s capital raise that occurred in December 2012 and the Company&rsquo;s loan sale, which was substantially
completed during that same period and became final on January 23, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Mr. Moore&rsquo;s base salary remains at $475,000
for 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Except as otherwise described,
the following section discusses the compensation of our Other NEOs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>1.</B></TD><TD STYLE="text-align: justify"><B>Base Salary</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; background-color: white">We pay each officer
a base salary because it provides a minimum level of compensation and is necessary for recruitment and retention. The Compensation
Committee intends that our Other NEOs&rsquo; base salaries will provide them with a competitive baseline level of compensation
based on their individual experience, performance and scope of responsibility. An important aspect of base salary is the ability
of the Compensation Committee, the board and the CEO (in the case of other officers&rsquo; salaries) to use annual base salary
adjustments to reflect an individual&rsquo;s performance or changed responsibilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; background-color: white">Base salary levels
are also important because we generally tie the amount of incentive compensation and retirement benefits to an officer&rsquo;s
base salary. For example, awards under our annual bonus plan, the Annual Incentive Plan, are denominated as a percentage of base
salary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In order to set salaries for our Other NEOs
in 2012, the Compensation Committee engaged Blanchard Consulting Group to provide analysis and recommendations. In November and
December 2011, Blanchard Consulting Group presented the committee with its findings, which it based on a study of 2010 proxy data
(the most recent data then available).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Blanchard Consulting Group analysis compared
the compensation of our NEOs to a representative sample of 25 publicly traded financial institutions that were comparable to the
Company in either location and asset size or in performance measures. This peer group consisted of the following companies:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="width: 3in; text-align: justify">Ameris Bancorp</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Home Bancshares, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">BancTrust Financial Group, Inc.</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Pinnacle Financial Partners, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Bank of the Ozarks, Inc.</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Renasant Corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">BNC Bancorp</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Republic Bancorp</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Capital City Bank Group, Inc.</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">SCBT Financial Corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Cardinal Financial Corporation</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Simmons First National Corp</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Carter Bank &amp; Trust</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">State Bank Financial Corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">CenterState Banks, Inc.</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">StellarOne Corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">City Holding Company</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">TowneBank</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Community Trust Bancorp, Inc.</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Union First Market Bankshares Corp.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Fidelity Southern Corporation</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Virginia Commerce Bancorp, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">First Community Bancshares, Inc.</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">Yadkin Valley Financial Corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD>
    <TD STYLE="text-align: justify">First Financial Holdings, Inc.</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Blanchard Consulting Group analysis indicated
that the Company&rsquo;s performance measures ranked within a wide range of percentiles compared to the peer group, with certain
performance measures near or above the 75<SUP>th</SUP> percentile and other performance measures being near or below the 25<SUP>th</SUP>
percentile. Overall, Blanchard Consulting Group concluded that the Company&rsquo;s performance was comparable to that of its peers.
This same analysis indicated that the salaries paid to our NEO&rsquo;s were generally comparable to the 75<SUP>th</SUP> percentile
of peers. The Compensation Committee discussed that in recent years, it had targeted NEO salaries to be in the 50<SUP>th</SUP>
to 75<SUP>th</SUP> percentile compared to peers. Based on its review of the Blanchard Consulting Group analysis, the Compensation
Committee concluded that the Other NEO salaries were at the top of the range they had targeted, and accordingly, the Compensation
Committee concluded that NEO salaries would remain the same in 2012 as they were in 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In setting salaries for 2013, the Compensation
Committee decided that salaries for our Other NEOs would remain the same in 2013 as they were in 2012 for the following reasons:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>The Company&#8217;s net loss in 2012.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Based on the prior year analysis performed by Blanchard Consulting Group, the base salaries for the Other NEOs had been at
the top of the range that the Compensation Committee had targeted and that it would be appropriate to keep them unchanged for another
year.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The following table presents the salaries of
our Other NEOs during 2012, with those same salaries also being applicable to 2013:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 61%; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Named Executive Officer</P></TD>
    <TD STYLE="width: 39%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Salary for 2012</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">and 2013 ($)</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Jerry L. Ocheltree</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">511,704</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Anna G. Hollers</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">325,029</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Eric P. Credle</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">283,868</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">John F. Burns</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">224,100</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Annual Cash Incentive</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The committee designed our Annual Incentive
Plan to provide our Other NEOs with the opportunity to earn an annual cash bonus of 35% to 50% of their base salary if we achieved
targeted levels of financial performance, with the opportunity for each officer to earn up to twice the target percentage if certain
goals were met. The Compensation Committee and the board believe that a meaningful, but not overwhelming, amount of each of our
Other NEO&rsquo;s annual direct compensation should be tied to achieving corporate performance targets. The Compensation Committee
believes this structure reflects a proper balance of direct compensation that provides our officers with a baseline level of financial
stability (in the form of base salary), while also providing an appropriate incentive for achieving annual targets that drive our
corporate performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Our Annual Incentive Plan pays cash bonuses
within the first 75 days of each year based on corporate performance in the preceding fiscal year. Each participant&rsquo;s total
possible bonus is based on a target bonus percentage set for each participant. The plan uses multiple performance measures to determine
the amount of each participant&rsquo;s total bonus. The board assigns a weight to each performance measure, with the sum of the
weights equal to 100%. The weight is the percentage of each participant&rsquo;s total bonus that will be based on that particular
performance measure. The board also sets threshold, target and maximum performance levels for each measure. If we do not achieve
the threshold performance level, participants earn no bonus for that measure. Participants earn 50% of their target bonus for the
measure if we meet the threshold level, 100% if we meet the target level and 200% if we achieve the maximum level. Bonuses are
directly proportional to performance between any of these set points. Thus, an officer&rsquo;s bonus amount could range from 0%
to 200% of the officer&rsquo;s target bonus percentage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Prior to 2012, the Compensation Committee recommended,
and the board approved, the following target bonuses for our Other NEOs. In order to determine each officer&rsquo;s cash bonus,
the percentage listed below is multiplied by the officer&rsquo;s base salary, which is then multiplied by the sum of the performance
percentages earned that are described above. Based on the challenging economic conditions facing the banking industry and the Company&rsquo;s
low levels of expected profitability in 2012 compared to prior years, the Compensation Committee decided early in 2012 that every
participant&rsquo;s target bonus percentage would be reduced to one-third of its established level. Accordingly, each NEO&rsquo;s
target bonus was reduced as reflected in the table below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Named Executive Officer</P></TD>
    <TD STYLE="width: 31%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Target Bonus</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Percentage - Initial</P></TD>
    <TD STYLE="width: 31%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Target Bonus</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Percentage - Reduced</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Jerry L. Ocheltree</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">50%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">16.7%</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Anna G. Hollers</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">40%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">13.3%</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Eric P. Credle</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">40%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">13.3%</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">John F. Burns</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">25%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">8.3%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Compensation Committee recommended to
the board that the 2012 performance goals and weightings for the Company&rsquo;s officers (other than those classified as regional
or branch officers) would be as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 95%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 41%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Measurement</P></TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Threshold</P></TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Target</P></TD>
    <TD NOWRAP STYLE="width: 17%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Maximum</P></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Weight</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">1</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Diluted Earnings Per Share</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80% of Budget</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Budget</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">200% of Budget</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">25%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">2</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Total Stock Return</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">40<SUP>th</SUP> Percentile<BR>
 of Peer</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">50<SUP>th</SUP> Percentile<BR>
 of Peer</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">100<SUP>th</SUP> Percentile <BR>
of Peer</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">25%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">3</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Nonperforming Assets to Total Assets</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">4.30%</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">3.50%</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2.00%</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">20%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">4</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Loan Growth (noncovered)</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1.00%</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">4.00%</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">8.00%</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">15%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">5</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Core Deposit Growth</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1.00%</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">4.00%</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">8.00%</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">15%</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">100%</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The reasons that we selected each of the above
goals are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1)</TD><TD>Diluted Earnings Per Share &ndash; A direct profitability measure.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2)</TD><TD>Total Stock Return &ndash; Aligns bonuses earned by our officers with stock appreciation realized by our shareholders.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3)</TD><TD>Nonperforming Assets to Total Assets (noncovered) &ndash; Asset quality has a significant impact on the safety and profitability
of the Company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">4)</TD><TD>Loan Growth (noncovered) &ndash; Impacts the profitability of the Company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">5)</TD><TD>Core Deposit Growth &ndash; Funds future growth and impacts the profitability of the Company</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The term &ldquo;noncovered&rdquo; noted above
means that we exclude from the calculation assets assumed in two failed-bank acquisitions that are covered by loss-share agreements
with the FDIC. We believed it was appropriate to exclude those assets from the measurement criteria due to their unique characteristics.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In addition to the goals noted above, the Compensation
Committee also set two triggers that the Company had to meet for any of the above-described bonuses to be paid. In other words,
if the Company did not achieve both triggers, no bonuses would be paid to our Other NEOs no matter what the results were for the
five goals noted above. The two triggers were:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>The Compensation Committee&#8217;s conclusion that the results of the annual safety and soundness exam performed by regulatory
authorities were satisfactory.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>The Company&#8217;s diluted earnings per share must exceed $0.32, which was the amount of dividends the Company expected to
pay to its common shareholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Our actual results for 2012 resulted in the
Company achieving at least the &ldquo;Threshold&rdquo; level of performance for three of the five goals &ndash; nonperforming assets
to total assets, loan growth and core deposit growth. However, the Company did not meet the diluted earnings per share trigger
of $0.32 and therefore, no bonuses were paid to our Other NEOs under the Annual Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Although no bonus payments were made under
the Annual Incentive Plan for 2012, the Compensation Committee granted Mr. Credle a discretionary bonus of $40,000 primarily in
recognition of his efforts in the Company&rsquo;s capital raise that occurred in December 2012 and the Company&rsquo;s loan sale,
which was substantially completed during that same period and became final on January 23, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Equity Grants</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">As previously discussed, during 2012 we made
equity grants to our Chief Executive Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Due to restrictions imposed as a result of
our participation in the United States Treasury Department&rsquo;s Capital Purchase Program (CPP), Mr. Ocheltree, Ms. Hollers and
Mr. Credle were ineligible to be paid cash bonuses that would have otherwise been paid in early 2012 related to 2011 performance
under the annual cash incentive bonus plan discussed above. Mr. Moore was not an employee of the Company at that time and Mr. Burns
was not subject to the restrictions. Cash bonuses related to 2011 performance for those officers who were not restricted from receiving
a cash bonus were approved by the Compensation Committee at a meeting held in February 2012. At that same meeting, we analyzed
how much our three NEOs who were ineligible to participate in the Annual Incentive Plan would have received had they been participants
and used that as a basis to make equity grants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The following table shows the thresholds, targets,
and maximums for each goal under the Annual Incentive Plan, along with the actual results for 2011 and the performance percentages
that resulted from the actual results. As previously discussed, the earnings per share goal was weighted at 50% and the other two
