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<SEC-DOCUMENT>0000950152-08-007493.txt : 20080926
<SEC-HEADER>0000950152-08-007493.hdr.sgml : 20080926
<ACCEPTANCE-DATETIME>20080926150231
ACCESSION NUMBER:		0000950152-08-007493
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20080926
DATE AS OF CHANGE:		20080926

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FIRST COMMUNITY BANCSHARES INC /NV/
		CENTRAL INDEX KEY:			0000859070
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				550694814
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-153281
		FILM NUMBER:		081091018

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 989
		CITY:			BLUEFIELD
		STATE:			VA
		ZIP:			26406-0989
		BUSINESS PHONE:		3044879000

	MAIL ADDRESS:	
		STREET 1:		1001 MERCER STREET
		STREET 2:		P O BOX 5909
		CITY:			PRINCETON
		STATE:			WV
		ZIP:			24740

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FCFT INC
		DATE OF NAME CHANGE:	19930328
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>l32815de424b3.htm
<DESCRIPTION>FIRST COMMUNITY BANCSHARES, INC.  424B3
<TEXT>
<HTML>
<HEAD>
<TITLE>FIRST COMMUNITY BANCSHARES, INC.  424B3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Filed Pursuant to Rule 424(b)(3)
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Registration No. 333-153281
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CODDLE
    CREEK FINANCIAL CORP.<BR>
    <FONT style="font-size: 10pt">P.O.&#160;Box&#160;117<BR>
    347 North Main Street<BR>
    Mooresville, North Carolina 28115<BR>
    <FONT style="white-space: nowrap">(704)&#160;664-4888</FONT></FONT></FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">September&#160;25,
    2008
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dear Stockholders:
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You are cordially invited to attend a special meeting of
    stockholders of Coddle Creek Financial Corp. to be held at 11:00
    a.m., Eastern Daylight Saving Time, on October&#160;30, 2008 at
    Coddle Creek&#146;s corporate headquarters located at 347 North
    Main Street, Mooresville, North Carolina 28115. At the special
    meeting, you will be asked to consider and vote upon a proposal
    to approve an agreement and plan of merger pursuant to which
    Coddle Creek will be merged with and into First Community
    Bancshares, Inc.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the merger agreement is approved and the merger is
    subsequently completed, each outstanding share of Coddle Creek
    common stock will be converted into the right to receive:
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    $19.60 in cash;&#160;and
</TD>
</TR>