goals were assigned a weight of 25% each.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 28%; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Performance Goal</P></TD>
    <TD STYLE="width: 13%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Threshold</P></TD>
    <TD STYLE="width: 15%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Target</P></TD>
    <TD STYLE="width: 15%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Maximum</P></TD>
    <TD STYLE="width: 16%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Actual for 2011</P></TD>
    <TD STYLE="width: 13%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Performance<BR>
 Percentage</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Earnings per share - basic</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.73</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.83</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.66</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.44</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0.0%</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Core deposit growth</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4.93%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16.4%</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Efficiency ratio</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">62.85%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">58.02%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">49.42%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">60.08%</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19.7%</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;Total payout percentage</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">36.1%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">As shown above, the total payout percentage
according to the terms of the Annual Incentive Plan was 36.1%. Accordingly, the following table illustrates how each officer&rsquo;s
incentive bonus for 2011 would have been calculated, had each NEO been eligible to participate in the Annual Incentive Plan:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 20%; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Named Executive<BR>
 Officer</P></TD>
    <TD NOWRAP STYLE="width: 20%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(A)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">2011 Salary ($)</P></TD>
    <TD NOWRAP STYLE="width: 20%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(B)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Target Bonus<BR>
 Percentage &ndash; <BR>
Reduced (1)</P></TD>
    <TD NOWRAP STYLE="width: 18%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(C)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Performance<BR>
 Percentage</P></TD>
    <TD NOWRAP STYLE="width: 22%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(A times B times C)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Amount of Incentive<BR>
 Plan Compensation ($)</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Jerry L. Ocheltree</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">511,704</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">16.7%</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">36.1%</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 0.25in; padding-left: 5.4pt; text-align: right">30,765</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Anna G. Hollers</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">325,029</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">13.3%</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">36.1%</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 0.25in; padding-left: 5.4pt; text-align: right">15,629</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">Eric P. Credle</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">283,868</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">13.3%</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">36.1%</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 0.25in; padding-left: 5.4pt; text-align: right">13,645</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">(1) As previously discussed, due to challenging
economic conditions facing the banking industry and the Company&rsquo;s low levels of expected profitability in 2011 compared to
prior years, the Compensation Committee decided early in 2011 that every officer&rsquo;s target bonus percentage would be reduced
to one-third of its established level. See pages 19 and 20 for additional discussion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Based on this review, we decided to award these
three NEOs restricted stock with a value that was equal to the amounts shown above based upon the Company&rsquo;s closing stock
price on February 23, 2012. Our Company&rsquo;s closing stock price on February 23, 2012 was $10.96 and accordingly the following
number of restricted shares were granted: Mr. Ocheltree &ndash; 2,807, Ms. Hollers- 1,426 , Mr. Credle &ndash; 1,245. These awards
were granted in amounts and terms that were permitted by applicable regulations for companies participating in the CPP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>4.</B></TD><TD STYLE="text-align: justify"><B>Benefits</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">We provide a competitive benefits program for
our NEOs, including our Chief Executive Officer. We provide these benefits in order to retain and attract an appropriate caliber
of talent and recognize that other companies with which we compete for talent provide similar benefits to their executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The following table lists
our current benefit programs and shows, for each, the employees eligible for each benefit:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom; padding-left: 6em">Benefit Plan</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Named <BR> Executive<BR> Officers</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Certain Managers <BR> and Individual <BR> Contributors</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">All <BR>Full-Time <BR> Employees</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="width: 61%; text-align: justify">Supplemental Executive Retirement Plan</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; text-align: center; padding-left: 5.4pt">(1)</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; text-align: center; padding-left: 5.4pt">&nbsp;X</TD><TD NOWRAP STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; text-align: center; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP>Perquisites</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: justify">401(k) Plan</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: justify">Defined Benefit Pension Plan</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">(2)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">&nbsp;(2)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">&nbsp;(2)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: justify">Health Insurance</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: justify">Life Insurance (3)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: justify">Bank-Owned Life Insurance (4)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">(4)</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="text-align: justify">Disability Insurance</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X&nbsp;</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD><TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 5.4pt">X</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">(1) Our Chief Executive Officer is not a participant
in the Supplemental Executive Retirement Plan, which is discussed below. Our Other NEOs are participants. We froze the benefits
of our Supplemental Executive Retirement Plan as of December 31, 2012 for all participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">(2) Our defined benefit pension plan covers
all full-time employees hired on or before June 11, 2009. This plan was frozen as of December 31, 2012 for all participants, which
means that no further benefits will be earned by participants. As discussed below, we also froze the benefits of our Supplemental
Executive Retirement Plan as of that same date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">(3) The Company provides life insurance for
each of its employees amounting to two times the employees&rsquo; salary, subject to a cap of $300,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">(4) In 2012, the Company purchased single-premium
bank-owned life insurance policies that insure the lives of approximately 25 officers of the Company. For participating employees,
life insurance benefits are two times the employee&rsquo;s salary with no cap. In the event of death, all proceeds from the life
insurance that exceed two times the employee&rsquo;s salary are payable to the Company. These policies were purchased prior to
Mr. Moore joining the Company, and thus he is not currently a participant in this benefit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Supplemental Executive Retirement Plan</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">We sponsor a supplemental executive retirement
plan, or SERP, for the benefit of certain members of our senior management, including each of our Other NEOs (our Chief Executive
Officer is not a participant). The purpose of the SERP is to provide additional monthly pension benefits to ensure that each participant
will receive lifetime pension benefits beyond the amounts that we can pay under our qualified pension plan. The SERP generally
provides participants with an annual benefit at retirement equal to 3% of final average compensation multiplied by years of service,
up to a maximum of 60% of final average compensation. The amount of a participant&rsquo;s SERP benefit is reduced by (1) the amount
payable under our qualified pension plan, and (2) 50% of the participant&rsquo;s primary Social Security benefit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">We set the benefits payable under the SERP
in 1993 at the inception of the plan, in consultation with an employee benefits consultant who assisted us with plan design. At
that time, the employee benefits consultant provided peer information and gave his expert opinion that the benefits payable under
this plan were reasonable and would further our objectives of attracting and retaining senior management executives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">During 2012, we decided that we wanted to offer
a uniform set of retirement benefits that would be applicable to all employees and not just those that were hired after June 11,
2009 or those that had achieved a certain level within the Company. Accordingly, effective December 31, 2012, in addition to freezing
the qualified defined benefit pension plan (as noted above), we also froze our SERP, which means that the participants of that
plan will not earn future benefits under the plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Perquisites</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">We provide only very limited perquisites. During
2012, the only perquisites provided to any of the NEOs were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>We paid country club dues amounting to $13,155 on behalf of Mr. Ocheltree. Mr. Ocheltree used the country clubs exclusively
for business purposes.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>We paid civic club dues amounting to $580 on behalf of Mr. Credle.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>We have a home loan program that all of our employees are eligible to participate in that allows employees to borrow money
for a loan on their primary residence, subject to our normal credit underwriting standards, at an interest rate that is 1% less
than the interest rate offered to non-employees. The estimated benefit of this program to our NEOs in 2012 was as follows: Mr.
Moore - $0, Mr. Ocheltree - $7,780, Ms. Hollers - $0, Mr. Credle - $0, and Mr. Burns - $0.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in"><B>5.</B></TD>
    <TD STYLE="text-align: justify"><B>Post-Termination Compensation</B></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Accelerated Vesting</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Our current equity plan and the SERP have change
in control provisions that automatically vest all participants in the benefits of each plan in the event of a change in the control
of our Company. We believe that other companies with which we compete for executive talent provide a similar acceleration benefit,
and that these provisions therefore assist us in attracting and retaining talent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><I>Employment Agreements
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The employment agreement with our Chief Executive
Officer has been previously described. See &ldquo;Compensation of Richard H. Moore, Chief Executive Officer&rdquo; above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Each of our Other NEOs has a three-year employment
agreement that automatically renews for a new three year term on each anniversary date unless either party gives written notice
of non-renewal. During 2012, we provided written notice to each of our Other NEOs that their employment agreements would not automatically
renew on their next anniversary date. We made this decision because we concluded that it had been many years since the employment
agreements had been entered into, and we wanted an opportunity to review the terms of the agreements and make any adjustments needed
to align them with current market conditions. We are in the process of this review. Because of the notification provided, our Other
NEOs employment agreements will expire in January 2015 for Mr. Ocheltree, in August 2014 for Ms. Hollers and Mr. Credle and in
September 2014 for Mr. Burns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Each of these agreements provides for the payment
of certain severance benefits to the officer upon termination of employment in certain circumstances, including following a change
in the control of our company. For more information about these benefits, see the section below captioned &ldquo;Executive Compensation
&ndash; Potential Payments Upon Termination.&rdquo; Each<FONT STYLE="font-family: Times New Roman, Times, Serif"> agreement also
contains non-competition and confidentiality covenants that protect our company if the officer leaves. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The original objectives
of the Other NEO employment agreements were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>The multi-year term helps us attract and retain talented executive officers.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>The non-competition covenant protects us by preventing an officer from leaving our company and immediately joining a competitor,
which would likely result in the officer taking business away from us.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>The confidentiality covenant protects us by preventing an officer from disclosing trade secrets or confidential information
regarding our company or our customers for two years after the officer leaves his or her employment with the company.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>The change-in-control severance payment provision benefits us by minimizing the uncertainty and distraction caused by the current
climate of bank acquisitions, and by allowing our executive officers to focus on performance by providing transition assistance
in the event of a change in control.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Compensation Committee and the board believe
the amount of the severance benefits potentially payable to each Other NEO under these agreements is reasonable and consistent
with industry standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The above discussion described
the five primary components of our executive compensation program. The following section describes other guidelines and procedures
affecting executive compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><U>Other Guidelines and
Procedures Affecting Executive Compensation</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><I>Stock Option Grants </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">When we approve a stock option grant, we set
a date in the future as the measurement date for the exercise price of the stock option. We do not &ldquo;back-date&rdquo; stock
option grants. We do not have a policy or practice of making stock option grants during periods in which there is material non-public
information about our Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><I>Tax Considerations</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">It has been and continues to be our intent
that all incentive payments be deductible unless maintaining deductibility would undermine our ability to meet our primary compensation
objectives or is otherwise not in our best interest. At this time, essentially all compensation we have paid to the NEOs is deductible
under the federal tax code, except for income realized from exercise of incentive stock options by some NEOs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><I>Share Ownership Guidelines for Named Executive
Officers </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">We do not require our NEOs to own any minimum
amount of our common stock. However, we are currently considering such a policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><I>Consideration of Prior-Year Shareholder
Advisory Vote</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">At the 2012 annual meeting of shareholders,
on the proposal approving, on an advisory basis, the compensation paid to our named executive officers as disclosed in the proxy
statement for that annual meeting, 95 percent of the votes cast were cast in favor of the proposal. The Compensation Committee
considered this high level of support as providing confirmation that the shareholders support our compensation policies and decisions
for our named executive officers, and determined that its approach to the 2013 compensation policies and decisions would remain
generally consistent with the approach in 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>COMPENSATION COMMITTEE REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Compensation Committee of First Bancorp
has reviewed and discussed with management the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K.
Based on its review and discussion, the Compensation Committee recommended to the board that the Compensation Discussion and Analysis
be included in this proxy statement and in First Bancorp&rsquo;s annual report on Form 10-K for filing with the Securities and
Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Compensation Committee has conducted a
risk-based assessment of the Company&rsquo;s compensation plans, policies and practices to determine whether such plans, policies
and practices create risks that are reasonably likely to have a material adverse effect on the Company. Based on this assessment,
the Compensation Committee has concluded that the Company&rsquo;s compensation plans, policies and practices do not create risks
that are reasonably likely to have a material adverse effect on the Company. As part of its assessment, the Compensation Committee
evaluated the Company&rsquo;s compensation plans and programs to determine their propensity to cause undue risk taking by employees,
including senior executive officers, relative to the level of risk associated with the Company&rsquo;s business model and operations.
The Compensation Committee believes that the Company does not use highly leveraged short-term incentives that encourage high risk
behavior at the expense or detriment of long-term value and which are reasonably likely to create a material adverse effect. The
Compensation Committee completed its assessment in 2012 as part of its obligation to oversee the compensation risk assessment process
for the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Submitted by the Compensation
Committee of First Bancorp&rsquo;s board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 46%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">Jack D. Briggs</TD>
    <TD STYLE="width: 54%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">Thomas F. Phillips</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">David L. Burns</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">Frederick L. Taylor II</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">Mary Clara Capel - Chairman</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">Virginia C. Thomasson</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">James C. Crawford, III</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">John C. Willis</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">George R. Perkins, Jr.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.75in">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in"><B>Summary Compensation Table</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">The following table shows the compensation
we paid in each of the last three fiscal years to the NEOs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2012 SUMMARY COMPENSATION TABLE</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 20%">Name and Principal Position</TD>
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; width: 5%; vertical-align: bottom">Year</TD>
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; width: 9%">&nbsp;Salary ($)&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; width: 9%">Bonus ($) <BR>
(3)&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; width: 9%">Stock <BR>
Awards ($)<BR>
(4)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 9%">Option<BR>
 Awards ($) <BR>
(4)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; width: 10%">Non-Equity <BR>
Incentive Plan <BR>
Compensation <BR>
($) (5)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; width: 12%">Change in <BR>
Pension Value <BR>
and Nonqualified <BR>
Deferred <BR>
Compensation <BR>
Earnings ($) (6)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; width: 9%">All Other<BR>
 Compens-<BR>
ation ($) (7)</TD>
    <TD NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; width: 8%">Total ($)</TD></TR>
<TR STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">(a)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: bottom">(b)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;(c)&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt">(d)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt">(e)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt">(f)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt">(g)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt">(h)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt">(i)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt">(j)</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; border-top-color: windowtext; border-top-width: 0.5pt">Richard H. Moore (1)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2012</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">267,256</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;300,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;41,357</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;608,613</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;President and Chief</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Executive Officer</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; border-top-color: windowtext; border-top-width: 0.5pt">Jerry L. Ocheltree (2)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2012</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">511,704</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">30,765</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">118,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;54,677</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;715,146</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;President of First Bank</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2011</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">511,704</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">32,453</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">373,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;55,700</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;972,857</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2010</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;496,800</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">192,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;59,029</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;747,829</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">Anna G. Hollers</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2012</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">325,029</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">15,629</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">(17,000)</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;24,139</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;347,797</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Executive Vice President,</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2011</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;325,029</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">16,488</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;406,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;24,590</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;772,107</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;Chief Operating Officer and</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2010</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">315,562</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">179,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;25,341</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;519,903</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Secretary</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">Eric P. Credle</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2012</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">283,868</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;40,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">13,645</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;43,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;11,456</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;391,969</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Executive Vice President</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2011</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;283,868</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">14,395</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;107,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;13,533</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;418,796</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;and Chief Financial Officer</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2010</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">275,600</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;38,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;13,621</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;327,221</TD></TR>
<TR STYLE="background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">John F. Burns</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2012</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">224,100</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;13,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;27,642</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;264,742</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;Executive Vice President</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2011</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">224,100</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;6,735</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;191,000</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;26,719</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;448,554</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; border-left: windowtext 0.5pt solid; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom">2010</TD>
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;17,502</TD>
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;4,839</TD>
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;123,000</TD>
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;26,958</TD>
    <TD NOWRAP STYLE="border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right; border-left-color: windowtext; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;372,299</TD></TR>
</TABLE>


<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Notes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>Mr. Moore&rsquo;s employment with the Company began in June 2012.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>Mr. Ocheltree served as principle executive officer until June 2012.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(3)</TD><TD>Mr. Moore and Mr. Credle were awarded discretionary bonuses by the Compensation Committee primarily in recognition their efforts
in the Company&rsquo;s capital raise that occurred in December 2012 and the Company&rsquo;s loan sale, which was substantially
completed during that same period and became final on January 23, 2013.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(4)</TD><TD>On August 28, 2012, Mr. Moore was granted 75,000 stock options and 40,000 shares of restricted stock. The stock options vest
on December 31, 2014 if the Company achieves a targeted amount of earnings in 2014 and the restricted stock vests on December 31,
2015 if the Company achieves a targeted amount of earnings in 2015. Based on the earnings targets set, as of the date of this proxy
statement, the Company does not believe it is probable that either of the awards will vest, and accordingly, no value of the grants
is included in this table. See the section of the Compensation and Discussion Analysis above entitled &ldquo;Composition of Richard
H. Moore, Chief Executive Officer&rdquo; for further discussion of his stock option and restricted stock awards.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">As it relates to the amounts for Mr. Ocheltree, Ms. Hollers,
and Mr. Credle, see the sections of the Compensation and Discussion Analysis above entitled &ldquo;Composition of Compensation&rdquo;
and &ldquo;Equity Grants&rdquo; for further discussion of stock awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(5)</TD><TD>All amounts in this column were paid pursuant to our Annual Incentive Plan.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.25in">(6)</TD><TD>The amounts in this column reflect the annual change in the total actuarial net present value of the NEOs&rsquo; accrued benefits
under our pension plan and SERP. The significantly higher amounts in 2011 compared to the other periods are primarily a result
of decrease in the discount rate (from 5.59% to 4.39%) to compute the present value of the benefit, and not a result of any changes
in the plans&rsquo; benefit formulas. Mr. Moore does not participate in these plans.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">(7)</TD>
    <TD>The following table shows the components of &ldquo;All Other Compensation.&rdquo;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; border: Black 1pt solid">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">All Other Compensation</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; width: 25%">Name</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; width: 7%">Year</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; width: 10%">Defined <BR>
Contribution<BR>
 Plan ($)</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; width: 10%">Director/ <BR>
Committee <BR>
Fees (1)&nbsp;($)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; width: 10%">Club/Civic <BR>
Dues ($)</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; width: 10%">Interest Savings -<BR>
 Employee Loan <BR>
Program (2)&nbsp;($)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; width: 10%">Dividends on<BR>
 Restricted Stock<BR>
 (3) ($)</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; width: 9%">Life <BR>
Insurance <BR>
(4) ($)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; width: 9%">Total ($)</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Richard H. Moore</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2012</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;34,957</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;6,400</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;41,357</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Jerry L. Ocheltree</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2012</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;10,000</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;21,640</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;13,155</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;7,780</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;1,612</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;490</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;54,677</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2011</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;11,025</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;20,140</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;12,833</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;7,917</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;3,785</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;55,700</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2010</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;11,025</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;22,140</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;13,688</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;8,082</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;4,094</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;59,029</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Anna G. Hollers</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2012</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;10,000</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;12,700</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;819</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;620</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;24,139</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2011</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;11,025</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;11,450</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;8</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;2,107</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;24,590</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2010</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;11,025</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;12,450</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;8</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;1,858</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;25,341</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Eric P. Credle</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2012</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;10,000</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;580</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;715</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;161</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;11,456</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2011</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;11,025</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;580</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;1,928</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;13,533</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2010</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;11,025</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;580</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;397</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;1,619</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;13,621</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>John F. Burns</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2012</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;9,231</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;17,670</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;741</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;27,642</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2011</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;10,299</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;16,420</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;26,719</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; vertical-align: bottom; border-right: Black 1pt solid; border-left: Black 1pt solid">2010</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;9,788</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;17,170</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;26,958</TD></TR>