<TR style="line-height: 2pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    0.9046 of a share of common stock of First Community Bancshares,
    Inc., plus cash in lieu of any fractional share interest.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September&#160;22, 2008, there were 610,545&#160;shares of
    Coddle Creek common stock outstanding.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The First Community common stock is traded on the Nasdaq Global
    Select Market under the symbol &#147;FCBC.&#148; On
    September&#160;22, 2008, the closing sale price of a share of
    First Community common stock was $36.00.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger cannot be completed unless the holders of a majority
    of the outstanding shares of Coddle Creek common stock vote in
    favor of approval of the merger agreement at the special
    meeting. The directors and executive officers of Coddle Creek
    have agreed to vote their shares of Coddle Creek common stock in
    favor of the merger. The directors and executive officers of
    Coddle Creek collectively own approximately 22.5% of the
    outstanding shares of Coddle Creek.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on our reasons for the merger described in the
    accompanying proxy statement/prospectus, including the fairness
    opinion issued by our financial advisor, Howe Barnes
    Hoefer&#160;&#038; Arnett, Inc., our board of directors believes
    that the merger is fair to you and in your best interests.
    <B>Accordingly, our board of directors unanimously recommends
    that you vote &#147;FOR&#148; approval of the merger
    agreement.</B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying proxy statement/prospectus gives you detailed
    information about the special meeting, the merger and related
    matters. <B>We urge you to read this entire document carefully,
    including the considerations discussed under &#147;Risk
    Factors,&#148; beginning on page&#160;14, and the appendices to
    the accompanying document, which include the merger
    agreement.</B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Your vote is very important.</B>&#160;&#160;Whether or not
    you plan to attend the special meeting, please take the time to
    vote by completing and mailing the enclosed proxy card or by
    following the instructions to vote via the Internet or by
    telephone indicated on the proxy card.
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We appreciate your continuing loyalty and support, and we look
    forward to seeing you at the special meeting.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/ George W. Brawley, Jr.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    George W. Brawley, Jr.
</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    President and Chief Executive Officer
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of the First
    Community common stock to be issued in the merger or determined
    if this document is accurate or adequate. Any representation to
    the contrary is a criminal offense. The shares of First
    Community common stock are not savings accounts, deposits or
    other obligations of any bank or savings association and are not
    insured by the Federal Deposit Insurance Corporation or any
    other governmental agency.</B>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">This proxy
    statement/prospectus is dated September&#160;25, 2008 and was
    first mailed<BR>
    to stockholders of Coddle Creek on or about September&#160;26,
    2008
    </FONT>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CODDLE
    CREEK FINANCIAL CORP.<BR>
    <FONT style="font-size: 10pt">P.O.&#160;Box&#160;117<BR>
    347 North Main Street<BR>
    Mooresville, North Carolina 28115<BR>
    <FONT style="white-space: nowrap">(704)&#160;664-4888</FONT></FONT></FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">NOTICE OF SPECIAL MEETING OF
    STOCKHOLDERS</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">To Be Held on October&#160;30,
    2008</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the stockholders of Coddle Creek Financial Corp.:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will hold a special meeting of stockholders of Coddle Creek
    Financial Corp. at 11:00&#160;a.m., Eastern Daylight Saving
    Time, on October&#160;30, 2008, at Coddle Creek&#146;s corporate
    headquarters located at 347 North Main Street, Mooresville,
    North Carolina 28115, for the following purposes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="6%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1.&#160;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to consider and vote upon a proposal to approve an Agreement and
    Plan of Merger, dated as of July&#160;31, 2008, among First
    Community Bancshares, Inc. and Coddle Creek, as described in the
    accompanying proxy statement/prospectus;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2.&#160;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to consider and vote upon a proposal to adjourn the special
    meeting to a later date or dates, if necessary, to permit
    further solicitation of proxies if there are not sufficient
    votes at the time of the special meeting to approve the merger
    agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have fixed the close of business on September&#160;24, 2008
    as the record date for the determination of stockholders
    entitled to notice of and to vote at the special meeting. Only
    holders of Coddle Creek common stock of record at the close of
    business on that date will be entitled to notice of and to vote
    at the special meeting or any adjournment or postponement of the
    special meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Our board of directors has determined that the merger
    agreement is in the best interests of Coddle Creek and its
    stockholders and unanimously recommends that stockholders vote
    &#147;FOR&#148; approval of the merger agreement.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of Coddle Creek common stock have the right to dissent
    from the merger and assert dissenters&#146; rights, provided the
    proper procedures in accordance with Article&#160;13 of the
    North Carolina Business Corporation Act are followed. A copy of
    Article&#160;13 of the North Carolina Business Corporation Act
    is attached as Appendix&#160;C to the accompanying proxy
    statement/prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Your vote is very important.</B>&#160;&#160;Whether or not
    you plan to attend the special meeting, please take the time to
    vote by completing and mailing the enclosed proxy card or by
    following the instructions to vote via the Internet or by
    telephone indicated on the proxy card.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By Order of the Board of Directors
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/ Billy R. Williams
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Billy R. Williams
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Corporate Secretary
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mooresville, North Carolina
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    September&#160;25, 2008
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">HOW TO
    OBTAIN ADDITIONAL INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This proxy statement/prospectus incorporates by reference
    important business and financial information about First
    Community Bancshares, Inc. from documents that are not included
    in or delivered with this proxy statement/prospectus. You can
    obtain documents incorporated in this proxy statement/prospectus
    by reference but not otherwise accompanying this proxy
    statement/prospectus by requesting them in writing or by
    telephone from First Community as follows:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">First
    Community Bancshares, Inc.<BR>
    P.O.&#160;Box&#160;989<BR>
    Bluefield, Virginia
    <FONT style="white-space: nowrap">24605-0989</FONT><BR>
    Attention: Robert L. Schumacher, General Counsel<BR>
    <FONT style="white-space: nowrap">(276)&#160;326-9000</FONT>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You will not be charged for any of these documents that you
    request. If you would like to request documents, please do so no
    later than five business days prior to the date of the special
    meeting, or by October&#160;23, 2008 in order to receive them
    before the special meeting.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For additional information regarding where you can find
    information about First Community, please see &#147;Where You
    Can Find More Information&#148; beginning on page&#160;68.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    i
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
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    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>HOW TO OBTAIN ADDITIONAL INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    i
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING
    AND MERGER</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>SUMMARY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>SELECTED HISTORICAL FINANCIAL DATA</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>RISK FACTORS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING
    STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>GENERAL INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>THE SPECIAL MEETING</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#109'>Time, Date and Place</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#110'>Matters to be Considered</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#111'>Shares Outstanding and Entitled to Vote; Record
    Date</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#112'>How to Vote Your Shares</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#178'>Participants in the ESOP</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#113'>Votes Required</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#114'>Solicitation of Proxies</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#115'>Recommendation of the Coddle Creek Board of
    Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>THE MERGER (PROPOSAL&#160;ONE)</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#117'>General</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#118'>Background of the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#119'>Coddle Creek&#146;s Reasons for the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#120'>First Community&#146;s Reasons for the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#121'>Opinion of Coddle Creek&#146;s Financial
    Advisor</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#122'>Merger Consideration</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#123'>Procedures for Exchanging Coddle Creek Common
    Stock Certificates</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#124'>Payment and Termination of Coddle Creek Stock
    Options</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#125'>Conditions to the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#126'>Regulatory Approvals</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#127'>Business Pending the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#128'>Board of Directors&#146; Covenant to Recommend
    the Merger Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#129'>No Solicitation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#130'>Representations and Warranties of the Parties</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#131'>Effective Time of the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#132'>Waiver and Amendment of the Merger Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#133'>Termination of the Merger Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#134'>Termination Fee</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#135'>Interests of Certain Persons in the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#136'>Certain Employee Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#137'>Resale of First Community Common Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#138'>Federal Income Tax Consequences</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#139'>Accounting Treatment of the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#140'>Expenses of the Merger</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#141'>Listing of the First Community Common Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#142'>Shareholder Agreements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#143'>Dissenters&#146; Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#144'>MARKET FOR COMMON STOCK AND DIVIDENDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#145'>INFORMATION ABOUT FIRST COMMUNITY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#146'>General</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#147'>Management and Additional Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#148'>INFORMATION ABOUT CODDLE CREEK</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#149'>CERTAIN BENEFICIAL OWNERSHIP OF CODDLE CREEK
    COMMON STOCK</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#150'>DESCRIPTION OF FIRST COMMUNITY CAPITAL STOCK</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#151'>First Community Common Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#152'>First Community Preferred Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#153'>Transfer Agent</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#154'>COMPARISON OF THE RIGHTS OF STOCKHOLDERS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#155'>Authorized Capital Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#156'>Issuance of Capital Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#157'>Voting Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#158'>Number and Election of Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#159'>Removal of Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#160'>Vacancies of Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#161'>Indemnification and Limitation of Liability</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#162'>Amendments to Articles of Incorporation and
    Bylaws</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#163'>Notice of Stockholder Meetings</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#164'>Special Meetings of Stockholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#165'>Stockholder Nominations and Stockholder
    Proposals</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#166'>Control Share Acquisition Provisions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#167'>Combinations with Interested Stockholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#168'>Transactions with Interested Persons</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#169'>Stockholders&#146; Right of Dissent and
    Appraisal</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#170'>ADJOURNMENT OF THE SPECIAL MEETING
    (PROPOSAL&#160;TWO)</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#171'>LEGAL OPINION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#172'>EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#173'>PROPOSALS&#160;FOR THE 2009 ANNUAL MEETING</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#174'>WHERE YOU CAN FIND MORE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -66pt; margin-left: 66pt">
    <A HREF='#175'>APPENDIX&#160;A&#160;&#160;Agreement and Plan of
    Merger, dated as of July&#160;31, 2008, among First Community
    Bancshares, Inc. and Coddle Creek Financial Corp.&#160;</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#176'>APPENDIX&#160;B&#160;&#160;Opinion of Howe Barnes
    Hoefer&#160;&#038; Arnett, Inc.&#160;</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    B-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#177'>APPENDIX&#160;C&#160;&#160;Article&#160;13 of the
    North Carolina Business Corporation Act</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    C-1
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 14%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">QUESTIONS
    AND ANSWERS<BR>
    ABOUT THE SPECIAL MEETING AND MERGER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What is the proxy statement/prospectus and why am I receiving
    it?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A. </TD>
    <TD></TD>
    <TD valign="bottom">
    This proxy statement/prospectus describes the proposed merger
    between Coddle Creek Financial Corp. and First Community
    Bancshares, Inc. Because you are a stockholder of Coddle Creek,
    you are being asked to vote on the merger agreement at a special
    meeting of stockholders to be held on October&#160;30, 2008.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q. </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>When and where is the special meeting?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A. </TD>
    <TD></TD>
    <TD valign="bottom">
    The Coddle Creek special meeting of stockholders will be held at
    Coddle Creek&#146;s corporate headquarters located at 347 North
    Main Street, Mooresville, North Carolina 28115, on
    October&#160;30, 2008 at 11:00&#160;a.m., Eastern Daylight
    Saving Time.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What do I need to do now?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    After you have carefully read this proxy statement/prospectus,
    indicate on your proxy card how you want your shares to be
    voted. Then sign, date and mail your proxy card in the enclosed
    prepaid return envelope as soon as possible. Alternatively, you
    may vote by following the Internet and telephone voting
    instructions indicated on the proxy card. This will enable your
    shares to be represented and voted at the special meeting.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Why is my vote important?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The merger agreement must be approved by the holders of a
    majority of the outstanding shares of Coddle Creek common stock.
    If you do not vote, it will have the same effect as a vote
    against the merger agreement.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>If my shares are held in street name by my broker, will my
    broker automatically vote my shares for me?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    No.&#160;Your broker or other nominee will not be able to vote
    shares held by it in street name on your behalf without
    instructions from you. You should instruct your broker or other
    nominee to vote your shares, following the directions your
    broker or other nominee provides.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What if I fail to instruct my broker?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    If you fail to instruct your broker or other nominee to vote
    your shares, it will have the same effect as a vote against the
    merger agreement.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Can I attend the meeting and vote my shares in person?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Yes. All stockholders are invited to attend the special meeting.
    However, if you hold your shares in street name, you will need
    proof of ownership (by means of a recent brokerage statement,
    letter from a broker, or other nominee) to be admitted to the
    meeting. Stockholders of record can vote in person at the
    special meeting. If your shares are held in street name, then
    you should instruct your broker on how to vote your shares,
    following the directions your broker provides.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Can I change my vote?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    Yes. There are three ways you can change your vote after you
    have sent in your proxy card:</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;you may send a written notice to the Corporate
    Secretary of Coddle Creek stating that you would like to revoke
    your proxy before the special meeting;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;you may complete and submit a new proxy card, and
    any earlier proxy will be revoked automatically or, if you
    submitted your proxy via the Internet or by telephone, you can
    change your vote by submitting a proxy at a later date, in which
    case your later-submitted proxy will be recorded and your
    earlier proxy revoked; or</DIV>
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;you may attend the special meeting and vote in
    person, and any earlier proxy will be revoked. However, simply
    attending the special meeting without voting will not revoke
    your proxy.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    If you have instructed a broker or other nominee to vote your
    shares, you must follow directions you receive from your broker
    or other nominee to change your vote.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Should I send in my stock certificates now?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    No.&#160;You should not send in your stock certificates at this
    time. Instructions for surrendering your Coddle Creek common
    stock certificates in exchange for the merger consideration will
    be sent to you after we complete the merger.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Where will my shares of First Community common stock be
    listed?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to apply to have the shares of First Community common
    stock to be issued in the merger approved for quotation on the
    Nasdaq Global Select Market. First Community&#146;s common stock
    currently trades on the Nasdaq Global Select Market under the
    symbol &#147;FCBC.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>May I resell my stock acquired in the merger?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The First Community common stock issued pursuant to the merger
    will be freely transferable under the Securities Act of 1933, as
    amended, which is referred to in this proxy statement/prospectus
    as the Securities Act, except for shares issued to any Coddle
    Creek stockholder who may be deemed to be an affiliate of First
    Community for purposes of Rule&#160;144 promulgated under the
    Securities Act.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>When do you expect to complete the merger?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    We expect to complete the merger in the fourth quarter of 2008.
    However, we cannot assure you when or if the merger will occur.
    Coddle Creek stockholders must first approve the merger
    agreement at the special meeting and the necessary regulatory
    approvals must be obtained.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Whom should I call with questions?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    You should contact Billy R. Williams, Corporate Secretary of
    Coddle Creek, at
    <FONT style="white-space: nowrap">(704)&#160;664-4888.</FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What will I receive in the merger?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    If the merger agreement is approved by the stockholders of
    Coddle Creek and the merger is subsequently completed, each
    outstanding share of Coddle Creek common stock will be converted
    into the right to receive the following:</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;$19.60 in cash; and</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#149;&#160;0.9046 of a share of common stock of First
    Community, plus cash in lieu of any fractional share interest.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>How Does the Coddle Creek Board Of Directors recommend that I
    vote?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The Coddle Creek board of directors has unanimously approved and
    adopted the merger agreement and recommends that Coddle Creek
    stockholders vote FOR approval of the merger.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Q: </B></TD>
    <TD></TD>
    <TD valign="bottom">
    <B>What happens if I transfer my Coddle Creek shares after the
    Record Date for the Special Meeting?</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    A: </TD>
    <TD></TD>
    <TD valign="bottom">
    The record date for the special meeting is earlier than the
    expected date of completion of the merger. Therefore, if you
    transfer your shares of Coddle Creek after the record date for
    the special meeting, but prior to the merger, you will retain
    the right to vote at the special meeting, but the right to
    receive the merger consideration will transfer with the shares
    of Coddle Creek common stock.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This summary highlights selected information from this proxy
    statement/prospectus and may not contain all of the information
    that is important to you. To understand the merger fully and for
    a more complete description of the legal terms of the merger,
    you should read carefully this entire document, including the
    merger agreement and the other documents to which we have
    referred you. See &#147;Where You Can Find More
    Information&#148; beginning on page&#160;68. Page references are
    included in this summary to direct you to a more complete
    description of the topics.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Throughout this proxy statement/prospectus, &#147;Coddle
    Creek,&#148; &#147;we&#148; and &#147;our&#148; refers to Coddle
    Creek Financial Corp., &#147;Mooresville Savings Bank&#148;
    refers to Mooresville Savings Bank, Inc., SSB, Coddle
    Creek&#146;s banking subsidiary, &#147;First Community&#148;
    refers to First Community Bancshares, Inc. and &#147;First
    Community Bank&#148; refers to First Community Bank, National
    Association, First Community&#146;s banking subsidiary. Also, we
    refer to the merger between First Community and Coddle Creek as
    the &#147;merger,&#148; the subsidiary merger between First
    Community Bank and Mooresville Savings Bank as the
    &#147;subsidiary merger&#148; and the agreement and plan of
    merger, dated as of July&#160;31, 2008, among Coddle Creek and
    First Community as the &#147;merger agreement.&#148;</I>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Parties
    to the Proposed Merger (Page&#160;20)</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community Bancshares, Inc.</I>&#160;&#160;First
    Community is a financial holding company incorporated under the
    laws of the State of Nevada and serves as the holding company
    for First Community Bank, a national banking association that
    conducts commercial banking operations within the states of
    Virginia, West Virginia, North Carolina and Tennessee. In
    addition, First Community maintains a loan production office in
    South Carolina. First Community also owns Greenpoint Insurance
    Group, Inc., a full-service insurance agency, and Investment
    Planning Consultants, an investment advisory firm. First
    Community conducts its banking operations through 58 locations
    and four wealth management offices. First Community had total
    consolidated assets of approximately $2.1&#160;billion, total
    deposits of approximately $1.34&#160;billion and total
    consolidated stockholders&#146; equity of approximately
    $200&#160;million at June&#160;30, 2008. First Community&#146;s
    principal executive offices are located at One Community Place,
    Bluefield, Virginia 24605 and its telephone number is
    <FONT style="white-space: nowrap">(276)&#160;326-9000.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek Financial Corp.</I>&#160;&#160;Coddle Creek is a
    bank holding company incorporated in the State of North Carolina
    and serves as the holding company for Mooresville Savings Bank,
    a North Carolina-chartered savings bank. Coddle Creek, which is
    headquartered in Mooresville, North Carolina, operates three
    banking offices and had total consolidated assets of
    approximately $158.6&#160;million, total deposits of
    approximately $136.6&#160;million and total consolidated
    stockholders&#146; equity of approximately $19.1&#160;million as
    of June&#160;30, 2008. Coddle Creek&#146;s corporate office is
    located at 347 North Main Street, P.O.&#160;Box&#160;117,
    Mooresville, North Carolina 28115, and its telephone number is
    <FONT style="white-space: nowrap">(704)&#160;664-4888.</FONT>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Merger (Page&#160;20)</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have attached the merger agreement to this proxy
    statement/prospectus as Appendix&#160;A. Please read the entire
    merger agreement. It is the legal document that governs the
    merger. We propose a merger whereby Coddle Creek will merge with
    and into First Community. Immediately following the merger, the
    subsidiary merger is expected to be completed with Mooresville
    Savings Bank merging with and into First Community Bank, with
    First Community Bank as the surviving entity. Subject to
    approval by Coddle Creek stockholders and the receipt of all
    required regulatory approvals, we expect to complete the merger
    and the subsidiary merger in the fourth quarter of 2008.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coddle
    Creek Stockholders will receive Cash and Whole Shares of First
    Community Common Stock for each Share of Coddle Creek Common
    Stock Exchanged Pursuant to the Merger (Page&#160;34)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the merger of Coddle Creek with and into First Community is
    completed, each outstanding share of Coddle Creek common stock
    (other than shares held by dissenting stockholders) will be
    converted into the right to receive:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    $19.60 in cash, which is referred to as the &#147;per share cash
    consideration;&#148;&#160;and
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    0.9046 of a share of First Community common stock, which is
    referred to as the &#147;exchange ratio,&#148; plus cash in lieu
    of any fractional share interest.
</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exchange ratio is subject to possible adjustment under
    certain circumstances described in &#147;The Merger-Termination
    of the Merger Agreement&#148; beginning on page&#160;44.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Comparative
    Per Share Market Price Information (Pages&#160;56 and
    57)</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares of First Community common stock currently trade on the
    Nasdaq Global Select Market under the symbol &#147;FCBC.&#148;
    Shares of Coddle Creek common stock are quoted on the Pink
    Sheets under the symbol &#147;CDLX.PK.&#148; The following table
    sets forth the closing sale prices of First Community common
    stock as reported on the Nasdaq Global Select Market and the bid
    prices of Coddle Creek common stock as quoted on the Pink Sheets
    on July&#160;31, 2008, the last
    <FONT style="white-space: nowrap">trading-day</FONT>
    before we announced the merger, and on September&#160;22, 2008,
    the last practicable
    <FONT style="white-space: nowrap">trading-day</FONT>
    before the distribution of this proxy statement/prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table also includes the equivalent market value
    per share of Coddle Creek common stock on July&#160;31, 2008 and
    September&#160;22, 2008, which reflects the sum of (a)&#160;the
    product of the exchange ratio of 0.9046 multiplied by the last
    quoted bid price of First Community common stock on the dates
    indicated, plus (b)&#160;the per share cash consideration of
    $19.60.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Equivalent Market<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>First Community<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Coddle Creek<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value per Share of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Coddle Creek</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    At July&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    52.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    At September&#160;22, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    52.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The stock portion of the merger consideration to be received for
    each share of Coddle Creek common stock will be based on the
    most recent closing price of First Community&#146;s common stock
    prior to the consummation of the merger. Because the stock
    portion of the merger consideration to be paid to stockholders
    of Coddle Creek is based on a fixed number of shares of First
    Community common stock and because the market value of the
    shares of First Community common stock to be received by Coddle
    Creek stockholders will change, stockholders of Coddle Creek are
    not assured of receiving a specific market value of First
    Community common stock, and thus a specific market value for
    their shares of Coddle Creek common stock, at the effective time
    of the merger. First Community cannot assure you that its common
    stock will continue to trade at or above the prices shown above.
    You should obtain current stock price quotations for the First
    Community common stock from a newspaper, via the Internet or by
    calling your broker. See &#147;The Merger&#160;&#151; Merger
    Consideration&#148; beginning on page&#160;34.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dividend
    Information (Pages&#160;56 and 57)</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community currently pays a quarterly cash dividend to its
    stockholders. During the quarter ending June&#160;30, 2008,
    First Community paid a cash dividend of $0.28 per share of First
    Community common stock. First Community intends to continue to
    pay a quarterly cash dividend to its stockholders. However, the
    payment of dividends by First Community on its common stock in
    the future, either before or after the merger is completed, is
    subject to the determination of its board of directors and
    depends on its cash requirements, financial condition and
    earnings, legal and regulatory considerations and other factors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the quarter ending June&#160;30, 2008, Coddle Creek paid
    a cash dividend of $0.50 per share of Coddle Creek common stock.
    In July 2008, Coddle Creek declared a cash dividend of $0.25 per
    share of Coddle Creek common stock, which was paid to its
    stockholders on August&#160;19, 2008. Pursuant to the merger
    agreement, Coddle Creek cannot pay future cash dividends without
    the prior approval of First Community.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Federal
    Income Tax Consequences of the Merger (Page&#160;50)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the effective time of the merger, First Community and Coddle
    Creek will receive an opinion of counsel to the effect that,
    based on certain facts, representations and assumptions, the
    merger will be treated as a &#147;tax-free reorganization&#148;
    for federal income tax purposes. Coddle Creek stockholders
    generally will not recognize any gain or a loss on the
    conversion of shares of Coddle Creek common stock into shares of
    First Community common stock. However, Coddle Creek stockholders
    will be taxed on the cash portion of the merger consideration
    received for their shares of Coddle Creek common stock. The
    parties&#146; obligation to complete the merger is conditioned
    on their receipt of the opinion regarding the federal income tax
    treatment of the merger.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Tax matters are complicated, and the tax consequences of the
    merger to you will depend upon the facts of your particular
    situation. In addition, you may be subject to state, local or
    foreign tax laws that are not discussed herein. Accordingly, we
    strongly urge you to consult your own tax advisor for a full
    understanding of the tax consequences to you of the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coddle
    Creek&#146;s Financial Advisor Believes that the Merger
    Consideration is Fair to Coddle Creek Stockholders
    (Page&#160;24)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Among other factors considered in deciding to approve the
    merger, the Coddle Creek board of directors received the opinion
    of its financial advisor, Howe Barnes Hoefer&#160;&#038; Arnett,
    Inc., which we refer to in this proxy statement/prospectus as
    Howe Barnes, that, as of July&#160;22, 2008 (the date on which
    the Coddle Creek board of directors approved the merger
    agreement), the merger consideration was fair to the holders of
    Coddle Creek common stock from a financial point of view. The
    opinion dated as of July&#160;22, 2008 is attached to this proxy
    statement/prospectus as Appendix&#160;B. You should read this
    opinion completely to understand the assumptions made, matters
    considered and limitations of the review undertaken by Howe
    Barnes in providing its opinion. Howe Barnes&#146; opinion is
    directed to the Coddle Creek board of directors and does not
    constitute a recommendation to any stockholder as to any matters
    relating to the merger. Coddle Creek has agreed to pay Howe
    Barnes a percentage of the total consideration received by
    Coddle Creek and its stockholders for Howe Barnes&#146;
    financial advisory services rendered in connection with the
    merger. Howe Barnes has received $100,000 as of the date of this
    proxy statement/prospectus, with the remainder of its fee
    payable at closing of the merger as a success fee. Coddle
    Creek&#146;s board was aware of this fee structure and took it
    into account in considering Howe Barnes&#146; fairness opinion
    and in approving the merger. In addition, Coddle Creek has
    agreed to reimburse Howe Barnes for its reasonable expenses
    incurred by it on Coddle Creek&#146;s behalf, and to indemnify
    Howe Barnes against liabilities arising out of the merger,
    including the rendering of Howe Barnes&#146; fairness opinion.
    During the two years preceding the date of the opinion, Howe
    Barnes has not had a material relationship with Coddle Creek or
    First Community where compensation was received or that it
    contemplates will be received after closing of the transaction.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our Board
    of Directors Recommends Approval of the Merger
    (Page&#160;20)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on Coddle Creek&#146;s reasons for the merger described
    herein, including the fairness opinion of Howe Barnes, the
    Coddle Creek board of directors believes that the merger is fair
    to you and in your best interests and unanimously recommends
    that you vote &#147;FOR&#148; approval of the merger agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Date,
    Time and Location of the Special Meeting
    (Page&#160;18)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The special meeting will be held at 11:00&#160;a.m., Eastern
    Daylight Saving Time, on Thursday, October&#160;30, 2008, at
    Coddle Creek&#146;s corporate headquarters located at 347 North
    Main Street, Mooresville, North Carolina 28115. At the special
    meeting, Coddle Creek stockholders will be asked to approve the
    merger agreement and to approve a proposal to adjourn the
    special meeting if necessary to permit further solicitation of
    proxies if there are not sufficient votes at the time of the
    special meeting to approve the merger agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Record
    Date and Voting Rights for the Special Meeting
    (Page&#160;18)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You are entitled to vote at the special meeting if you owned
    shares of Coddle Creek common stock as of the close of business
    on September&#160;24, 2008. You will have one vote at the
    special meeting for each share of Coddle Creek common stock that
    you owned on that date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders of record may vote by mail, telephone, via the
    Internet or by attending the special meeting and voting in
    person. Each proxy returned to Coddle Creek (and not revoked) by
    a holder of Coddle Creek common stock will be voted in
    accordance with the instructions indicated thereon. If no
    instructions are indicated, the proxy will be voted
    &#147;FOR&#148; approval of the merger agreement and
    &#147;FOR&#148; the proposal to adjourn the special meeting if
    necessary to permit further solicitation of proxies on the
    proposal to approve the merger agreement.
</DIV>
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    <BR>
    5
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Approval
    of the Merger Agreement Requires a Majority Vote by Coddle Creek
    Stockholders (Page&#160;19)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The affirmative vote of the holders of a majority of the
    outstanding shares of Coddle Creek common stock is necessary to
    approve the merger agreement on behalf of Coddle Creek.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Management
    of Coddle Creek Owns Shares Which May Be Voted at the Special
    Meeting (Pages&#160;19 and 53)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the directors and executive officers of Coddle Creek,
    who collectively own approximately 22.5% of the outstanding
    shares of Coddle Creek common stock as of the record date for
    the special meeting, has entered into a shareholder agreement
    with First Community pursuant to which each of them has agreed
    to vote all of their shares in favor of the merger agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">First
    Community and Coddle Creek Must Meet Several Conditions to
    Complete the Merger (Page&#160;35)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Completion of the merger depends on meeting a number of
    conditions, including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    stockholders of Coddle Creek must approve the merger agreement;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community and Coddle Creek must receive all required
    regulatory approvals for the merger and the subsidiary merger,
    and any waiting periods required by law must have passed;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there must be no law, injunction or order enacted or issued
    preventing completion of the merger;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the First Community common stock to be issued in the merger must
    have been approved for trading on the Nasdaq Global Select
    Market (or on any securities exchange on which the First
    Community common stock may then be listed);
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community and Coddle Creek must receive a legal opinion
    confirming the tax-free nature of the merger;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the representations and warranties of each of First Community
    and Coddle Creek in the merger agreement must be accurate,
    subject to exceptions that would not have a material adverse
    effect on First Community or Coddle Creek, respectively;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community and Coddle Creek must have complied in all
    material respects with their respective obligations in the
    merger agreement;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Mooresville Savings Bank must have entered into a new employment
    agreement with Dale W. Brawley;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community and Mooresville Savings Bank must have entered
    into settlement agreements with certain executive officers of
    Coddle Creek;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community and certain executive officers and non-employee
    directors of Coddle Creek must have entered into consulting
    agreements;&#160;and
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    dissenting shares shall not represent 10% or more of the
    outstanding Coddle Creek common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless prohibited by law, either First Community or Coddle Creek
    could elect to waive a condition that has not been satisfied and
    complete the merger anyway. The parties cannot be certain
    whether or when any of the conditions to the merger will be
    satisfied, or waived where permissible, or that the merger will
    be completed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">First
    Community and Coddle Creek Must Obtain Regulatory Approvals to
    Complete the Merger (Page&#160;37)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To complete the merger, the parties need the prior approval of
    or waiver from the Federal Reserve Board, which is referred to
    in this proxy statement/prospectus as the FRB, the Office of the
    Comptroller of the Currency, which is referred to as the OCC,
    the North Carolina Commissioner of Banks, which is referred to
    as the NC Commissioner, and the Bureau of Financial Institutions
    of the Virginia State Corporation Commission, which is referred
    to as the VA Bureau of Financial Institutions. The
    U.S.&#160;Department of Justice is able to provide input into
    the approval process of federal banking agencies and will have
    between 15 and 30&#160;days following any approval of a federal
    banking agency to challenge the approval on antitrust grounds.
    First Community, First Community Bank, Coddle Creek and
    Mooresville Savings Bank have filed all necessary applications
    with the applicable regulatory agencies. First Community and
    Coddle Creek cannot predict,
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    however, whether the required regulatory approvals will be
    obtained or whether any such approvals will have conditions
    which would be detrimental to First Community following
    completion of the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">First
    Community and Coddle Creek may Terminate the Merger Agreement
    (Page&#160;44)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community and Coddle Creek can mutually agree at any time
    to terminate the merger agreement before completing the merger,
    even if stockholders of Coddle Creek have already voted to
    approve&#160;it.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Either company also can terminate the merger agreement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if any required regulatory approvals for consummation of the
    merger are not obtained;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the merger is not completed by February&#160;27, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the stockholders of Coddle Creek do not approve the merger
    agreement;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the other company breaches any of its representations,
    warranties or obligations under the merger agreement in a manner
    which would be reasonably expected to have a material adverse
    effect on it and the breach cannot be or has not been cured
    within 30&#160;days of notice of the breach.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, First Community may terminate the merger agreement
    at any time prior to the special meeting if the board of
    directors of Coddle Creek withdraws or modifies its
    recommendation to the Coddle Creek stockholders that the merger
    agreement be approved in any way which is adverse to First
    Community, or breaches its covenants requiring the calling and
    holding of a meeting of stockholders to consider the merger
    agreement and prohibiting the solicitation of other offers.
    First Community also may terminate the merger agreement if a
    third party commences a tender offer or exchange offer for 15%
    or more of the outstanding Coddle Creek common stock and the
    board of directors of Coddle Creek recommends that Coddle Creek
    stockholders tender their shares in the offer or otherwise fails
    to recommend that they reject the offer within a specified
    period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek may terminate the merger agreement at any time
    during the
    <FONT style="white-space: nowrap">two-day</FONT>
    period following the fifth calendar day immediately prior to the
    effective time of the merger if the average closing price of
    First Community&#146;s common stock is less than $22.75;
    provided, however, First Community may elect to increase the
    exchange ratio to a number equal to a quotient, the numerator of
    which is the product of the $22.75 and the exchange ratio then
    in effect and the denominator of which is First Community&#146;s
    average closing price, in which case the merger agreement will
    not be terminated. First Community is not required, however, to
    increase the exchange ratio, and it is possible under these
    circumstances that the Coddle Creek board of directors could
    conclude that proceeding with the merger at the lower price,
    rather than exercising Coddle Creek&#146;s right to terminate
    the merger agreement, would still be in the best interests of
    Coddle Creek and its stockholders. First Community&#146;s
    &#147;average closing price&#148; will be the average of the
    closing sales price per share of First Community common stock on
    the Nasdaq Global Select Market for the 20 consecutive trading
    days immediately preceding the fifth day immediately prior to
    the effective time of the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">First
    Community and Coddle Creek may Amend and Extend the Merger
    Agreement (Page&#160;44)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The parties may amend the merger agreement at any time before
    the merger actually takes place, and may agree to extend the
    time within which any action required by the merger agreement is
    to take place. The merger agreement may not, however, be amended
    after the special meeting without the approval of the
    stockholders of Coddle Creek if such amendment would require the
    approval of the Coddle Creek stockholders under applicable law.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coddle
    Creek&#146;s Directors and Executive Officers Have Some
    Interests in the Merger that Are in Addition to or Different
    Than Your Interests (Page&#160;46)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek&#146;s directors and executive officers have
    interests in the merger as individuals which are in addition to,
    or different from, their interests as stockholders of Coddle
    Creek. These interests include, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each of George W. Brawley,&#160;Jr., Dale W. Brawley, and Billy
    R. Williams currently is a party to an employment agreement with
    Mooresville Savings Bank. Each of these employment agreements
    provides that upon a change of control of Mooresville Savings
    Bank, the officer&#146;s base salary will be increased to
    include the average of the two previous years&#146;
    discretionary bonuses, if any, and such adjusted base salary
    shall be increased annually thereafter by not less than 6% for
    the remainder of the term, which is automatically extended for
    three years. In lieu of receiving any benefits under their
    respective employment agreements, each of Messrs.&#160;G.
    Brawley, D. Brawley and Williams entered into a settlement
    agreement with First Community and Mooresville Savings Bank
    which provides that the current employment agreement between the
    officer and Mooresville Savings Bank will be terminated at the
    effective time of the merger and the officer will be entitled to
    receive a lump-sum payment in settlement of any benefits due to
    the executive as a result of the merger under his currently
    existing employment agreement. Pursuant to the terms of their
    respective settlement agreements, George Brawley will be
    entitled to receive $834,352, Dale Brawley will be entitled to
    receive $469,223, and Billy Williams will be entitled to receive
    $332,387;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    as contemplated by the terms of the merger agreement,
    Mooresville Savings Bank intends to enter into a new employment
    agreement with Dale W. Brawley pursuant to which
    Mr.&#160;Brawley will continue as an employee of Mooresville
    Savings Bank (or First Community Bank following the merger) and
    will be entitled to receive an annual salary of $75,000 and the
    use of an automobile during the term of the agreement. In
    addition, at the closing of the merger, Mr.&#160;Brawley will
    receive a payment of $100,000 in consideration for the two-year
    non-compete and non-solicitation restrictions set forth in his
    new employment agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    as contemplated by the terms of the merger agreement, First
    Community Bank intends to enter into consulting agreements with
    George W. Brawley,&#160;Jr., Billy R. Williams and each
    non-employee director of Coddle Creek and Mooresville Savings
    Bank. Pursuant to the terms of Mr.&#160;Brawley&#146;s
    consulting agreement, he will be entitled to receive a one-time
    payment of $50,000 plus $6,000 for the relocation of the
    Mooresville Insurance Agency and the use of an automobile during
    the term of the consulting agreement. Pursuant to the terms of
    Mr.&#160;Williams&#146; consulting agreement, he will be
    entitled to receive monthly payments equal to approximately
    $90,000 in the aggregate over the two-year term of his
    consulting agreement. In addition, First Community Bank will pay
    for the medical insurance premiums for Mr.&#160;Williams and his
    spouse for a period of three years and provide the use of an
    automobile during the term of the agreement. The non-employee
    directors will be entitled to receive $500 per month (or $6,000
    in the aggregate) during the one-year term of their consulting
    agreements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    under certain deferred compensation plans maintained by Coddle
    Creek, if a Coddle Creek executive officer or director who
    participates in the deferred compensation plan is terminated
    within 24&#160;months following the merger, the starting date
    for payments due to the executive officer or director under the
    plan will be accelerated to begin on the date of termination
    rather than the date of retirement, which currently is
    age&#160;65. The amounts payable to the executive officers and
    directors under the plans will not change;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the cash payment to the Coddle Creek executive officers and
    directors holding outstanding, vested and unexercised stock
    options to acquire shares of Coddle Creek common stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community&#146;s agreement to honor indemnification
    obligations of Coddle Creek for a period of six years and to
    maintain Coddle Creek&#146;s existing directors&#146; and
    officers&#146; liability insurance for a period of five years
    following the merger, subject to the terms of the merger
    agreement.
</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The board of directors of Coddle Creek was aware of the
    foregoing interests and considered them, among other matters, in
    approving the merger agreement and the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coddle
    Creek is Prohibited from Soliciting Other Offers
    (Page&#160;42)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek has agreed that, while the merger is pending, it
    will not initiate or, subject to some limited exceptions, engage
    in discussions with any third party other than First Community
    regarding extraordinary transactions such as a merger, business
    combination or sale of a material amount of assets or capital
    stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Accounting
    Treatment of the Merger (Page&#160;52)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger will be accounted for under the purchase method of
    accounting under generally accepted accounting principles, or
    GAAP.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stockholders
    of First Community and Coddle Creek Have Different Rights
    (Page&#160;60)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The rights of Coddle Creek&#146;s and First Community&#146;s
    stockholders under their respective business corporation laws
    are different. Upon consummation of the merger, in addition to
    cash, the stockholders of Coddle Creek will receive shares of
    First Community common stock in exchange for their shares of
    Coddle Creek common stock. As a result, the Coddle Creek
    stockholders will become stockholders of First Community and
    their rights as stockholders of First Community will be governed
    by First Community&#146;s articles of incorporation, as amended,
    and bylaws and the Nevada Revised Statutes, which is referred to
    in this proxy statement/prospectus as the NRS. The rights of
    stockholders of First Community differ in certain respects from
    the rights of stockholders of Coddle Creek.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Termination
    Fee (Page&#160;45)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek must pay First Community a termination fee of
    $1.0&#160;million if the merger agreement is terminated under
    specified circumstances.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coddle
    Creek&#146;s Stockholders Have Dissenters&#146; Rights
    (Page&#160;54)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under North Carolina law, holders of Coddle Creek common stock
    have the right to dissent from the merger and, if the merger is
    consummated and all requirements of North Carolina law are
    satisfied by holders seeking to exercise dissenters&#146;
    rights, to receive payment equal to the fair value of their
    shares of Coddle Creek common stock, determined in the manner
    set forth under North Carolina law. The procedures which must be
    followed in connection with the exercise of dissenters&#146;
    rights by dissenting stockholders are described under &#147;The
    Merger&#160;&#151; Dissenters&#146; Rights&#148; and in
    Article&#160;13 of the North Carolina Business Corporation Act,
    which we refer to in this proxy statement/prospectus as the
    NCBCA. A copy of Article&#160;13 of the NCBCA is attached as
    Appendix&#160;C to this proxy statement/prospectus. A
    stockholder seeking to exercise dissenters&#146; rights must
    (i)&#160;deliver to Coddle Creek, before the stockholder vote on
    the merger agreement at the special meeting, a written notice of
    the stockholder&#146;s intent to demand payment for the
    stockholder&#146;s shares of Coddle Creek common stock if the
    merger is effectuated; and (ii)&#160;the stockholder must not
    vote in favor of the merger agreement. A vote against the merger
    proposal or an abstention will satisfy the requirement of not
    voting for the merger proposal. The return of a signed proxy
    which does not specify whether you vote in favor or against
    approval of the merger proposal or abstain from voting will be
    considered a vote in favor of the merger proposal. A shareholder
    vote against the merger proposal or an abstention alone,
    however, will not satisfy the notice requirement of
    Article&#160;13 of the NCBCA. <B>Any failure to follow the
    specific procedures set forth in Article&#160;13 of the NCBCA
    may result in a stockholder losing the right to claim fair value
    as described above.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Shares of First Community Common Stock to be Issued in the
    Merger will be listed on Nasdaq (Page&#160;53)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the merger agreement, the shares of First Community
    common stock issued in connection with the merger will be listed
    on the Nasdaq Global Select Market or on any securities exchange
    on which the First Community common stock may then be listed.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    HISTORICAL FINANCIAL DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Selected
    Consolidated Historical Financial Data of First
    Community</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth below are highlights from First Community&#146;s
    audited consolidated financial data at and for the years ended
    December&#160;31, 2003 through 2007 and from First
    Community&#146;s unaudited consolidated financial data at and
    for the six months ended June&#160;30, 2008 and 2007. The
    results of operations for the six months ended June&#160;30,
    2008 are not necessarily indicative of the results of operations
    for the full year or any other interim period. In the opinion of
    First Community&#146;s management, this information reflects all
    adjustments, consisting of only normal recurring adjustments,
    necessary for a fair presentation of this data for those dates.
    You should read this information in conjunction with First
    Community&#146;s consolidated financial statements and related
    notes included in First Community&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007 and Quarterly Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended June&#160;30, 2008, which are incorporated
    in this proxy statement/prospectus by reference and from which
    this information is derived. See &#147;Where You Can Find More
    Information&#148; beginning on page&#160;68.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>At or for the Six Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ended June&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>At or for the Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>(Dollars in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Balance Sheet Summary (at end of period):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Securities<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    608,949
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    672,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    676,195
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    528,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    428,554
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    410,218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    473,177
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Loans held for sale
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    811
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Loans, net of unearned income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,181,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,243,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,225,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,284,863
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,331,039
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,238,756
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,026,191
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Allowance for loan losses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,934
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,833
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,736
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,339
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,624
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Assets related to discontinued operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,372
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,053,687
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,168,595
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,149,838
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,033,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,952,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,830,822
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,672,727
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,339,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,421,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,393,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,394,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,403,220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,356,719
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,223,376
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    498,972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    509,374
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    517,843
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    406,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    335,885
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    274,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    242,267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Liabilities related to discontinued operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,992
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,857,074
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,952,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,932,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,820,968
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,757,982
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,647,589
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,497,692
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    196,613
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    216,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    212,730
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194,501
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    183,233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Summary of Earnings:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    56,980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    62,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    127,591
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    120,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    109,508
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    96,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    90,641
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,636
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,276
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,381
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,880
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,953
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,397
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Provision for loan losses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,706
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,706
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,419
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Non-interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,865
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,831
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,323
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,542
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Non-interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,463
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,591
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,590
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income from continuing operations before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,548
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,966
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,425
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,636
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,806
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income tax expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,477
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,191
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,786
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income from continuing operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,632
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,948
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,719
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    (Loss) income from discontinued operations before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (233
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,746
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,174
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income tax (benefit) expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (91
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,090
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (693
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    (Loss) income from discontinued operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (142
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,656
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,481
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,632
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,948
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,303
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,364
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,238
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>At or for the Six Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ended June&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>At or for the Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>(Dollars in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Per Share Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Basic earnings per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Basic earnings per common share- continuing operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Basic (loss) earnings per common share- discontinued operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.02
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.33
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Diluted earnings per common share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Diluted earnings per common share- continuing operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Diluted (loss) earnings per common share- discontinued operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.32
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Cash dividends
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Book value at year-end
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Selected Ratios:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Return on average assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.22
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.41
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.39
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.46
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.37
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.24
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.56
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Return on average assets-continuing operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Return on average equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Return on average equity-continuing operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Average equity to average assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Average equity to average assets-continuing operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Dividend payout
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Risk based capital to risk adjusted assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.96
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Leverage ratio
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Reflects the reclassification
    during
    <FONT style="white-space: nowrap">2003-2004</FONT>
    periods of Federal Reserve Bank and Federal Home Loan Bank stock
    from Securities Available for Sale to Other Assets, consistent
    with the
    <FONT style="white-space: nowrap">2005-2008</FONT>
    presentation.
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Selected
    Consolidated Historical Financial Data of Coddle Creek</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth below are highlights from Coddle Creek&#146;s audited
    consolidated financial data at and for the years ended
    December&#160;31, 2003 through 2007 and from Coddle Creek&#146;s
    unaudited consolidated financial data at and for the six months
    ended June&#160;30, 2008 and 2007. The results of operations for
    the six months ended June&#160;30, 2008 are not necessarily
    indicative of the results of operations for the full year or any
    other interim period. In the opinion of Coddle Creek&#146;s
    management, this information reflects all adjustments,
    consisting of only normal recurring adjustments, necessary for a
    fair presentation of this data for those dates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="51%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>At or for the Six Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ended June&#160;30,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>At or for the Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>(Dollars in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Financial Condition Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    158,598
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    153,192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    155,664
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    153,602
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    141,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    135,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    137,662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Investments
    securities<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,073
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,187
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,087
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,174
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,627
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Loans receivable,
    net<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133,124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    132,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    130,195
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114,644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    136,588
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    130,356
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133,538
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,392
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,853
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,766
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,307
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Short-term borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,092
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,607
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,696
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,917
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Book value per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Operating Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest and fee income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,566
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,091
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,456
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,962
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,438
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,095
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,475
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,176
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,180
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,259
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,471
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,623
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,915
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Provision for loan losses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Noninterest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    252
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    298
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    337
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    364
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Noninterest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,182
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,738
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,203
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,139
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    214
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    318
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    802
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    672
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,534
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,697
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income tax expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    130
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    253
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    222
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    326
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    597
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    188
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    450
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    994
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Other comprehensive (loss) income, net of tax:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Unrealized (losses) gains on securities, net of tax
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    161
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    925
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (395
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    889
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Comprehensive income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    272
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,044
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,238
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Basic earnings (loss) per
    share<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Diluted earnings (loss) per
    share<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.63
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Dividends per
    share<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Dividend payout
    ratio<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    394.73
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265.60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142.11
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    227.27
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150.86
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106.06
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    99.43
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Selected Other Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Number of outstanding loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,876
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,094
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,967
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,959
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Number of deposit accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,359
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,411
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,607
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Number of full-service offices
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Return on average assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.14
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.36
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.31
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.73
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.78
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Return on average equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Average equity to average assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest rate spread
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Ratio of noninterest expense to average total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Nonperforming assets to total
    assets<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Nonperforming loans to total
    loans<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Allowance for loan losses to nonperforming
    loans<SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Allowance for loan losses to total loans receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.44
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.54
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.59
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.63
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.77
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.79
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.82
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Provision for loan losses to total loans receivable, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net charge-offs to average loans outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stockholders&#146; equity to total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Includes interest-earning deposits,
    federal funds sold, certificates of deposit, Federal Home Loan
    Bank stock and investment securities.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Represents gross loans less net
    deferred loan fees, undisbursed loan funds and allowance for
    loan losses.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Earnings per share has been
    calculated in accordance with Statement of Financial Accounting
    Standards, which is referred to in this proxy
    statement/prospectus as SFAS, No.&#160;128, <I>Earnings Per
    Share</I>. Under SFAS&#160;No.&#160;128, basic earnings per
    share is based on net income for the year, divided by the
    weighted average number of shares outstanding for the year.
    Diluted earnings per share includes the effect of dilutive
    common stock equivalents in the weighted average number of
    shares outstanding. In accordance with the AICPA&#146;s
    <FONT style="white-space: nowrap">SOP&#160;93-6,</FONT>
    shares that are unallocated under the Employee Stock Ownership
    Plan &#038; Trust of Mooresville Savings Bank, Inc., SSB, which
    is referred to in this proxy statement/prospectus as the ESOP,
    were deducted from outstanding shares and used in the
    computation of earnings per share.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">The dividend payout ratio
    represents dividends per share, including the return of capital
    dividend, as a percent of basic earnings (loss) per share.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Nonperforming assets include
    mortgage loans and consumer loans 90&#160;days or more
    delinquent and real estate acquired in settlement of loans.
    Nonperforming loans include nonaccrual loans and accruing loans
    past due 90&#160;days or more.
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Upon completion of the merger, you will receive cash and
    shares of First Community common stock in exchange for your
    shares of Coddle Creek common stock. Prior to deciding whether
    or not to approve the transaction, you should be aware of and
    consider the following risks and uncertainties that are
    applicable to the merger and First Community, in addition to the
    other information contained in or incorporated into this proxy
    statement/prospectus by reference, including the matters
    addressed under the caption &#147;Cautionary Statement
    Concerning Forward-Looking Statements&#148; beginning on
    page&#160;17. First Community has included in its Annual Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ending December&#160;31, 2007 additional risk
    factors that address its business.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Because
    the exchange ratio is fixed and the market price of First
    Community&#146;s common stock will fluctuate, you cannot be sure
    of the market value of the First Community common stock that you
    will receive in the merger.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon completion of the merger, each issued and outstanding share
    of Coddle Creek common stock will automatically be cancelled and
    converted into the right to receive $19.60 in cash and 0.9046 of
    a share of First Community common stock. The value of the shares
    of First Community common stock that you will receive will vary
    based on the trading price of First Community&#146;s common
    stock. As of September&#160;22, 2008, the last practicable
    trading day for which information was available prior to the
    date of this prospectus/proxy statement, the closing sale price
    reported on the Nasdaq Global Select Market for First
    Community&#146;s common stock was $36.00.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stock price changes may result from a variety of factors,
    including general market and economic conditions, changes in the
    values and perceptions of financial services stocks generally,
    changes in First Community&#146;s business, operations and
    prospects, and regulatory considerations. Many of these factors
    are beyond First Community&#146;s control. Accordingly, at the
    time of the special meeting, you will not necessarily know or be
    able to calculate the exact value of the shares of First
    Community&#146;s common stock you will receive upon completion
    of the merger. The value of the transaction and each share of
    Coddle Creek common stock on consummation of the merger may be
    higher or lower depending on the value of First Community&#146;s
    common stock on that date. Additionally, the value of the shares
    of First Community&#146;s common stock received by a Coddle
    Creek stockholder may decline immediately after, including, as a
    result of, the completion of the merger.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    merger agreement limits Coddle Creek&#146;s ability to pursue
    alternatives to the merger with First Community, may discourage
    other acquirers from offering a higher valued transaction to
    Coddle Creek and may, therefore, result in less value for the
    Coddle Creek stockholders.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger agreement contains a provision that, subject to
    certain limited exceptions, prohibits Coddle Creek from
    soliciting, negotiating, or providing confidential information
    to any third party relating to any competing proposal to acquire
    Coddle Creek or any of its subsidiaries. In addition, if Coddle
    Creek executes a definitive agreement in respect of, or closes,
    an acquisition transaction with a third party, the merger
    agreement provides that Coddle Creek must pay a
    $1.0&#160;million termination fee to First Community. These
    provisions of the merger agreement could discourage a potential
    competing acquirer that might have an interest in acquiring
    Coddle Creek, even if it were prepared to pay a higher per share
    price than proposed in the merger agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    fairness opinion obtained by Coddle Creek from its financial
    advisor will not reflect changes in circumstances prior to the
    merger.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Howe Barnes, the financial advisor to Coddle Creek, delivered an
    oral fairness opinion to the Board of Directors of Coddle Creek
    on July&#160;22, 2008, which was subsequently confirmed in
    writing dated as of the same date. The fairness opinion states
    that, as of the date of the opinion, the merger consideration
    set forth in the merger agreement was fair, from a financial
    point of view, to the holders of shares of Coddle Creek common
    stock. However, the fairness opinion does not reflect changes
    that may occur or may have occurred after the date on which it
    was delivered, including changes to the operations and prospects
    of First Community or Coddle Creek, changes in general market
    and economic conditions, or other changes. Any such changes may
    alter the relative value of First Community and Coddle Creek.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors
    and officers of Coddle Creek have interests in the merger that
    are in addition to or different than the interests of
    stockholders.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When considering the recommendation of Coddle Creek&#146;s board
    of directors, you should be aware that some executive officers
    and directors of Coddle Creek have interests in the merger that
    are different from your interests. These arrangements may create
    potential conflicts of interest. For example, some of Coddle
    Creek&#146;s executive officers will receive a cash payment upon
    closing of the merger under the terms of their settlement
    agreements. These and certain other additional interests of
    Coddle Creek&#146;s directors and executive officers may cause
    some of these persons to view the proposed transaction
    differently than you view it, as a stockholder. See &#147;The
    Merger&#160;&#151; Interests of Certain Persons in the
    Merger&#148; beginning on page&#160;46.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">First
    Community may fail to realize the anticipated benefits of the
    merger.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The success of the merger will depend on, among other things,
    First Community&#146;s ability to realize anticipated cost
    savings and to combine the businesses of First Community and
    Coddle Creek in a manner that does not materially disrupt the
    existing customer relationships of Coddle Creek or result in
    decreased revenues resulting from any loss of customers and that
    permits growth opportunities to occur. If First Community is not
    able to successfully achieve these objectives, the anticipated
    benefits of the merger may not be realized fully or at all or
    may take longer to realize than expected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    market price of shares of First Community common stock may be
    affected by factors which are different from those affecting
    shares of Coddle Creek common stock.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You will receive shares of First Community common stock in
    connection with the merger. Some of First Community&#146;s
    current businesses and markets differ from those of Coddle Creek
    and, accordingly, the results of operations of First Community
    after the merger may be affected by factors different from those
    currently affecting the results of operations of Coddle Creek.
    For a discussion of the businesses of First Community and Coddle
    Creek and of certain factors to consider in connection with
    those businesses, see &#147;Information About Coddle
    Creek,&#148; beginning on page&#160;58, &#147;Information About
    First Community,&#148; beginning on page&#160;57 and the
    documents incorporated into this proxy statement/prospectus by
    reference concerning First Community and referred to under
    &#147;Where You Can Find More Information&#148; beginning on
    page&#160;68.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coddle
    Creek stockholders will have a reduced ownership and voting
    interest after the merger and will exercise less influence over
    management.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following completion of the merger, Coddle Creek stockholders
    will own approximately 4.6% of First Community&#146;s
    outstanding shares of common stock after taking into account the
    sale of certain shares of First Community&#146;s common stock by
    the ESOP that the ESOP is expected to receive in connection with
    the merger to settle a loan owed to Coddle Creek by the ESOP.
    Consequently, Coddle Creek stockholders should expect to
    exercise less influence over the management and policies of
    First Community than they currently exercise over the management
    and policies of Coddle Creek.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    merger is subject to the receipt of waivers and approvals from
    government entities that may not be received, may take longer
    than expected or impose conditions that are not presently
    anticipated.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Before the merger may be completed, various waivers and
    approvals must be obtained from the FRB, the OCC, the VA Bureau
    of Financial Institutions, and the NC Commissioner. There can be
    no assurance as to whether these regulatory waivers and
    approvals will be received or the timing of the waivers and
    approvals. In addition, these governmental entities may impose
    conditions on the completion of the merger or require changes to
    the terms of the merger. Neither First Community nor Coddle
    Creek is obligated to complete the merger if the regulatory
    approvals received in connection with the completion of the
    merger include any condition which First Community reasonably
    determines in good faith would materially reduce the benefits of
    the merger to such a degree that First Community would not have
    entered into the merger agreement had such condition been known
    as of the date of the merger agreement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">If the
    merger is not completed, Coddle Creek will have incurred
    substantial expenses without realizing the expected
    benefits.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek has incurred substantial expenses in connection
    with the merger. The completion of the merger depends on the
    satisfaction of certain conditions including the approval of
    Coddle Creek&#146;s stockholders and the approval of state and
    federal regulatory authorities. We cannot guarantee that these
    conditions will be met. If the merger is not completed, these
    expenses could have a material adverse impact on the financial
    condition of Coddle Creek because they would not have realized
    the expected benefits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Changes in the accounting method for business combinations
    may have an adverse impact on the transaction if the transaction
    is not closed by December&#160;31, 2008.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Currently and for the years ended December&#160;31, 2008 and
    prior, in accordance with SFAS&#160;No.&#160;141 &#147;Business
    Combinations&#148;, all acquisition-related costs such as
    investment banker fees, attorney&#146;s fees and
    accountant&#146;s fees, as well as contingent consideration to
    the seller, are capitalized as part of the purchase price and
    become part of goodwill or allocated to the fair value of other
    tangible or intangible assets and liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the Financial Accounting Standards Board
    issued SFAS&#160;No.&#160;141 (revised 2007), &#147;Business
    Combinations&#148;, which is referred to in this proxy
    statement/prospectus as SFAS&#160;141R, which requires an
    acquirer to do the following: expense acquisition related costs
    as incurred and record contingent consideration at fair value at
    the acquisition date with certain subsequent changes in fair
    value to be recognized in the income statement. SFAS&#160;141R
    applies prospectively to business combinations for which the
    acquisition date is on or after beginning of the first annual
    reporting period beginning on or after December&#160;15, 2008.
    Earlier application is prohibited. If the acquisition is not
    completed by December&#160;31, 2008, SFAS&#160;141R may have a
    material impact on our accounting for this transaction.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTIONARY
    STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This proxy statement/prospectus and the documents incorporated
    herein by reference contain forward-looking statements by First
    Community and Coddle Creek within the meaning of the federal
    securities laws. These forward-looking statements include
    information about the consummation and anticipated timing of the
    merger and the financial condition, results of operations and
    businesses of First Community and Coddle Creek. In addition, any
    of the words &#147;believes,&#148; &#147;expects,&#148;
    &#147;anticipates,&#148; &#147;estimates,&#148;
    &#147;plans,&#148; &#147;projects,&#148; &#147;predicts&#148;
    and similar expressions indicate forward-looking statements.
    These forward-looking statements involve certain risks and
    uncertainties. Actual results may differ materially from those
    contemplated by the forward-looking statements due to, among
    others, the following factors:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    estimated cost savings from the merger may not be fully realized
    within the expected time frame;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    deposit attrition, customer loss or revenue loss following the
    merger may be greater than expected;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    competitive pressure among depository and other financial
    institutions may increase significantly;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    costs or difficulties related to the integration of the
    businesses of First Community and Coddle Creek may be greater
    than expected;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in the interest rate environment may reduce interest
    margins;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    general economic or business conditions, either nationally or in
    the states or regions in which First Community does business,
    may be less favorable than expected, resulting in, among other
    things, a deterioration in credit quality or a reduced demand
    for credit;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    legislation or changes in regulatory requirements, including
    changes in accounting standards, may adversely affect the
    businesses in which First Community is engaged;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adverse changes may occur in the securities markets;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    competitors of First Community may have greater financial
    resources and develop products and technology that enable those
    competitors to compete more successfully than First Community.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management of First Community and Coddle Creek each believes
    that the forward-looking statements about their respective
    company are reasonable; however, you should not place undue
    reliance on them. Forward-looking statements are not guarantees
    of performance. They involve risks, uncertainties and
    assumptions. The future results and stockholder values of First
    Community following completion of the merger may differ
    materially from those expressed in these forward-looking
    statements. Many of the factors that will determine these
    results and values are beyond First Community&#146;s and Coddle
    Creek&#146;s ability to control or predict.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All subsequent written and oral forward-looking statements
    attributable to First Community or Coddle Creek or any person
    acting or their behalf are expressly qualified in their entirety
    by the cautionary statements contained or referred to in this
    section. Neither First Community nor Coddle Creek undertakes any
    obligation to update publicly any forward-looking statements to
    reflect events, circumstances or new information after the date
    of this document or to reflect the occurrence of unanticipated
    events.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENERAL
    INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This document constitutes a proxy statement and is being
    furnished to all holders of Coddle Creek common stock in
    connection with the solicitation of proxies by the board of
    directors of Coddle Creek to be used at a special meeting of
    stockholders of Coddle Creek to be held on Thursday,
    October&#160;30, 2008 and any adjournment of the special
    meeting. The purposes of the special meeting are to consider and
    vote upon a proposal to approve the merger agreement between
    First Community and Coddle Creek, which provides, among other
    things, for the merger of Coddle Creek with and into First
    Community, and a proposal to adjourn the special meeting to the
    extent necessary to solicit additional votes on the merger
    agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This document also constitutes a prospectus of First Community
    relating to the First Community common stock to be issued to
    holders of Coddle Creek common stock upon completion of the
    merger. Based on the number of shares of Coddle Creek common
    stock outstanding on the record date for the special meeting and
    an exchange ratio of 0.9046, approximately 552,300&#160;shares
    of First Community common stock will be issuable upon completion
    of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community has supplied all of the information contained or
    incorporated herein by reference relating to First Community,
    and Coddle Creek has supplied all of the information relating to
    Coddle Creek.
</DIV>
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    SPECIAL MEETING</FONT></B>
</DIV>
</A>
<A name='109'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Time,
    Date and Place</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A special meeting of stockholders of Coddle Creek will be held
    at 11:00 a.m., Eastern Daylight Saving Time, on Thursday,
    October&#160;30, 2008 at Coddle Creek&#146;s corporate
    headquarters located at 347 North Main Street, Mooresville,
    North Carolina 28115.
</DIV>
<A name='110'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Matters
    to be Considered</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purposes of the special meeting are to consider and approve
    the merger agreement and to consider and approve a proposal to
    adjourn the special meeting if necessary to permit further
    solicitation of proxies if there are not sufficient votes at the
    time of the special meeting to approve the merger agreement.
</DIV>
<A name='111'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Shares
    Outstanding and Entitled to Vote; Record Date</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The close of business on September&#160;24, 2008 has been fixed
    by Coddle Creek as the record date for the determination of
    Coddle Creek stockholders entitled to notice of and to vote at
    the special meeting and any adjournment or postponement of the
    special meeting. At the close of business on the record date,
    there were 610,545&#160;shares of Coddle Creek common stock
    outstanding and entitled to vote. Each share of Coddle Creek
    common stock entitles the holder to one vote at the special
    meeting on all matters properly presented at the meeting.
</DIV>
<A name='112'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How to
    Vote Your Shares</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders of record may vote by mail, telephone, via the
    Internet or by attending the special meeting and voting in
    person. If you choose to vote by mail, simply mark the enclosed
    proxy card, date and sign it, and return it in the postage paid
    envelope provided.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If your shares are held in the name of a bank, broker or other
    holder of record, you will receive instructions from the holder
    of record that you must follow in order for your shares to be
    voted. Also, please note that if the holder of record of your
    shares is a broker, bank or other nominee and you wish to vote
    at the special meeting, you must bring a legal proxy from the
    broker, bank or other nominee confirming that you are the
    beneficial owner of the shares.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any stockholder executing a proxy may revoke it at any time
    before it is voted by:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    delivering to Coddle Creek prior to the special meeting a
    written notice of revocation addressed to Billy R. Williams,
    Corporate Secretary, Coddle Creek Financial Corp.,
    P.O.&#160;Box&#160;117, 347 North Main Street, Mooresville,
    North Carolina 28115;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    delivering to Coddle Creek prior to the special meeting a
    properly executed proxy with a later date;&#160;or
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    attending the special meeting and voting in person.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attendance at the special meeting will not, in and of itself,
    constitute revocation of a proxy.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each properly executed proxy returned to Coddle Creek (and not
    revoked) by a holder of Coddle Creek common stock will be voted
    in accordance with the instructions indicated thereon. If no
    instructions are indicated, the proxy will be voted
    &#147;FOR&#148; approval of the merger agreement and
    &#147;FOR&#148; the proposal to adjourn the special meeting if
    necessary to permit further solicitation of proxies on the
    proposal to approve the merger agreement.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>
<A name='178'>
<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Participants
    in the ESOP</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Participants in the ESOP have the right to direct the ESOP
    trustees how to vote shares allocated to the participant&#146;s
    account. ESOP participants will receive with this document an
    ESOP Participant Voting Instructions form for use in directing
    the ESOP trustees with regard to the voting of the shares of
    Coddle Creek common stock allocated to his or her plan account.
    Shares of common stock held by the ESOP for which no voting
    instructions are received will not be voted by the trustees
    which will have the same impact as a vote against the merger. If
    signed voting instructions are returned with no instructions
    indicated, those shares allocated to the ESOP participant will
    be voted &#147;FOR&#148; the proposals at the special meeting.
    Participants&#146; voting instructions with respect to shares of
    common stock held under the ESOP will be held in strict
    confidence.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>
<A name='113'>
<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Votes
    Required</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A quorum, consisting of the holders of a majority of the issued
    and outstanding shares of Coddle Creek common stock, must be
    present in person or by proxy before any action may be taken at
    the special meeting. Abstentions will be treated as shares that
    are present for purposes of determining the presence of a quorum
    but will not be counted in the voting on a proposal and this
    will have the same effect of a vote against the merger proposal.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The affirmative vote of the holders of a majority of the
    outstanding shares of Coddle Creek common stock is necessary to
    approve the merger agreement on behalf of Coddle Creek. The
    affirmative vote of a majority of the votes cast by stockholders
    at the meeting is required to approve the proposal to adjourn
    the special meeting if necessary to permit further solicitation
    of proxies on the proposal to approve the merger agreement.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any &#147;broker non-votes&#148; submitted by brokers or
    nominees in connection with the special meeting will not be
    counted for purposes of determining the number of votes cast on
    a proposal but will be treated as present for quorum purposes.
    &#147;Broker non-votes&#148; are shares held by brokers or
    nominees as to which voting instructions have not been received
    from the beneficial owners or the persons entitled to vote those
    shares and the broker or nominee does not have discretionary
    voting power under the applicable New York Stock Exchange rules.
    Under these rules, the proposals to approve the merger agreement
    and to adjourn the special meeting are not items on which
    brokerage firms may vote in their discretion on behalf of their
    clients if such clients have not furnished voting instructions
    within ten days of the special meeting. Because the proposal to
    approve the merger agreement is required to be approved by the
    holders of a majority of the outstanding shares of Coddle Creek
    common stock, abstentions and broker &#147;non-votes&#148; will
    have the same effect as a vote against the proposal to approve
    the merger agreement at the special meeting. And for the same
    reason, the failure of a Coddle Creek stockholder to vote by
    proxy or in person at the special meeting will have the effect
    of a vote against this proposal. Because of the vote required
    for the proposal to adjourn the special meeting, abstentions and
    &#147;broker non-votes&#148; will have no effect on this
    proposal.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The directors and executive officers of Coddle Creek, who
    collectively own approximately 22.5% of the outstanding shares
    of Coddle Creek common stock as of the record date for the
    special meeting, have entered into shareholder agreements with
    First Community pursuant to which they have agreed to vote all
    of their shares in favor of the merger agreement. See &#147;The
    Merger&#160;&#151; Shareholder Agreements&#148; on page&#160;53.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the close of business on the record date for the special
    meeting, First Community did not beneficially own any shares of
    Coddle Creek common stock.
</DIV>
<A name='114'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Solicitation
    of Proxies</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek will pay for the costs of mailing this document to
    its stockholders, as well as all other costs incurred by it in
    connection with the solicitation of proxies from its
    stockholders on behalf of its board of directors. In addition to
    solicitation by mail, the directors, officers and employees of
    Coddle Creek and its subsidiaries may solicit proxies from
    stockholders of Coddle Creek in person or by telephone,
    telegram, facsimile or other electronic methods without
    compensation other than reimbursement for their actual expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Arrangements also will be made with custodians, nominees and
    fiduciaries for the forwarding of solicitation material to the
    beneficial owners of stock held of record by such persons, and
    Coddle Creek will reimburse such custodians, nominees and
    fiduciaries for their reasonable out-of-pocket expenses in
    connection therewith.
</DIV>
<A name='115'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recommendation
    of the Coddle Creek Board of Directors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Coddle Creek board of directors has unanimously approved the
    merger agreement and the transactions contemplated by the merger
    agreement. Based on Coddle Creek&#146;s reasons for the merger
    described in this proxy statement/prospectus, including Howe
    Barnes&#146; fairness opinion, the board of directors of Coddle
    Creek believes that the merger is in the best interests of
    Coddle Creek&#146;s stockholders and unanimously recommends that
    you vote &#147;FOR&#148; approval of the merger agreement. See
    &#147;The Merger&#160;&#151; Coddle Creek&#146;s Reasons for the
    Merger&#148; beginning on page 23.
</DIV>
<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    MERGER<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">(PROPOSAL&#160;ONE)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following information describes the material aspects of
    the merger agreement and the merger. This description does not
    purport to be complete and is qualified in its entirety by
    reference to the appendices to this proxy statement/prospectus,
    including the merger agreement. You are urged to carefully read
    the appendices in their entirety.</I>
</DIV>
<A name='117'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms and conditions set forth in the merger
    agreement, Coddle Creek will be merged with and into First
    Community. At the effective time of the merger, each share of
    common stock of Coddle Creek, no par value per share,
    outstanding immediately before the effective time of the merger
    (except as provided below) will, by virtue of the merger and
    without any action on the part of a Coddle Creek stockholder, be
    converted into the right to receive:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    $19.60 in cash, which is referred to as the &#147;per share cash
    consideration&#148;;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    0.9046 of a share of common stock of First Community, which is
    referred to as the &#147;exchange ratio,&#148; plus cash in lieu
    of any fractional share interest.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September&#160;22, 2008, there were 610,545&#160;shares of
    Coddle Creek common stock outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares of Coddle Creek common stock held by Coddle Creek
    stockholders who have elected dissenters&#146; rights will not
    be converted into the right to receive the merger consideration
    upon consummation of the merger. Stockholders who wish to assert
    their dissenters&#146; rights and comply with the procedural
    requirements of Article&#160;13 of the NCBCA, will be entitled
    to receive payment of the fair value of their shares in cash in
    accordance with North Carolina law. For more information
    regarding the exercise of these rights, see
    &#147;&#151;&#160;Dissenters&#146; Rights.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After completion of the merger, it is expected that current
    First Community stockholders will own approximately 95.2% of the
    combined company and former Coddle Creek stockholders will own
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    approximately 4.6% of the combined company after taking into
    account the sale of certain shares of First Community&#146;s
    common stock by the ESOP that the ESOP is expected to receive in
    connection with the merger to settle a loan owed to Coddle Creek
    by the ESOP.
</DIV>
<A name='118'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Background
    of the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek&#146;s board of directors has from time to time
    engaged with senior management in strategic reviews and has
    considered ways to enhance Coddle Creek&#146;s performance and
    prospects in light of competitive and other relevant
    developments. These strategic reviews have focused on, among
    other things, the business environment facing financial
    institutions generally, as well as conditions and ongoing
    consolidation in the financial services industry. These reviews
    have also included periodic discussions with respect to
    potential transactions that would further Coddle Creek&#146;s
    strategic objectives, and the potential benefits and risks of
    those transactions, and from time to time have focused on the
    possibility of a merger with another banking organization. In
    addition, Coddle Creek&#146;s senior management has had from
    time to time informal discussions with representatives of other
    financial institutions regarding the potential benefits and
    risks of business combination transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March 2008, Coddle Creek&#146;s board of directors, with
    members of Coddle Creek&#146;s senior management present, met
    with representatives from Howe Barnes to discuss strategic
    alternatives available to Coddle Creek. On April&#160;8, 2008,
    the Coddle Creek board of directors formally engaged Howe Barnes
    to conduct a limited auction of Coddle Creek and its subsidiary,
    Mooresville Savings Bank. After being formally engaged, Howe
    Barnes prepared a Confidential Information Memorandum describing
    Coddle Creek and Mooresville Savings Bank. While preparing the
    Confidential Information Memorandum, Howe Barnes began to
    identify potential merger partners for Coddle Creek, primarily
    those with a presence or interest in Charlotte, North Carolina
    and surrounding areas.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In mid-April 2008, with the consent of Coddle Creek, Howe Barnes
    contacted 11 prospective merger partners, including First
    Community. Nine of the prospective merger partners, including
    First Community, signed confidentiality agreements and received
    information on Coddle Creek. Of the nine prospective merger
    partners who received information on Coddle Creek, five parties
    submitted initial indications of interest to acquire Coddle
    Creek, including First Community.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On or about May&#160;21, 2008, Coddle Creek&#146;s management
    team met separately with the chief executive officers of two
    prospective merger partners, one of which was the chief
    executive officer of First Community. First Community&#146;s
    chief executive officer and Coddle Creek&#146;s management team
    generally discussed the strategic visions for Coddle Creek and
    First Community, the cultures and traditions of their companies
    and other matters. Shortly thereafter, the Coddle Creek board of
    directors evaluated the initial indications of interest received
    through Howe Barnes&#146; efforts. It determined that the
    valuation of Coddle Creek, the relative proportions of cash and
    stock in the merger consideration indicated by First Community,
    and the general terms contained in First Community&#146;s
    initial indication of interest were superior to those received
    from the other companies who submitted initial indications of
    interest. Accordingly, the Coddle Creek board of directors
    authorized management to continue to engage in discussions and
    negotiations with First Community regarding a potential
    transaction and to commence due diligence.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Over the first several days of June 2008, First Community
    conducted an
    <FONT style="white-space: nowrap">on-site</FONT> due
    diligence review of Coddle Creek. Included in this review were
    interviews of the senior management team of Coddle Creek by
    First Community&#146;s senior executives and its advisors.
    Following the
    <FONT style="white-space: nowrap">on-site</FONT>
    review and during the first two weeks of June 2008, a series of
    communications occurred in which the senior management teams of
    Coddle Creek and First Community and their respective advisors
    participated. On June&#160;16, 2008, Coddle Creek received a
    revised indication of interest from First Community setting
    forth the material terms of a potential merger, including the
    financial terms and the transaction structure. In the revised
    indication of interest, First Community proposed to purchase
    each share of Coddle Creek common stock for approximately $49.00
    per share as of that date with the merger consideration to be
    paid in a combination of cash and shares of First Community
    common stock.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;17, 2008, the boards of directors of Coddle Creek
    and Mooresville Savings Bank held a special joint meeting at
    which senior management was present. The purpose of the special
    joint meeting was to discuss various acquisition proposals
    received by Howe Barnes in its capacity as the investment
    advisor to Coddle Creek. Howe Barnes provided an overview of its
    activities undertaken to date, and the five parties who
    submitted initial indications of interest, including First
    Community. Howe Barnes then summarized the course of discussions
    with First Community, the material terms of First
    Community&#146;s indication of interest and several aspects of
    First Community&#146;s proposal that remained to be resolved.
    Howe Barnes presented to the board of directors detailed
    financial information with respect to First Community and pro
    forma data with respect to the potential transaction. After the
    foregoing presentations and an extended discussion among the
    participants in the meeting, Howe Barnes orally advised the
    boards of directors of Coddle Creek and Mooresville Savings Bank
    that in its opinion the merger consideration and general terms
    of the merger were fair to the holders of Coddle Creek common
    stock from a financial point of view. Also at this meeting,
    Brooks, Pierce, McLendon, Humphrey&#160;&#038; Leonard, L.L.P.,
    Coddle Creek&#146;s legal counsel, which is referred to in this
    proxy statement/prospectus as Brooks Pierce, informed the board
    of directors of Coddle Creek of the legal standards applicable
    to a decision by the Coddle Creek board of directors to approve
    a merger of Coddle Creek. After further questions by and
    discussions among the members of the Coddle Creek board of
    directors, and consideration of the factors described under
    &#147;&#151;&#160;Coddle Creek&#146;s Reasons for the
    Merger,&#148; the Coddle Creek board of directors voted
    unanimously to direct Coddle Creek&#146;s management to move
    forward with discussions with First Community, with a resolution
    of the various issues identified by the board of directors of
    Coddle Creek being a requirement to entering into the letter of
    intent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the special joint meeting of the boards of directors of
    Coddle Creek and Mooresville Savings Bank, Coddle Creek&#146;s
    and First Community&#146;s senior management and advisors
    engaged in additional discussions regarding the various issues
    to be resolved. After resolving the most important of these
    issues, Coddle Creek agreed to pursue a proposed transaction
    exclusively with First Community for the next 45&#160;days under
    the framework of a revised indication of interest submitted by
    First Community to Coddle Creek on June&#160;23, 2008. During
    the remainder of June and through July 2008, Coddle Creek, First
    Community and their advisors negotiated the definitive
    documentation associated with and conditions precedent to
    consummation of a possible merger of Coddle Creek and First
    Community and their respective banking subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On June&#160;26, 2008, representatives of Howe Barnes and Brooks
    Pierce conducted an
    <FONT style="white-space: nowrap">on-site</FONT> due
    diligence review of First Community. Included with this review
    were discussions with the senior management team of First
    Community.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;22, 2008, the boards of directors of Coddle Creek
    and Mooresville Savings Bank held a regularly scheduled joint
    meeting at which senior management, together with Coddle
    Creek&#146;s legal and financial advisors, reviewed the
    discussions and negotiations with First Community regarding the
    proposed merger and the results of Coddle Creek&#146;s due
    diligence investigation of First Community. Brooks Pierce
    presented a draft of the merger agreement to the board of
    directors of Coddle Creek and discussed its terms as well as
    several remaining issues relevant to the merger agreement that
    remained unresolved. After responding to questions from members
    of the board of directors of Coddle Creek on the merger
    agreement, Brooks Pierce discussed the terms of the shareholder
    agreement, the affiliate letter, the bank merger agreement and
    the various agreements to be entered into by Coddle Creek&#146;s
    senior management and noted a number of unresolved issues in
    these ancillary agreements. Howe Barnes presented detailed
    financial information with respect to the potential transaction
    and answered questions of the board of directors of Coddle
    Creek, and rendered an oral opinion that, as of July&#160;22,
    2008, the consideration provided in the merger agreement was
    fair to the holders of Coddle Creek common stock from a
    financial point of view. This opinion was subsequently confirmed
    in writing as of the same date. Also at this meeting, Brooks
    Pierce discussed again with the Coddle Creek board of directors
    the legal standards applicable to its decision to approve the
    merger agreement and the transactions contemplated thereby.
    Senior management of Coddle Creek and the board of directors of
    Coddle Creek reviewed the terms of the proposed merger
    agreement, and the Coddle Creek board of directors concluded
    that the proposed transaction with First Community was in the
    best interests of Coddle Creek and its stockholders. After
    further questions by and discussion among the members of the
    Coddle Creek board of directors and consideration of the factors
    described under &#147;&#151;&#160;Coddle Creek&#146;s Reasons
    for the Merger,&#148; the Coddle Creek
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    board of directors voted unanimously to approve the merger
    agreement and the transactions contemplated thereby as being in
    the best interests of the stockholders of Coddle Creek, subject
    to resolution of the several specified remaining issues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;22, 2008, First Community&#146;s board of directors
    held a regular meeting at which its management reviewed in
    detail with the board of directors the terms of the merger
    agreement. Based upon First Community&#146;s board of
    directors&#146; review and discussion of the merger agreement
    and the relevant factors, described below in
    &#147;&#151;&#160;First Community&#146;s Reasons for the
    Merger,&#148; First Community&#146;s board of directors
    unanimously authorized and approved the execution of the merger
    agreement with Coddle Creek.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the completion of the meetings of the boards of
    directors of Coddle Creek and Mooresville Savings Bank and the
    First Community board of directors on July&#160;22, 2008, Coddle
    Creek&#146;s and First Community&#146;s senior management and
    their respective advisors continued discussions to resolve the
    remaining issues with respect to the definitive merger
    agreement. After reaching a resolution on those items, the
    merger agreement was entered into by Coddle Creek and First
    Community on July&#160;31, 2008. After the stock market closed
    on July&#160;31, 2008, First Community and Coddle Creek issued a
    joint press release publicly announcing the proposed merger.
</DIV>
<A name='119'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coddle
    Creek&#146;s Reasons for the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek&#146;s board of directors, at its meeting held on
    July&#160;22, 2008, considered the merger agreement and
    determined it to be in the best interests of Coddle Creek and
    its stockholders. In reaching its determination, the Coddle
    Creek board of directors consulted with Coddle Creek management,
    as well as its financial and legal advisors, regarding the
    financial fairness of the merger and the terms of the merger
    agreement, and considered a number of factors. Listed below are
    the material factors that Coddle Creek&#146;s board of directors
    considered in its decision. The Coddle Creek&#146;s board of
    directors did not assign any specific or relative weight to the
    factors listed below and considered all of the factors as a
    whole in reaching its conclusion to approve the merger agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The Coddle Creek board of directors&#146; understanding of the
    business, operations, financial condition, earnings and future
    prospects of Coddle Creek and Mooresville Savings Bank;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The current and prospective economic, regulatory and competitive
    environment facing Coddle Creek and the community banking
    industry in general, including the decline in net interest
    margins and unfavorable yield curve, evolving trends in
    technology and the cost of such technology, and the increasing
    importance of operational scale and financial resources in
    maintaining efficiency and remaining competitive over the long
    term;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community&#146;s ability to pay the merger consideration
    and obtain regulatory approvals for the merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The merger consideration to be paid to Coddle Creek stockholders
    for their shares in relation to, among other things, the market
    value, book value, earnings per share and projected earnings per
    share for Coddle Creek common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The portion of the merger consideration composed of cash and not
    subject to variations in the market value of First
    Community&#146;s common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The marketing and bidding process conducted by Coddle Creek and
    Howe Barnes and the Coddle Creek board of directors&#146; belief
    that a transaction with First Community was the best overall
    transaction available to Coddle Creek and its stockholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The greater market liquidity of First Community&#146;s common
    stock relative to Coddle Creek&#146;s common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The review by the Coddle Creek board of directors with its
    financial and legal advisors of the structure of the transaction
    and the financial and other terms of the merger agreement,
    including the consideration offered by First Community;
</TD>
</TR>