</TABLE>


<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>For Mr. Moore, Director/Committee Fees includes cash of $18,850 received and restricted stock valued at $16,107. All other
amounts in this column were paid in cash.</TD></TR></TABLE>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>See &ldquo;<I>Perquisites</I>&rdquo; in the Compensation Discussion and Analysis section above for an explanation of our Employee
Loan Program. The amount in this column is the amount of interest savings the NEO realized as a result of having an interest rate
1% lower than the interest rate available to non-employees.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(3)</TD><TD>The amounts in this column represent the amount of cash dividends earned on shares of unvested, restricted stock.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(4)</TD><TD STYLE="text-align: justify">The amounts in the column represent the benefit associated with the life insurance provided by
the bank-owned life insurance policies discussed in &ldquo;<I>Perquisites</I>&rdquo; in the Compensation Discussion and Analysis
section above.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">We have entered into employment agreements
with 19 of our officers, including each of the NEOs. Each employment agreement provides for post-termination benefits that we must
pay in certain circumstances. See &ldquo;Potential Payments Upon Termination&rdquo; below for more information about these potential
benefits, and about the non-competition and confidentiality covenants contained in the agreements.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in"><B>Grants of Plan-Based Awards</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The amounts shown in the table below relate
to equity grants made to Richard H. Moore in connection with the execution of an employment agreement on August 28, 2012. See the
section of the Compensation and Discussion Analysis above entitled &ldquo;Composition of Richard H. Moore, Chief Executive Officer&rdquo;
for further discussion of the stock option and restricted stock awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; border: Black 1pt solid">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; width: 25%">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; width: 10%">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; width: 15%">Estimated Future Payouts <BR>
Under Equity Incentive Plan <BR>
Awards</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; width: 15%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; width: 15%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid; width: 15%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center">Name</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">Grant Date</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;Target (#)&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">All Other Stock <BR>
Awards: Number of <BR>
Shares of stock or <BR>
Units (#)</TD>
    <TD NOWRAP STYLE="text-align: center">Exercise or Base <BR>
Price of Option <BR>
Awards ($/Sh)</TD>
    <TD NOWRAP STYLE="text-align: center; border-left: Black 1pt solid">Grant Date Fair <BR>
Value of Stock and <BR>
Option Awards ($)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(a)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">(b)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(g)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">(i)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(k)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid">(l)</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Richard H. Moore</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;&nbsp;Restricted stock</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">8/28/2012</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;40,000</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;390,400</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;&nbsp;Stock options</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">8/28/2012</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;75,000</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;9.76</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;273,750</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Jerry L. Ocheltree</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Anna G. Hollers</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Eric P. Credle</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP>John F. Burns</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The restricted stock was valued at $9.76 per
share, which was the closing price of the Company&rsquo;s common stock on the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The stock options were valued on the date of
grant at $3.65 per share using the Black-Scholes option pricing model with the following assumptions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 30%; padding-left: 0.25in">Expected dividend yield</TD>
    <TD NOWRAP STYLE="width: 70%; padding-right: 5.4pt; padding-left: 5.4pt">3.28%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.25in">Risk-free interest rate</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">1.64%</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.25in">Expected life</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Ten years</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.25in">Expected volatility</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">41.82%</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Outstanding Equity Awards at Fiscal Year-End</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">The following table provides
information about the equity awards our NEOs held as of the end of 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; border: Black 1pt solid">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 0.54pt; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="4" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;Option Awards&nbsp;</TD>
    <TD COLSPAN="4" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">Stock Awards</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; width: 18%">Name</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 0.54pt; width: 7%; border-right: Black 1pt solid; border-left: Black 1pt solid">Grant Date</TD>
    <TD NOWRAP STYLE="text-align: center; width: 9%">Number of <BR>
Securities <BR>
Underlying <BR>
Unexercised <BR>
Options (#) <BR>
Exercisable</TD>
    <TD NOWRAP STYLE="text-align: center; width: 9%; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;Equity <BR>
Incentive Plan <BR>
Awards:<BR>
Number of <BR>
Securities <BR>
Underlying <BR>
Unexercised <BR>
Unearned <BR>
Options (#)&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; width: 9%">Option <BR>
Exercise<BR>
 Price ($)</TD>
    <TD NOWRAP STYLE="text-align: center; width: 9%; border-right: Black 1pt solid; border-left: Black 1pt solid">Option<BR>
 Expiration <BR>
Date</TD>
    <TD NOWRAP STYLE="text-align: center; width: 9%">&nbsp;Number of <BR>
Shares or <BR>
Units of<BR>
 Stock That<BR>
 Have Not<BR>
 Vested (#)&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; width: 10%; border-right: Black 1pt solid; border-left: Black 1pt solid">Market Value of <BR>
Shares of Stock <BR>
That Have Not <BR>
Vested ($)</TD>
    <TD NOWRAP STYLE="text-align: center; width: 10%">Equity Incentive <BR>
Plan Awards:&nbsp;<BR>
Number of <BR>
Unearned Shares, <BR>
Units or Other <BR>
Rights That Have <BR>
Not Vested (#)</TD>
    <TD NOWRAP STYLE="text-align: center; width: 10%; border-left: Black 1pt solid">Equity Incentive <BR>
Plan Awards:&nbsp;<BR>
Market Or Payout <BR>
Value of <BR>
Unearned Shares, <BR>
Units or Other <BR>
Rights That Have<BR>
 Not Vested ($)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(a)</TD>
    <TD NOWRAP STYLE="text-align: center; padding-left: 0.54pt; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(b)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">(d)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(e)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">(f)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(g)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">(h)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(i)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid">(j)</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Richard H. Moore</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">8/28/2012 (1)</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;75,000</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;9.76</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">8/28/2022</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">8/28/2012 (1)</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;40,000</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;512,800</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Jerry L. Ocheltree</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">4/1/2004</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;3,000</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;21.70</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">4/1/2014</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">6/17/2008</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;16,602</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;16.53</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">6/17/2018</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">2/24/2011&nbsp;(2)</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;2,232</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;28,614</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">2/23/2012&nbsp;(3)</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;2,807</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Anna G. Hollers</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">4/1/2004</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;9,001</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;21.70</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">4/1/2014</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">6/17/2008</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;7,774</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;16.53</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">6/17/2018</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">2/24/2011&nbsp;(2)</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;1,134</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;14,538</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">2/23/2012&nbsp;(3)</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;1,426</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;18,281</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Eric P. Credle</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">4/1/2004</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;3,001</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;21.70</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">4/1/2014</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">6/17/2008</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;6,270</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;16.53</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">6/17/2018</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">2/24/2011&nbsp;(2)</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;990</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;12,692</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">2/23/2012&nbsp;(3)</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;1,245</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;15,961</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 1em; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 1em; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 1em; text-align: right; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 1em; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 1em; text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 1em; text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 1em; text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP>John F. Burns</TD>
    <TD NOWRAP STYLE="text-align: left; padding-left: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom">6/17/2008</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;4,043</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;16.53</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">6/17/2018</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em; border-left: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Notes:</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>See the section of the Compensation and Discussion Analysis above entitled &ldquo;Composition of Richard H. Moore, Chief Executive
Officer&rdquo; for further discussion of the stock option and restricted stock awards related to Mr. Moore.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(2)</TD><TD STYLE="text-align: justify">These awards vested on February 24, 2013.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(3)</TD><TD STYLE="text-align: justify">These awards will vest on February 23, 2014.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Option Exercises and Stock Vested</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">None of our NEOs exercised
stock options during 2012, nor did any shares of stock vest during the year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Pension Benefits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">The following table shows
information about the NEOs&rsquo; accrued benefits under our tax-qualified pension plan and our supplemental executive retirement
plan, or SERP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">&nbsp;</P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; border: Black 1pt solid">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; width: 25%">Name</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid; width: 25%">Plan Name</TD>
    <TD NOWRAP STYLE="text-align: center; width: 25%">Number of Years <BR>
Credited Service<BR>
 (#)</TD>
    <TD NOWRAP STYLE="text-align: center; border-left: Black 1pt solid; width: 25%">Present Value of <BR>
Accumulated <BR>
Benefit ($) (2)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(a)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">(b)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(c)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid">(d)</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Richard H. Moore (1)</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Jerry L. Ocheltree</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;Qualified Plan&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">15</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;297,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;SERP&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">15</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;811,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Anna G. Hollers</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;Qualified Plan&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">40</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;1,154,000</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;SERP&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">26</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;732,000</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Eric P. Credle</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;Qualified Plan&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">15</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;214,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;SERP&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">15</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;90,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>John F. Burns</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;Qualified Plan&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">12</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;357,000</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;SERP&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">12</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;446,000</TD></TR>
</TABLE>


<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>Mr. Moore is not a participant in either of our defined benefit pension plans.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>The present value of each officer&rsquo;s accumulated benefit under each plan was calculated using the following assumptions:
The officer retires at age 65. At that time, the officer takes a lump sum based on his or her accrued benefit as of December 31,
2012. The lump sum is calculated using the 2012 Current Liability Combined Mortality Table and is discounted to December 31, 2012
using a rate of return of 3.97% per year.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>Pension Plan</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">Our tax-qualified pension plan covers
all full-time employees hired on or before June 11, 2009 and provides each participant with an annual retirement benefit paid monthly
in cash. Each of our NEOs is a participant in the plan. At normal retirement age of 65, this benefit is equal to the sum of:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>0.75% of the participant&rsquo;s final average compensation multiplied by his/her years of service (up to 40), and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>0.65% of the participant&rsquo;s final average compensation in excess of &ldquo;covered compensation&rdquo; (the average of
the Social Security taxable wage base during the 35-year period that ends with the year the participant reaches Social Security
retirement age), multiplied by years of service (up to 35).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&ldquo;Final average compensation&rdquo; means
the average of the participant&rsquo;s highest consecutive five years of compensation during his or her last 10 years of employment.
For purposes of this plan, &ldquo;compensation&rdquo; generally means base salary plus bonuses. However, the federal tax code limits
the amount of compensation we can take into account for purposes of the pension plan. The limit was $250,000 for 2012.<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Each participant becomes fully vested in his
or her plan benefits after five years of service. Early retirement, with reduced monthly benefits, is available to any participant
who leaves the company at or after age 55 with 15 years of service. The plan also provides a death benefit to a vested participant&rsquo;s
surviving spouse.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">As required by federal pension laws, benefits
under the pension plan are funded by assets held in a tax-exempt trust. Effective December 31, 2012, the Compensation Committee
froze the benefits payable under the pension plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>SERP</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Our SERP is for the benefit of our senior management,
including the NEOs. The purpose of the SERP is to provide additional monthly pension benefits to ensure that each participant will
receive lifetime pension benefits beyond the amounts that we can pay under our qualified pension plan. The SERP generally provides
participants with an annual benefit at normal retirement age of 65, payable monthly in cash, equal to 3% of final average compensation
multiplied by years of service (up to a maximum of 20 years). For purposes of the SERP, &ldquo;final average compensation&rdquo;
has the same meaning as under our pension plan. The amount of a participant&rsquo;s SERP benefit is reduced by (1) the amount payable
under our qualified pension plan, and (2) 50% of the participant&rsquo;s primary social security benefit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Each participant becomes fully vested in his
or her SERP benefits at retirement, death, disability or a change in control. Early retirement, with reduced monthly benefits,
is available to any participant who leaves the company at or after age 55 with 15 years of service. The plan also provides a death
benefit to a vested participant&rsquo;s surviving spouse.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Because the SERP is a non-qualified plan, its
benefits are unsecured, and a participant&rsquo;s claim for benefits under the plan is no greater than the claim of a general creditor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">As a general rule, we do not grant extra years
of credited service under either the pension plan or the SERP. On one occasion, we credited two officers of an acquired company
with three extra years of service under the SERP. None of the NEOs has received any extra years of credited service under either
plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Effective December 31, 2012, the Compensation
Committee froze the benefits payable under the SERP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Potential Payments Upon Termination or Change in Control</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">This section contains information about
arrangements that provide for compensation to our NEOs in connection with their termination. Actual circumstances resulting in
the departure of an NEO cannot be predicted and may differ from the assumptions used in the information outlined below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>Employment Agreements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">As noted above, we are party to employment
agreements with 19 of our officers, including each of the NEOs. Under each of these agreements, we have agreed to pay the officer&rsquo;s
base salary for the remainder of the agreement term if we terminate the officer other than for cause. The agreement term for Mr.
Moore is one year and it automatically renews for an additional one year on each anniversary date. The stated agreement term for
Mr. Ocheltree, Ms. Hollers, Mr. Credle and Mr. Burns is three years, and each of the agreements automatically renew for a new three
year term on each anniversary date unless written notice is provided by either party that such automatic renewal will not occur.
As previously discussed, in 2012, Mr. Ocheltree, Ms. Hollers, Mr. Credle and Mr. Burns were each notified that their employment
agreements would not renew on their next anniversary date. Accordingly, these employment agreements will expire in January 2015
for Mr. Ocheltree, August 2014 for Ms. Hollers and Mr. Credle, and September 2014 for Mr. Burns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">We have also agreed to continue paying
each officer his or her base salary for a period of time if employment ends due to a long-term disability. The term that we will
continue paying each of our NEOs in this circumstance is three months for Mr. Moore and for the remainder of the agreement term
for Mr. Ocheltree, Ms. Hollers, Mr. Credle and Mr. Burns. Also, as it relates to Mr. Ocheltree, Ms. Hollers, Mr. Credle and Mr.
Burns, the officer must look for a job somewhere else, or we can stop paying him or her. If the officer finds another job, we can
deduct any amounts that he or she earns in the new job from our payments.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">Each employment agreement also provides
for severance to the officer if we or the officer terminates his/her employment within 12 months after a change in control (other
than for cause or normal retirement). For Mr. Moore, the amount of the severance payment is two times his annual salary, and in
addition the Company will reimburse Mr. Moore for the costs he incurs to participate in the health plan of a previous employer
for twelve months. For Mr. Ocheltree, Ms. Hollers, Mr. Credle and Mr. Burns, the amount of the severance payment, which we would
be required to pay in cash within 10 days after termination following a change of control, is the lesser of:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>a specified multiple, ranging from 1 to 2.9 of the officer&#8217;s base salary as of the date of the change in control, and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>2.99 multiplied by the officer&#8217;s &#8220;base amount&#8221; under Section 280G(b)(3) of the Internal Revenue Code.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">In general, the number calculated according to the first
formula will be the smaller number.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">The agreements define &ldquo;control&rdquo;
as the power, either directly or indirectly, to direct our management or policies or to vote 40% or more of any class of our securities.
In general, any change in control of our company triggers the change in control provisions of the employment agreements. However,
the agreements expressly exclude as a &ldquo;change in control&rdquo; any merger, consolidation or reorganization following which
the owners of our capital stock who were previously entitled to vote in the election of our directors own 61% or more of the resulting
entity&rsquo;s voting stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">The agreements for Mr. Ocheltree, Ms.
Hollers, Mr. Credle and Mr. Burns also state that any of the following events will be considered to be a &ldquo;change in control&rdquo;:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>any person, entity or group becoming the beneficial owner, directly or indirectly, of 33% or more of any class of our voting
stock;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>during any period of two consecutive years, individuals who at the beginning of the period made up our board (we refer to these
individuals as the &#8220;incumbent board&#8221;), or persons whose election was approved by at least three-quarters of the incumbent
board, fail to make up at least a majority of the board; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>the sale of all or substantially all of our assets.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">The following table shows the lump
sum cash severance amounts we would have owed our NEOs under their employment agreements if they had terminated employment on
December 31, 2012 under various circumstances.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; border: Black 1pt solid">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; width: 25%">Name</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; width: 20%">Nature of Payment</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; width: 15%">Involuntary <BR>
Termination for Cause <BR>
or Voluntary <BR>
Termination by <BR>
Employee ($)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; width: 15%">Involuntary <BR>
Termination<BR>
 Without Cause ($)<BR>
 (1)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; width: 10%">Termination due <BR>
to Long-Term <BR>
Disability ($) (2)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; width: 10%">Change In Control<BR>
 ($) (3)</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Richard H. Moore</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">Severance - Cash</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;316,667</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;118,750</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;963,188</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; padding-left: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Jerry L. Ocheltree</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">Severance - Cash</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;1,058,929</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;823,015</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;1,483,942</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; padding-left: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>Anna G. Hollers</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">Severance - Cash</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;528,172</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;342,922</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;942,584</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; padding-left: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>Eric P. Credle</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">Severance - Cash</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;461,286</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;276,036</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;823,217</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; padding-left: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP>John F. Burns</TD>
    <TD NOWRAP STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-left: 1em">Severance - Cash</TD>
    <TD NOWRAP STYLE="text-align: center">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;382,838</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;188,088</TD>
    <TD NOWRAP STYLE="text-align: right; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;649,890</TD></TR>
</TABLE>


<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>These amounts are equal to 1/12 of each officer&rsquo;s base salary as of December 31, 2012 multiplied by the number of months
remaining in his/her employment agreement term. Mr. Moore&rsquo;s amount also includes the estimated health care cost reimbursement
that the Company must pay him for twelve months, which is in accordance with the terms of his employment agreement.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD>This column shows the amounts due under the terms of the officers&rsquo; employment agreements, which except for Mr. Moore,
is equal to the remaining length of the employment agreement less the amounts payable under the terms of our long-term disability
plan (in which all full-time employees participate). For Mr. Moore, the amount equals his salary for three months, which is in
accordance with his employment agreement.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD>Except for Mr. Moore, these amounts are equal to 2.9 multiplied by each officer&rsquo;s annual base salary as of December 31,
2012, which in each case are each are less than 2.99 multiplied by their &ldquo;base amount&rdquo; under Section 280G(b)(3) of
the Internal Revenue Code. In accordance with his employment agreement, Mr. Moore&rsquo;s amount is equal to two times his base
salary plus the estimated health care cost reimbursement that the Company must pay him for twelve months.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">Our current equity plan and the SERP
have change in control provisions that automatically vest all participants in the benefits of each plan in the event of a change
in control of our Company. See &ldquo;Outstanding Equity Awards at Fiscal Year End&rdquo; for information about the equity awards
that our NEOs held as of the end of 2012 that would be subject to accelerated vesting upon a change in control. See &ldquo;Pension
Benefits &ndash; SERP&rdquo; for information about the NEO benefits that would be subject to accelerated vesting upon a change
in control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">The employment agreements also contain
non-competition and confidentiality covenants by the officers. The non-competition covenants prohibit each officer from:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>engaging, directly or indirectly, in any competing activity or business within a restricted territory for a certain period
of time after leaving our company, which we call the restricted period;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>soliciting or recruiting any of our employees during the restricted period; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>making sales contacts with or soliciting any of our customers for any products or services that we offer, in either case within
the restricted territory during the restricted period.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">The restricted period is one year if
we terminate the officer for cause or he or she terminates voluntarily. If we terminate him or her other than for cause, the restricted
period is the remainder of the agreement term. The restricted territory for each officer is a 50-mile radius (60 miles for Mr.
Moore) around his or her primary residence and/or work location.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.25in">The confidentiality covenants contained
in each agreement prohibit the officer from disclosing any confidential business secrets or other confidential data both during
the term of the employment agreement and for a period of two years after termination for everyone except Mr. Moore, whose confidentiality
provision is for fifteen years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>COMPENSATION OF DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Board of Directors establishes compensation
for Board members based primarily on consultation with an outside consultant, who assists the Board of Directors in evaluating
whether its members are receiving fair compensation for the services they perform. This evaluation is based primarily on a comparison
to other financial services companies of a similar size. The peer companies that were used in the most recent comparison were the
same as those used during the evaluation of Other NEO compensation described on page 19 above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Based on this evaluation, the Board set the
following fees for 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><U>Monthly Retainer</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Baseline retainer for all directors - $600</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Additional retainer for the Chairman of the Board of the Company - $300</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Additional retainer for the Chairman of the Board of First Bank - $200</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Additional retainer for the Chairman of the Audit Committee - $100</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in"><U>Meeting Fees</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Audit Committee meetings - $350 per meeting</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>All other Board meetings, including meetings of the Company&#8217;s subsidiaries, and Board committee meetings - $250 per meeting</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 13.5pt">All directors of the Company are also directors
of First Bank, the Company&rsquo;s principal subsidiary. Nine of those directors currently serve on the board of First Bank Insurance
Services, a subsidiary of First Bank. During 2012, the boards of the Company and First Bank normally met on a monthly basis, and
the First Bank Insurance Services board normally met on a quarterly basis. Some board members also serve on First Bank&rsquo;s
local advisory boards and receive fees of $60 per month in connection with that service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Non-employee directors of the Company also
participate in the Company&rsquo;s equity plan. In June 2012, each non-employee director of the Company received 1,818 shares of
the Company&rsquo;s common stock. The number of shares of stock granted produced a value that was approximately the same as stock
option grants that each director had received in years prior to 2010. The Board of Directors intends to make similar grants of
common stock, in June of each year, to non-employee directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In addition to the compensation they receive
for service as directors, four Board members were also employees of the Company in 2012. These directors are Mr. Brown, Mr. J.