</TABLE>

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    <BR>
    23
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The current senior executives of Coddle Creek and the need for
    future management succession if Coddle Creek were to remain
    independent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The nature of the respective markets, customers, asset/liability
    mix and operations of Coddle Creek and First Community;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The reports of Coddle Creek&#146;s management and the financial
    presentation by Howe Barnes to the board of directors concerning
    the operations, earnings and financial condition of First
    Community on a historical and prospective basis and of the
    combined companies on a pro forma basis;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The historical and current market prices of Coddle Creek&#146;s
    and First Community&#146;s common stock and the potential for
    increased earnings for Coddle Creek&#146;s stockholders as
    stockholders of the combined company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The fact that First Community&#146;s offer represented a
    significant premium over the market price of Coddle Creek&#146;s
    common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The impact of the acquisition on the depositors, employees,
    customers and communities served by Mooresville Savings
    Bank;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The opinion delivered to the Coddle Creek board of directors by
    Howe Barnes that, as of the date of the opinion and based upon
    and subject to the considerations set forth in its opinion, the
    merger consideration was fair, from a financial point of view,
    to the holders of Coddle Creek common stock.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Coddle Creek board of directors also considered the
    following matters associated with the merger in connection with
    its deliberations of the proposed transaction, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The risks to Coddle Creek&#146;s business if the merger is not
    completed;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The interests of Coddle Creek&#146;s executive officers and
    directors with respect to the acquisition apart from their
    interests as holders of Coddle Creek common stock, and the risk
    that these interests might influence their decision with respect
    to the merger. See &#147;&#151;&#160;Interests of Certain
    Persons in the Merger;&#148;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The risk that the terms of the merger agreement, including
    provisions prohibiting Coddle Creek from soliciting additional
    competing proposals and requiring the payment of a termination
    fee under specified circumstances, could have the effect of
    discouraging other parties that might be interested in a
    transaction with Coddle Creek from proposing such a transaction.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Coddle Creek board of directors evaluated the factors
    described above, including asking questions and receiving
    information from management and its legal and financial
    advisors, and determined that the merger agreement and the
    transactions contemplated by it were in the best interests of
    Coddle Creek and its stockholders. <B>Accordingly, the Coddle
    Creek board of directors unanimously approved the merger
    agreement and recommends that Coddle Creek stockholders vote
    &#147;FOR&#148; approval of the merger agreement</B>.
</DIV>
<A name='120'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">First
    Community&#146;s Reasons for the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community entered into the merger agreement with Coddle
    Creek because, among other things, First Community believes the
    merger is consistent with its expansion strategy in North
    Carolina. The acquisition will expand First Community
    Bank&#146;s banking operations and complement its existing
    banking network. The Coddle Creek franchise is a natural
    expansion of First Community&#146;s current North Carolina
    operations into the Lake Norman region of North Carolina.
</DIV>
<A name='121'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Opinion
    of Coddle Creek&#146;s Financial Advisor</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;22, 2008, at a meeting of the Coddle Creek board of
    directors, Howe Barnes delivered to the Coddle Creek board of
    directors its opinion, to the effect that, as of that date and
    based upon and subject to various assumptions, matters
    considered, and limitations on Howe Barnes&#146; review
    described in the opinion, the
</DIV>

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    <BR>
    24
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    shareholder consideration was fair, from a financial point of
    view, to the stockholders of Coddle Creek. No limitations were
    imposed by Coddle Creek on Howe Barnes with respect to the
    investigations made or the procedures followed in rendering its
    opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek retained Howe Barnes to act as its financial
    advisor in connection with its proposed merger with First
    Community based upon Howe Barnes&#146; qualifications,
    expertise, and reputation advising financial institutions and
    other companies. As part of its investment banking business,
    Howe Barnes is regularly engaged in the valuation of banks and
    bank holding companies, thrifts and thrift holding companies,
    and various other financial services companies, in connection
    with merger and acquisitions, initial and secondary offerings of
    securities, and valuations for other purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The full text of Howe Barnes&#146; written opinion to Coddle
    Creek&#146;s board of directors, dated July 22, 2008, which sets
    forth the assumptions made, matters considered and extent of
    review by Howe Barnes, is attached as Appendix&#160;B and is
    incorporated herein by reference. The fairness opinion should be
    read carefully and in its entirety. The following summary of
    Howe Barnes&#146; opinion is qualified in its entirety by
    reference to the full text of the opinion. Howe Barnes&#146;
    opinion is directed to Coddle Creek&#146;s board of directors
    and does not constitute a recommendation to any stockholder of
    Coddle Creek as to how a stockholder should vote with regard to
    the merger at the special meeting of stockholders described in
    this proxy statement/prospectus. The opinion addresses only the
    fairness, from a financial point of view, of the merger
    consideration to the holders of Coddle Creek&#146;s common
    stock. The opinion does not address the relative merits of the
    merger or any alternatives to the merger, the underlying
    decision of Coddle Creek&#146;s board of directors to approve or
    proceed with or effect the merger, or any other aspect of the
    merger.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Howe Barnes has consented to the inclusion of its opinion and to
    the inclusion of the summary of its opinion in this proxy
    statement/prospectus. In giving such consent, Howe Barnes does
    not concede that it comes within the category of persons whose
    consent is required under the Securities Act of 1933 or the
    rules and regulations of the Securities and Exchange Commission,
    which is referred to in this proxy statement/prospectus as the
    Commission, thereunder, nor does it concede that it is an expert
    within the meaning of the term &#147;expert&#148; as used in the
    Securities Act or the rules and regulations of the Commission
    thereunder with respect to any part of the registration
    statement on
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    of which this proxy statement/prospectus forms a part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with rendering its original opinion, Howe Barnes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1)&#160;
</TD>
    <TD align="left">
    Reviewed the draft merger agreement dated July&#160;18, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2)&#160;
</TD>
    <TD align="left">
    Reviewed First Community&#146;s recent filings with the
    Commission including its proxy statement filed on March&#160;27,
    2008, Annual Reports on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the three years ended December&#160;31, 2007, 2006 and 2005,
    and a Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3)&#160;
</TD>
    <TD align="left">
    Reviewed First Community&#146;s earnings press release for the
    quarter ended June&#160;30, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    4)&#160;
</TD>
    <TD align="left">
    Reviewed Current Reports of First Community as filed on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    with the Commission from January&#160;1, 2005 to the date hereof;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    5)&#160;
</TD>
    <TD align="left">
    Reviewed Coddle Creek&#146;s Annual Reports for the three years
    ended December&#160;31, 2007, 2006 and 2005;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    6)&#160;
</TD>
    <TD align="left">
    Reviewed Coddle Creek&#146;s proxy statement dated
    March&#160;18, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    7)&#160;
</TD>
    <TD align="left">
    Reviewed certain internal financial information and financial
    forecasts relating to the business, earnings, cash flows, assets
    and prospects of the respective companies furnished to Howe
    Barnes by Coddle Creek and First Community;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    8)&#160;
</TD>
    <TD align="left">
    Held discussions with members of executive and senior management
    of Coddle Creek and First Community, including without
    limitation, their respective legal advisors and others
    concerning the past and current results of operations of Coddle
    Creek and First Community, their respective current financial
    condition and managements&#146; opinion of their respective
    future prospects;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    9)&#160;
</TD>
    <TD align="left">
    Reviewed the historical record of reported trading prices,
    trading activity and dividend payments for both Coddle Creek and
    First Community;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    10)&#160;
</TD>
    <TD align="left">
    Compared the reported financial terms of selected recent
    business combinations in the banking industry;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    11)&#160;
</TD>
    <TD align="left">
    Performed such other studies and analyses as Howe Barnes
    considered appropriate under the circumstances.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The written opinion provided by Howe Barnes to Coddle Creek,
    dated as of July&#160;22, 2008, was necessarily based upon
    economic, monetary, financial market, and other relevant
    conditions as of the date the opinion was rendered. Accordingly,
    it is important to understand that although subsequent
    developments may affect its opinion, Howe Barnes does not have
    any obligation to further update, revise, or reaffirm its
    opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with its review and arriving at its opinion, with
    the consent of Coddle Creek&#146;s board of directors, Howe
    Barnes assumed and relied upon the accuracy and completeness of
    the financial information and other pertinent information
    provided by Coddle Creek and First Community to Howe Barnes for
    purposes of rendering its opinion. Howe Barnes did not assume
    any obligation to independently verify any of the information
    discussed above, including, without limitation, information from
    published sources, as being complete and accurate. With regard
    to the financial information, including financial projections it
    received from Coddle Creek, as well as estimates of cost
    savings, Howe Barnes assumed that this information reflected the
    best available estimates and good faith judgments of management
    as to Coddle Creek&#146;s future performance and that the
    projections provided a reasonable basis upon which Howe Barnes
    could formulate its opinion. The forecasts and projections were
    based upon numerous variables and assumptions that are
    inherently uncertain, including, among others, factors relative
    to the general economic and competitive conditions Coddle Creek
    faces. Accordingly, actual results could vary significantly from
    those used in the forecasts and projections.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Howe Barnes does not purport to be an expert in the evaluation
    of loan portfolios or the allowance for loan losses with respect
    to loan portfolios and, accordingly, assumes that Coddle
    Creek&#146;s allowances and First Community&#146;s allowances
    were adequate to cover any losses. In addition, Howe Barnes has
    not reviewed and does not assume any responsibility for any
    individual credit files and did not make an independent
    evaluation, appraisal, or physical inspection of the assets or
    liabilities, contingent or otherwise, of Coddle Creek&#146;s or
    First Community&#146;s individual properties, nor was Howe
    Barnes provided with any such appraisals. In rendering its
    opinion, Howe Barnes expressed no opinions with respect to the
    amount or nature of any compensation to any officers, directors,
    or employees of Coddle Creek, or any class of such persons
    relative to the merger consideration to be received by the
    holders of the common stock of Coddle Creek in the transaction
    or with respect to the fairness of any such compensation. In
    addition, for purposes of rendering its written opinion, Howe
    Barnes assumed that (i)&#160;the merger will be consummated in
    accordance with the terms set forth in the merger agreement,
    without any waiver of any of its material terms or conditions,
    and that obtaining the necessary regulatory approvals for the
    merger will not have an adverse effect on either separate
    institution or the combined entity, and (ii)&#160;the merger
    will be consummated in a manner that complies in all respects
    with the applicable provisions of the Securities Act, the
    Securities Exchange Act of 1934, as amended, which is referred
    to in this proxy statement/prospectus as the Exchange Act, and
    all other applicable federal and state statutes, rules, and
    regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with rendering its opinion to Coddle Creek&#146;s
    board of directors, Howe Barnes performed a variety of financial
    and comparative analyses, which are briefly summarized below.
    Such summaries do not purport to be a complete description of
    the analyses performed by Howe Barnes. The fact that any
    specific analysis has been referred to in the summaries below is
    not meant to indicate that the analysis was given greater weight
    than any other analysis. Accordingly, the ranges of values
    resulting from any particular analysis described below should
    not be taken to be Howe Barnes&#146; view of Coddle Creek&#146;s
    or the combined company&#146;s actual value. Moreover, Howe
    Barnes believes that the analyses must be considered as a whole
    and that selecting portions of the analyses and the factors
    considered, including information presented in tabular form,
    without considering all of the analyses and factors, could
    create an incomplete understanding of the process
</DIV>