Burns, Mr. Moore (became an employee on June 11, 2012) and Mr. Ocheltree. Compensation for Mr. J. Burns, Mr. Moore, and Mr. Ocheltree
is discussed above. Mr. Brown has a three-year employment agreement with the Company that is consistent with the employment agreements
described above for the Other NEOs. Mr. Brown, Mr. J. Burns, and Mr. Ocheltree have each been notified that their employment agreements
will not automatically renew at their next anniversary date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The following table sets forth compensation we paid to our directors
in 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="color: Red; font: 10pt Sans-Serif; margin: 0; text-align: justify"><B></B></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; border: Black 1pt solid">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; width: 20%">Name</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid; width: 15%">Fees Earned or Paid <BR>
in Cash ($)</TD>
    <TD NOWRAP STYLE="text-align: center; width: 10%">Stock Awards <BR>
($)</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid; width: 15%">Non-Equity Incentive<BR>
 Plan Compensation ($)</TD>
    <TD NOWRAP STYLE="text-align: center; width: 15%">Change in Pension <BR>
Value and <BR>
Nonqualified<BR>
 Deferred <BR>
Compensation <BR>
Earnings</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid; width: 15%">All Other <BR>
Compensation ($)</TD>
    <TD NOWRAP STYLE="text-align: center; width: 10%">Total ($)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(a)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">(b)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(c) (3)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">(e)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(f)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">(g)</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">(h)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Daniel T. Blue, Jr.&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;22,800</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;38,907</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Jack D. Briggs</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;23,920</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;40,027</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">R. Walton Brown (1)</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;17,670</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;(67,000)</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;199,910</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;150,580</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">David L. Burns</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;27,520</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;43,627</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">John F. Burns (2)</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;17,670</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;17,670</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Mary Clara Capel</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;29,950</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;46,057</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">James C. Crawford, III</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;27,270</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;43,377</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">R. Winston Dozier&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;24,770</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;40,877</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">James G. Hudson, Jr.</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;20,420</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;36,527</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Richard H. Moore (2)</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;18,850</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;34,957</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Jerry L. Ocheltree (2)</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;21,640</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;21,640</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">George R. Perkins, Jr.</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;20,170</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;36,277</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Thomas F. Phillips</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;29,550</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;45,657</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Frederick L. Taylor II</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;24,700</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;40,807</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Virginia C. Thomasson</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;25,500</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;41,607</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid">Dennis A. Wicker</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;17,950</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-right: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;34,057</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP>John C. Willis</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;24,300</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;16,107</TD>
    <TD NOWRAP STYLE="text-align: center; border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; border-right: Black 1pt solid; border-left: Black 1pt solid; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: right; vertical-align: bottom; padding-right: 1em">&nbsp;40,407</TD></TR>
</TABLE>


<P STYLE="color: Red; font: 10pt Sans-Serif; margin: 0; text-align: justify"><B></B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(1)</TD><TD>Mr. Brown is also an executive officer of the Company. The only incremental compensation that he receives as a director of
the Company is reflected in column (b). Amounts shown in the other columns relate solely to his service as an employee. &ldquo;All
Other Compensation&rdquo; includes the sum Mr. Brown&rsquo;s director's salary, 401(k) match, and club dues as an employee.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(2)</TD><TD>We report Mr. J. Burns&rsquo;, Mr. Moore&rsquo;s and Mr. Ocheltree's compensation as an executive officer in the Summary Compensation
Table above.</TD></TR></TABLE>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(3)</TD><TD>On June 1, 2012, each non-employee director was granted 1,818 shares of common stock with no vesting requirements. The grant
date fair value of each share of stock was $8.86.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Th</FONT>e following table shows the
number of stock options that each director held as of December 31, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 50%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 70%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 25%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" NOWRAP STYLE="border-top: windowtext 0.5pt solid; border-right: black 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; text-align: center">Aggregate Outstanding Equity Awards</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; text-align: center; border-top-color: windowtext; border-top-width: 0.5pt">Name</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: center; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt">Options <BR>
Outstanding (#)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border: windowtext 0.5pt solid; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">Daniel T. Blue, Jr.</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">Jack D. Briggs</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;15,750</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">R. Walton Brown</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;18,460</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">David L. Burns</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;15,750</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">John F. Burns</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;4,043</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">Mary Clara Capel</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;11,250</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">James C. Crawford, III</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;4,500</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">R. Winston Dozier</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">James G. Hudson, Jr.</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;4,500</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">Richard H. Moore</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;&mdash;&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">Jerry L. Ocheltree</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;19,602</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">George R. Perkins, Jr.</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;15,750</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">Thomas F. Phillips</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;15,750</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">Frederick L. Taylor II</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;11,250</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">Virginia C. Thomasson</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;15,750</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">Dennis A. Wicker</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;15,750</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; border-left: windowtext 0.5pt solid; border-top-color: windowtext; border-top-width: 0.5pt">John C. Willis</TD>
    <TD NOWRAP STYLE="border-right: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; text-align: right; border-top-color: windowtext; border-left-color: windowtext; border-top-width: 0.5pt; border-left-width: 0.5pt; vertical-align: bottom; padding-right: 1em">&nbsp;15,750</TD></TR>
</TABLE>


<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 5pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The 2012 members of the Compensation Committee
were Mr. Briggs, Mr. D. Burns, Ms. Capel, Mr. Crawford III, Mr. Phillips-Chairman, Mr. Perkins, Mr. Taylor II, Ms. Thomasson, and
Mr. Willis. None of these members has ever been an officer or employee of the Company. There are no Compensation Committee interlocks,
as described in SEC rules and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>CERTAIN TRANSACTIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In addition to the rules and regulations of
the Securities and Exchange Commission, the Company and First Bank are subject to Federal Reserve Board Regulation O, which governs
extensions of credit by First Bank to any executive officer, director or principal shareholder of the Company or First Bank. The
Company has established processes for reviewing and approving extensions of credit and other related party transactions. Related
party transactions are approved by the Board of Directors, and the related person does not participate in the deliberations or
cast a vote. The Audit Committee also reviews all related party transactions and determines whether to ratify or approve such transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Company&nbsp;collects information about
related party transactions from&nbsp;its officers and directors through annual questionnaires distributed to officers and directors,
or when transactions or proposed transactions are reported throughout the year. Each director and officer agrees to abide by&nbsp;the
Company's Code&nbsp;of Ethics, which provides that officers and directors should avoid conflicts of interest and that any transaction
or situation that could involve a conflict of interest between the&nbsp;Company and an officer or director must be reported&nbsp;and
must be&nbsp;approved by the&nbsp;Audit Committee or the Board (or another committee thereof)&nbsp;if and when appropriate. The
Code of&nbsp;Ethics identifies a non-exclusive list of situations that may present a conflict of interest, including significant
dealings with a competitor, customer or supplier, similar dealings by an immediate family member, personal investments in entities
that do business with the&nbsp;Company, and gifts and gratuities that influence a person&rsquo;s business decisions, as well as
other transactions between an individual and the&nbsp;Company. The Audit Committee&rsquo;s charter provides that the Audit Committee
will review, investigate and monitor matters pertaining to the integrity or independence of the Board, including related party
transactions. The Audit Committee and the Board&nbsp;review and make determinations about related party transactions or other conflicts
of interest as they arise, and in addition the Audit Committee conducts an annual review of all related party transactions early
in each fiscal year, after director and officer questionnaires have been received from management and the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Certain of the directors, nominees, principal
shareholders and officers (and their affiliates) of the Company have deposit accounts and other transactions with First Bank, including
loans in the ordinary course of business. Except as discussed in the next sentence, all loans or other extensions of credit made
by First Bank to directors, nominees, principal shareholders and officers of the Company and to affiliates of such persons were
made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing
at the time for comparable transactions with independent third parties and did not involve more than the normal risk of collectibility
or present other unfavorable features. As discussed in &ldquo;<I>Perquisites</I>&rdquo; in the Compensation Discussion and Analysis
section above, in accordance with applicable banking regulations, the Company has a home loan program that all of our employees
are eligible to participate in that allows employees to borrow money for a loan on their primary residence, subject to our normal
credit underwriting standards, at an interest rate that is 1% less than the interest rate offered to non-employees. At December
31, 2012, the aggregate principal amount of loans to directors, nominees, principal shareholders and officers of the Company and
to affiliates of such persons was approximately $6,890,000. None of these loans are on nonaccrual status or are otherwise impaired.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The following paragraphs describe other related
party transactions occurring during 2012 involving our directors or executive officers that exceeded $120,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Transactions related to Anna G. Hollers, Executive Officer</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In 2012, the Company made payments to the law
firm of Hollers &amp; Atkinson totaling $203,638, of which $3,200 related to legal services rendered to the Company, $75,540 related
to trustee fees paid in foreclosure proceedings, and $124,898 related to the reimbursement of costs advanced on behalf of the Company
in foreclosure proceedings. One of the partners of Hollers &amp; Atkinson is the spouse of Anna Hollers, an executive officer of
the Company. The Company's review and approval policies stated above were followed for the transactions described in this paragraph.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Transactions related to Dennis A. Wicker, Director</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In 2011, it was determined that, beginning
in 2009, the Company engaged James Wicker or Wicker Properties, located in Wilmington, N.C., to act as sales agent for the marketing
and sale of certain properties of the Company's foreclosed real estate and to perform property management duties related to such
properties located in the Wilmington area. During this time, James Wicker earned industry-standard commissions for acting as the
listing agent for these properties. In return, he provided property management services for these same properties free of charge,