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    <BR>
    26
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    underlying the analyses and, more importantly, a misleading or
    incomplete view of its opinion as to fairness from a financial
    point of view that is based on those analyses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Comparable Transaction Analysis.</I>&#160;&#160;Howe Barnes
    reviewed and compared financial performance and pricing
    information for the following groups of thrift merger
    transactions announced in the 24&#160;months ended July&#160;16,
    2008, which is referred to in this &#147;&#151;&#160;Opinion of
    Coddle Creek&#146;s Financial Advisor&#148; section of this
    proxy statement/prospectus as the Comparable Thrift Merger
    Transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thrift acquisitions nationwide;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thrift acquisitions in the Southeast;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thrift acquisitions in the United States involving acquired
    thrifts with assets of $100&#160;million to $350&#160;million;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thrift acquisitions in the United States with total deal values
    of $20&#160;million to $50&#160;million;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thrift acquisitions in the United States involving acquired
    thrifts with returns on average assets of .25% to .75%;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thrift acquisitions in the United States involving acquired
    thrifts with returns on average equity of 3% to 5%;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thrift acquisitions in the United States involving acquired
    thrifts with tangible capital of 10% to 20%.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pricing ratios for the merger were compared to the Comparable
    Thrift Merger Transactions median (1)&#160;price to book value,
    (2)&#160;price to tangible book value, (3)&#160;price to last
    twelve months which is referred to as the LTM, reported
    earnings, (4)&#160;tangible book value premium to core deposits,
    and (5)&#160;premium paid to market price, which are referred to
    collectively as the Pricing Ratios, as shown below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Tangible<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Tangible<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>LTM<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Premium/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Premium/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reported<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Core<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Market<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Groups<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deals</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Earnings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deposits</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Nationwide
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    156
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.4
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Southeast
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    147
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.7
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assets $100&#160;million&#160;&#151; $350&#160;million
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.4
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deal Value $20&#160;million&#160;&#151; $50&#160;million
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    196
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    196
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ROA .25% to .75%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    146
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    184
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.7
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ROE 3% to 5%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    156
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.7
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tangible Capital 10%&#160;&#151; 20%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    153
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.4
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    High
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    196
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    196
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.7
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Median
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    153
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.4
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Low
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.7
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Coddle
    Creek<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>159</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>159</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>64.2x</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>11.6</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>119</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Medians for thrift mergers and acquisitions announced in the
    last two years as of July&#160;16, 2008.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on First Community&#146;s closing price on July&#160;21,
    2008 of $31.34; financial data for Coddle Creek as of
    June&#160;30, 2008.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, Howe Barnes reviewed a selected group of thrift
    merger transactions with the targets located in North Carolina
    and South Carolina. The transactions were announced since
    January&#160;1, 1999 and had deal values less than
    $100&#160;million, which is referred to as the Precedent
    M&#038;A Transactions&#160;&#151; Carolinas. The following table
    represents the Precedent M&#038;A Transactions&#160;&#151;
    Carolinas:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Acquiror</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Target</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Bancorp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Great Pee Dee Bancorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Community Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    DutchFork Bancshares, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital Bank Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    First Community Financial Corporation
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gaston Federal Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Innes Street Financial Corporation
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Bancorp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Century Bancorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SouthBanc Shares, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Heritage Bancorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    National Commerce Financial Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Piedmont Bancorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Bancorp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    First Savings Bancorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FNB Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Carolina Fincorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    NewSouth Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Green Street Financial Corp.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Century South Banks, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Haywood Bancshares, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Uwharrie Capital Corp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Anson Bancorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Union Financial Bancshares, Incorporated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    South Carolina Community Bancshares, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CCB Financial Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Stone Street Bancorp, Inc.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table represents a comparison of the merger to the
    Precedent M&#038;A Transactions&#160;&#151; Carolinas
    transaction pricing ratios:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Tangible<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Tang.<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>LTM<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Premium/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Prem./<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Date<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reported<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Core<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Market<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Target</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Announced<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Earnings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deposits</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Great Pee Dee Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/12/07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    135
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    DutchFork Bancshares, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    04/12/04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.9
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Community Financial Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/05/01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57.8
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NA
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Innes Street Financial Corporation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/16/01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Century Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/20/00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.1
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Heritage Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    02/14/00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    105
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NA
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Piedmont Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12/28/99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    162
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    162
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Savings Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12/16/99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.1
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Carolina Fincorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10/18/99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    178
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    178
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.8
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Green Street Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    08/09/99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Haywood Bancshares, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    08/05/99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    122
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NM
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Anson Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    08/03/99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.7
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    South Carolina Community Bancshares, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/01/99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stone Street Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    04/14/99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    High
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    178
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    178
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59.7
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Median
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    122
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Low
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.9
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Coddle
    Creek<SUP style="font-size: 85%; vertical-align: text-top">(2)(3)</SUP></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>159</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>159</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>64.2x</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>11.6</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>119.0</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Thrift transactions since January&#160;1, 1999 with aggregate
    deal value less than $100&#160;million.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on First Community&#146;s closing price on July&#160;21,
    2008 of $31.34.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Coddle Creek seller financials are LTM or period ending
    June&#160;30, 2008.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, Howe Barnes reviewed a selected group of thrift
    merger transactions with the targets located in the United
    States. The transactions were announced since January&#160;1,
    2005 and had deal values from $10&#160;million to
    $50&#160;million, which is referred to as the Precedent M&#038;A
    Transactions&#160;&#151; Nationwide. The following table
    represents the Precedent M&#038;A Transactions&#160;&#151;
    Nationwide:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Acquiror</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Target</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    My Financial Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Sistersville Bancorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Bancorp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Great Pee Dee Bancorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    LaPorte Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    City Savings Financial Corp.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Guaranty Bancshares, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Homestead Bancorp, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Heartland Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    First Federal Bancshares, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Community Banks, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    BUCS Financial Corp.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sterling Banks, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Farnsworth Bancorp, Inc.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table represents a comparison of the merger to the
    Precedent M&#038;A Transactions&#160;&#151; Nationwide
    transaction pricing ratios:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Tangible<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Tangible<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>LTM<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Premium/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Date<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reported<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Core<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Target</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Announced<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Earnings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deposits</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sistersville Bancorp Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/17/07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    137
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    137
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44.3
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Great Pee Dee Bancorp Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/12/07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    135
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    City Savings Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    03/08/07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Homestead Bancorp Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/04/07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43.6
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Federal Bancshares Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11/03/06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48.9
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    BUCS Financial Corp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    09/05/06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    184
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    184
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.4
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Farnsworth Bancorp Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    06/23/06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    195
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    195
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64.6
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    High
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    195
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    195
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64.6
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Median
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    137
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44.3
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Low
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Coddle
    Creek<SUP style="font-size: 85%; vertical-align: text-top">(2)(3)</SUP></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>159</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>159</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>64.2x</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>11.6</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Thrift transactions in the U.S. announced since January&#160;1,
    2005 with deal values between $10&#160;million and
    $50&#160;million.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on First Community&#146;s closing price on July&#160;21,
    2008 of $31.34.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Coddle Creek seller financials are LTM or period ended
    June&#160;30, 2008.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Comparable Public Company Analysis.</I>&#160;&#160;Howe
    Barnes analyzed the market performance of several thrift
    indices, as identified by SNL Financial LC, for the three year
    period ending July&#160;21, 2008. Howe Barnes analyzed the
    trading performance of all publicly traded thrifts in the United
    States with assets less than $250&#160;million, all publicly
    traded thrifts in the United States with assets less than
    $500&#160;million, and the SNL Thrift Index. During this period,
    the index of thrifts with assets less than $250&#160;million
    decreased 24.2%, the index of thrifts with assets less than
    $500&#160;million decreased 21.2%, and the SNL Thrift Index
    decreased 47.4%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, Howe Barnes compared the July&#160;21, 2008 trading
    multiples of Coddle Creek to the median trading multiples for
    following selected groups of public thrifts, as defined by SNL
    Financial LC, which is referred to as the Nationwide Trading
    Medians:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Public thrifts headquartered in the United States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Public thrifts with assets of $100&#160;million to
    $350&#160;million;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Public thrifts with market capitalizations of $10&#160;million
    to $40&#160;million;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Public thrifts with returns on average assets of .25% to .75%;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Public thrifts with returns on average equity of 3% to 5%;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Public thrifts with tangible capital to tangible assets of 10%
    to 20%;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Public thrifts headquartered in the Southeast.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek&#146;s July&#160;21, 2008 trading multiples were
    compared to the Nationwide Trading Medians, as shown below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>LTM<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>MRQ<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Tang.<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reported<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reported<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Dividend<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Groups<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cos.</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Earnings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Earnings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Yield</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All Companies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.9
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assets $100&#160;million to $350&#160;million
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.6
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.7
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Market Cap $10&#160;million to $40&#160;million
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    119
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.6
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ROA .25% to .75%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    122
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.2
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ROE 3% to 5%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.4
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.6
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tangible Capital 10%&#160;&#151; 20%
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.8
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.4
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Southeast
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.9
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    High
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.8
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.4
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Median
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.2
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Low
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.6
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Coddle
    Creek<SUP style="font-size: 85%; vertical-align: text-top">(1)(2)</SUP></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>28.3x</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>127.8x</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>70</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>70</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>4.6</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Financial data as of June&#160;30, 2008 for Coddle Creek and
    March&#160;30, 2008 for peer groups.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Based on Coddle Creek&#146;s closing price of $21.90 on
    July&#160;21, 2008, as applicable.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Howe Barnes also compared historical operating, financial and
    trading performance for Coddle Creek to a select group of public
    thrifts headquartered in the United States (except Alaska,
    California, or Florida) with available public trading data and
    assets of $100&#160;million to $300&#160;million, which is
    referred to as the Peer Group. Each of the companies in the Peer
    Group had positive net income for the last twelve months and an
    ROAE of less than 6%. The Peer Group does not include mutual
    holding companies or thrifts that are the targets of announced
    mergers. Howe Barnes considered these companies to be reasonably
    similar in scope of operations for purposes of its analysis.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following tables represent the comparison of Coddle Creek to
    the Peer Group:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Closing<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>LTM<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Tangible<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>July&#160;21,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reported<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Book<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Dividend<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Change<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Change<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Company<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Earnings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Yield</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>YTD</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>3-Year</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    AMB Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NM
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (31.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Blue River Bancshares Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4.74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8.1
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Central Federal Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NM
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4.2
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (63.0
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CKF Bancorp Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.2
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NA
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6.0
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (27.0
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Community Investors Bancorp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NM
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18.8
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (37.9
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    DSA Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.8
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NA
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (36.4
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (51.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FFD Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.3
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12.2
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25.1
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Advantage Bancorp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NA
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NA
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Bancshares Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NM
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (17.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (24.3
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Niles Financial Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (38.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    GS Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.2
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Home City Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.2
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25.2
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (48.1
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Home Loan Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.1
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    107
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (29.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Louisiana Bancorp Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NA
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NA
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mayflower Bancorp Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18.3
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Midland Capital Holdings Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (22.2
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (48.8
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Monadnock Bancorp, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    NM
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3.2
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30.1
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    North Penn Bancorp Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35.5
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (17.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (19.0
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Northeast Indiana Bancorp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.4
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (17.3
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (41.1
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Osage Bancshares, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.8
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Peoples-Sidney Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Roebling Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.0
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15.2
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    South Street Financial Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.2
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50.6
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third Century Bancorp
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46.2
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (17.4
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (40.8
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Median
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.7
</TD>
<TD nowrap align="left" valign="bottom">
    x
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10.2
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30.5
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Coddle
    Creek<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>21.90</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>28.3x</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>70</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>4.6</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(7.6</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>(35.6</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>)%</B>
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Source: SNL Financial LC as of July&#160;21, 2008.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Financial data as of June&#160;30, 2008 for Coddle Creek and
    March&#160;30, 2008 for peers.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Peer<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Coddle
    Creek<SUP style="font-size: 85%; vertical-align: text-top">(1)(2)</SUP></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Group
    Medians<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Balance Sheet Ratios</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total Assets ($&#160;millions)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    158
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Loans / Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Borrowings / Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tangible Equity / Tangible Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Growth Rates (LTM)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Asset Growth Rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Loan Growth Rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Profitability Ratios</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest Rate Margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.24
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Non-interest Income / Average Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.15
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.39
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Non-interest Expense / Average Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.42
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.68
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Efficiency Ratio
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    ROAA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.31
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    ROAE
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Asset Quality</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    LLR / Loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.44
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.87
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    NPA&#146;s / Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.89
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.97
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Other</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Deposits / Branch ($&#160;millions)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Source: Coddle Creek; SNL Financial LC</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Performance for the last twelve months ended June&#160;30, 2008
    for Coddle Creek and March&#160;31, 2008 for peer group.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    All ratios calculated by Howe Barnes.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Discounted Dividend Analysis.</I>&#160;&#160;Howe Barnes
    estimated the value of a share of Coddle Creek common stock
    based on the value of the estimated dividend payments to Coddle
    Creek stockholders through December&#160;31, 2012 plus a
    terminal value assuming the share is sold at the end of 2012.
    Howe Barnes determined the reasonableness and achievability of
    the financial and operating projections based upon financial
    information provided by Coddle Creek, historical performance and
    other factors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Howe Barnes estimated the value of Coddle Creek on a per share
    basis by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Calculating a market value as of December&#160;31, 2012 by
    multiplying Coddle Creek&#146;s 2012 estimated net income by a
    range of selected terminal multiples ranging from 15x to 25x,
    based on the July&#160;21, 2008 price-to-last twelve month
    earnings multiples of:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    17.6x&#160;&#151; median of nationwide public thrifts with
    assets between $100 and $350&#160;million;
</DIV>



<DIV align="left" style="margin-left: 1%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    16.9x&#160;&#151; median of Southeast public thrifts;
</DIV>



<DIV align="left" style="margin-left: 1%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    23.7x&#160;&#151; Peer Group;
</DIV>



<DIV align="left" style="margin-left: 1%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    28.3x&#160;&#151; Coddle Creek;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Discounting the market value to the present value using a range
    of selected discount rates from 10.0% to 15.0%, based on typical
    thrift investor return expectations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on these assumptions, the implied per share value of
    Coddle Creek common stock ranged from $12.02 to $21.50. Howe
    Barnes informed the Coddle Creek board of directors that the
    present value analysis was considered because it is a widely
    used valuation methodology, but that the results of the
    methodology are not conclusive and are highly dependent upon the
    numerous assumptions that must be made, including discount
    rates, terminal multiples and management net income projections.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Accretion&#160;/&#160;Dilution Analysis.</I>&#160;&#160;On
    the basis of financial projections established by management,
    and estimates of on-going cost savings accruing to the combined
    companies, as well as estimated one-time costs related to the
    merger, Howe Barnes compared pro forma equivalent earnings per
    share, cash earnings per share, book value per share, tangible
    book value per share and cash dividends per share to the
    stand-alone projections of Coddle Creek and First Community. No
    assumptions were made regarding revenue enhancements following
    the completion of the transaction and assumes that
    28,591&#160;shares of Coddle Creek common stock are used to pay
    off the ESOP loan. The comparisons indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    127.5% accretion to earnings per share and 131.1% accretion to
    cash earnings per share for Coddle Creek stockholders in the
    first year of combined operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    0.4% accretion to earnings per share and 0.8% accretion to cash
    earnings per share for First Community stockholders in the first
    year of combined operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    43.6% dilution to book value per share and 63.7% dilution to
    tangible book value per share for Coddle Creek stockholders in
    the first year of combined operations;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    3.0% accretion to book value per share and 2.3% dilution to
    tangible book value per share for First Community stockholders
    in the first year of combined operations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The estimates of achievable cost savings and revenue synergies
    and the timing of the realization of such cost savings and
    revenue synergies are based on numerous estimates, assumptions,
    and judgments and are subject to significant uncertainties.
    Actual results may vary, and variations in amounts and timing
    may be material.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Contribution Analysis.</I>&#160;&#160;Howe Barnes compared
    the contribution of Coddle Creek to the combined companies
    relative to its approximate ownership of the combined companies.
    The analysis indicated that Coddle Creek&#146;s stockholders
    would own approximately 4.6% of the pro forma shares of First
    Community. Coddle Creek&#146;s approximate contributions are
    listed below by category:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="70%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Contribution%<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Coddle Creek</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>First Community</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ownership (shares)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tangible equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009&#160;net income&#160;&#151; without synergies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009&#160;net income&#160;&#151; with
    synergies<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009&#160;net income&#160;&#151; cash
    basis<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Note all balance sheet data is as of June&#160;30, 2008.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Assumes that 28,591&#160;shares of Coddle Creek common stock are
    used to pay off the ESOP loan.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Synergies allocated to target.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In performing its analyses, Howe Barnes made numerous
    assumptions with respect to industry performance, general
    business and economic conditions, and other matters, many of
    which are beyond Coddle Creek&#146;s or First Community&#146;s
    control. The analyses performed by Howe Barnes are not
    necessarily indicative of actual values or actual future
    results, which may be significantly more or less favorable than
    those suggested by those analyses. Howe Barnes drew from its
    past experience in similar transactions, as well as its
    experience in the valuation of securities and its general
    knowledge of the banking industry as a whole. Estimates of
    company valuations do not purport to be appraisals or to
    necessarily reflect the prices at which companies or their
    respective securities actually may be sold. Accordingly, those
    analyses and estimates are inherently subject to uncertainty,
    being based upon numerous factors or events beyond the control
    of the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    parties or their respective advisors, and Howe Barnes does not
    assume any responsibility if future results are materially
    different from those projected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described above, Howe Barnes&#146; opinion and presentation
    to Coddle Creek&#146;s board of directors were among the many
    factors taken into consideration by Coddle Creek&#146;s board of
    directors in making its determination to approve the merger, and
    to recommend that Coddle Creek stockholders approve the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek has agreed to pay Howe Barnes a percentage of the
    total consideration received by Coddle Creek and its
    stockholders for Howe Barnes&#146; financial advisory services
    rendered in connection with the proposed merger. Howe Barnes has
    received $100,000 to date, with the remainder of its fee payable
    at closing of the merger as a success fee. Coddle Creek&#146;s
    board of directors was aware of this fee structure and took it
    into account in considering Howe Barnes&#146; fairness opinion
    and in approving the merger. In addition, Coddle Creek has
    agreed to reimburse Howe Barnes for its reasonable expenses
    incurred by it on Coddle Creek&#146;s behalf, and to indemnify
    Howe Barnes against liabilities arising out of the merger,
    including the rendering of Howe Barnes&#146; fairness opinion.
    During the two years preceding the date of the opinion, Howe
    Barnes has not had a material relationship with Coddle Creek or
    First Community where compensation was received or that it
    contemplates will be received after closing of the merger.
</DIV>
<A name='122'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Merger
    Consideration</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon consummation of the merger, each outstanding share of
    Coddle Creek common stock (other than any dissenting shares)
    will be converted into the right to receive:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    $19.60 in cash;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    0.9046 of a share of common stock of First Community, plus cash
    in lieu of any fractional share interest.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No fractional shares of First Community common stock will be
    issued in connection with the merger. Instead, First Community
    will make a cash payment to each Coddle Creek stockholder who
    would otherwise receive a fractional share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As more fully described under &#147;&#151;&#160;Federal Income
    Tax Consequences&#148; commencing on page&#160;50, Coddle Creek
    stockholders generally will not recognize a gain or a loss as a
    result of receiving shares of First Community common stock.
    However, Coddle Creek stockholders will be taxed on the cash
    portion of the merger consideration received for their shares of
    Coddle Creek common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon consummation of the merger, any shares of Coddle Creek
    common stock that are held directly or indirectly by First
    Community, other than in a fiduciary capacity or in satisfaction
    of a debt previously contracted, will be canceled and retired
    and no payment will be made with respect to those shares.
</DIV>
<A name='123'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Procedures
    for Exchanging Coddle Creek Common Stock Certificates</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Promptly following the completion of the merger, the exchange
    agent will mail to each holder of record of shares of Coddle
    Creek common stock a letter of transmittal and instructions for
    surrendering certificates representing shares of Coddle Creek
    common stock in exchange for the merger consideration allocated
    to them. Upon surrender of a stock certificate of Coddle Creek
    common stock for exchange and cancellation to the exchange
    agent, together with a duly executed letter of transmittal, the
    holder of such certificate will be entitled to receive the
    merger consideration and the certificate for Coddle Creek common
    stock so surrendered will be canceled. No interest will be paid
    or accrued on any cash constituting merger consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek stockholders who surrender their stock certificates
    and complete the letter of transmittal, will receive the merger
    consideration as the result of the merger promptly following
    completion of the exchange agent&#146;s delivery procedures.
    Other stockholders will receive the merger consideration as soon
    as practicable after their stock certificates have been
    surrendered with appropriate documentation to the exchange agent
    or other steps have been taken to surrender the evidence of
    their stock interest in Coddle Creek in accordance with the
    instructions accompanying the letter of transmittal.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No stock certificates representing fractional shares of First
    Community common stock will be issued upon the surrender for
    exchange of Coddle Creek stock certificates. In lieu of the
    issuance of any such fractional shares, First Community will pay
    to each former stockholder of Coddle Creek who otherwise would
    be entitled to receive a fractional share of First Community
    common stock an amount in cash determined by multiplying the
    fraction of a share of First Community common stock which such
    holder would otherwise be entitled to receive pursuant to the
    merger agreement by the closing price per share of First
    Community common stock as reported on the Nasdaq Global Select
    Market on the last business day before the merger is completed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You will receive dividends on First Community common stock or
    other distributions, if any as so declared by the board of
    directors of First Community, declared after the completion of
    the merger only if you have surrendered your Coddle Creek stock
    certificates. Only then will you be entitled to receive all
    previously withheld dividends and distributions, without
    interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After completion of the merger, no transfers of Coddle Creek
    common stock issued and outstanding immediately prior to the
    completion of the merger will be allowed. Coddle Creek stock
    certificates that are presented for transfer after the
    completion of the merger will be canceled and exchanged for the
    appropriate merger consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community will only issue a First Community stock
    certificate in a name other than the name in which a surrendered
    Coddle Creek stock certificate is registered if you present the
    exchange agent with all documents required to show and effect
    the unrecorded transfer of ownership of the shares of Coddle
    Creek common stock formerly represented by such Coddle Creek
    stock certificate, and show that you paid any applicable stock
    transfer taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If your Coddle Creek stock certificate has been lost, stolen or
    destroyed, you may be required to deliver an affidavit and a
    lost certificate bond as a condition to receiving any First
    Community stock certificate to which you may be entitled.
</DIV>
<A name='124'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Payment
    and Termination of Coddle Creek Stock Options</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the effective time of the merger, each option to purchase
    shares of Coddle Creek common stock granted under Coddle
    Creek&#146;s stock option plan which is outstanding, vested and
    unexercised immediately prior thereto will be canceled in
    exchange for the right to receive a lump sum cash payment equal
    to the product of (1)&#160;the number of shares of Coddle Creek
    common stock subject to such holder&#146;s stock option and
    (2)&#160;the excess, if any, of (A)&#160;the sum of (i)&#160;the
    per share cash consideration of $19.60 and (ii)&#160;a dollar
    value determined by multiplying the average closing price by the
    exchange ratio of 0.9046, rounded to the nearest cent, and
    (B)&#160;the exercise price per share of such stock option. For
    purposes of the merger, First Community&#146;s &#147;average
    closing price&#148; will be the average of the closing sales
    price per share of First Community common stock as reported on
    the Nasdaq Global Select Market for the 20 consecutive trading
    days immediately preceding the fifth day immediately prior to
    the effective time of the merger (or if such calendar day is not
    a trading day on the Nasdaq, then the trading day immediately
    preceding such calendar day). As of September&#160;22, 2008,
    there were 62,331 Coddle Creek stock options issued and
    unexercised with exercise prices between $21.00 and $35.50 per
    share.
</DIV>
<A name='125'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conditions
    to the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Completion of the merger is subject to the satisfaction of
    certain conditions set forth in the merger agreement, or the
    waiver of such conditions by the party entitled to do so, at or
    before the closing date of the merger. Each of the parties&#146;
    obligations to consummate the merger is subject to the following
    conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the holders of a majority of the outstanding shares of Coddle
    Creek common stock must have approved the merger agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all regulatory approvals required to consummate the merger by
    any governmental authority must have been obtained and must
    remain in full force and effect, all statutory waiting periods
    in respect thereof must have expired, and no required approval
    may contain any condition, restriction or requirement
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    which First Community&#146;s board of directors reasonably
    determines in good faith would, individually or in the
    aggregate, materially reduce the benefits of the merger to such
    a degree that First Community, in its good faith judgment, would
    not have entered into the merger agreement had such conditions,
    restrictions or requirements been known as of the date of the
    merger agreement;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    no statute, rule, regulation, judgment, decree, injunction or
    other order may have been enacted, issued, promulgated, enforced
    or entered which prohibits, restricts or makes illegal the
    consummation of the merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the registration statement of First Community, of which this
    document is a part, must have become effective under the
    Securities Act and no stop order suspending the effectiveness of
    such registration statement shall have been issued and no
    proceedings for that purpose shall have been initiated by the
    Commission and not withdrawn;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the shares of First Community common stock to be issued in
    connection with the merger must have been approved for listing
    on the Nasdaq Global Select Market (or on any securities
    exchange on which the First Community common stock may then be
    listed);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each of First Community and Coddle Creek must have received an
    opinion of Patton Boggs LLP to the effect that the merger will
    constitute a reorganization within the meaning of
    Section&#160;368(a) of the Internal Revenue Code, which is
    referred to in this proxy statement/prospectus as the Code;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community Bank must have entered into a consulting
    agreement with each of George W. Brawley,&#160;Jr. and Billy R.
    Williams and the non-employee directors of Coddle Creek and
    Mooresville Savings Bank;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community and Mooresville Savings Bank must have entered
    into settlement agreements with each of George W.
    Brawley,&#160;Jr., Dale W. Brawley and Billy R. Williams, which
    agreements have been executed and delivered by the parties.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the foregoing conditions, the obligation of First
    Community to consummate the merger is subject to the following
    conditions, which may be waived by First Community:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the representations and warranties of Coddle Creek in the merger
    agreement must be true and correct as of the date of the merger
    agreement and as of the effective time of the merger, except as
    to any representation or warranty which specifically relates to
    an earlier date and except that the representations and
    warranties of Coddle Creek will be deemed true and correct
    unless the failure or failures of those representations and
    warranties to be true and correct has had or is reasonably
    likely to have a material adverse effect (as defined below) on
    Coddle Creek;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Coddle Creek must have performed in all material respects all
    obligations required to be performed by it at or prior to
    consummation of the merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community must have received a certificate from specified
    officers of Coddle Creek with respect to compliance with the
    foregoing conditions to the obligations of First Community;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    dissenting shares shall not represent 10% or more of the
    outstanding Coddle Creek common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Mooresville Savings Bank must have entered into an employment
    agreement with Dale W. Brawley;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community shall have received such certificates of Coddle
    Creek&#146;s officers or others and such other documents to
    evidence fulfillment of the conditions to its obligations as
    First Community may reasonably request.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the other conditions set forth above, the
    obligation of Coddle Creek to consummate the merger is subject
    to the following conditions, which may be waived by Coddle Creek:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the representations and warranties of First Community in the
    merger agreement must be true and correct as of the date of the
    merger agreement and as of the effective time of the merger,
    except as to
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    any representation or warranty which specifically relates to an
    earlier date and except that the representations and warranties
    of First Community will be deemed true and correct unless the
    failure or failures of those representations and warranties to
    be true and correct has had or is reasonably likely to have a
    material adverse effect (as defined below) on First Community;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First Community must have performed in all material respects all
    obligations required to be performed by it at or prior to
    consummation of the merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Coddle Creek must have received a certificate from specified
    officers of First Community with respect to compliance with the
    foregoing conditions to the obligations of Coddle Creek;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Coddle Creek shall have received such certificates of First
    Community&#146;s officers or others and such other documents to
    evidence fulfillment of the conditions to its obligations as
    Coddle Creek may reasonably request.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the merger agreement, a material adverse
    effect on either First Community or Coddle Creek is defined to
    mean any effect that (1)&#160;is material and adverse to the
    financial condition, results of operations or business of such
    entity and its subsidiaries taken as a whole or (2)&#160;would
    materially impair the ability of such entity and its
    subsidiaries to perform their respective obligations under the
    merger agreement or otherwise materially impede the consummation
    of the merger. However, under the terms of the merger agreement,
    none of the following would be deemed to constitute a material
    adverse effect on any entity:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in banking, savings institution, and similar laws of
    general applicability or interpretations of them by governmental
    authorities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in GAAP or regulatory accounting requirements applicable
    to banks, savings banks or their holding companies generally;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in general economic conditions affecting banks, savings
    banks and their holding companies generally;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with respect to Coddle Creek only, the effects of any action or
    omission taken with the prior consent of First Community or as
    otherwise contemplated by the merger agreement;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    provided that the effect of the changes described in the first
    three bullet points immediately above shall not be excluded as a
    material adverse effect to the extent of a materially
    disproportionate impact, if any, that they have on First
    Community and its subsidiaries as a whole on the one hand, or
    Coddle Creek and its subsidiaries as a whole on the other hand,
    as measured relative to similarly situated companies in the
    banking industry.
</DIV>
<A name='126'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Regulatory
    Approvals</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Consummation of the merger is subject to receipt of certain
    regulatory approvals and waivers. We are not aware of any other
    material governmental approvals or actions that are required
    prior to the parties&#146; completion of the merger other than
    those described below. We presently contemplate that if any
    additional governmental approvals or actions are required, these
    approvals or actions will be sought. However, we cannot assure
    you that any of these approvals or actions, including any
    additional approvals or actions required, will be obtained.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Federal Reserve Board.</I>&#160;&#160;Completion of the
    merger is subject to approval by the FRB pursuant to
    Section&#160;3 of the Bank Holding Company Act of 1956, as
    amended, or receipt from the FRB of a waiver of this approval.
    First Community applied for a waiver and on August&#160;26, 2008
    the FRB informed First Community that its waiver request was
    approved.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Office of Comptroller of the Currency.</I>&#160;&#160;The
    merger of Mooresville Savings Bank with and into First Community
    Bank is subject to prior approval by the OCC under the Bank
    Merger Act. This statute and the related regulations require the
    OCC to take into account (i)&#160;the effect of the merger on
    competition, (ii)&#160;the managerial and financial resources
    and future prospects of the resulting institution,
    (iii)&#160;the effect of the merger on the convenience and needs
    of the community served, (iv)&#160;the performance of
    Mooresville Savings Bank and First Community Bank in meeting the
    credit needs of the relevant communities, including low- and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    moderate- income neighborhoods, consistent with safe and sound
    banking practices, and (v)&#160;the effectiveness of Mooresville
    Savings Bank and First Community Bank in combating money
    laundering activities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bank Merger Act prohibits the OCC from approving a merger if
    the merger:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    would result in a monopoly or be in furtherance of any
    combination or conspiracy to monopolize or to attempt to
    monopolize the business of banking in any part of the United
    States;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    would substantially lessen competition or tend to create a
    monopoly in any section of the country, or would result in any
    other manner in a restraint in trade, unless the OCC finds that
    the anti-competitive effects of the merger are clearly
    outweighed by the probable effect of the transaction in meeting
    the convenience and needs of the communities to be served.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, under the Community Reinvestment Act of 1977, the
    OCC must take into account the record of performance of
    Mooresville Savings Bank and First Community Bank in meeting the
    credit needs of the communities served by these financial
    institutions, including low- and moderate-income neighborhoods.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger may not be completed until the 30th&#160;day or, with
    the consent of the relevant agencies, the 15th&#160;day,
    following the date of the OCC approval, during which period the
    United States Department of Justice may comment adversely on the
    merger or challenge the merger on antitrust grounds. The
    commencement of an anti-trust action would stay the
    effectiveness of any approval unless a court specifically orders
    otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>State Applications.</I>&#160;&#160;The merger is subject to
    the approval of the NC Commissioner. First Community must obtain
    the approval of the NC Commissioner of the merger by filing an
    application with the NC Commissioner. In addition, First
    Community is required to obtain the approval for the merger of
    the VA Bureau of Financial Institutions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Status of Applications, Notices and
    Waivers.</I>&#160;&#160;First Community, First Community Bank,
    Coddle Creek and Mooresville Savings Bank have filed all
    required applications, notices and waiver requests with
    applicable regulatory authorities in connection with the merger
    and the subsidiary merger. There can be no assurance that all
    requisite approvals and waivers will be obtained, that such
    approvals and waivers will be received on a timely basis or that
    such approvals and waivers will not impose conditions or
    requirements which, individually or in the aggregate, would so
    materially reduce the economic or business benefits of the
    transactions contemplated by the merger agreement to First
    Community that had such condition or requirement been known,
    First Community, in its reasonable judgment, would not have
    entered into the merger agreement. If any such condition or
    requirement is imposed, First Community may elect not to
    consummate the merger. See &#147;&#151;&#160;Conditions to the
    Merger&#148; beginning on page 35.
</DIV>
<A name='127'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Business
    Pending the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger agreement contains certain covenants of the parties
    regarding the conduct of their respective businesses pending
    consummation of the merger. These covenants, which are contained
    in Article&#160;IV of the merger agreement included as
    Appendix&#160;A hereto, are briefly described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pending consummation of the merger, Coddle Creek may not, and
    will cause each of its subsidiaries not to, among other things,
    take the following actions without the prior written consent of
    First Community:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    conduct its business other than in the ordinary and usual course
    consistent with past practice or fail to use reasonable best
    efforts to preserve its business organization, keep available
    the present services of its employees and preserve for itself
    and First Community the goodwill of the customers of Coddle
    Creek and its subsidiaries and others with whom business
    relations exist;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other than pursuant to stock options previously disclosed and
    outstanding on the date of the merger agreement, issue, sell or
    otherwise permit to become outstanding, or authorize the
    creation of, any additional shares of capital stock or rights to
    acquire stock, or permit any additional shares of stock to
    become subject to grants of employee or director stock options
    or other rights;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make, declare, pay or set aside for payment any dividend on or
    in respect of, or declare or make any distribution on any shares
    on its capital stock, other than the cash dividend of $0.25 per
    share of Coddle Creek common stock, which was paid to its
    stockholders on August&#160;19, 2008, and dividends from wholly
    owned subsidiaries to Coddle Creek or another wholly owned
    subsidiary of Coddle Creek, or directly or indirectly adjust,
    split, combine, redeem, reclassify, purchase or otherwise
    acquire any shares of its capital stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into or amend or renew any employment, consulting,
    severance, change in control, bonus, salary continuation or
    similar agreement or arrangement with any director, officer or
    employee of Coddle Creek or its subsidiaries or grant any salary
    or wage increase or increase any employee benefit, except for
    changes that are required by applicable law or contemplated by
    the merger agreement and the payment of the usual and customary
    accrued bonuses payable to employees of Coddle Creek or its
    subsidiaries as previously disclosed;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    hire any person as an employee of Coddle Creek or any of its
    subsidiaries or promote any employee, except (1)&#160;to satisfy
    contractual obligations existing as of the date of the merger
    agreement and previously disclosed, and (2)&#160;persons hired
    to fill a non-executive officer vacancy arising after the date
    of the merger agreement, provided that the person&#146;s
    employment is terminable at the will of Coddle Creek or a
    subsidiary of Coddle Creek, as applicable, and that the person
    is not subject to or eligible for any severance or similar
    benefits or payments that would become payable as a result of
    this transaction or its consummation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into, establish, adopt, amend, or terminate or make any
    contributions to (except as may be required by applicable law or
    to satisfy contractual obligations existing as of the date of
    the merger agreement and previously disclosed or to comply with
    the merger agreement), any employee benefit plan with respect to
    any director, officer, or employee of Coddle Creek or its
    subsidiaries, or take any action to accelerate the vesting or
    exercisability of stock options, restricted stock or other
    compensation or benefits payable thereunder;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    except for real estate that is sold in the ordinary course of
    business consistent with past practices or as previously
    disclosed, sell, transfer, mortgage, encumber or otherwise
    dispose of or discontinue any of its assets, deposits, business
    or properties without First Community&#146;s written consent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    acquire (other than by way of foreclosures or acquisitions of
    control in a bona fide fiduciary capacity or in satisfaction of
    debts previously contracted in good faith, in each case in the
    ordinary and usual course of business consistent with past
    practice), including without limitation, by merger or
    consolidation or by investment in a partnership or joint
    venture, all or any portion of the assets, business, securities
    (other than as permitted in the merger agreement), deposits or
    properties of any other entity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make any capital expenditures, other than capital expenditures
    in the ordinary course of business consistent with past practice
    not exceeding $5,000 individually or $25,000 in the aggregate;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    amend the Coddle Creek articles of incorporation, bylaws or the
    articles of incorporation (or equivalent documents) of any
    subsidiary of Coddle Creek or enter into a plan of
    consolidation, merger, share exchange, or reorganization with
    any person, or a letter of intent or agreement in principle with
    respect thereto;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    implement or adopt any change in its accounting principles,
    practices or methods other than as may be required by changes in
    laws or regulations or GAAP;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    except as otherwise permitted under the merger agreement, enter
    into, cancel, fail to renew, terminate any material contract or
    amend or modify in any material respect any of its existing
    material contracts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into any settlement or similar agreement with respect to
    any claims if the settlement, agreement, or action involves
    payment by Coddle Creek or any of its subsidiaries of an amount
    that exceeds $20,000
    <FONT style="white-space: nowrap">and/or</FONT> would
    impose any material restriction on the business of Coddle Creek
    or any of its subsidiaries or create precedent for claims that
    reasonably are likely to be material to Coddle Creek and its
    subsidiaries taken as a whole;
</TD>
</TR>

</TABLE>

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    <BR>
    39
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into any new material line of business; introduce any
    material new products or services; change its material banking
    and operating policies, except as required by applicable law,
    regulation or policy imposed by a governmental authority, or the
    manner in which its investment securities or loan portfolio is
    classified or reported; or invest in any mortgage-backed or
    mortgage-related security that would be considered &#147;high
    risk&#148; under applicable regulatory guidance; or file any
    application or enter into any contract with respect to the
    opening, relocation or closing of, or open, relocate or close,
    any branch, office, service center or other facility;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    introduce any material marketing campaigns or any material new
    sales compensation or incentive programs or arrangements (except
    if the material terms have been fully disclosed in writing to
    First Community prior to the date of the merger agreement);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into or settle any derivatives contracts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    incur any indebtedness for borrowed money (other than certain
    short-term borrowings) or assume, guarantee, endorse or
    otherwise as an accommodation become responsible for the
    obligations of any other person, other than with respect to the
    collection of checks and other negotiable instruments in the
    ordinary course of business consistent with past practice;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    acquire (other than by way of foreclosures or acquisitions in a
    bona fide fiduciary capacity or in satisfaction of debts
    previously contracted in good faith, in each case in the
    ordinary course of business consistent with past practice) any
    debt security or equity investment other than certain short-term
    investments, or dispose of any debt security or equity
    investment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make, renew, or otherwise modify any loan, loan commitment,
    letter of credit or other extension of credit, other than loans
    made or acquired in the ordinary course of business consistent
    with past practice that have (1)&#160;in the case of unsecured
    loans made to any one borrower that are originated in compliance
    with Coddle Creek&#146;s internal loan policies, a principal
    balance not in excess of $25,000, (2)&#160;in the case of loans
    secured other than by real estate that are originated in
    compliance with Coddle Creek&#146;s internal loan policies, a
    principal balance not in excess of $100,000, and (3)&#160;in the
    case of loans secured by real estate to any one borrower that
    are originated in compliance with Coddle Creek&#146;s internal
    loan policies, a principal balance not in excess of $300,000; or
    take any action that would result in any discretionary release
    of collateral or guarantees or otherwise restructure the
    respective amounts set forth in (1)&#160;through (3)&#160;above;
    or enter into any loan securitization or create any special
    purpose funding entity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make any investment or commitment to invest in real estate or in
    any real estate development project (other than by way of
    foreclosure or acquisitions in a bona fide fiduciary capacity or
    in satisfaction of a debt previously contracted in good faith,
    in each case in the ordinary course of business consistent with
    past practice);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make or change any material tax election, settle or compromise
    any material tax liability of Coddle Creek or any of its
    subsidiaries, agree to an extension or waiver of the statute of
    limitations with respect to the assessment or determination of a
    material amount of taxes of Coddle Creek or any of its
    subsidiaries, enter into any closing agreement with respect to
    any material amount of taxes, or surrender any right to claim a
    material tax refund, or adopt or change any method of accounting
    with respect to taxes, or file any amended tax return;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    take any action that would cause the merger agreement or the
    merger to be subject to the provisions of any state antitakeover
    law or state law that purports to limit or restrict business
    combinations or the ability to acquire or vote shares, or to
    exempt or make not subject to the provisions of any state
    antitakeover law or state law that purports to limit or restrict
    business combinations or the ability to acquire or vote shares,
    any person (other than First Community or its subsidiaries) or
    any action taken thereby, if that person or action would
    otherwise have been subject to the restrictive provisions of
    that law and not exempt under that law;
</TD>
</TR>

</TABLE>

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    <BR>
    40
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    take any action that would or is reasonably likely to prevent or
    impede the merger from qualifying as a reorganization under the
    Code or take any action that is intended or is reasonably likely
    to result in (1)&#160;any of the representations and warranties
    of Coddle Creek set forth in the merger agreement being or
    becoming untrue in any material respect at or prior to the
    effective time of the merger, (2)&#160;any of the conditions to
    the merger set forth in the merger agreement not being satisfied
    or (3)&#160;a material violation of any provision of the merger
    agreement, except in each case as may be required by applicable
    law and regulation;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into any contract with respect to, or otherwise agree or
    commit to do, any of the foregoing.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger agreement also provides that pending consummation of
    the merger, First Community may not, and will cause each of its
    subsidiaries not to, take the following actions without the
    prior written consent of Coddle Creek:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    take any action that would prevent or impede the merger from
    qualifying as a reorganization under the Code or take any action
    that is intended or is reasonably likely to result in
    (1)&#160;any of the representations and warranties of First
    Community set forth in the merger agreement being or becoming
    untrue in any material respect at or prior to the effective time
    of the merger, (2)&#160;any of the conditions to the merger set
    forth in the merger agreement not being satisfied or (3)&#160;a
    material violation of any provision of the merger agreement,
    except in each case as may be required by applicable law and
    regulation;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into any contract with respect to, or otherwise agree or
    commit to do, any of the foregoing.
</TD>
</TR>

</TABLE>
<A name='128'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board of
    Directors&#146; Covenant to Recommend the Merger
    Agreement</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the merger agreement and except as set forth below,
    the Coddle Creek board of directors is required to recommend
    that Coddle Creek stockholders approve the merger agreement at
    all times prior to and during the special meeting of Coddle
    Creek stockholders at which the merger agreement is to be
    considered and will take all reasonable lawful actions to
    solicit approval of the merger agreement by its stockholders.
    The Coddle Creek board of directors shall not withdraw, modify
    or qualify in any manner adverse to First Community such
    recommendation or take any other action or make any other public
    statement in connection with the meeting of its stockholders
    inconsistent with such recommendation, except as set forth
    below. Notwithstanding any change in the Coddle Creek board of
    directors&#146; recommendation, the merger agreement shall be
    submitted to the stockholders of Coddle Creek at the special
    meeting of Coddle Creek stockholders for the purpose of
    approving the merger agreement and any other matters required to
    be approved by Coddle Creek&#146;s stockholders for consummation
    of the transaction. Coddle Creek shall not submit to the vote of
    its stockholders any acquisition proposal other than the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the recommendation requirements discussed above,
    the Coddle Creek board of directors shall be permitted to effect
    a change in recommendation if Coddle Creek has complied with the
    merger agreement and the Coddle Creek board of directors, based
    on the advice of its outside counsel, has determined in good
    faith that failure to do so would result in a violation of its
    fiduciary duties under applicable law. If the Coddle Creek board
    of directors intends to effect a change in recommendation
    following an acquisition proposal (as defined in
    &#147;&#151;&#160;No Solicitation&#148; below) it shall have
    concluded in good faith, after giving effect to all of the
    adjustment that may be offered by First Community, that another
    acquisition proposal constitutes a superior proposal (as defined
    in &#147;&#151;&#160;No Solicitation&#148; below). Coddle Creek
    also shall notify First Community at least five business days in
    advance of its intention to effect a change in recommendation in
    response to the superior proposal, including the identity of the
    party making the acquisition proposal, and furnish to First
    Community a detailed summary of all material terms of the
    superior proposal and all other material documents. Prior to
    effecting the change in recommendation, Coddle Creek shall, and
    shall cause its financial and legal advisors to, during the
    period following its delivery of the required notice, negotiate
    in good faith with First Community for a period of up to five
    business days to the extent First Community desires to negotiate
    to make the adjustments in the terms and conditions of the
    merger agreement so that the other acquisition proposal ceases
    to constitute a superior proposal.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='129'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">No
    Solicitation</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger agreement provides that Coddle Creek will and will
    direct and use its reasonable best efforts to cause its
    affiliates, directors, officers, employees, agents and
    representatives, including, without limitation, any investment
    banker, financial advisor, attorney, accountant, or other
    representative retained by it, to immediately cease any
    discussions or negotiations with any other parties that may be
    ongoing with respect to the possibility or consideration of any
    acquisition proposal and will use its reasonable best efforts to
    enforce any confidentiality or similar agreement relating to any
    acquisition proposal, including by requesting the other party to
    promptly return or destroy any confidential information
    previously furnished by or on behalf of Coddle Creek and by
    specifically enforcing the terms in a court of competent
    jurisdiction. For purposes of the merger agreement,
    &#147;acquisition proposal&#148; is defined to mean any inquiry,
    proposal or offer, filing of any regulatory application or
    notice, whether in draft or final form, or disclosure of an
    intention to do any of the foregoing from any person relating to
    any (1)&#160;direct or indirect acquisition or purchase of a
    business that constitutes 10% or more of the total revenues, net
    income, assets, or deposits of Coddle Creek and its subsidiaries
    taken as a whole; (2)&#160;direct or indirect acquisition or
    purchase of any class of equity securities representing 10% or
    more of the voting power of Coddle Creek or any of its
    subsidiaries; (3)&#160;tender offer or exchange offer that if
    consummated would result in any person beneficially owing 10% or
    more of any class of equity securities of Coddle Creek; or
    (4)&#160;merger, consolidation, business combination,
    recapitalization, liquidation, dissolution or similar
    transaction involving Coddle Creek or any of its subsidiaries,
    other than the transactions contemplated by the merger agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    From the date of the merger agreement through the effective
    time, Coddle Creek will not and will cause its directors,
    officers or employees, and those of any Coddle Creek subsidiary,
    or any other representative retained by it or any subsidiary,
    not to, directly or indirectly through another person
    (1)&#160;solicit, initiate, or encourage, including by way of
    furnishing information or assistance, or take any other action
    designed to facilitate or that is likely to result in, any
    inquiries or the making of any proposal or offer that
    constitutes, or is reasonably likely to lead to, any acquisition
    proposal, (2)&#160;provide any confidential information or data
    to any person relating to any acquisition proposal,
    (3)&#160;participate in any discussions or negotiations
    regarding any acquisition proposal, (4)&#160;waive, terminate,
    modify, or fail to enforce any provision of any contractual
    &#147;standstill&#148; or similar obligations of any person
    other than First Community or its affiliates, (5)&#160;approve
    or recommend, propose to approve or recommend, or execute or
    enter into, any letter of intent, agreement in principle, merger
    agreement, asset purchase agreement or share exchange agreement,
    option agreement or similar agreement related to any acquisition
    proposal or propose to take any of these actions, or
    (6)&#160;make or authorize any statement, recommendation, or
    solicitation in support of any acquisition proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    However, prior to the date of the meeting of the Coddle Creek
    stockholders, if the Coddle Creek board of directors determines
    in good faith, after consulting with its outside legal and
    financial advisors, that the failure to do so would breach, or
    would reasonably be expected to result in a breach of, its
    fiduciary duties under applicable law, Coddle Creek may, in
    response to a bona fide, written acquisition proposal not
    solicited in violation of the merger agreement, that the Coddle
    Creek board of directors determines in good faith constitutes a
    superior proposal, subject to providing 48&#160;hours prior
    written notice of its decision to take such action to First
    Community and identifying the person making the proposal and all
    the material terms and conditions of the proposal and compliance
    with the merger agreement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    furnish information with respect to itself and its subsidiaries
    to any person making the superior proposal pursuant to a
    customary confidentiality agreement, as determined by Coddle
    Creek after consultation with its outside counsel, on terms no
    more favorable to the person than the terms contained in the
    confidentiality agreement, dated April&#160;25, 2008, between
    First Community and Howe Barnes on behalf of Coddle Creek, are
    to First Community;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    participate in discussions or negotiations regarding the
    superior proposal.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of the merger agreement, &#147;superior
    proposal&#148; is defined to mean any bona fide written proposal
    made by a third party to acquire, directly or indirectly,
    including pursuant to a tender offer, exchange offer, merger,
    consolidation, business combination, recapitalization,
    liquidation, dissolution or similar transaction, for
    consideration consisting of cash
    <FONT style="white-space: nowrap">and/or</FONT>
    securities, more than 50% of the combined voting power of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    42
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the shares of Coddle Creek common stock then outstanding or all
    or substantially all of Coddle Creek&#146;s consolidated assets,
    that the Coddle Creek board of directors determines in good
    faith, after taking into account all legal, financial,
    regulatory, and other aspects of the proposal and the person
    making the proposal, including any
    <FONT style="white-space: nowrap">break-up</FONT>
    fees, expense reimbursement provisions, and conditions to
    consummation, and after taking into account the advice of Coddle
    Creek&#146;s financial advisor, which will be a nationally
    recognized investment banking firm, and outside counsel,
    (1)&#160;is more favorable from a financial point of view to its
    stockholders than the merger, (2)&#160;is reasonably likely to
    be consummated on a the terms set forth, and (3)&#160;for which
    financing, to the extent required, is then committed or which,
    in the good faith judgment of the Coddle Creek board of
    directors, is reasonably likely to be obtained by the third
    party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to these obligations, Coddle Creek will promptly,
    within 48&#160;hours, advise First Community orally and in
    writing of its receipt of any acquisition proposal, or any
    inquiry that could reasonably lead to an acquisition proposal,
    and keep First Community informed, on a current basis, of the
    continuing status of the inquiry, including the terms and
    conditions of the inquiry and any changes to the inquiry, and
    will contemporaneously provide to First Community all materials
    provided to or made available to any third party pursuant to the
    merger agreement that were not previously provided to First
    Community.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek has agreed that any violations of the restrictions
    set forth in the merger agreement by any representative of
    Coddle Creek or its subsidiaries will be deemed a breach of the
    merger agreement by Coddle Creek.
</DIV>
<A name='130'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Representations
    and Warranties of the Parties</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the merger agreement, First Community and Coddle
    Creek made certain customary representations and warranties
    relating to their respective companies, subsidiaries, businesses
    and matters related to the merger. For detailed information
    concerning these representations and warranties, reference is
    made to Article&#160;V of the merger agreement included as
    Appendix&#160;A hereto. Such representations and warranties
    generally must remain accurate through the completion of the
    merger unless the fact or facts that caused a breach of a
    representation and warranty has not had or is not reasonably
    likely to have a material adverse effect on the party making the
    representation and warranty. See &#147;&#151;&#160;Conditions to
    the Merger&#148; beginning on page 35.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger agreement contains representations and warranties
    that First Community and Coddle Creek made to and solely for the
    benefit of each other. These representations and warranties are
    subject to materiality standards which may differ from what may
    be viewed as material by investors and stockholders, and, in
    certain cases, were used for the purpose of allocating risk
    among the parties rather than establishing matters as facts. The
    assertions embodied in those representations and warranties also
    are qualified by information in confidential disclosure
    schedules that the parties have exchanged in connection with
    signing the merger agreement. First Community&#146;s disclosure
    schedules contain information that has been included in First
    Community&#146;s general prior public disclosures, as well as
    potential additional non-public information. Although neither
    First Community nor Coddle Creek believes that the disclosure
    schedules contain information that the federal securities laws
    require to be publicly disclosed, the disclosure schedules do
    contain information that modifies, qualifies and creates
    exceptions to the representations and warranties set forth in
    the attached merger agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accordingly, you should not rely on the representations and
    warranties as characterizations of the actual state of facts,
    since they were only made as of the date of the merger agreement
    and are modified in important part by the underlying disclosure
    schedules. Moreover, information concerning the subject matter
    of the representations and warranties may have changed since the
    date of the merger agreement, which, in the case of First
    Community, subsequent information may or may not be fully
    reflected in First Community&#146;s public disclosures.
</DIV>
<A name='131'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Effective
    Time of the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger will become effective upon the filing of articles of
    merger with the Secretary of State of the State of North
    Carolina pursuant to the NCBCA and the Secretary of State of the
    State of Nevada pursuant to
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    43
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the NRS, unless a different date and time is specified as the
    effective time in such documents. The articles of merger will be
    filed only after the satisfaction or waiver of all conditions to
    the merger set forth in the merger agreement on a date selected
    by First Community, which date will be no later than the later
    of (A)&#160;five business days after such satisfaction or waiver
    or (B)&#160;the first month end following such satisfaction or
    waiver, or on such other date as First Community and Coddle
    Creek may mutually agree upon.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A closing will take place immediately prior to the effective
    time of the merger or on such other date as First Community and
    Coddle Creek may mutually agree upon.
</DIV>
<A name='132'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Waiver
    and Amendment of the Merger Agreement</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the effective time of the merger, any provision of the
    merger agreement may be (A)&#160;waived by the party benefited
    by its provision or (B)&#160;amended or modified at any time by
    written agreement of the parties whether before or after the
    approval of the stockholders of Coddle Creek, except that after
    the stockholders of Coddle Creek have approved the merger
    agreement no amendment or modification which by law requires
    further approval by the stockholders of Coddle Creek may be made
    without obtaining such approval.
</DIV>
<A name='133'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Termination
    of the Merger Agreement</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger agreement may be terminated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by the mutual written consent of the parties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the terminating party is not in material breach of any
    representation, warranty, covenant, or agreement contained in
    the merger agreement, by either First Community or Coddle Creek
    in the event of a breach by the other party of any
    representation, warranty, covenant, or agreement contained in
    the merger agreement that (1)&#160;cannot be or has not been
    cured within 30&#160;days of the giving of written notice to the
    breaching party and (2)&#160;would entitle the non-breaching
    party not to consummate the merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by either First Community or Coddle Creek in the event that the
    merger is not consummated by February&#160;27, 2009, except to
    the extent that the failure to consummate the merger by
    February&#160;27, 2009 is due to (1)&#160;the failure of the
    party seeking to terminate to perform or observe its covenants
    and agreements set forth in the merger agreement, or
    (2)&#160;the failure of any of the stockholders (if Coddle Creek
    is the party seeking to terminate) to perform or observe their
    respective covenants under the relevant shareholder agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by either party in the event the approval of any governmental
    authority required for consummation of the merger and the other
    transactions contemplated by the merger agreement has been
    denied by final non appealable action of the governmental
    authority or an application for approval has been permanently
    withdrawn at the request of a governmental authority, provided
    that no party has the right to terminate the merger agreement if
    the denial is due to the failure of the party seeking to
    terminate the merger agreement to perform or observe its
    covenants;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by either First Community or Coddle Creek if approval of the
    merger agreement by Coddle Creek stockholders has not been
    obtained by reason of the failure to obtain the required vote at
    the Coddle Creek stockholder&#146;s meeting or any adjournment
    thereof;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by First Community, if Coddle Creek materially breaches the
    covenants described under &#147;&#151;&#160;No
    Solicitation&#148; on page 42, in any respect adverse to First
    Community, the Coddle Creek board of directors fails to
    recommend that the stockholders of Coddle Creek approve the
    merger agreement or withdraws, modifies or changes its
    recommendation in a manner that is adverse to First Community,
    or Coddle Creek materially breaches its covenants requiring the
    calling and holding of a meeting of stockholders in accordance
    with the merger agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by First Community if a third party commences a tender offer or
    exchange offer for 15% or more of the outstanding Coddle Creek
    common stock and the board of directors of Coddle Creek
    recommends
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    44
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    that Coddle Creek stockholders tender their shares in the offer
    or otherwise fails to recommend that they reject the offer
    within a specified period;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    by Coddle Creek at any time during the
    <FONT style="white-space: nowrap">two-day</FONT>
    period following the fifth calendar day prior to the effective
    time of the merger (or if the applicable day is not a trading
    day on the Nasdaq Global Select Market, then the trading day
    immediately preceding that day), if the average closing price of
    the First Community common stock is less than $22.75. If Coddle
    Creek elects to exercise its termination right pursuant to this
    provision, it shall give prompt written notice to First
    Community; provided that the notice of election to terminate may
    be withdrawn at any time within the aforementioned
    <FONT style="white-space: nowrap">two-day</FONT>
    period. During the period commencing with its receipt of such
    notice and ending at the effective time of the merger, First
    Community shall have the option of increasing the exchange ratio
    to equal a number equal to a quotient (rounded to the nearest
    one one-thousandth), the numerator of which is the product of
    $22.75 and the exchange ratio (as then in effect) and the
    denominator of which is the average closing price of First
    Community&#146;s common stock. If First Community makes the
    foregoing election within the requisite period, it shall give
    prompt written notice to Coddle Creek of this election and the
    revised exchange ratio, whereupon no termination will have
    occurred pursuant to the merger agreement and the merger
    agreement will remain in effect in accordance with its terms
    (except as the exchange ratio will have been so modified).
</TD>
</TR>

</TABLE>
<A name='134'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Termination
    Fee</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger agreement provides that Coddle Creek must pay First
    Community a $1.0&#160;million termination fee under the
    circumstances and in the manner described below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the merger agreement is terminated by First Community for any
    of the reasons described in the sixth or seventh bullet points
    under &#147;&#151;&#160;Termination of the Merger
    Agreement&#148; on pages&#160;44 and 45, Coddle Creek must pay
    the termination fee to First Community on the second business
    day following the termination of the merger agreement;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    if the merger agreement is terminated by (A)&#160;First
    Community pursuant to the second bullet point under
    &#147;&#151;&#160;Termination of the Merger Agreement&#148; on
    page&#160;44, (B)&#160;by either First Community or Coddle Creek
    pursuant to the third bullet point under
    &#147;&#151;&#160;Termination of the Merger Agreement&#148; on
    page&#160;44 and at the time of the termination no vote of the
    Coddle Creek stockholders contemplated by the merger agreement
    at the Coddle Creek special meeting shall have occurred, or
    (C)&#160;by either First Community or Coddle Creek pursuant to
    the fifth bullet point under &#147;&#151;&#160;Termination of
    the Merger Agreement&#148; on page&#160;44, and in the case of
    any termination referenced in clause (A), (B)&#160;or (C), an
    &#147;acquisition proposal&#148; (as defined under
    &#147;&#151;&#160;No Solicitation&#148; on page&#160;42) shall
    have been publicly announced or otherwise communicated or made
    known to the senior management of Coddle Creek or the board of
    directors of Coddle Creek (or any person shall have publicly
    announced, communicated or made known an intention, whether or
    not conditional, to make an acquisition proposal, or reiterated
    a previously expressed plan or intention to make an acquisition
    proposal) at any time after the date of the merger agreement and
    prior to the time that stockholders of Coddle Creek vote on the
    merger agreement (in the case of clause (C)) or the date of
    termination of the merger agreement (in the case of
    clause&#160;(A) or (B)) then (y)&#160;if within 12&#160;months
    after the termination, Coddle Creek or a Coddle Creek subsidiary
    enters into an agreement with respect to a &#147;control
    transaction,&#148; then Coddle Creek shall pay to First
    Community an amount equal to $1.0&#160;million on the date of
    execution of such agreement and (z)&#160;if a control
    transaction is consummated otherwise than pursuant to an
    agreement with Coddle Creek within 15&#160;months after such
    termination, then Coddle Creek shall pay to First Community the
    termination fee on the date of such consummation of such control
    transaction. A &#147;control transaction&#148; is defined in the
    merger agreement as (i)&#160;the acquisition by any person
    whether by purchase, merger, consolidation, sale, transfer, or
    otherwise, in one transaction or any series of transactions, of
    a majority of the voting power of the outstanding securities of
    Coddle Creek or Mooresville Savings Bank or a majority of the
    assets of Coddle Creek or Mooresville Savings Bank,
    (ii)&#160;any issuance of securities resulting in the ownership
    by any person of more than 50% of the voting power of Coddle
    Creek or by any person other than Coddle Creek or its
    subsidiaries of more than 50% of the voting power of
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    45
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Mooresville Savings Bank, or (iii)&#160;any merger,
    consolidation, or other business combination transaction
    involving Coddle Creek or any of its subsidiaries as a result of
    which the stockholders of Coddle Creek cease to own, in the
    aggregate, at least 50% of the total voting power of the entity
    surviving or resulting from such transaction.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any termination fee that becomes payable pursuant to the merger
    agreement shall be paid by wire transfer of immediately
    available funds to an account designated by First Community.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Coddle Creek fails to timely pay the termination fee to First
    Community, Coddle Creek will be obligated to pay the costs and
    expenses incurred by First Community to collect such payment,
    together with interest.
</DIV>
<A name='135'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Interests
    of Certain Persons in the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When you are considering the recommendation of Coddle
    Creek&#146;s board of directors with respect to approving the
    merger agreement, you should be aware that Coddle Creek&#146;s
    directors and executive officers have interests in the merger as
    individuals which are in addition to, or different from, their
    interests as stockholders of Coddle Creek. The Coddle Creek
    board of directors was aware of these factors and considered
    them, among other matters, in approving the merger agreement and
    the merger. These interests are described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Stock Options.</I>&#160;&#160;At the effective time of the
    merger, each option to purchase shares of Coddle Creek common
    stock granted under Coddle Creek&#146;s stock option plans which
    is outstanding, vested and unexercised immediately prior thereto
    will be canceled in exchange for the right to receive a lump sum
    cash payment equal to the product of (1)&#160;the number of
    shares of Coddle Creek common stock subject to the stock option
    and (2)&#160;the excess, if any, of (A)&#160;the sum of
    (i)&#160;the per share cash consideration of $19.60 and
    (ii)&#160;a dollar value determined by multiplying the average
    closing price of First Community&#146;s common stock by the
    exchange ratio of 0.9046, rounded to the nearest cent, over
    (B)&#160;the exercise price per share of such stock option.
    First Community&#146;s &#147;average closing price&#148; will be
    the average of the closing sales price per share of First
    Community common stock on the Nasdaq Global Select Market for
    the 20 consecutive trading days immediately preceding the fifth
    day immediately prior to the effective time of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the date of this proxy statement/prospectus, the directors
    and executive officers of Coddle Creek as a group
    (8&#160;persons) held options to purchase an aggregate of
    62,331&#160;shares of Coddle Creek common stock, including
    options to purchase 16,862&#160;shares, 16,862&#160;shares and
    6,745&#160;shares held by George W. Brawley,&#160;Jr., Dale W.
    Brawley, and Billy R. Williams, respectively, which have an
    exercise price of $31.00 per share. The aggregate amount to be
    paid to all directors and executive officers of Coddle Creek for
    stock options held by them is approximately $1,132,518 using an
    assumed &#147;average closing price&#148; of $32.46&#160;per
    share. The foregoing assumed &#147;average closing price&#148;
    represents the average of the closing sales price per share of
    First Community common stock on the Nasdaq Global Select Market
    for the 20 consecutive trading days immediately preceding the
    fifth day immediately prior to the date of this proxy
    statement/prospectus. The actual &#147;average closing
    price&#148; and therefore the aggregate amount of cash to be
    received by the directors and executive officers of Coddle Creek
    for stock options held by them will not be known until the
    effective time of the merger. As a result, the actual cash
    amount to be received by the directors and executive officers at
    the effective time of the merger may increase or decrease from
    the above approximated amount depending on the closing sales
    price of First Community&#146;s common stock during the 20
    consecutive trading days immediately preceding the fifth day
    immediately prior to the effective time of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Settlement Agreements.</I>&#160;&#160;Mooresville Savings
    Bank is a party to employment agreements with each of George W.
    Brawley,&#160;Jr., Dale W. Brawley, and Billy R. Williams. Each
    of these employment agreements provides that upon a change of
    control of Mooresville Savings Bank each of the three
    officers&#146; base salaries will be increased to include the
    average of the two previous years&#146; discretionary bonuses,
    if any, and such adjusted base salary shall be increased
    annually thereafter by not less than 6% for the remainder of the
    term, which is automatically extended for three years. As a
    condition to the consummation of the merger and in lieu of
    receiving any benefits under their respective employment
    agreements, each of Messrs.&#160;G. Brawley, D. Brawley and
    Williams entered into a settlement agreement with First
    Community and Mooresville Savings
</DIV>

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    <BR>
    46
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Bank which provides that the current employment agreement
    between the officer and Mooresville Savings Bank will be
    terminated at the effective time of the merger and the officer
    will be entitled to receive a lump-sum payment in settlement of
    any benefits due to the executive as a result of the merger
    under his currently existing employment agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of their respective settlement agreements,
    George Brawley will be entitled to receive $834,352, Dale
    Brawley will be entitled to receive $469,223, and Billy Williams
    will be entitled to receive $332,387. The foregoing payments to
    be made to each officer will not exceed 2.99 times each
    officer&#146;s &#147;base amount&#148; as defined in
    Section&#160;280G(b)(3) of the Code. The date on which the
    foregoing amounts are to be paid to the respective officer will
    be the earliest day (as determined by the officer) that the
    officer can receive the payment without the payment resulting in
    additional tax or interest to the officer because of
    Section&#160;409A of the Code or applicable regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Employment Agreement.</I>&#160;&#160;As a condition to the
    closing of the merger, Mooresville Savings Bank intends to enter
    into an employment agreement with Dale W. Brawley pursuant to
    which Mr.&#160;Brawley will continue as an employee of
    Mooresville Savings Bank (or First Community Bank following the
    merger).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the employment agreement, Mr.&#160;Brawley will
    serve as a Vice President of Mooresville Savings Bank (or First
    Community Bank following the merger), will be paid an annual
    salary of $75,000 and will be provided the use of an automobile
    during the term of the agreement. In addition, at the closing of
    the merger, Mr.&#160;Brawley will be entitled to receive a
    payment of $100,000 in consideration for the two-year
    non-compete and non-solicitation restrictions set forth in his
    employment agreement. The employment agreement will become
    effective at the closing of the merger and have a term that will
    end on the later of December&#160;31, 2010 or two years and one
    month following the closing of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the employment agreement, if the payments and
    benefits owed to Mr.&#160;Brawley as the result of the
    termination of Mr.&#160;Brawley&#146;s employment, either alone
    or together with other payments due to Mr.&#160;Brawley under
    his settlement agreement, would constitute a &#147;parachute
    payment&#148; under Section&#160;280G of the Code, the payments
    and benefits payable to Mr.&#160;Brawley will be recalculated as
    follows. In the event that (A)&#160;Mr.&#160;Brawley terminates
    his employment for any reason other than termination due to a
    material breach of the payment terms of the employment
    agreement, or (B)&#160;the Internal Revenue Service, which is
    referred to in this proxy statement/prospectus as the IRS,
    determines that the payments and benefits payable to
    Mr.&#160;Brawley would constitute an &#147;excess parachute
    payment&#148; under Section&#160;280G of the Code, then the
    payments and benefits payable to Mr.&#160;Brawley will be
    reduced, in the manner determined by Mr.&#160;Brawley, by the
    amount, if any, which is the minimum necessary such that no
    portion of the payments and benefits payable to Mr.&#160;Brawley
    are non-deductible to Mooresville Savings Bank (or First
    Community Bank following the bank merger) pursuant to
    Section&#160;280G of the Code and none of the benefits are
    subject to the excise tax imposed under Section&#160;4999 of the
    Code. In the event Mr.&#160;Brawley&#146;s employment is
    terminated without cause, or if Mr.&#160;Brawley terminates his
    employment due to a material breach of the payment terms of the
    agreement, and any payments
    <FONT style="white-space: nowrap">and/or</FONT>
    benefits due to Mr.&#160;Brawley under the agreement and any
    other arrangement concerning Mr.&#160;Brawley would be subject
    to the excise tax under Section&#160;280G and Section&#160;4999
    of the Code, then Mooresville Savings Bank (or First Community
    Bank following the merger) will pay to Mr.&#160;Brawley a
    <FONT style="white-space: nowrap">&#147;gross-up</FONT>
    payment&#148;, consisting of (x)&#160;a payment equal to the
    excise tax payable by Mr.&#160;Brawley under Section&#160;4999
    of the Code on the total benefits and (y)&#160;a payment equal
    to the amount necessary to provide the excise tax payment net of
    all income, payroll, and excise taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Consulting Agreements.</I>&#160;&#160;As a condition to the
    closing of the merger, First Community Bank intends to enter
    into consulting agreements with George W. Brawley,&#160;Jr.,
    Billy R. Williams and each non-employee director of Coddle Creek
    and Mooresville Savings Bank.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of Mr.&#160;Brawley&#146;s consulting
    agreement, he will receive a one-time payment of $50,000 in
    consideration for his services under the agreement and in
    consideration for the two-year non-compete and non-solicitation
    restrictions set forth in his consulting agreement. In addition,
    under the terms of the consulting agreement and as additional
    consideration for the two-year non-compete and non-solicitation
    restrictions, Mr.&#160;Brawley will receive $6,000 for the
    relocation of the Mooresville Insurance Agency and the use of an
    automobile during the term of the consulting agreement, which is
    two years.
</DIV>