with James Wicker being reimbursed by the Company only for his out-of-pocket cost for performing these property management services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">James Wicker is the brother of Director Dennis
Wicker. Director Wicker did not have any knowledge of the Company's relationship with James Wicker or Wicker Properties prior to
2011, and Director Wicker has not had any business or professional relationship with Wicker Properties or James Wicker since becoming
a member of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Because of the amount of payments made to James
Wicker or Wicker Properties during 2011, it was determined that Director Wicker was not eligible to be considered an independent
director. In late 2011, the Company acted to cease all business relationships with James Wicker and Wicker Properties. Most, but
not all, of the business relationships and outstanding contracts were ceased by December 31, 2011. The Company made the following
payments to James Wicker or Wicker Properties in early 2012: $88,334 related to commissions earned for acting as the Company&rsquo;s
sales agent or buyer&rsquo;s agent on property sales, and $3,900 for reimbursement of out-of-pocket costs associated with property
management services. The Company's review and approval policies stated above were not followed for these transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">In 2012, James Wicker filed a lawsuit against
the Company that alleged that the Company acted improperly in ceasing the business relationships. In December 2012, the Company
and James Wicker settled the lawsuit with the Company agreeing to pay Mr. Wicker $220,000 to compensate him for lost real estate
commissions on properties in which he had expended significant effort prior to being terminated from the contract. Additionally,
the Company agreed to provide Mr. Wicker with the opportunity to earn up to $325,000 over the next three years in the form of commissions
from real estate sales and property management fees. The Company's review and approval policies stated above were followed for
the transactions described in this paragraph. Because of the amount of the payments made in 2012, Dennis Wicker will not be eligible
to be considered an independent director until the end of 2015.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.25in">Under the securities laws
of the United States, the Company&rsquo;s directors, its executive officers, and any persons holding more than 10% of the Company&rsquo;s
common stock are required to report their ownership of the Company&rsquo;s common stock and any changes in that ownership to the
Securities and Exchange Commission and the National Association of Securities Dealers Automated Quotation System. Specific due
dates for these reports have been established, and the Company is required to report in this proxy statement any failure to file
by these dates during 2012. Based upon a review of such reports and representations from the Company&rsquo;s directors and executive
officers, the Company believes that all such reports were filed on a timely basis in 2012, except that Mr. Moore filed one late
report related to one transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <!-- Field: /Page -->


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROPOSAL 2 &ndash; RATIFICATION OF INDEPENDENT
AUDITORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Audit Committee has approved the selection
of the firm Elliott Davis, PLLC to serve as the independent auditors for 2013. Action by the shareholders is not required by law
in the appointment of independent auditors, but their appointment is submitted by the Audit Committee and the board of directors
in order to give the shareholders an opportunity to present their views. If the proposal is approved, the Audit Committee, in its
discretion, may direct the appointment of different independent auditors at any time during the year if it determines that such
a change would be in the best interests of the Company and its shareholders. If the proposal to ratify the selection of Elliott
Davis, PLLC as the Company's independent auditors is rejected by shareholders, then the Audit Committee will reconsider its choice
of independent auditors. The Board of Directors recommends that the shareholders vote for the proposal to ratify the selection
of the Company&rsquo;s independent auditors.</P>

<P STYLE="font: 10pt Times-Roman,serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Representatives of Elliott Davis, PLLC are
expected to be present at the annual meeting. The representatives will be available to respond to appropriate questions and will
be given an opportunity to make any statement they consider appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>AUDIT COMMITTEE REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Management has the primary responsibility for
the financial statements and the reporting process. The Company&rsquo;s independent auditor, which was Elliott Davis, PLLC (&ldquo;Elliott
Davis&rdquo;) for 2012, is responsible for expressing an opinion on the conformity of the Company&rsquo;s audited financial statements
to accounting principles generally accepted in the United States of America and for attesting to the Company&rsquo;s control over
financial reporting. The Company&rsquo;s Audit Committee pre-approves all audit services and permitted non-audit services (including
the fees and terms thereof) to be performed by the independent auditors. The Audit Committee may delegate authority to subcommittees
consisting of one or more members when appropriate, including the authority to grant pre-approvals of audit and permitted non-audit
services, provided that decisions of such subcommittee to grant pre-approvals shall be presented to the full Audit Committee at
its next scheduled meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Audit Committee has reviewed and discussed
with management and Elliott Davis the audited financial statements as of and for the year ended December 31, 2012. The Audit Committee
has discussed with Elliott Davis the matters required to be discussed by AU Section 380 of the audit standards of the Public Company
Accounting Oversight Board (&ldquo;PCAOB&rdquo;). In addition, the Audit Committee has received from Elliott Davis the written
disclosures and letter required by the applicable requirements of the PCAOB regarding Elliott Davis&rsquo; communications with
the Audit Committee concerning independence and discussed with them their independence from the Company and its management. The
Audit Committee also has considered whether Elliott Davis&rsquo; provision of any information technology services or other non-audit
services to the Company is compatible with the concept of auditor independence. In this analysis, the Audit Committee reviewed
the services and related fees provided by Elliott Davis in the following categories and amounts:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; text-align: justify">Audit Fees</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">373,750</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">379,255</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Audit-Related Fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Tax Fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt">All Other Fees</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&mdash;</P></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&mdash;</P></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Fees</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">391,750</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">397,255</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">For 2011 and 2012, audit fees included fees
for the integrated audit of the consolidated financial statements and internal control over financial reporting (Sarbanes-Oxley
Section 404), quarterly reviews of the interim consolidated financial statements and an additional internal control attestation.
In 2011 and 2012, audit fees also included fees associated with the audit of supplementary financial and compliance information
required by the Department of Housing and Urban Development&rsquo;s (HUD) Uniform Financial Reporting Standards for HUD Housing
Programs and fees associated with a certification that is required as a result of the Company&rsquo;s participation in the U.S.
Treasury&rsquo;s Small Business Lending Fund. Audit-related fees for 2011 and 2012 consisted of audits of the financial statements
of two employee benefit plans sponsored by the Company. All services performed by Elliott Davis in 2012 were pre-approved by the
Audit Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Based on the reviews and discussions referred
to above, the Audit Committee recommended to the Board of Directors that the audited consolidated financial statements be included
in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 for filing with the Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Board of Directors has determined that
Ms. Thomasson is an &ldquo;audit committee financial expert&rdquo; within the meaning of SEC rules and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Board of Directors has adopted a written
charter for the Audit Committee, which is reviewed and reassessed for adequacy on an annual basis. The Audit Committee charter
is available on the Company&rsquo;s website at <FONT STYLE="color: windowtext">www.FirstBancorp.com</FONT> under the tab &ldquo;Investor
Relations-Governance Documents.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">RESPECTFULLY SUBMITTED
BY THE AUDIT COMMITTEE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">OF THE BOARD OF DIRECTORS:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48%; text-align: justify">Daniel T. Blue, Jr.</TD>
    <TD STYLE="width: 52%; text-align: justify">Thomas F. Phillips</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Jack D. Briggs</TD>
    <TD STYLE="text-align: justify">Frederick L. Taylor II</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">David L. Burns</TD>
    <TD STYLE="text-align: justify">Virginia C. Thomasson &ndash; Chairman</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Mary Clara Capel</TD>
    <TD STYLE="text-align: justify">John C. Willis</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">James C. Crawford, III</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times-Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>The affirmative vote of the holders of a
majority of shares of common stock represented and voting at the meeting (either in person or by proxy) is required for approval
of this proposal. The board of directors recommends that shareholders vote &ldquo;FOR&rdquo; this proposal. Unless indicated to
the contrary, proxies will be voted &ldquo;FOR&rdquo; this proposal.</B></P>


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    <!-- Field: /Page -->


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROPOSAL 3 &ndash; ADVISORY VOTE APPROVING
&ldquo;SAY ON PAY&rdquo; PROPOSAL</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Securities and Exchange Commission rules
adopted under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the &ldquo;Dodd-Frank Act&rdquo;) require the Company
to provide shareholders with the opportunity to vote to approve, on a non-binding, advisory basis, the compensation of our named
executives officers as disclosed in this proxy statement in accordance with the compensation disclosure rules of the Securities
and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">A description of the the compensation paid
to our named executive officers is included in the &ldquo;Compensation Discussion and Analysis&rdquo; section above and the tabular
disclosures regarding named executive officer compensation (together with the accompanying narrative disclosure) contained in this
proxy statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;We believe that our executive compensation
policies and procedures are strongly aligned with the long-term interests of our shareholders. We also believe that levels of compensation
received by our senior executive officers are fair, reasonable and within the ranges of compensation paid by comparable financial
institutions to similarly situated executives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;This proposal, commonly known as a &ldquo;Say
on Pay,&rdquo; gives you as a shareholder the opportunity to endorse or not endorse our executive compensation programs, policies
and procedures through the following resolution:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&ldquo;Resolved, that the shareholders approve
the overall executive compensation programs, policies and procedures employed by First Bancorp, as described in the &ldquo;Compensation
Discussion and Analysis&rdquo; section and the tabular disclosure regarding named executive officer compensation (together with
the accompanying narrative disclosure) contained in the proxy statement provided to the shareholders of First Bancorp on or about
April 2, 2013.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;Because your vote is advisory, it will
not be binding upon the Company. However, the Compensation Committee and Board may take into account the outcome of the vote when
considering future executive compensation arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><B>The board of directors recommends that shareholders
vote &ldquo;FOR&rdquo; this proposal. Unless indicated to the contrary, proxies will be voted &ldquo;FOR&rdquo; this proposal.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SHAREHOLDERS PROPOSALS FOR 2014 MEETING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">Shareholders may submit proposals appropriate
for shareholder action at the Company&rsquo;s 2014 annual meeting consistent with the regulations of the Securities and Exchange
Commission. For proposals to be considered for inclusion in the proxy statement for the 2014 annual meeting, they must be received
by the Company no later than December 4, 2013. Such proposals should be directed to First Bancorp, Attn. Anna G. Hollers, 341 North
Main Street, Troy, North Carolina 27371-0508.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The bylaws of the Company establish an advance
notice procedure for shareholder proposals to be brought before a meeting of shareholders of the Company. Subject to any other
applicable requirements, only such business may be conducted at a meeting of the shareholders as has been brought before the meeting
by, or at the direction of, the Board of Directors or by a shareholder who has given to the Secretary of the Company timely written
notice, in proper form, of the shareholder&rsquo;s intention to bring that business before the meeting. The presiding officer at
such meeting has the authority to make such determinations. To be timely, notice of other business to be brought before any meeting
must generally be received by the Secretary of the Company not less than 60 nor more than 90 days in advance of the shareholders&rsquo;
meeting. The notice of any shareholder proposal must set forth the various information required under the bylaws. The person submitting
the notice must provide, among other things, the name and address under which such shareholder appears on the Company's books and
the class and number of shares of the Company&rsquo;s capital stock that are beneficially owned by such shareholder. Any shareholder
desiring a copy of the Company&rsquo;s bylaws will be furnished one without charge upon written request to the Secretary of the
Company at the Company&rsquo;s address noted above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DELIVERY OF PROXY STATEMENTS AND </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NOTICE OF INTERNET AVAILABILITY OF PROXY
MATERIALS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">As permitted by the Securities Exchange Act
of 1934, as amended, only one copy of the proxy statement and annual report is being delivered to shareholders residing at the
same address, unless such shareholders have notified the Company of their desire to receive multiple copies of the proxy statement.