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    <BR>
    47
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of Mr.&#160;Williams&#146; consulting
    agreement, he will receive monthly payments equal to
    approximately $90,000 in the aggregate over the two-year term of
    his consulting agreement. In addition, First Community Bank will
    pay for the medical insurance premiums for Mr.&#160;Williams and
    his spouse for a period of three years and will provide the use
    of an automobile during the term of the agreement.
    Mr.&#160;Williams&#146; consulting agreement also contains a
    one-year non-compete restriction and a two-year non-solicitation
    restriction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the consulting agreements to be entered into
    with each non-employee director of Coddle Creek and Mooresville
    Savings Bank, each non-employee director will receive $500 per
    month (or $6,000 in the aggregate) during the one-year term of
    their consulting agreements. Each non-employee director&#146;s
    consulting agreement contains a two-year non-compete and
    non-solicitation restrictions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Deferred Compensation Plans.</I>&#160;&#160;Under certain
    deferred compensation plans maintained by Coddle Creek, if a
    Coddle Creek executive officer or a director who participates in
    the deferred compensation plan is terminated within
    24&#160;months following the merger, the starting date for
    payments due to the executive officer or director under the plan
    will be accelerated to begin on the date of termination rather
    than the date of retirement, which currently is age&#160;65. The
    amounts payable to the executive officers and directors under
    the plans will not change.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Indemnification.</I>&#160;&#160;Coddle Creek&#146;s
    directors, officers and employees are entitled to continuing
    indemnification against certain liabilities by virtue of
    provisions contained in Coddle Creek&#146;s articles of
    incorporation and bylaws and the merger agreement. Pursuant to
    the merger agreement, First Community agreed for a period of six
    years to indemnify and hold harmless each present and former
    director, officer and employee of Coddle Creek or any of its
    subsidiaries, as applicable, determined as of the effective time
    of the merger against any costs or expenses (including
    reasonable attorneys&#146; fees), judgments, fines, losses,
    claims, damages or liabilities incurred in connection with any
    claim, action, suit, proceeding or investigation, whether civil,
    criminal, administrative or investigative, arising out of
    matters existing or occurring at or prior to the effective time
    of the merger, whether asserted or claimed prior to, at or after
    the effective time of the merger, arising in whole or in part
    out of or pertaining to the fact that he or she was a director,
    officer, employee, fiduciary or agent of Coddle Creek or any of
    its subsidiaries or is or was serving at the request of Coddle
    Creek or any of its subsidiaries as a director, officer,
    employee, fiduciary or agent of another corporation,
    partnership, joint venture, trust or other enterprise, including
    without limitation matters related to the negotiation, execution
    and performance of the merger agreement or the consummation of
    any of the transactions contemplated by the merger agreement, to
    the fullest extent to which such indemnified parties would be
    entitled under the articles of incorporation and bylaws of
    Coddle Creek or equivalent documents of any Coddle Creek
    subsidiary, as applicable, or any agreement, arrangement or
    understanding previously disclosed by Coddle Creek to First
    Community pursuant to the merger agreement, in each case as in
    effect on the date of the merger agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the merger agreement, First Community has agreed to
    maintain Coddle Creek&#146;s existing directors&#146; and
    officers&#146; liability insurance policy for Coddle
    Creek&#146;s directors and officers which shall provide such
    directors and officers with coverage following the effective
    time of the merger for an additional five years provided that
    First Community will not be required to expend an aggregate
    amount in excess of 150% of the premium paid by Coddle Creek as
    of the date hereof for such insurance, which is referred to as
    the maximum insurance amount. If First Community is unable to
    maintain or obtain the insurance specified above as a result of
    the preceding provision, First Community shall obtain the most
    advantageous coverage as is available for the maximum insurance
    amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Employee Stock Ownership Plan.</I>&#160;&#160;As of the
    effective time of the merger, the ESOP will be terminated. The
    merger consideration received by the ESOP trustees with respect
    to the unallocated shares of Coddle Creek common stock held by
    the ESOP will be first applied by the ESOP trustee to the full
    repayment of the ESOP loan. The shares of First Community common
    stock and the remaining cash received by the ESOP will be
    allocated to the ESOP participants in accordance with the terms
    of the ESOP and applicable laws and regulations as soon as
    practical after the effective time of the merger. In connection
    with the termination of the ESOP, Coddle Creek will promptly
    apply to the IRS for a favorable determination letter on the
    tax-qualified status of the ESOP on termination and any
    amendments made to the ESOP in connection with its
</DIV>

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    <BR>
    48
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    termination or otherwise, if such amendments have not previously
    received a favorable determination letter from the IRS with
    respect to their qualification under Code Section&#160;401(a).
    Any amendments to the ESOP requested by the IRS prior to the
    effective time of the merger will be adopted by Coddle Creek and
    any amendments requested by the IRS after the effective time of
    the merger will be promptly adopted by First Community. Any and
    all distributions from the ESOP after its termination will be
    made consistent with the aforementioned determination letter
    from the IRS. Coddle Creek will not make any further
    contributions to the ESOP or permit the ESOP to make any
    allocations to the ESOP participants other than in connection
    with the termination of the ESOP or as may be required by
    applicable law or regulation. Officers of Coddle Creek and
    Mooresville Savings Bank participate in the ESOP on the same
    basis as all other participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other than as set forth above, no director or executive officer
    of Coddle Creek has any direct or indirect material interest in
    the merger, except insofar as ownership in Coddle Creek common
    stock might be deemed such an interest.
</DIV>
<A name='136'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Employee Matters</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger agreement contains certain agreements of the parties
    with respect to various employee matters, which are briefly
    described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;&#160;As soon as administratively
    practicable after the effective time of the merger, First
    Community will take all reasonable action so that employees of
    Coddle Creek and its subsidiaries will be entitled to
    participate in the First Community employee benefit plans of
    general applicability to the same extent as similarly-situated
    employees of First Community and its subsidiaries, provided that
    coverage shall be continued under the corresponding benefit
    plans of Coddle Creek and its subsidiaries until such employees
    are permitted to participate in the First Community benefit
    plans and provided further that nothing in the merger agreement
    will require First Community or any of its subsidiaries to make
    any grants to any former employees of Coddle Creek or its
    subsidiaries under a discretionary equity compensation plan of
    First Community. For purposes of determining eligibility to
    participate in, the vesting of benefits and for all other
    purposes, other than for accrual of pension benefits, under the
    First Community employee benefit plans, First Community will
    recognize years of service with Coddle Creek and its
    subsidiaries to the same extent as such service was credited for
    such purpose by Coddle Creek.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Existing Benefits and Agreements.</I>&#160;&#160;At and
    following the effective time of the merger, and subject to the
    termination
    <FONT style="white-space: nowrap">and/or</FONT>
    amendment of certain agreements set forth in the merger
    agreement and described herein, First Community will honor and
    will be obligated to perform, in accordance with their terms,
    all benefit obligations to, and contractual rights of, current
    and former employees of Coddle Creek and its subsidiaries and
    current and former directors of Coddle Creek and its
    subsidiaries existing as of the effective date of the merger, as
    well as all employment, severance, bonus, salary continuation,
    deferred compensation, split dollar, supplemental retirement or
    <FONT style="white-space: nowrap">&#147;change-in-control&#148;</FONT>
    agreements, plans or policies of Coddle Creek to the extent that
    each of the foregoing has been previously disclosed to First
    Community.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Participation in First Community Plans.</I>&#160;&#160;If
    employees of Coddle Creek or any of its subsidiaries become
    eligible to participate in a medical, dental or health plan of
    First Community, First Community will cause each such plan to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    waive any preexisting condition limitations to the extent such
    conditions are covered under the applicable medical, health or
    dental plans of First Community;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provide full credit under such plans for any deductibles,
    co-payment and out-of-pocket expenses incurred by the employees
    and their beneficiaries during the portion of the calendar year
    prior to such participation;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    waive any waiting period limitation or evidence of insurability
    requirement which would otherwise be applicable to such employee
    on or after the effective time of the merger to the extent such
    employee had satisfied any similar limitation or requirement
    under an analogous plan prior to the effective time of the
    merger.
</TD>
</TR>

</TABLE>

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    <BR>
    49
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Severance Payments.</I>&#160;&#160;An employee of Coddle
    Creek or its subsidiaries (other than an employee who is a party
    to an employment agreement or a severance agreement) whose
    employment is involuntarily terminated other than for cause
    following the effective time of the merger but on or before the
    date which is six months from the effective time of the merger,
    will be entitled to receive severance payments pursuant to
    Coddle Creek&#146;s severance plan.
</DIV>
<A name='137'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Resale of
    First Community Common Stock</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community has registered the shares of First Community
    common stock to be issued in the merger with the Commission
    under the Securities Act. No restrictions on the sale or other
    transfer of the First Community common stock issued in the
    merger will be imposed solely as a result of the merger, except
    for restrictions on the transfer of First Community common stock
    issued to any Coddle Creek stockholder who may become an
    &#147;affiliate&#148; of First Community for purposes of
    Rule&#160;144 under the Securities Act. The term
    &#147;affiliate&#148; is defined in Rule&#160;144 under the
    Securities Act and generally includes executive officers and
    directors of First Community and stockholders beneficially
    owning 10% or more of the outstanding First Community common
    stock.
</DIV>
<A name='138'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Federal
    Income Tax Consequences</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;&#160;The following description of certain
    material federal income tax consequences of the merger is based
    upon the opinion of Patton Boggs LLP, legal counsel to First
    Community. The federal income tax laws are complex and the tax
    consequences of the merger may vary depending upon each
    stockholder&#146;s individual circumstances or tax status. This
    is not a complete description of all of the consequences of the
    merger and, in particular, may not address federal income tax
    considerations that may affect the treatment of stockholders
    subject to special treatment under United States federal income
    tax law (including, for example, foreign persons, financial
    institutions, dealers in securities, traders in securities who
    elect to apply a mark-to-market method of accounting, insurance
    companies, tax-exempt entities, holders who acquired their
    shares of Coddle Creek common stock pursuant to the exercise of
    an employee stock option or right or otherwise as compensation
    and holders who hold Coddle Creek common stock as part of a
    &#147;hedge,&#148; &#147;straddle&#148; or &#147;conversion
    transaction&#148;). In addition, no opinion is expressed with
    respect to the tax consequences of the merger under applicable
    foreign, state or local laws or under any federal tax laws other
    than those pertaining to the income tax. This description is
    based on laws, regulations, rulings and judicial decisions as in
    effect on the date of this proxy statement/prospectus, without
    consideration of the particular facts or circumstances of any
    holder of Coddle Creek common stock. These authorities are all
    subject to change and any such change may be made with
    retroactive effect. No assurance can be given that, after any
    such change, this description would not be different.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Tax matters are very complicated, and the tax consequences of
    the merger to you will depend upon the facts of your particular
    situation. Accordingly, we strongly urge you to consult your own
    tax advisor to determine the particular federal, state, local or
    foreign income or other tax consequences to you resulting from
    the merger.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Any United States federal tax advice contained herein is not
    intended or written to be used, and cannot be used, by any
    taxpayer for the purpose of avoiding United States federal tax
    penalties that may be imposed on the taxpayer; any such advice
    is written to support the promotion or marketing of the
    transactions described herein; and each taxpayer should seek
    advice based on the taxpayer&#146;s particular circumstances
    from an independent tax advisor.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of First Community and Coddle Creek has received an opinion
    of Patton Boggs LLP dated as of the date of this proxy
    statement/prospectus, that the merger will be treated for
    federal income tax purposes as a tax-free reorganization within
    the meaning of Section&#160;368(a) of the Code. It is a
    condition to the obligation of First Community and Coddle Creek
    to complete the merger that Patton Boggs LLP confirms its
    opinion as of the closing date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In delivering its opinion, Patton Boggs LLP has relied and, in
    delivering its closing opinion will rely on (1)&#160;the
    representations and covenants made by First Community, First
    Community Bank, Coddle Creek and
</DIV>

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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mooresville Savings Bank, including those contained in certain
    letters of officers of First Community, First Community Bank,
    Coddle Creek and Mooresville Savings Bank, and
    (2)&#160;specified assumptions, including an assumption
    regarding the completion of the merger in the manner
    contemplated by the merger agreement and an assumption that the
    aggregate fair market value at the effective time of the merger
    of all of the shares of First Community common stock received by
    holders of Coddle Creek common stock pursuant to the merger is
    at least 40% of the total amount of the merger consideration
    received by holders of Coddle Creek common stock. In addition,
    the opinion of Patton Boggs LLP has assumed, and its ability to
    provide the closing date opinion, will depend on, the absence of
    changes in existing facts or in applicable law between the date
    of this document and the closing date. If any of those
    representations, covenants or assumptions are inaccurate, Patton
    Boggs LLP may not be able to provide the required closing date
    opinion
    <FONT style="white-space: nowrap">and/or</FONT> the
    federal income tax consequences of the merger could differ from
    those described in the opinion that Patton Boggs LLP has
    delivered. The opinion of Patton Boggs LLP neither binds the IRS
    nor the courts from adopting a contrary position. Neither First
    Community nor Coddle Creek intends to seek or obtain a ruling
    from the IRS as to the federal income tax consequences of the
    merger and, as a result, there can be no assurance that the IRS
    will agree with any of the conclusions described herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The Merger.</I>&#160;&#160;To the extent the merger
    constitutes a reorganization within the meaning of
    Section&#160;368(a) of the Code, neither First Community nor
    Coddle Creek will recognize any gain or loss as a result of the
    merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Tax consequences to Coddle Creek
    stockholders.</I>&#160;&#160;A Coddle Creek stockholder who
    receives cash and shares of First Community common stock in
    exchange for all of
    <FONT style="white-space: nowrap">his/her</FONT>
    shares of Coddle Creek common stock generally will recognize
    gain, but not loss, in an amount equal to the lesser of
    (1)&#160;the excess, if any, of (a)&#160;the sum of the cash
    (excluding any cash received in lieu of a fractional share of
    First Community common stock) and the fair market value of the
    First Community common stock (including any fractional share of
    First Community common stock deemed to be received and exchanged
    for cash) over (b)&#160;such stockholder&#146;s tax basis in the
    shares of Coddle Creek common stock exchanged in the merger and
    (2)&#160;the amount of cash received by such stockholder. Any
    gain will be capital gain (except as described below) if the
    shares of Coddle Creek common stock are held by such stockholder
    as a capital asset at the time of the merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any Coddle Creek stockholder&#146;s receipt of cash has the
    effect of a distribution of a dividend, the gain will be treated
    as ordinary dividend income to the extent of the
    stockholder&#146;s ratable share of First Community&#146;s
    accumulated earnings and profits. For purposes of determining
    whether a Coddle Creek stockholder&#146;s receipt of cash has
    the effect of a distribution of a dividend, the Coddle Creek
    stockholder will be treated as if it first exchanged all of its
    Coddle Creek common stock solely in exchange for First Community
    common stock and then First Community immediately redeemed a
    portion of that stock for the cash the Coddle Creek stockholder
    actually received in the exchange. Receipt of cash in exchange
    for a portion of the Coddle Creek stockholder&#146;s First
    Community stock that it is deemed to have been received, will
    generally not have the effect of a distribution of a dividend to
    the Coddle Creek stockholder if such receipt is, with respect to
    the Coddle Creek stockholders, &#147;not essentially equivalent
    to a dividend&#148; or &#147;substantially
    disproportionate,&#148; each within the meaning of
    Section&#160;302(b) of the Code. In determining whether the
    receipt of cash is &#147;not essentially equivalent to a
    dividend&#148; or &#147;substantially disproportionate,&#148;
    with respect to the Coddle Creek stockholder, certain
    constructive ownership rules must be taken into account. Under
    the constructive ownership rules of the Code, a stockholder may
    be treated as owning stock that is actually owned by another
    person or entity. Coddle Creek stockholders should consult their
    tax advisors as to the possibility that all or a portion of any
    cash received in exchange for their shares of Coddle Creek
    common stock will be treated as a dividend. Dividends are
    generally currently taxed at the same rates that apply to
    long-term capital gains.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If (i)&#160;Patton Boggs LLP cannot provide the required closing
    date tax opinion, (ii)&#160;Coddle Creek and First Community
    waive the condition to completion of the merger that Patton
    Boggs LLP provides the required closing date opinion,
    (iii)&#160;the merger does not constitute a reorganization
    within the meaning of Section&#160;368(a) of the Code and
    (iv)&#160;the merger is otherwise completed in accordance with
    the terms of the merger agreement whereby Coddle Creek merges
    into First Community, then Coddle Creek will be deemed to have
    transferred all of its assets and liabilities to First Community
    in exchange for cash in a taxable transaction. In such case,
</DIV>

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    <BR>
    51
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek would recognize gain or loss in an amount equal to
    the difference between (i)&#160;the amount of cash received plus
    the amount of Coddle Creek liabilities assumed by First
    Community and (ii)&#160;the allocable tax basis of the
    respective assets of Coddle Creek deemed transferred in the
    exchange. Immediately after such deemed taxable exchange, Coddle
    Creek would be deemed to distribute all of its remaining assets
    to the holders of Coddle Creek common stock in complete
    liquidation of Coddle Creek. A holder of Coddle Creek common
    stock would recognize gain or loss on the amount deemed received
    in the liquidating distribution by Coddle Creek in excess of
    such stockholder&#146;s tax basis in
    <FONT style="white-space: nowrap">his/her</FONT>
    Coddle Creek common stock. Coddle Creek would incur liability
    for the payment of any federal income tax recognized to Coddle
    Creek and any additional gain recognized to Coddle Creek on its
    deemed liquidation. The payment of a cash tax liability by
    Coddle Creek would reduce the amount of consideration available
    for distribution to the stockholders of Coddle Creek.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing tax consequences to the holders of Coddle Creek
    common stock and to Coddle Creek could be different if First
    Community&#146;s acquisition of Coddle Creek is consummated in a
    transaction other than one in which Coddle Creek merges into
    First Community.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cash in Lieu of Fractional Shares.</I>&#160;&#160;No
    fractional shares of First Community common stock will be issued
    in the merger. A Coddle Creek stockholder who receives cash in
    lieu of a fractional share will be treated as having received
    such fractional share pursuant to the merger and then as having
    exchanged such fractional share for cash in a redemption by
    First Community. A Coddle Creek stockholder should generally
    recognize capital gain or loss on such a deemed exchange of the
    fractional share. If the merger does not constitute a tax-free
    reorganization within the meaning of Section&#160;368(a) of the
    Code, a holder of Coddle Creek common stock who receives cash in
    lieu of a fractional share of First Community common stock will
    be treated as having received cash in a deemed liquidation of
    Coddle Creek, as described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Dissenting Stockholders.</I>&#160;&#160;Holders of Coddle
    Creek common stock who dissent with respect to the merger, as
    discussed under &#147;&#151;&#160;Dissenters&#146; Rights&#148;
    beginning on page&#160;54, and who receive cash for their shares
    of Coddle Creek common stock generally will recognize gain or
    loss as if such stockholder had received such cash as a
    distribution in redemption of such stockholder&#146;s shares of
    Coddle Creek common stock, subject to the provisions and
    limitations of Section&#160;302 of the Code described above. The
    gain or loss will be capital gain or loss if the shares of
    Coddle Creek common stock surrendered in the merger were held as
    capital assets as of the time of the exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Backup Withholding.</I>&#160;&#160;Non-corporate holders of
    Coddle Creek common stock may be subject to information
    reporting and backup withholding imposed at a rate of 28% on any
    cash payments they receive. Coddle Creek stockholders will not
    be subject to backup withholding, however, if they:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    furnish a correct taxpayer identification number and certify
    that they are not subject to backup withholding on the
    substitute
    <FONT style="white-space: nowrap">Form&#160;W-9</FONT>
    or successor form included in the letter of transmittal they
    will receive;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    are otherwise exempt from backup withholding.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any amounts withheld under the backup withholding rules will be
    allowed as a refund or credit against a Coddle Creek
    stockholder&#146;s United States federal income tax liability,
    provided they furnish the required information to the IRS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Reporting Requirements.</I>&#160;&#160;Coddle Creek
    stockholders who receive First Community common stock as a
    result of the merger will be required to retain records
    pertaining to the merger and will be required to file with their
    United States federal income tax return for the year in which
    the merger takes place a statement setting forth certain facts
    relating to the merger.
</DIV>
<A name='139'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Accounting
    Treatment of the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger will be accounted for under the purchase method of
    accounting under accounting principles generally accepted in the
    United States of America. Under this method, Coddle Creek&#146;s
    assets and liabilities as of the date of the merger will be
    recorded at their respective fair values and added to those of
    First
</DIV>

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    52
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Community. Any difference between the purchase price for Coddle
    Creek and the fair value of the identifiable net assets acquired
    (including core deposit intangibles) will be recorded as
    goodwill. In accordance with SFAS&#160;No.&#160;142,
    &#147;Goodwill and Other Intangible Assets,&#148; the goodwill
    resulting from the merger will not be amortized to expense, but
    instead will be reviewed for impairment at least annually and to
    the extent goodwill is impaired, its carrying value will be
    written down to its implied fair value and a charge will be made
    to earnings. Core deposit and other intangibles with definite
    useful lives recorded by First Community in connection with the
    merger will be amortized to expense in accordance with
    applicable standards. The financial statements of First
    Community issued after the merger will reflect the results
    attributable to the acquired operations of Coddle Creek
    beginning on the date of completion of the merger.
</DIV>
<A name='140'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Expenses
    of the Merger</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The merger agreement provides that each of Coddle Creek and
    First Community will bear and pay all costs and expenses
    incurred by it in connection with the transactions contemplated
    by the merger agreement, including fees and expenses of its own
    financial consultants, accountants and counsel, except that the
    expenses of printing this proxy statement/prospectus and the
    registration fees payable to the Commission in connection with
    the registration statement, of which this proxy
    statement/prospectus is a part, will be shared equally between
    First Community and Coddle Creek.
</DIV>
<A name='141'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Listing
    of the First Community Common Stock</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community has agreed to use its reasonable best efforts to
    cause the shares of First Community common stock to be issued in
    the merger to be approved for listing on the Nasdaq Global
    Select Market, or any national securities exchange on which the
    First Community common stock may then be listed, before the
    completion of the merger.
</DIV>
<A name='142'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Shareholder
    Agreements</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the execution of the merger agreement, each
    director and executive officer of Coddle Creek entered into a
    shareholder agreement with First Community pursuant to which
    each director and executive officer agreed that at any meeting
    of the stockholders of Coddle Creek, or in connection with any
    written consent of the stockholders of Coddle Creek, the
    director
    <FONT style="white-space: nowrap">and/or</FONT>
    officer shall:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    appear at such meeting or otherwise cause all shares of Coddle
    Creek common stock owned by him to be counted as present thereat
    for purposes of calculating a quorum;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    vote (or cause to be voted), in person or by proxy, or deliver a
    written consent (or cause a consent to be delivered) covering,
    all shares of Coddle Creek common stock beneficially owned by
    him or as to which he has, directly or indirectly, the right to
    direct the voting:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in favor of adoption and approval of the merger agreement and
    the merger;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    against any action or agreement that could reasonably be
    expected to result in a breach of any covenant, representation
    or warranty or any other obligation or agreement of Coddle Creek
    contained in the merger agreement or of the director or officer
    contained in the shareholder agreement;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    against any acquisition proposal (as defined in
    &#147;&#151;&#160;No Solicitation&#148; above) or any other
    action, agreement or transaction that is intended, or could
    reasonably be expected, to materially impede, interfere or be
    inconsistent with, delay, postpone, discourage or materially and
    adversely affect consummation of the merger or the performance
    of his, her, or its obligations under the shareholder agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the shareholder agreement, each director also
    agreed, while the shareholder agreement is in effect, not to,
    directly or indirectly, sell, transfer, pledge, encumber (except
    for pledges or encumbrances existing as of the date of the
    shareholder agreement), distribute by gift, or otherwise dispose
    of any of the shares whether by actual disposition, physical
    settlement, or effective economic disposition through hedging
    transactions; nor to enter into any agreement with any person
    that violates stockholder&#146;s representations,
</DIV>

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    <BR>
    53
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    warranties, covenants, and obligations under the shareholder
    agreement; nor to take any other action that reasonably could be
    expected to adversely effect, in any material respect, the
    stockholder&#146;s power, authority, and ability to comply with
    and perform his, her, or its covenants and obligations under the
    shareholder agreement. Each director also agreed not to deposit
    any shares in a voting trust, grant any proxy, or enter into any
    voting agreement or similar agreement or arrangement with
    respect to any shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The shareholder agreements will remain in effect until the
    earlier of the effective time of the merger or the termination
    of the merger agreement in accordance with its terms.
</DIV>
<A name='143'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dissenters&#146;
    Rights</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;&#160;Article&#160;13 of the NCBCA, sets
    forth the rights of the stockholders of Coddle Creek who object
    to the merger. The following is a summary of the material terms
    of the statutory procedures to be followed by a stockholder in
    order to dissent from the merger and perfect dissenters&#146;
    rights under the NCBCA. A copy of Article&#160;13 of the NCBCA
    is attached as Appendix&#160;C to this proxy
    statement/prospectus. The only rights of dissent available to
    Coddle Creek stockholders are those provided in the law. Nothing
    in this proxy statement/prospectus shall be deemed to create or
    grant any such rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you elect to exercise such a right to dissent and demand
    appraisal, you must satisfy each of the following conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    you must give to Coddle Creek and Coddle Creek must actually
    receive, before the vote at the special meeting of stockholders
    whereby approval or disapproval of the merger agreement is
    sought, written notice of your intent to demand payment for your
    shares if the merger is effectuated (this notice must be in
    addition to and separate from any proxy or vote against the
    merger proposal; neither voting against, abstaining from voting,
    nor failing to vote on the merger proposal will constitute a
    notice within the meaning of the NCBCA);&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    you must not vote in favor of the merger agreement. A vote
    against the merger agreement or an abstention will satisfy this
    requirement. However, a vote in favor of the merger agreement,
    by proxy or in person, or the return of a proxy which does not
    specify a vote against approval of the merger agreement or
    direction to abstain, will constitute a waiver of your
    dissenter&#146;s rights.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the requirements of (a)&#160;and (b)&#160;above are not
    satisfied and the merger proposal to approve the merger
    agreement becomes effective, you will not be entitled to payment
    for your shares under the provisions of Article&#160;13 of the
    NCBCA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you are a dissenting Coddle Creek stockholder, any notices
    should be addressed to Coddle Creek Financial Corp., 347 North
    Main Street, Post Office Box 117, Mooresville, North Carolina
    28115, Attention: Corporate Secretary. The notice must be
    executed by the holder of record of the shares of Coddle Creek
    common stock as to which dissenters&#146; rights are to be
    exercised. A beneficial owner may assert dissenters&#146; rights
    only if he dissents with respect to all shares of Coddle Creek
    common stock of which he is the beneficial owner. With respect
    to shares of Coddle Creek common stock which are owned of record
    by a voting trust or by a nominee, the beneficial owner of such
    shares may exercise dissenters&#146; rights if such beneficial
    holder also submits to Coddle Creek the name and address of the
    record stockholder of the shares, if known to him. A record
    owner, such as a broker, who holds shares of Coddle Creek common
    stock as a nominee for others may exercise dissenters&#146;
    rights with respect to the shares held for all or less than all
    beneficial owners of shares as to which such person is the
    record owner, provided such record owner dissents with respect
    to all Coddle Creek common stock beneficially owned by any one
    person. In such case, the notice submitted by the broker as
    record owner must set forth the name and address of the
    stockholder who is objecting to the merger proposal and
    demanding payment for such person&#146;s shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you properly dissent and the merger proposal is approved,
    Coddle Creek, or First Community as the surviving corporation,
    must mail by registered or certified mail, return receipt
    requested, a written dissenters&#146; notice to you. This notice
    must be sent no later than 10&#160;days after the stockholder
    approval of the merger agreement. The dissenters&#146; notice
    will state where your payment demand must be sent, and where and
    when certificates for shares of Coddle Creek common stock must
    be deposited; inform holders of uncertificated
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    54
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    shares to what extent transfer of the shares will be restricted
    after the payment demand is received; supply a form for
    demanding payment; set a date by which Coddle Creek, or First
    Community as the surviving corporation, must receive your
    payment demand (not fewer than 30&#160;days nor more than
    60&#160;days after the dissenters&#146; notice is mailed and
    which must not be earlier than 20&#160;days after the demand
    date); and include a copy of Article&#160;13 of the NCBCA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you receive a dissenters&#146; notice, you must demand
    payment and deposit your share certificates in accordance with
    the terms of the dissenters&#146; notice. If you demand payment
    and deposit your share certificates, you retain all other rights
    of a stockholder until these rights are canceled or modified by
    the merger. If you do not demand payment or deposit your share
    certificates where required, each by the date set in the
    dissenters&#146; notice, you are not entitled to demand payment
    for your shares under the NCBCA and will receive the merger
    consideration. For a discussion of the merger consideration, see
    &#147;&#151; Merger Consideration&#148; on page&#160;34.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Within 30&#160;days after receipt of your demand for payment,
    Coddle Creek, or First Community as the surviving corporation,
    is required to pay you the amount it estimates to be the fair
    value of your shares, plus interest accrued from the effective
    date of the merger to the date of payment. The payment must be
    accompanied by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Coddle Creek&#146;s most recent available balance sheet, income
    statement, and statement of cash flows as of the end of or for
    the fiscal year ending not more than 16&#160;months before the
    date of payment, and the latest available interim financial
    statements, if any;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an explanation of how Coddle Creek, or First Community as the
    surviving corporation, estimated the fair value of the shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an explanation of the interest calculation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a statement of the dissenters&#146; right to demand payment (as
    described below);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a copy of Article&#160;13 of the NCBCA.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the merger is not consummated within 60&#160;days after the
    date set for demanding payment and depositing share
    certificates, Coddle Creek must return your deposited
    certificates and release the transfer restrictions imposed on
    uncertificated shares. If after returning your deposited
    certificates and releasing transfer restrictions, the merger is
    consummated, Coddle Creek, or First Community as the surviving
    corporation, must send you a new dissenters&#146; notice and
    repeat the payment demand procedure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Demand for Payment.</I>&#160;&#160;You may, however, notify
    Coddle Creek, or First Community as the surviving corporation,
    in writing of your own estimate of the fair value of your shares
    and amount of interest due, and demand payment of the excess of
    your estimate of the fair value of your shares over the amount
    previously paid by Coddle Creek, or First Community as the
    surviving corporation, if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    you believe that the amount paid is less than the fair value of
    Coddle Creek common stock or that the interest is incorrectly
    calculated;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    Coddle Creek, or First Community as the surviving corporation,
    fails to make payment of its estimate of fair value to you
    within 30&#160;days after receipt of a demand for
    payment;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (c)&#160;
</TD>
    <TD align="left">
    the merger not having been consummated, Coddle Creek does not
    return your deposited certificates or release the transfer
    restrictions imposed on uncertificated shares within
    60&#160;days after the date set for demanding payment.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You waive the right to demand payment unless you notify Coddle
    Creek, or First Community as the surviving corporation, of your
    demand in writing within 30&#160;days of Coddle Creek&#146;s, or
    First Community&#146;s as the surviving corporation, payment of
    its estimate of fair value (with respect to clause&#160;(a)
    above) or Coddle Creek&#146;s, or First Community&#146;s as the
    surviving corporation, failure to perform (with respect to
    clauses&#160;(b) and (c)&#160;above). If you fail to notify
    Coddle Creek, or First Community as the surviving corporation,
    of your demand within such
    <FONT style="white-space: nowrap">30-day</FONT>
    period, you shall be deemed to have withdrawn your
    stockholder&#146;s dissent and demand for payment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Appraisal Proceeding.</I>&#160;&#160;If your demand for
    payment remains unsettled, you may commence a proceeding within
    60&#160;days after the earlier of (a)&#160;the date Coddle
    Creek, or First Community as the surviving corporation,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    55
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    makes the demand payment, or (b)&#160;the date of your payment
    demand, for additional payment by filing a complaint with the
    Superior Court Division of the General Court of Justice, to
    determine the fair value of the shares and accrued interest. If
    you do not commence the proceeding within such
    <FONT style="white-space: nowrap">60-day</FONT>
    period, you will be deemed to have withdrawn your dissent and
    demand for payment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The court in such an appraisal proceeding will determine all
    costs of the proceeding and assess the costs as it finds
    equitable. The proceeding is to be tried as in other civil
    actions; however, you will not have the right to a trial by
    jury. The court may also assess the fees and expenses of counsel
    and experts for the respective parties, in the amounts the court
    finds equitable: (a)&#160;against Coddle Creek, or First
    Community as the surviving corporation, if the court finds that
    it did not substantially comply with the statute; or
    (b)&#160;against Coddle Creek, or First Community as the
    surviving corporation, or you, if the court finds that the party
    against whom the fees and expenses are assessed acted
    arbitrarily, vexatiously, or not in good faith. If the court
    finds that the services of counsel for you were of substantial
    benefit to other dissenting stockholders, and that the fees for
    those services should not be assessed against Coddle Creek, or
    First Community as the surviving corporation, the court may
    award to these counsel reasonable fees to be paid out of the
    amounts awarded the dissenting stockholders who were benefited.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The summary set forth above does not purport to be a complete
    statement of the provisions of the NCBCA relating to the rights
    of dissenting stockholders and is qualified in its entirety by
    reference to the applicable sections of the NCBCA, which are
    included as Appendix&#160;C to this proxy statement/prospectus.
    If you intend to exercise your dissenters&#146; rights, you are
    urged to carefully review Appendix&#160;C and to consult with
    legal counsel so as to be in strict compliance therewith.
</DIV>
<A name='144'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MARKET
    FOR COMMON STOCK AND DIVIDENDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community&#146;s common stock is traded on the Nasdaq
    Global Select Market under the symbol &#147;FCBC.&#148; Coddle
    Creek&#146;s common stock is quoted on the Pink Sheets under the
    symbol &#147;CDLX.PK.&#148; Such market quotations reflect
    inter-dealer prices, without retail
    <FONT style="white-space: nowrap">mark-up,</FONT>
    mark-down or commission and may not necessarily represent actual
    transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of September&#160;22, 2008, there were 10,967,561&#160;shares
    of First Community common stock outstanding, which were held by
    approximately 2,372 holders of record. As of the record date for
    the special meeting, there were 610,545&#160;shares of Coddle
    Creek common stock outstanding, which were held by approximately
    141 holders of record. Such numbers of stockholders do not
    reflect the number of individuals or institutional investors
    holding stock in nominee name through banks, brokerage firms and
    others.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth during the periods indicated the
    high and low sales prices of the First Community common stock as
    reported on the Nasdaq Stock Market and the high and low bid
    information for Coddle Creek common stock as quoted on the Pink
    Sheets, and the dividends declared per share of First Community
    common stock and Coddle Creek common stock for the periods
    included.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    56
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>First Community</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Coddle Creek</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Dividends<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Dividends<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Market Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Declared<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bid Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Declared<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>per Share</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>2008</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    March&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    June&#160;30, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.49
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Third Quarter (through September 22, 2008)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>2007</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    March&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    June&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    September&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>2006</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    March&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    June&#160;30, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    September&#160;30, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31.67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the closing sale prices of First
    Community common stock as reported on the Nasdaq Global Select
    Market and the bid prices of Coddle Creek common stock as quoted
    on the Pink Sheets on July&#160;31, 2008, the last
    <FONT style="white-space: nowrap">trading-day</FONT>
    before the merger was announced, and on September&#160;22, 2008,
    the last practicable
    <FONT style="white-space: nowrap">trading-day</FONT>
    before the distribution of this proxy statement/prospectus.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table also includes the equivalent market value
    per share of Coddle Creek common stock on July&#160;31, 2008 and
    September&#160;22, 2008, which reflects the sum of (a)&#160;the
    product of the exchange ratio of 0.9046 multiplied by the
    closing sale price of First Community common stock on the dates
    indicated, plus (b)&#160;the per share cash consideration of
    $19.60.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Equivalent Market<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>First Community<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Coddle Creek<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value per Share of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Coddle Creek</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    At July&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35.83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    52.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    At September&#160;22, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    52.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The value of the stock portion of the merger consideration to be
    received for each share of Coddle Creek common stock will be
    based on the most recent closing price of First Community&#146;s
    common stock prior to the consummation of the merger. Because
    the stock portion of the merger consideration to be paid to
    stockholders of Coddle Creek is based on a fixed number of
    shares of First Community common stock and because the market
    value of the shares of First Community common stock to be
    received by Coddle Creek stockholders will change, stockholders
    of Coddle Creek are not assured of receiving a specific market
    value of First Community common stock, and thus a specific
    market value for their shares of Coddle Creek common stock, at
    the effective time of the merger. First Community cannot assure
    you that its stock price will continue to trade at or above the
    prices shown above. You should obtain current stock price
    quotations for the First Community common stock from a
    newspaper, via the Internet or by calling your broker. See
    &#147;The Merger&#160;&#151; Merger Consideration&#148; on
    page&#160;34.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='145'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    ABOUT FIRST COMMUNITY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>
<A name='146'>
<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community is a financial holding company incorporated
    under the laws of the State of Nevada and serves as the holding
    company for First Community Bank, a national banking association
    that conducts commercial banking operations within the states of
    Virginia, West Virginia, North Carolina and Tennessee. In
    addition, First Community maintains a loan production office in
    South Carolina. First Community also owns Greenpoint Insurance
    Group, Inc., a full-service insurance agency, and Investment
    Planning Consultants, an investment advisory firm. First
    Community conducts its banking operations through 58 locations
    and four wealth management offices. First Community had total
    consolidated assets of approximately $2.1&#160;billion, total
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    57
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    deposits of approximately $1.34&#160;billion and total
    consolidated stockholders&#146; equity of approximately
    $200&#160;million at June&#160;30, 2008. First Community Bank is
    subject to regulation by the OCC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community&#146;s principal executive offices are located
    at One Community Place, Bluefield, Virginia 24605 and its
    telephone number is
    <FONT style="white-space: nowrap">(276)&#160;326-9000.</FONT>
</DIV>
<A name='147'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Management
    and Additional Information</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain information relating to executive compensation, benefit
    plans, voting securities and the principal holders thereof,
    certain relationships and related transactions and other related
    matters as to First Community is incorporated herein by
    reference or set forth in First Community&#146;s Annual Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007, which is incorporated
    herein by reference. Stockholders wishing to obtain a copy of
    such document may contact First Community at its address or
    telephone number indicated under &#147;Where You Can Find More
    Information&#148; beginning on page&#160;68.
</DIV>
<A name='148'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    ABOUT CODDLE CREEK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek is a bank holding company incorporated in the State
    of North Carolina and serves as the holding company for
    Mooresville Savings Bank, a North Carolina-chartered savings
    bank. Coddle Creek, which is headquartered in Mooresville, North
    Carolina, operates three banking offices located in Mooresville,
    Cornelius and Huntersville, North Carolina.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek&#146;s banking operations are conducted through
    Mooresville Savings Bank. Mooresville Savings Bank is engaged
    primarily in the business of attracting retail deposits from the
    general public and using such deposits to make mortgage loans
    secured by real estate. Mooresville Savings Bank primarily makes
    one-to-four family residential real estate loans. It also
    originates loans secured by multi-family residential and
    commercial property, construction loans and equity line of
    credit loans. In addition, Mooresville Savings Bank makes loans
    which are not secured by real property, such as loans secured by
    pledged deposit accounts and various types of secured and
    unsecured consumer loans.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mooresville Savings Bank&#146;s primary source of revenue is
    interest income from its lending activities. Mooresville Savings
    Bank&#146;s other major sources of revenue are interest and
    dividend income from investments, interest income from its
    interest-earning deposit balances in other depository
    institutions, and transactions and fee income from its lending
    and deposit activities. The major expenses of Mooresville
    Savings Bank are interest on deposits and general and
    administrative expenses such as employee compensation and
    benefits, federal deposit insurance premiums, data processing
    expenses and office occupancy expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of June&#160;30, 2008, Coddle Creek had total consolidated
    assets of approximately $158.6&#160;million, total deposits of
    approximately $136.6&#160;million and total consolidated
    stockholders&#146; equity of approximately $19.1&#160;million.
    Coddle Creek&#146;s corporate office is located at 347 North
    Main Street, P.O.&#160;Box&#160;117, Mooresville, NC 28115.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='149'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    BENEFICIAL OWNERSHIP OF<BR>
    CODDLE CREEK COMMON STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth as of September&#160;22, 2008
    information with respect to the beneficial ownership of Coddle
    Creek&#146;s common stock by (i)&#160;each person who is known
    to Coddle Creek to be the beneficial owner of more than five
    percent of its common stock, (ii)&#160;each director of Coddle
    Creek, (iii)&#160;each of Coddle Creek&#146;s named executive
    officers, and (iv)&#160;all directors and executive officers of
    Coddle Creek as a group. Applicable percentage ownership in the
    table is based on 610,545&#160;shares of Coddle Creek common
    stock outstanding as of September&#160;22, 2008. All shares of
    Coddle Creek&#146;s common stock subject to options currently
    exercisable or exercisable within 60&#160;days of
    September&#160;22, 2008 are deemed to be outstanding for the
    purpose of computing the percentage of ownership of the person
    holding such options, but are not deemed to be outstanding for
    computing the percentage of ownership of any other person.
    Currently, none of the shares beneficially owned by Coddle
    Creek&#146;s directors or named executive officers are pledged
    as security. Except as otherwise indicated in the footnotes to
    the table, the beneficial owners listed have sole voting and
    investment
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    58
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    power as to all of the shares beneficially owned by them. The
    address for each of the stockholders below is Coddle Creek
    Financial Corp., 347 North Main Street, P.O.&#160;Box&#160;117,
    Mooresville, North Carolina 28115.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Beneficial
    Owner<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Outstanding</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Claude U. Voils, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,947
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.78
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Donald R. Belk
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,047
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.43
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Don E. Mills, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,400
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.21
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    George W. Brawley, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,908
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.39
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dale W. Brawley
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,956
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.80
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Richard E. Woods
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,671
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.88
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James A. Williams
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,475
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.89
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Billy R. Williams
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,544
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.65
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All directors and executive officers as a group (eight persons)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192,94
</TD>
<TD nowrap align="left" valign="bottom">
    8
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.97
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    &#147;Beneficial ownership&#148; is defined in the regulations
    promulgated by the SEC as (A)&#160;having or sharing, directly
    or indirectly (i)&#160;voting power, which includes the power to
    vote or to direct the voting, or (ii)&#160;investment power,
    which includes the power to dispose or to direct the
    disposition, of shares of the common stock of an issuer; or
    (B)&#160;directly or indirectly creating or using a trust,
    proxy, power of attorney, pooling arrangement or any other
    contract, arrangement or device with the purpose or effect of
    divesting such person of beneficial ownership of a security or
    preventing the vesting of such beneficial ownership. Unless
    otherwise indicated, the beneficial owner has sole voting and
    investment power.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    This amount consists of 7,575&#160;shares of Coddle Creek common
    stock and currently-exercisable options to acquire
    3,372&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $31.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    This amount consists of 17,675&#160;shares of Coddle Creek
    common stock and currently-exercisable options to&#160;acquire
    3,372&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $31.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    This amount consists of (i)&#160;4,900&#160;shares of Coddle
    Creek common stock, (ii)&#160;currently-exercisable options to
    acquire 800&#160;shares of Coddle Creek&#146;s common stock for
    an exercise price of $31.00 per share,
    (iii)&#160;currently-exercisable options to acquire
    1,000&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $35.50 per share, and
    (iv)&#160;currently-exercisable options to acquire
    700&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $21.00.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    This amount consists of 42,046&#160;shares of Coddle Creek
    common stock and currently-exercisable options to&#160;acquire
    16,862&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $31.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    This amount consists of 32,094&#160;shares of Coddle Creek
    common stock and currently-exercisable options to acquire
    16,862&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $31.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    This amount consists of 14,298&#160;shares of Coddle Creek
    common stock and currently-exercisable options to acquire
    3,373&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $31.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    This amount consists of (i)&#160;2,975&#160;shares of Coddle
    Creek common stock, (ii)&#160;currently-exercisable options
    to&#160;acquire 800&#160;shares of Coddle Creek&#146;s common
    stock for an exercise price of $35.50 per share,
    (iii)&#160;currently-exercisable options to acquire
    200&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $35.00 per share, and
    (iv)&#160;currently-exercisable options to acquire
    1,500&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $21.00 per share.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    This amount consists of 15,799&#160;shares of Coddle Creek
    common stock and currently-exercisable options to acquire
    6,745&#160;shares of Coddle Creek&#146;s common stock for an
    exercise price of $31.00 per share.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    59
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='150'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF FIRST COMMUNITY CAPITAL STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community is authorized to issue up to
    25,000,000&#160;shares of First Community common stock and up to
    1,000,000&#160;shares of preferred stock. The capital stock of
    First Community does not represent or constitute a deposit
    account and is not insured by the FDIC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of the First Community capital stock
    does not purport to be complete and is qualified in all respects
    by reference to First Community&#146;s articles of
    incorporation, as amended, bylaws and the NRS.
</DIV>
<A name='151'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">First
    Community Common Stock</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each share of First Community common stock is entitled to one
    vote on all matters submitted to a vote at any meeting of
    stockholders. Holders of First Community common stock are
    entitled to receive dividends when, as, and if declared by the
    First Community board of directors out of funds legally
    available therefor and, upon liquidation, to receive pro rata
    all assets, if any, of First Community available for
    distribution after the payment of creditors. Holders of First
    Community common stock have no preemptive rights to subscribe
    for any additional securities of any class that First Community
    may issue, nor any conversion, redemption or sinking fund
    rights. Holders of First Community common stock have no right to
    cumulate votes in the election of directors. The rights and
    privileges of holders of First Community common stock are
    subject to any preferences that the First Community board of
    directors may set for any series of First Community preferred
    stock that First Community may issue in the future.
</DIV>
<A name='152'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">First
    Community Preferred Stock</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under First Community&#146;s articles of incorporation, First
    Community may issue shares of First Community preferred stock in
    one or more series, as may be determined by the First
    Community&#146;s board of directors or a duly authorized
    committee. The First Community&#146;s board of directors or
    committee may also establish, from time to time, the number of
    shares to be included in each series and may fix the
    designation, powers, preferences and rights of the shares of
    each such series and any qualifications, limitations or
    restrictions thereof, and may increase or decrease the number of
    shares of any series without any further vote or action by the
    stockholders. Any First Community preferred stock issued will
    rank senior to First Community common stock with respect to the
    payment of dividends or amounts paid upon liquidation,
    dissolution or winding up of First Community, or both. In
    addition, any shares of First Community preferred stock may have
    class or series voting rights. Under certain circumstances, the
    issuance of shares of First Community preferred stock, or merely
    the existing authorization of the First Community board of
    directors to issue shares of First Community preferred stock,
    may tend to discourage or impede a merger or other change in
    control of First Community. The number of shares of preferred
    stock to be issued, its par or face value, voting powers,
    designations, preferences, interest rate, limitations,
    restrictions and relative rights would be determined from time
    to time by resolution of the board of directors of First
    Community. No shares of preferred stock are currently
    outstanding.
</DIV>
<A name='153'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transfer agent and registrar for First Community common
    stock is BNY Mellon Shareowner Services.
</DIV>
<A name='154'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPARISON
    OF THE RIGHTS OF STOCKHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the merger becomes effective, the stockholders of Coddle
    Creek will become stockholders of First Community. First
    Community is a Nevada corporation and its stockholders&#146;
    rights are governed by the NRS, as well as its articles of
    incorporation, as amended, and bylaws, as amended. Coddle Creek
    is a North Carolina corporation, and its stockholders&#146;
    rights are governed by the NCBCA, as well as its articles of
    incorporation, as amended and bylaws. After the merger, as First
    Community stockholders, the rights of former Coddle Creek
    stockholders will be governed by First Community&#146;s articles
    of incorporation, as amended, its bylaws, as amended, and the
    NRS. First Community&#146;s articles of incorporation, as
    amended, are referred to as its articles of incorporation, and
    its bylaws, as amended, are referenced as its bylaws. The
    following is a summary of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    60
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    material differences between the rights of holders of First
    Community common stock and holders of Coddle Creek common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summary does not purport to be a complete
    statement of the provisions affecting, and differences between,
    the rights of holders of First Community common stock and
    holders of Coddle Creek common stock. This summary is intended
    to provide a general overview of the differences in
    stockholders&#146; rights under the governing corporate
    instruments of First Community and Coddle Creek, and other known
    material differences.
</DIV>
<A name='155'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Authorized
    Capital Stock</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;First Community&#146;s
    authorized capital stock consists of 25,000,000&#160;shares of
    First Community common stock, par value $1.00 per share, and
    1,000,000&#160;shares of First Community preferred stock. First
    Community&#146;s articles of incorporation authorize First
    Community&#146;s board of directors to issue shares of First
    Community preferred stock, whose par value, designations,
    preferences, interest rate, limitations, restrictions and
    relative rights will be determined by resolution of the board of
    directors. As of September&#160;22, 2008, there were
    10,967,561&#160;shares of First Community common stock
    outstanding. No shares of First Community preferred stock were
    issued and outstanding as of that date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Coddle Creek&#146;s authorized
    capital stock consists of 20,000,000&#160;shares of Coddle Creek
    common stock without par value, and 5,000,000&#160;shares of
    Coddle Creek preferred stock without par value. Coddle
    Creek&#146;s articles of incorporation authorize Coddle
    Creek&#146;s board of directors to issue shares of Coddle
    Creek&#146;s preferred stock in one or more series and to fix
    the designations, voting powers, preferences, limitations and
    rights. As of September&#160;22, 2008, there were
    610,545&#160;shares of Coddle Creek common stock outstanding. No
    shares of Coddle Creek preferred stock were issued and
    outstanding as of that date.
</DIV>
<A name='156'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuance
    of Capital Stock</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;Pursuant to the NRS, First
    Community may issue shares of First Community capital stock and
    rights or options for the purchase of shares of capital stock of
    First Community on such terms and for such consideration as may
    be determined by the First Community board of directors. Neither
    the NRS nor First Community&#146;s articles of incorporation or
    bylaws require stockholder approval of any such actions. Holders
    of First Community capital stock do not have preemptive rights
    with respect to any shares of First Community capital stock
    which may be issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Pursuant to the NCBCA, Coddle
    Creek may issue shares of Coddle Creek capital stock and rights
    or options for the purchase of shares of capital stock of Coddle
    Creek on such terms and for such consideration as may be
    determined by the Coddle Creek board of directors. Neither the
    NCBCA nor Coddle Creek&#146;s articles of incorporation or
    bylaws require stockholder approval of any such actions. Holders
    of Coddle Creek common stock do not have preemptive rights with
    respect to any shares of Coddle Creek common stock which may be
    issued.
</DIV>
<A name='157'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;Each holder of First
    Community common stock is entitled to one vote for each share
    held of record and may not cumulate votes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Each holder of Coddle Creek
    common stock is entitled to one vote for each share held of
    record and may not cumulate votes.
</DIV>
<A name='158'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Number
    and Election of Directors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;First Community&#146;s
    articles of incorporation provide that the number of members of
    First Community&#146;s board of directors is determined in
    accordance with a bylaw or amendment thereof duly adopted by a
    majority of First Community&#146;s board of directors. First
    Community&#146;s bylaws authorize the number of directors to be
    fixed from time to time by resolution of the board of directors.
    Currently, First
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    61
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Community&#146;s board of directors consists of eight directors.
    First Community&#146;s board of directors is divided into three
    classes, with directors serving staggered three-year terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the NRS, unless First Community&#146;s articles of
    incorporation or its bylaws require more than a plurality of
    votes cast, First Community&#146;s directors are elected at
    annual meetings of stockholders by a plurality of votes cast at
    the election. Neither First Community&#146;s articles of
    incorporation or bylaws require more than a plurality.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Coddle Creek&#146;s articles of
    incorporation provide for a board of directors consisting of no
    less than five members nor more than 15 members as determined
    from time to time in accordance with Coddle Creek&#146;s bylaws.
    If the number of directors is set at nine or more, the Coddle
    Creek board of directors will then be divided into three
    classes, with directors serving staggered three-year terms. If
    the number of directors is set at less than nine, each director
    will be elected to a term ending as of the next succeeding
    annual meeting of stockholders or until his earlier death,
    resignation, retirement, removal or disqualification or until
    his successor has been elected and qualified. Coddle Creek
    currently has six members of its board of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to Coddle Creek&#146;s bylaws, Coddle Creek&#146;s
    directors are elected at annual meetings of stockholders, and
    those individuals receiving the highest number of votes at a
    meeting at which a quorum is present will be deemed to have been
    elected.
</DIV>
<A name='159'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Removal
    of Directors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;Under First Community&#146;s
    articles of incorporation, First Community directors may be
    removed only for cause by an affirmative vote of not less than a
    two-thirds of the votes eligible to be cast by stockholders at a
    meeting of stockholders called expressly for such purpose,
    provided that a director may not be removed if the number of
    votes sufficient to elect the director under cumulative voting
    is voted against the director&#146;s removal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Coddle Creek&#146;s bylaws
    provide that Coddle Creek directors may be removed at any time,
    with or without cause, by a vote of the stockholders if the
    number of votes cast to remove the director exceeds the number
    of votes cast not to remove him. A director may not be removed
    by Coddle Creek&#146;s stockholders at a meeting unless the
    notice of that meeting states the purpose, or one of the
    purposes, of the meeting is removal of the director.
</DIV>
<A name='160'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Vacancies
    of Directors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;Under First Community&#146;s
    articles of incorporation and bylaws, any vacancy occurring on
    the board of directors may be filled by a majority vote of the
    directors then in office, whether or not a quorum. Each director
    so chosen shall hold office until the expiration of the term of
    the director, if any, whom he or she has been chosen to succeed,
    or if none, until the expiration of the term assigned.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Under Coddle Creek&#146;s
    bylaws, any vacancy on the board of directors may be filled by
    either Coddle Creek&#146;s stockholders or board of directors,
    whichever acts first. If the directors remaining in office do
    not constitute a quorum, the directors may fill the vacancy by
    affirmative vote of a majority of the remaining directors or by
    the sole remaining director. A director appointed to fill a
    vacancy will serve until the next succeeding annual meeting of
    stockholders or until his or her earlier death, resignation,
    retirement, removal or disqualification or until his or her
    successor is elected.
</DIV>
<A name='161'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification
    and Limitation of Liability</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;First Community&#146;s
    articles of incorporation provide that First Community will
    indemnify any of its directors, officers, employees or agents
    against expenses (including attorneys&#146; fees), judgments,
    fines and amounts paid in settlement actually and reasonably
    incurred by him in connection with any threatened, pending or
    completed action, suit or proceeding, whether civil, criminal,
    administrative or
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    62
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    investigative, relating to service for or at the request of
    First Community. First Community will not indemnify a director,
    officer, employee or agent if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    he did not act in good faith;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    he did not reasonably believe that the actions were either
    (i)&#160;in First Community&#146;s best interests, or
    (ii)&#160;not opposed to First Community&#146;s best
    interests;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with respect to a criminal action or proceeding, he had
    reasonable cause to believe his conduct was unlawful.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community&#146;s articles of incorporation also provide
    that no director will be liable to First Community or its
    stockholders for monetary damages for breach of fiduciary duty
    as a director, except that the director&#146;s liability will
    not be eliminated or limited:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    for any breach of the director&#146;s duty of loyalty to First
    Community or its stockholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    for acts or omissions involving intentional misconduct, fraud or
    a knowing violation of the law;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    for the payment of any distribution in violation of NRS
    &#167;78.300;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    for any transaction from which the director derived an improper
    personal benefit.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Coddle Creek&#146;s bylaws
    provide that it will indemnify its directors, officers,
    employees and agents to the full extent allowed by applicable
    law against liability and litigation expense arising out of such
    status or activities in such capacity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek&#146;s articles provide that, to the fullest extent
    permitted by the NCBCA, no current or former director of Coddle
    Creek will be personally liable to Coddle Creek or any of its
    stockholders or otherwise for monetary damages for breach of any
    duty as a director.
</DIV>
<A name='162'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendments
    to Articles of Incorporation and Bylaws</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;Under the NRS, First
    Community&#146;s board of directors must adopt a resolution
    setting forth a proper amendment to First Community&#146;s
    articles of incorporation and must call either a special meeting
    of the stockholders entitled to vote on the amendment or direct
    that the amendment be considered at the next annual meeting of
    First Community&#146;s stockholders. Amendments to First
    Community&#146;s articles of incorporation generally must be
    approved by stockholders holding shares in First Community
    entitling them to exercise at least a majority of the voting
    power, or such greater proportion of the voting power as may be
    required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Nevada law, except as otherwise provided by a bylaw
    adopted by First Community&#146;s stockholders, First
    Community&#146;s board of directors can amend or repeal the
    bylaws, or adopt new bylaws. First Community&#146;s bylaws
    authorize First Community&#146;s board of directors to amend its
    bylaws by vote of a majority of the board of directors at a
    meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Pursuant to North Carolina law,
    unless a corporation&#146;s articles of incorporation or bylaws
    adopted by stockholders provide otherwise, amendments to
    articles of incorporation must be approved by a majority of all
    votes entitled to be cast on the matter, and, if applicable, a
    majority of the votes entitled to be cast on the matter within
    each voting group entitled to vote as a separate voting group on
    the amendment and a majority of the votes entitled to be cast on
    the amendment by any voting group with respect to which the
    amendment would create dissenters&#146; rights. Coddle
    Creek&#146;s articles do not require more than a majority of the
    votes cast with respect to amendments to its articles of
    incorporation, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek&#146;s bylaws provide that the bylaws may be
    amended or repealed and new bylaws adopted by Coddle
    Creek&#146;s board of directors, and that no bylaw adopted,
    amended or repealed by Coddle Creek&#146;s stockholders will be
    readopted, amended or repealed by Coddle Creek&#146;s board of
    directors, unless Coddle Creek&#146;s articles of incorporation
    or a bylaw adopted by its stockholders authorizes the board of
    directors to adopt, amended or repeal that particular bylaw or
    the bylaws generally.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    63
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='163'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice of
    Stockholder Meetings</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;In accordance with the NRS,
    First Community&#146;s bylaws provide that a written notice of
    the time, place and purpose of the meeting must be given to each
    stockholder entitled to vote at the meeting not less than
    10&#160;days nor more than 60&#160;days prior to the meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Coddle Creek&#146;s bylaws
    provide that written notice of the date, time and place of a
    meeting of stockholders must be delivered not less than 10 nor
    more than 60&#160;days before the date of the meeting to each
    stockholder of record entitled to vote at such meeting, and in
    the case of a meeting at which a merger or share exchange is to
    be considered, to all stockholders. Notice of special meetings
    of stockholders also must include a description of the purpose
    or purposes for which the meeting is being called.
</DIV>
<A name='164'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Special
    Meetings of Stockholders</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;Under the NRS and First
    Community&#146;s articles of incorporation, a special meeting of
    the stockholders may be called by First Community&#146;s entire
    board of directors. In addition, under the NRS, any two
    directors or First Community&#146;s President may call a special
    meeting of the stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Pursuant to Coddle Creek&#146;s
    bylaws, special meetings of the stockholders may be called at
    any time by Coddle Creek&#146;s Chief Executive Officer,
    President, Chairman of the Board of Directors, or the Board of
    Directors.
</DIV>
<A name='165'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stockholder
    Nominations and Stockholder Proposals</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;First Community&#146;s bylaws
    provide that any nominations to First Community&#146;s board of
    directors other than those made by or on behalf of First
    Community&#146;s existing management must be made in writing and
    must be delivered or mailed to First Community&#146;s Secretary
    not less than 30&#160;days prior to any meeting of First
    Community&#146;s stockholders calling for the election of
    directors. If, however, less than 30&#160;days notice of the
    meeting is given to stockholders, the notice of nomination must
    be mailed or delivered to First Community&#146;s Secretary no
    later than the close of business on the seventh day following
    the day on which the notice of the meeting was mailed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Applicable Commission rules require that a proposal by
    stockholders for submission to a vote of stockholders at an
    annual meeting must be made in writing and delivered or mailed
    and received by the secretary of First Community not later than
    120 calendar days prior to the anniversary date of the mailing
    of proxy materials for the immediately preceding annual meeting.
    Each such notice must set forth information concerning the
    proposal, the proposing stockholder and the information
    specified in First Community&#146;s bylaws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Coddle Creek&#146;s bylaws
    provide that all nominations for directors, other than those
    made by Coddle Creek&#146;s board of directors, must be in
    writing and must be delivered to Coddle Creek&#146;s Secretary
    not less than 30&#160;days nor more than 50&#160;days prior to
    the meeting at which the nominations will be made. If less than
    21&#160;days&#146; notice of the meeting is given to
    stockholders, the nomination must be delivered to the Secretary
    of Coddle Creek not later than the close of business on the
    seventh day following the day on which the notice of the meeting
    was mailed. Neither Coddle Creek&#146;s articles of
    incorporation, bylaws nor the NCBCA contain provisions regarding
    stockholder proposals other than director nominations.
</DIV>
<A name='166'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Control
    Share Acquisition Provisions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;Nevada law contains
    provisions that, under certain circumstances would preclude an
    acquirer of the shares of a Nevada corporation who crosses one
    of three voting thresholds (20%,
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    or 50%) from obtaining voting rights with respect to such shares
    unless the disinterested holders of a majority of the shares of
    First Community held by disinterested stockholders votes to
    accord voting power to such shares. The statute provides that,
    if authorized by the articles of incorporation or bylaws in
    effect on the
    10<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;day
    following the acquisition of the controlling interest by an
    acquiring person, First Community may call for redemption of not
    less than all of the control shares at the average price paid
    for the control shares if the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    64
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    acquirer has not complied with certain procedural requirements
    or if the control shares are not accorded full voting rights by
    the stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;North Carolina law contains
    provisions that, under certain circumstances, would preclude an
    acquirer of the shares of a North Carolina corporation who
    crosses one of three voting thresholds (20%,
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    or 50%) from obtaining voting rights with respect to such shares
    unless the disinterested holders of a majority of the shares of
    the corporation held by disinterested stockholders votes to
    accord voting power to such shares. The legislation provides
    that, if authorized by the articles of incorporation or bylaws
    in effect on the
    10<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;day
    following the acquisition of the controlling interest by an
    acquiring person, the corporation may call for redemption of not
    less than all of the control shares at the average price paid
    for the control shares if the acquirer has not complied with
    certain procedural requirements or if the control shares are not
    accorded full voting rights by the stockholders. Coddle Creek
    has specifically opted out of coverage under the control share
    acquisition provisions of North Carolina law.
</DIV>
<A name='167'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Combinations
    with Interested Stockholders</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;Under the NRS, except under
    certain circumstances, a corporation is not permitted to engage
    in a business combination with any interested stockholder for a
    period of three years following the date such stockholder became
    an interested stockholder. An interested stockholder is a person
    who owns 10% or more of the outstanding shares of voting stock.
    Nevada permits a corporation to opt out of the application of
    these business combination provisions by so providing in the
    articles of incorporation. First Community opted out of the
    application of these business combination provisions in its
    articles of incorporation. Instead, First Community&#146;s
    articles of incorporation require the approval of holders of
    more than 85% of First Community&#146;s outstanding shares
    entitled to vote thereon for any of the following transactions
    between First Community and any individual, firm, corporation or
    other entity (or any affiliate of any of the foregoing) that
    directly or indirectly beneficially owns 15% or more of First
    Community&#146;s outstanding shares of stock entitled to vote
    for the election of directors:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any merger or consolidation of First Community or any subsidiary
    of First Community with or into the firm, corporation or other
    entity;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any sale, lease, exchange, transfer or other disposition
    (whether in a single transaction or a series of related
    transactions) to or with the individual, firm, corporation or
    other entity of any assets of First Community or any subsidiary
    of First Community when such assets have an aggregate fair
    market value of $5,000,000 or more;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the issuance or transfer to or with the individual, firm,
    corporation or other entity by First Community or any subsidiary
    of First Community of any equity securities of First Community
    or any subsidiary of First Community where any such equity
    securities have an aggregate fair market value of $5,000,000 or
    more;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the adoption of any plan or proposal for the liquidation or
    dissolution of First Community;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any agreement, contract or other arrangement providing for any
    of the foregoing.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;The North Carolina Shareholder
    Protection Act requires that certain business combinations with
    existing stockholders either be approved by a supermajority of
    the other stockholders or meet certain &#147;fair price&#148;
    requirements; the statute allows corporations to opt-out of
    these provisions in their bylaws or articles of incorporation,
    if they prefer. Coddle Creek has opted out of the North Carolina
    Shareholder Protection Act. Instead, Coddle Creek&#146;s
    articles of incorporation require the approval of the holders of
    at least 75% of the outstanding voting stock for certain
    fundamental transactions (combinations or mergers, the
    acquisition of more than 10% of Coddle Creek&#146;s outstanding
    voting stock, and purchases or sales of a substantial portion of
    the assets of Coddle Creek or a subsidiary of Coddle Creek) that
    require regulatory approval or approval of Coddle Creek&#146;s
    stockholders. This approval requirement is not applicable if the
    business combination is approved by Coddle Creek&#146;s board of
    directors by the affirmative vote of (i)&#160;at least 75% of
    the entire board of directors, and (ii)&#160;if the business
    combination is proposed by a stockholder that beneficially owned
    10% or more of the outstanding voting shares of Coddle Creek, at
    least 75% of the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    65
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    directors who are unaffiliated with that stockholder. This
    approval requirement also is not applicable to those fundamental
    transactions initiated by Coddle Creek upon the vote of at least
    51% of its directors who are unaffiliated with a stockholder
    that beneficially owns 10% or more of Coddle Creek&#146;s
    outstanding voting shares and is involved in the fundamental
    transaction.
</DIV>
<A name='168'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transactions
    with Interested Persons</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>First Community.</I>&#160;&#160;Under the NRS, a transaction
    with First Community (i)&#160;in which a First Community
    director or officer has a direct or indirect interest, or
    (ii)&#160;involving another corporation, firm or association in
    which one or more of First Community&#146;s directors or
    officers are directors or officers of the corporation, firm or
    association or have a financial interest in the corporation firm
    or association, is not void or voidable solely because of the
    director&#146;s or officer&#146;s interest or common role in the
    transaction if any one of the following circumstances exists:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the fact of the common directorship, office or financial
    interest is known to the board of directors or a committee of
    the board of directors and a majority of disinterested directors
    on the board of directors (or on the committee) authorized,
    approved or ratified the transaction;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the fact of the common directorship, office or financial
    interest is known to the stockholders and disinterested
    stockholders holding a majority of the shares held by
    disinterested stockholders authorized, approved or ratified the
    transaction;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the fact of the common directorship, office or financial
    interest is not known to the director or officer at the time the
    transaction is brought to the board of directors for
    action;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the transaction was fair to First Community at the time it is
    authorized or approved.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coddle Creek.</I>&#160;&#160;Under the NCBCA, a transaction
    with Coddle Creek in which a Coddle Creek director has a direct
    or indirect interest is not voidable by Coddle Creek solely
    because of the director&#146;s interest in the transaction if
    any one of the following is true:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the material facts of the transaction and the director&#146;s
    interest were disclosed or known to the board of directors or a
    committee of the board of directors and a majority of
    disinterested directors on the board of directors (or on the
    committee) authorized, approved or ratified the transaction;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the material facts of the transaction and the director&#146;s
    interest were disclosed or known to the stockholders and
    disinterested stockholders holding a majority of the shares held
    by disinterested stockholders authorized, approved or ratified
    the transaction;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the transaction was fair to Coddle Creek.
</TD>
</TR>