Additionally, some shareholders have consented to be excluded from the mailing of the proxy statement and annual report, and instead
only be notified of the internet web address where they can access the proxy statement and annual report electronically. The internet
address where these documents can be accessed is www.cfpproxy.com/3958.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The Company will promptly deliver, upon oral
or written request, a separate copy of the proxy statement and annual report to any shareholder residing at an address to which
only one copy was mailed or to shareholders who originally consented to only receive notice of internet availability. Requests
for additional copies and/or requests for multiple copies of the proxy statement and annual report in the future should be directed
to First Bancorp, Attn. Anna G. Hollers, 341 North Main Street, Troy, North Carolina 27371-0508, e-mailing Ms. Hollers at ahollers@firstbancorp.com,
or by calling 1-800-548-9377 and asking to speak to Anna Hollers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Shareholders residing at the same address and
currently receiving multiple copies of the proxy statement and annual report may contact the Company as noted above to request
that only a single copy of the proxy statement and annual report be mailed in the future. Shareholders who prefer not to receive
copies of the proxy statement and annual report, and instead to be notified of the internet address where the documents can be
accessed can make that request by visiting www.cfpproxy.com/3958 and following the instructions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0"><B>OTHER MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">As of the date of this proxy statement, the
Board of Directors does not know of any other business to be presented for consideration or action at the annual meeting. If other
matters properly come before the annual meeting, the enclosed proxy will be deemed to confer discretionary authority to the individuals
named as proxies therein to vote the shares represented by such proxy as to any such matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">By Order of the Board of Directors,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Anna G. Hollers</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Secretary</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">_______________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">April 2, 2013</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Directions to the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>James H. Garner Conference Center</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>211 Burnette Street, Troy, North Carolina
27371</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Location of the 2013 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>First Bancorp Annual Shareholders&rsquo;
Meeting</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Thursday, May 9, 2013 - 3:00 PM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><IMG SRC="image_001.gif" ALT="" STYLE="height: 421px; width: 623px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>First Bancorp</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>This Proxy is Solicited on Behalf of the
Board of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">The undersigned hereby appoints Richard H.
Moore and Anna G. Hollers, and each of them, attorneys and proxies with full power of substitution, to act and vote as designated
below the shares of common stock of First Bancorp held of record by the undersigned on March 20, 2013, at the annual meeting of
shareholders to be held on May 9, 2013, or any adjournment or adjournments thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>PROPOSAL to elect thirteen (13) nominees to the Board of Directors to serve until the 2014 Annual Meeting of Shareholders,
or until their successors are elected and qualified.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 0.25in; font-size: 10pt; text-align: justify"><FONT STYLE="font: 10pt Wingdings">o</FONT></TD>
    <TD NOWRAP STYLE="width: 2.5in; text-align: left; vertical-align: bottom">&nbsp;FOR the 13 nominees listed below</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font: 10pt Wingdings">o</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; vertical-align: bottom">WITHHOLD AUTHORITY</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;(except as marked to the contrary below).</FONT></TD>
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">to vote for the 13 nominees below.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"></TD><TD STYLE="text-align: justify"><B>(Instruction: To withhold authority to vote for any individual nominee, strike a line through
the nominee&rsquo;s name in the list below).</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; padding-right: 0; padding-left: 0.75in; text-align: justify"><FONT STYLE="font-size: 10pt">Daniel T. Blue, Jr.</FONT></TD>
    <TD STYLE="width: 30%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt">James G. Hudson, Jr.</FONT></TD>
    <TD STYLE="width: 30%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt">Frederick L. Taylor II</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0.75in; text-align: justify"><FONT STYLE="font-size: 10pt">Jack D. Briggs</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt">Richard H. Moore</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt">Virginia C. Thomasson</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0.75in; text-align: justify"><FONT STYLE="font-size: 10pt">David L. Burns</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt">George R. Perkins, Jr.</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt">Dennis A. Wicker</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0.75in; text-align: justify"><FONT STYLE="font-size: 10pt">Mary Clara Capel</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt">Thomas F. Phillips</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt">John C. Willis</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0.75in; text-align: justify"><FONT STYLE="font-size: 10pt">James C. Crawford, III</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>PROPOSAL to ratify the appointment of Elliott Davis, PLLC, as the independent auditors of the Company for 2013.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="width: 0.5in; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1in; font-size: 10pt; text-align: justify"><FONT STYLE="font: 10pt Wingdings">o</FONT>&nbsp;&nbsp;FOR</TD>
    <TD STYLE="width: 1in; font-size: 10pt; text-align: justify"><FONT STYLE="font: 10pt Wingdings">o</FONT>&nbsp;&nbsp;AGAINST</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font: 10pt Wingdings">o</FONT> ABSTAIN</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD><FONT STYLE="font-size: 10pt">PROPOSAL to consider and approve an advisory (non-binding) resolution on executive compensation,
also known as &ldquo;say on pay&rdquo; (as more fully described in the accompanying proxy statement).</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; font-size: 10pt">
    <TD STYLE="width: 0.5in; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1in; font-size: 10pt; text-align: justify"><FONT STYLE="font: 10pt Wingdings">o</FONT>&nbsp;&nbsp;FOR</TD>
    <TD STYLE="width: 1in; font-size: 10pt; text-align: justify"><FONT STYLE="font: 10pt Wingdings">o</FONT>&nbsp;&nbsp;AGAINST</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font: 10pt Wingdings">o</FONT> ABSTAIN</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in">4.</TD>
    <TD>In their discretion, the proxies are authorized to vote on any other business that may properly come before the meeting.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">5.</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Do you plan to attend the May 9, 2013 meeting? <FONT STYLE="font-family: Wingdings">o</FONT>YES&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">o</FONT>NO</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>This proxy when properly executed will be voted as directed herein.
If no direction is made, this proxy will be voted &ldquo;FOR&rdquo; all nominees in Proposal 1, &ldquo;FOR&rdquo; Proposal 2, and
&ldquo;FOR&rdquo; Proposal 3. If, at or before the time of the meeting, any of the nominees listed above has become unavailable
for any reason, the proxies have the discretion to vote for a substitute nominee or nominees.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 0.5in; text-align: justify">Dated</TD>
    <TD NOWRAP STYLE="width: 2in; border-bottom: windowtext 1pt solid; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 0.5in; text-align: right">, 2013</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="text-align: justify">Signature</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="text-align: justify">Signature (if jointly held)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(Please sign exactly as the name appears on this proxy. If signing
as attorney, administrator, executor, guardian, or trustee, please give title as such. If a corporation, please sign in full corporate
name by the President or other authorized officer. If a partnership, please sign in partnership name by authorized person.)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Please mark, sign, date and return promptly in the envelope provided.
If you attend the meeting, you may withdraw your proxy and vote in person. If you wish to vote by telephone or internet, please
read the instructions below.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">INSTRUCTIONS FOR VOTING YOUR PROXY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Shareholders of record have three alternative
ways of voting their proxies:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.25in">1.</TD>
    <TD STYLE="text-align: justify">By Mail (traditional method); or</TD></TR>
</TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.25in">2.</TD>
    <TD STYLE="text-align: justify">By Telephone (using a Touch-Tone Phone); or</TD></TR>
</TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.25in">3.</TD>
    <TD STYLE="text-align: justify">By Internet</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Your telephone or Internet vote authorizes the named proxies to
vote your shares in the same manner as if you marked, signed, dated and returned your proxy card. Please note all votes cast via
the telephone or Internet must be cast prior to 11:59 p.m., Eastern Daylight Time, on May 8, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: justify">Vote by Telephone</TD>
    <TD COLSPAN="2">Vote by Internet</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: justify">It&rsquo;s fast, convenient and immediate!</TD>
    <TD COLSPAN="2">It&rsquo;s fast, convenient, and your vote</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: justify">Call Toll-Free on a Touch-Tone Phone: 1-866-627-2896</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">immediately confirmed and posted.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 3in; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: justify">Follow these four easy steps:</TD>
    <TD COLSPAN="2">Follow these four easy steps:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>1.</TD>
    <TD>Read the accompanying Proxy Statement <BR> and Proxy Card</TD>
    <TD>1.</TD>
    <TD>Read the accompanying Proxy Statement <BR> and Proxy Card</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>2.</TD>
    <TD>Call the toll-free number:<BR> 1-866-627-2896</TD>
    <TD>2.</TD>
    <TD>Go to the website:<BR> https://www.rtcoproxy.com/fbnc</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3.</TD>
    <TD>Enter the 9 digit Control Number located <BR> on your Proxy Card below.</TD>
    <TD STYLE="padding-left: 12.6pt; text-indent: -12.6pt">3.</TD>
    <TD>Enter your 9 digit Control Number located on<BR> your Proxy Card below.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.</TD>
    <TD>Follow the recorded instructions</TD>
    <TD>4.</TD>
    <TD>Follow the instructions on the website.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">Your vote is important!<BR> Call 1-866-627-2896 anytime</TD>
    <TD COLSPAN="2">Your vote is important!<BR> Go to https://www.rtcoproxy.com/fbnc</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">It is not necessary to return your proxy
card if you are voting by telephone or internet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Please note that the last vote received, whether
by telephone, internet, or by mail, will be the vote counted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For Telephone/Internet Voting:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Control Number</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 2in; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 100%; padding-right: 0; padding-left: 0; border: Black 2pt double; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Control Number Provided Here</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-align: center">&nbsp;</P>



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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