</TABLE>
<A name='169'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stockholders&#146;
    Right of Dissent and Appraisal</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The holders of First Community common stock are not entitled to
    dissenters&#146; rights under the NRS because the merger does
    not require the approval of the stockholders of First Community.
    Under the NRS, a stockholder is entitled to dissent from and to
    obtain payment for the fair value of his, her or its shares in
    the event of consummation of a plan of merger or plan of
    exchange in which the corporation is a party and any corporate
    action taken pursuant to a vote of the stockholders or to the
    extent that the articles of incorporation, bylaws or a
    resolution of the board of directors provides that voting or
    nonvoting stockholders are entitled to dissent and obtain
    payment for their shares. The NRS provides an exception to
    dissenters&#146; rights. Holders (i)&#160;of securities listed
    on a national securities exchange included on the national
    market system by the NASD or (ii)&#160;of securities held by
    2,000 holders of record are not entitled to dissenters&#146;
    rights unless the (i)&#160;articles of incorporation of the
    issuing corporation provide otherwise; or (ii)&#160;the
    stockholders are required under a plan of merger or exchange to
    accept anything but cash, ownership interests, or ownership
    interests and cash in lieu of fractional shares of: (a)&#160;the
    surviving or acquiring entity, or (b)&#160;another entity that,
    at the effective date of the plan of merger or exchange, were
    either listed on a national securities exchange, included in the
    national market system by the NASD, or held of record by at
    least 2,000 owners.
</DIV>

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    <BR>
    66
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek&#146;s stockholders have dissenters&#146; rights in
    connection with the merger. For a discussion of the
    dissenters&#146; rights under the NCBCA, please refer to the
    section entitled &#147;The Merger&#160;&#151; Dissenters&#146;
    Rights&#148; beginning on page 54 and to Article&#160;13 of the
    NCBA, a copy of which is attached as Appendix&#160;C to this
    proxy statement/prospectus.
</DIV>
<A name='170'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ADJOURNMENT
    OF THE SPECIAL MEETING<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">(PROPOSAL&#160;TWO)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that there are not sufficient votes to constitute a
    quorum or approve the merger agreement at the time of the
    special meeting, the merger agreement cannot be approved unless
    the special meeting is adjourned to a later date or dates in
    order to permit further solicitation of proxies. In order to
    allow proxies that have been received by Coddle Creek at the
    time of the special meeting to be voted for an adjournment, if
    deemed necessary, Coddle Creek has submitted the question of
    adjournment to its stockholders as a separate matter for their
    consideration. The board of directors of Coddle Creek
    unanimously recommends that stockholders vote &#147;FOR&#148;
    the adjournment proposal. If it is deemed necessary to adjourn
    the special meeting, no notice of the adjourned meeting is
    required to be given to stockholders, other than an announcement
    at the special meeting of the place, date, and time to which the
    special meeting is adjourned.
</DIV>
<A name='171'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    OPINION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the First Community common stock to be issued in
    the merger will be passed upon for First Community by Patton
    Boggs LLP, Washington, DC.
</DIV>
<A name='172'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements incorporated in this proxy
    statement/prospectus by reference from First Community
    Bancshares Inc.&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the two years in the period ended December&#160;31, 2007
    have been audited by Dixon Hughes PLLC, independent registered
    public accounting firm, and for the year ended December&#160;31,
    2005 have been audited by Ernst&#160;&#038; Young LLP,
    independent registered public accounting firm, as stated in
    their respective reports, which are incorporated herein by
    reference, and have been so incorporated in reliance upon such
    reports of such firms given upon their authority as experts in
    accounting and auditing.
</DIV>
<A name='173'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSALS&#160;FOR
    THE 2009 ANNUAL MEETING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the merger agreement is not approved, Coddle Creek would
    expect to conduct an annual meeting of stockholders in June
    2009. In order for stockholder proposals to be included in
    Coddle Creek&#146;s proxy materials for that meeting, proposals
    must have been received by the Corporate Secretary at Coddle
    Creek&#146;s principal executive office no later than
    December&#160;15, 2008, and meet all other applicable
    requirements for inclusion in the proxy&#160;statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek&#146;s bylaws provide that, in order to be eligible
    for consideration at the annual meeting of stockholders, all
    nominations of directors, other than those made by Coddle
    Creek&#146;s board of directors, must be made in writing and
    must be delivered to the Secretary of Coddle Creek not less than
    30&#160;days nor more&#160;than&#160;50&#160;days prior to the
    meeting at which such nominations will be made; provided,
    however, if less than 21&#160;days notice of the meeting is
    given to stockholders, such nominations must be delivered to the
    Secretary of Coddle Creek not later than the close of business
    on the seventh day following the day on which the notice of
    meeting was mailed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the merger is consummated, there will be no Coddle Creek
    annual meeting of stockholders for 2009.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    67
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='174'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community files annual, quarterly and current reports,
    proxy statements and other information with the Commission. You
    may read and copy any reports, proxy statements or other
    information filed by First Community at the Commission&#146;s
    public reference room in Washington,&#160;D.C., which is located
    at the following address: Public Reference Room,
    100&#160;F&#160;Street N.E., Washington,&#160;D.C. 20549.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You can request copies of these documents, upon payment of a
    duplicating fee, by writing to the Commission. Please call the
    Commission at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the operation of the
    Commission&#146;s public reference rooms. First Community&#146;s
    Commission filings are also available to the public from
    document retrieval services and at the Commission&#146;s
    Internet website
    (<U><FONT style="white-space: nowrap">http://www.sec.gov</FONT></U>).
    First Community&#146;s filings with the Commission are also
    available on its website at www.fcbinc.com.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community has filed with the Commission a registration
    statement on
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    under the Securities Act and the rules and regulations
    thereunder. This proxy statement/prospectus is a part of that
    registration statement. As permitted by the Commission&#146;s
    rules, this proxy statement/prospectus does not contain all of
    the information you can find in the registration statement. The
    registration statement is available for inspection and copying
    as set forth above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Commission allows First Community to &#147;incorporate by
    reference&#148; into this proxy statement/prospectus, which
    means that First Community can disclose important information to
    you by referring you to another document filed separately with
    the Commission. The information incorporated herein by reference
    is considered to be part of this proxy statement/prospectus,
    except for any information superseded by information contained
    in later filed documents incorporated herein by reference in
    this proxy statement/prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community incorporates by reference the documents filed by
    it with the Commission listed below and any future filings made
    by it with the Commission under Sections&#160;13(a), 13(c), 14
    or 15(d) of the Exchange Act prior to the date of the special
    meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="top">
    <B>First Community SEC Filings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>Period/Date</B>
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="3" align="center" valign="top" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Year ended December 31, 2007
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Quarters ended March&#160;31, 2008 and June&#160;30, 2008
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Filed on February 25, 2008; February 20, 2008; February 26,
    2008; May 27, 2008; May 30, 2008; June 4, 2008; July 31, 2008;
    August&#160;5, 2008; and August&#160;26, 2008
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    The description of First Community common stock set forth in
    First Community&#146;s registration statements filed with the
    Commission pursuant to Section&#160;12 of the Exchange Act,
    including any amendment or report filed for purposes of updating
    any such description.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    The portions of First Community&#146;s proxy statement for the
    annual meeting of stockholders held on April&#160;29, 2008, that
    have been incorporated by reference in First Community&#146;s
    2007 Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K.</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    68
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may request a copy of documents incorporated in this proxy
    statement/prospectus by reference but not otherwise accompanying
    this proxy statement/prospectus, at no cost, by writing or
    telephoning First Community at the following addresses:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community Bancshares, Inc.<BR>
    P.O.&#160;Box&#160;989<BR>
    Bluefield, Virginia
    <FONT style="white-space: nowrap">24605-0989</FONT><BR>
    Attention: Robert L. Schumacher,<BR>
    General Counsel<BR>
    <FONT style="white-space: nowrap">(276)&#160;326-9000</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>To obtain timely delivery, you should request desired
    information no later than five business days prior to the date
    of the special meeting, or by October&#160;23, 2008.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information contained or
    incorporated in this proxy statement/prospectus by reference.
    First Community and Coddle Creek have not authorized anyone else
    to provide you with information that is different from that
    which is contained in this proxy statement/prospectus. Moreover,
    neither First Community nor Coddle Creek is making an offer to
    sell or soliciting an offer to buy any securities other than the
    First Community common stock to be issued by First Community in
    the merger, and neither First Community nor Coddle Creek is
    making an offer of such securities in any state where the offer
    is not permitted. The information contained in this document
    speaks only as of its date unless the information specifically
    indicates that another date applies.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    69
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='175'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;A</FONT></B></A>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">AGREEMENT
    AND PLAN OF MERGER<BR>
    DATED AS OF JULY 31, 2008<BR>
    AMONG<BR>
    FIRST COMMUNITY BANCSHARES, INC.<BR>
    AND<BR>
    CODDLE CREEK FINANCIAL CORP.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="84%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=align1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE I CERTAIN DEFINITIONS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-1
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .01
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Certain Definitions
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-1
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE II THE MERGER
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-5
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .01
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    The Merger
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-5
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .02
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Effective Date and Effective Time; Closing
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-6
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE III MERGER CONSIDERATION; EXCHANGE PROCEDURES
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-6
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .01
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Conversion of Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-6
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .02
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Exchange Procedures
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-7
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .03
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Rights as Shareholders; Stock Transfers
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-8
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .04
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    No Fractional Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-8
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .05
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Dissenting Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-8
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .06
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Anti-Dilution Provisions
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-9
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .07
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Withholding Rights
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-9
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .08
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    CCFC Options
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-9
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .09
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Bank Merger
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-9
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE IV ACTIONS PENDING ACQUISITION
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-9
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .01
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Forbearances of CCFC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-9
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .02
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Forbearances of FCBI
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-12
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE V REPRESENTATIONS AND WARRANTIES
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-12
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .01
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Disclosure Schedules
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-12
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .02
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Standard
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-12
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .03
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Representations and Warranties of CCFC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-13
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .04
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Representations and Warranties of FCBI
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-24
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE VI COVENANTS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-27
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .01
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Reasonable Best Efforts
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-27
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .02
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Stockholder Approval
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-28
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .03
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Registration Statement
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-28
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .04
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Regulatory Filings
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-29
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .05
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Press Releases
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-29
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .06
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Access; Information
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-30
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .07
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Affiliates
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-30
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .08
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Acquisition Proposals
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-31
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .09
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Certain Policies
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-32
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .10
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Nasdaq Listing
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-32
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .11
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Indemnification
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-32
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .12
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Benefit Plans
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-33
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .13
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Notification of Certain Matters
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-34
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6
</TD>
<TD nowrap align="left" valign="top">
    .14
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Antitakeover Statutes
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-34
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-i
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="84%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=align1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE VII CONDITIONS TO CONSUMMATION OF THE MERGER
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-35
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    7
</TD>
<TD nowrap align="left" valign="top">
    .01
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Conditions to Each Party&#146;s Obligation to Effect the Merger
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-35
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    7
</TD>
<TD nowrap align="left" valign="top">
    .02
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Conditions to Obligation of CCFC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-36
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    7
</TD>
<TD nowrap align="left" valign="top">
    .03
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Conditions to Obligation of FCBI
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-36
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE VIII TERMINATION
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-36
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .01
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Termination
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-36
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .02
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Effect of Termination and Abandonment
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-37
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ARTICLE IX MISCELLANEOUS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-38
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .01
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Survival
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-38
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .02
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Waiver; Amendment
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-39
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .03
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Counterparts
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-39
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .04
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Governing Law
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-39
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .05
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Expenses
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-39
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .06
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Notices
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-39
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .07
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Entire Understanding; No Third Party Beneficiaries
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-40
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .08
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Severability
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-40
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .09
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Enforcement of the Agreement
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-40
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .10
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Interpretation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-40
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .11
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Assignment
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-40
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9
</TD>
<TD nowrap align="left" valign="top">
    .12
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Alternative Structure
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-40
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX A Form of Shareholder Agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    A-42
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX&#160;B&#160;Form of Affiliate Letter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX&#160;C&#160;Form of Bank Merger Agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX&#160;D&#160;Form of Consulting Agreement for George W.
    Brawley, Jr.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX&#160;E&#160;Form of Employment Agreement for Dale W.
    Brawley
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX&#160;F&#160;Form of Consulting Agreement for Billy R.
    Williams
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX&#160;G&#160;Form of Consulting Agreement for Non-Employee
    Directors of Coddle Creek Financial<BR>
    &#160;&#160;Corp.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX&#160;H&#160;Form of Settlement Agreement for George W.
    Brawley, Jr.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX&#160;I&#160;Form of Settlement Agreement for Dale W.
    Brawley
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNEX&#160;J&#160;Form of Settlement Agreement for Billy R.
    Williams
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    *
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Intentionally omitted.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>AGREEMENT AND PLAN OF MERGER</B>, dated as of July&#160;31,
    2008 (this &#147;Agreement&#148;), between First Community
    Bancshares, Inc. (&#147;FCBI&#148;) and Coddle Creek Financial
    Corp. (&#147;CCFC&#148;).
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RECITALS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A.&#160;<I><U>CCFC</U>.</I>&#160;&#160;CCFC is a North Carolina
    corporation, having its principal place of business in
    Mooresville, North Carolina.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    B.&#160;<I><U>FCBI</U>.</I>&#160;&#160;FCBI is a Nevada
    corporation, having its principal place of business in
    Bluefield, Virginia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C.&#160;<I><U>Intention of the Parties</U>.</I>&#160;&#160;It is
    the intention of the parties to this Agreement that the Merger
    provided for herein be treated as a &#147;reorganization&#148;
    under Section&#160;368(a) of the Internal Revenue Code of 1986,
    as amended (the &#147;Code&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    D.&#160;<I><U>Board Action</U>.</I>&#160;&#160;The respective
    Boards of Directors of each of FCBI and CCFC have determined
    that it is in the best interests of their respective companies
    and their stockholders to consummate the Merger provided for
    herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    E.&#160;<I><U>Shareholder Agreements</U>.</I>&#160;&#160;As a
    material inducement to FCBI to enter into this Agreement, and
    simultaneously with the execution of this Agreement, each
    Shareholder (as defined herein) is entering into an agreement,
    in the form of Annex&#160;A hereto (collectively, the
    &#147;Shareholder Agreements&#148;), pursuant to which they have
    agreed, among other things, to vote their shares of CCFC Common
    Stock (as defined herein) in favor of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOW, THEREFORE</B>, in consideration of the premises and of
    the mutual covenants, representations, warranties and agreements
    contained herein the parties agree as follows:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;I<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">CERTAIN
    DEFINITIONS
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.01&#160;&#160;<I><U>Certain
    Definitions</U>.</I>&#160;&#160;The following terms are used in
    this Agreement with the meanings set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Acquisition Proposal&#148; </I>has the meaning set
    forth in Section&#160;6.08(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Affiliate Letter&#148; </I>has the meaning set forth in
    Section&#160;6.07.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Agreement&#148;</I> means this Agreement and Plan of
    Merger, as amended or modified from time to time in accordance
    with Section&#160;9.02.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Articles of Merger&#148;</I> has the meaning set forth
    in Section&#160;2.02(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Average Closing Price&#148;</I> means the average of
    the last reported sale prices per share of FCBI Common Stock as
    reported on the Nasdaq (as reported in <I>The Wall Street
    Journal </I>or, if not reported therein, in another mutually
    agreed upon authoritative source) for the 20 consecutive trading
    days immediately preceding the Determination Date, rounded to
    the nearest cent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Bank Merger&#148;</I> has the meaning set forth in
    Section&#160;3.09.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Bank Merger Agreement&#148;</I> means the Agreement of
    Merger to be entered into by and between FC Bank and Mooresville
    Savings, the form of which is attached hereto as Annex&#160;C
    and which form shall be subject to such changes as FCBI shall
    reasonably specify.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Bank Secrecy Act&#148;</I> means the Bank Secrecy Act
    of 1970, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Benefit Plans&#148;</I> has the meaning set forth in
    Section&#160;5.03(m)(i).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Business Day&#148;</I> means Monday through Friday of
    each week, except a legal holiday recognized as such by the
    U.S.&#160;Government or any day on which banking institutions in
    the Commonwealth of Virginia and the State of North Carolina are
    authorized or obligated to close.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC&#148;</I> has the meaning set forth in the
    preamble to this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Affiliates&#148;</I> has the meaning set forth in
    Section&#160;6.07.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Articles&#148;</I> means the Articles of
    Incorporation of CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Board&#148;</I> means the Board of Directors of
    CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Bylaws&#148;</I> means the Bylaws of CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Common Stock&#148;</I> means the common stock, no
    par value per share, of CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Financial Statements&#148;</I> shall mean
    (i)&#160;the consolidated statements of financial condition
    (including related notes and schedules, if any) of CCFC as of
    December&#160;31, 2007, 2006 and 2005 and the consolidated
    statements of operations and comprehensive income,
    stockholders&#146; equity and cash flows (including related
    notes and schedules, if any) of CCFC for each of the three years
    ended December&#160;31, 2007, 2006 and 2005, (ii)&#160;the
    consolidated statements of financial condition (including
    related notes and schedules, if any) of CCFC as of
    March&#160;31, 2008 and the consolidated statements of
    operations and comprehensive income, stockholders&#146; equity
    and cash flows (including related notes and schedules, if any)
    of CCFC for the three months ended March&#160;31, 2008, and
    (iii)&#160;the consolidated statements of financial condition of
    CCFC (including related notes and schedules, if any) and the
    consolidated statements of operations and comprehensive income,
    stockholders&#146; equity and cash flows (including related
    notes and schedules, if any) of CCFC with respect to the
    monthly, quarterly and annual periods ending subsequent to
    March&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Group&#148;</I> means any &#147;affiliated
    group&#148; (as defined in Section&#160;1504(a) of the Code
    without regard to the limitations contained in
    Section&#160;1504(b) of the Code) that includes CCFC and its
    Subsidiaries or any predecessor of or any successor to CCFC (or
    to another such predecessor or successor).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Loan Property&#148;</I> has the meaning set forth
    in Section&#160;5.03(o).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Meeting&#148;</I> has the meaning set forth in
    Section&#160;6.02(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Options&#148;</I> means the options to acquire
    CCFC Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Preferred Stock&#148;</I> means the preferred
    stock, no par value per share, of CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;CCFC Stock Option Plans&#148;</I> means the Coddle
    Creek Financial Corp. Stock Option Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Certificate&#148;</I> means any certificate which
    immediately prior to the Effective Time represented shares of
    CCFC Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Change in Control Benefit&#148;</I> has the meaning set
    forth in Section&#160;5.03(m)(viii).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Change in Recommendation&#148;</I> has the meaning set
    forth in Section&#160;6.02(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Closing&#148;</I> and <I>&#147;Closing Date&#148;</I>
    have the meanings set forth in Section&#160;2.02(b).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Code&#148;</I> has the meaning set forth in the
    recitals to this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Commissioner&#148;</I> means the North Carolina
    Commissioner of Banks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Community Reinvestment Act&#148;</I> means the
    Community Reinvestment Act of 1977, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Confidentiality Agreement&#148;</I> has the meaning set
    forth in Section&#160;6.06(c).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Control Transaction&#148;</I> has the meaning set forth
    in Section&#160;8.02(b)(ii).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Derivatives Contract&#148;</I> has the meaning set
    forth in Section&#160;5.03(q)(ii).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Determination Date&#148;</I> shall mean the fifth
    calendar day immediately prior to the Effective Time, or if such
    calendar day is not a trading day on the Nasdaq, then the
    trading day immediately preceding such calendar day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Disclosure Schedule&#148;</I> has the meaning set forth
    in Section&#160;5.01.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Dissenting Shares&#148;</I> has the meaning set forth
    in Section&#160;3.05.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;DOL&#148;</I> has the meaning set forth in
    Section&#160;5.03(m)(i).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Effective Date&#148;</I> has the meaning set forth in
    Section&#160;2.02(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Effective Time&#148;</I> has the meaning set forth in
    Section&#160;2.02(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Employees&#148;</I> has the meaning set forth in
    Section&#160;5.03(m)(i).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Environmental Laws&#148;</I> has the meaning set forth
    in Section&#160;5.03(o).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Equal Credit Opportunity Act&#148;</I> means the Equal
    Credit Opportunity Act, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Equity Investment&#148;</I> means (i)&#160;an Equity
    Security; and (ii)&#160;an ownership interest in any company or
    other entity, any membership interest that includes a voting
    right in any company or other entity, any interest in real
    estate; and any investment or transaction which in substance
    falls into any of these categories even though it may be
    structured as some other form of investment or transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Equity Security&#148;</I> means any stock, certificate
    of interest or participation in any profit-sharing agreement,
    collateral-trust certificate, preorganization certificate or
    subscription, transferable share, investment contract, or
    voting-trust certificate; any security convertible into such a
    security; any security carrying any warrant or right to
    subscribe to or purchase any such security; and any certificate
    of interest or participation in, temporary or interim
    certificate for, or receipt for any of the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;ERISA&#148;</I> means the Employee Retirement Income
    Security Act of 1974, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;ERISA Affiliate&#148;</I> has the meaning set forth in
    Section&#160;5.03(m)(iii).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;ESOP&#148;</I> has the meaning set forth in
    Section&#160;6.12(e).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Exchange Act&#148;</I> means the Securities Exchange
    Act of 1934, as amended, and the rules and regulations
    thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Exchange Agent&#148;</I> means an exchange agent
    designated by FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Exchange Ratio&#148;</I> has the meaning set forth in
    Section&#160;3.01(b).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Fair Housing Act&#148;</I> means the Fair Housing Act,
    as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FC Bank&#148;</I> means First Community Bank, National
    Association, a national bank and wholly owned subsidiary of FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FCBI&#148;</I> has the meaning set forth in the
    preamble to this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FCBI Articles&#148;</I> means the Articles of
    Incorporation of FCBI, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FCBI Benefit Plans&#148;</I> has the meaning set forth
    in Section&#160;6.12(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FCBI Board&#148;</I> means the Board of Directors of
    FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FCBI Bylaws&#148;</I> means the Bylaws of FCBI, as
    amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FCBI Common Stock&#148;</I> means the common stock,
    $1.00&#160;par value per share, of FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FCBI Preferred Stock&#148;</I> means the preferred
    stock, $1.00&#160;par value per share, of FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FDIC&#148;</I> means the Federal Deposit Insurance
    Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FHLB&#148;</I> means the Federal Home Loan Bank of
    Atlanta.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;FRB&#148;</I> means the Board of Governors of the
    Federal Reserve System.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;GAAP&#148;</I> means accounting principles generally
    accepted in the United States of America.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Governmental Authority&#148;</I> means any federal,
    state or local court, administrative agency or commission or
    other governmental authority or instrumentality or
    self-regulatory organization.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Hazardous Substance&#148;</I> has the meaning set forth
    in Section&#160;5.03(o).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Indemnified Parties&#148;</I> and &#147;Indemnifying
    Party&#148; have the meanings set forth in Section&#160;6.11(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Insurance Policies&#148;</I> has the meaning set forth
    in Section&#160;5.03(w).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;IRS&#148;</I> has the meaning set forth in
    Section&#160;5.03(m)(i).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Liens&#148;</I> means any charge, mortgage, pledge,
    security interest, restriction, claim, lien or encumbrance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Loans&#148;</I> has the meaning set forth in
    Section&#160;4.01(s).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Material Adverse Effect&#148;</I> means, with respect
    to FCBI or CCFC, any effect that (i)&#160;is material and
    adverse to the financial condition, results of operations or
    business of FCBI and its Subsidiaries taken as a whole or CCFC
    and its Subsidiaries taken as a whole, as the case may be, or
    (ii)&#160;would materially impair the ability of any of FCBI and
    its Subsidiaries or CCFC and its Subsidiaries, as the case may
    be, to perform its respective obligations under this Agreement
    or otherwise materially impede the consummation of the
    Transaction; provided, however, that Material Adverse Effect
    shall not be deemed to include the impact of (a)&#160;changes in
    banking and similar laws of general applicability or
    interpretations thereof by Governmental Authorities,
    (b)&#160;changes in GAAP or regulatory accounting requirements
    applicable to banks, savings banks and their holding companies
    generally, (c)&#160;changes in general economic conditions
    affecting banks, savings banks and their holding companies
    generally, and (d)&#160;with respect to CCFC, the effects of any
    action or omission taken with the prior consent of FCBI or as
    otherwise required by the Agreement, provided that the effect of
    such changes described in clauses (a), (b)&#160;and
    (c)&#160;shall not be excluded as a Material Adverse Effect to
    the extent of a materially disproportionate impact, if any, they
    have on FCBI and its Subsidiaries as a whole on the one hand or
    CCFC and its Subsidiaries as a whole on the other hand, as
    measured relative to similarly situated companies in the banking
    industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Material Contracts&#148;</I> has the meaning set forth
    in Section&#160;5.03(k)(i).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Maximum Insurance Amount&#148;</I> has the meaning set
    forth in Section&#160;6.11(c).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Merger&#148;</I> has the meaning set forth in
    Section&#160;2.01(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Merger Consideration&#148;</I> means the number of
    whole shares of FCBI Common Stock, plus cash in lieu of any
    fractional share interest, and the amount of cash into which
    shares of CCFC Common Stock shall be converted pursuant to the
    provisions of Article&#160;III.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Mooresville Savings&#148;</I> means Mooresville Savings
    Bank, Inc., SSB, a North Carolina chartered savings bank and
    wholly owned subsidiary of CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Mooresville Savings Board&#148;</I> means the Board of
    Directors of Mooresville Savings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Nasdaq&#148;</I> means the Nasdaq Global Select Market
    or such other securities exchange on which the FCBI Common Stock
    may be listed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;National Labor Relations Act&#148;</I> means the
    National Labor Relations Act, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;NCBCA&#148;</I> means the North Carolina Business
    Corporation Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;NGCL&#148;</I> means the Nevada General Corporation law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;OCC&#148;</I> means Office of the Comptroller of the
    Currency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;OREO&#148;</I> means other real estate owned.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Pension Plan&#148;</I> has the meaning set forth in
    Section&#160;5.03(m)(ii).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Per Share Cash Consideration&#148;</I> has the meaning
    set forth in Section&#160;3.01(b).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Per Share Merger Consideration&#148;</I> means an
    amount equal to the sum of (i)&#160;the Per Share Cash
    Consideration plus (ii)&#160;a dollar value determined by
    multiplying the Average Closing Price by the Exchange Ratio,
    rounded to the nearest cent.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Person&#148;</I> means any individual, bank,
    corporation, partnership, association, joint-stock company,
    business trust, limited liability company or unincorporated
    organization.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Previously Disclosed&#148;</I> by a party shall mean
    information set forth in a section of its Disclosure Schedule
    corresponding to the section of this Agreement where such term
    is used.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Proxy Statement&#148;</I> has the meaning set forth in
    Section&#160;6.03(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Registration Statement&#148;</I> has the meaning set
    forth in Section&#160;6.03(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Representatives&#148;</I> has the meaning set forth in
    Section&#160;6.08(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Rights&#148;</I> means, with respect to any Person,
    warrants, options, rights, convertible securities and other
    arrangements or commitments which obligate the Person to issue
    or dispose of any of its capital stock or other ownership
    interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;SEC&#148;</I> means the Securities and Exchange
    Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Securities Act&#148;</I> means the Securities Act of
    1933, as amended, and the rules and regulations thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Securities Documents&#148;</I> has the meaning set
    forth in Section&#160;5.04(g)(i).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Shareholder Agreements&#148;</I> has the meaning set
    forth in the recitals to this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Shareholders&#148;</I> means each director and
    executive officer of CCFC and Mooresville Savings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Subsidiary&#148;</I> has the meaning ascribed to that
    term in Rule l-02 of
    <FONT style="white-space: nowrap">Regulation&#160;S-X</FONT>
    of the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Superior Proposal&#148;</I> has the meaning set forth
    in Section&#160;6.08(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Surviving Corporation&#148;</I> has the meaning set
    forth in Section&#160;2.01(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Tax&#148;</I> and <I>&#147;Taxes&#148;</I> mean all
    federal, state, local or foreign income, gross income, gains,
    gross receipts, sales, use, ad valorem, goods and services,
    capital, production, transfer, franchise, windfall profits,
    license, withholding, payroll, employment, disability, employer
    health, excise, estimated, severance, stamp, occupation,
    property, environmental, custom duties, unemployment or other
    taxes of any kind whatsoever, together with any interest,
    additions or penalties thereto and any interest in respect of
    such interest and penalties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Tax Returns&#148;</I> means any return (including any
    amended return), declaration or other report (including
    elections, declarations, claims for refunds, schedules,
    estimates and information returns) with respect to any Taxes
    (including estimated taxes).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Termination Fee&#148;</I> has the meaning set forth in
    Section&#160;8.02(b).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Transaction&#148;</I> means the Merger, the Bank Merger
    and any other transaction contemplated by this Agreement.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;II<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">THE MERGER
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.01&#160;&#160;<I><U>The Merger</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>The Merger</U>.</I>&#160;&#160;Subject to the
    terms and conditions of this Agreement, at the Effective Time,
    CCFC shall merge with and into FCBI in accordance with the
    applicable provisions of the NCBCA and NGCL (the
    &#147;Merger&#148;), the separate corporate existence of CCFC
    shall cease and FCBI shall survive and continue to exist as a
    corporation incorporated under the NGCL (FCBI, as the surviving
    corporation in the Merger, sometimes being referred to herein as
    the &#147;Surviving Corporation&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Name</U>.</I>&#160;&#160;The name of the
    Surviving Corporation shall be &#147;First Community Bancshares,
    Inc.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>Articles of Incorporation and
    Bylaws</U>.</I>&#160;&#160;The articles of incorporation and
    bylaws of FCBI immediately after the Merger shall be the FCBI
    Articles and FCBI Bylaws as in effect immediately prior to the
    Merger.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U>Directors and Executive Officers of the Surviving
    Corporation</U>.</I>&#160;&#160;The directors of the Surviving
    Corporation immediately after the Merger shall be the directors
    of FCBI immediately prior to the Merger. The executive officers
    of the Surviving Corporation immediately after the Merger shall
    be the executive officers of FCBI immediately prior to the
    Merger, each of whom shall serve until such time as their
    successors shall be duly elected and qualified.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>Authorized Capital Stock</U>.</I>&#160;&#160;The
    authorized capital stock of the Surviving Corporation upon
    consummation of the Merger shall be as set forth in the FCBI
    Articles immediately prior to the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I><U>Effect of the Merger</U>.</I>&#160;&#160;At the
    Effective Time, the effect of the Merger shall be as provided in
    accordance with the NCBCA and the NGCL. Without limiting the
    generality of the foregoing, and subject thereto, at the
    Effective Time, all the property, rights, privileges, powers and
    franchises of CCFC shall vest in the Surviving Corporation, and
    all debts, liabilities, obligations, restrictions, disabilities
    and duties of CCFC shall become the debts, liabilities,
    obligations, restrictions, disabilities and duties of the
    Surviving Corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;<I><U>Additional Actions</U>.</I>&#160;&#160;If, at any
    time after the Effective Time, the Surviving Corporation shall
    consider that any further assignments or assurances in law or
    any other acts are necessary or desirable to (i)&#160;vest,
    perfect or confirm, of record or otherwise, in the Surviving
    Corporation its right, title or interest in, to or under any of
    the rights, properties or assets of CCFC acquired or to be
    acquired by the Surviving Corporation as a result of, or in
    connection with, the Merger, or (ii)&#160;otherwise carry out
    the purposes of this Agreement, CCFC, and its proper officers
    and directors, shall be deemed to have granted to the Surviving
    Corporation an irrevocable power of attorney to execute and
    deliver all such proper deeds, assignments and assurances in law
    and to do all acts necessary or proper to vest, perfect or
    confirm title to and possession of such rights, properties or
    assets in the Surviving Corporation and otherwise to carry out
    the purposes of this Agreement, and the proper officers and
    directors of the Surviving Corporation are fully authorized in
    the name of the Surviving Corporation or otherwise to take any
    and all such action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.02&#160;&#160;<I><U>Effective Date and Effective Time;
    Closing</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Subject to the satisfaction or waiver of the conditions
    set forth in Article&#160;VII (other than those conditions that
    by their nature are to be satisfied at the consummation of the
    Merger, but subject to the fulfillment or waiver of those
    conditions), the parties shall cause articles of merger relating
    to the Merger (&#147;Articles of Merger&#148;) to be filed with
    the Secretary of State of the State of North Carolina pursuant
    to the NCBCA and the Secretary of State of the State of Nevada
    pursuant to the NGCL on (i)&#160;a date selected by FCBI after
    such satisfaction or waiver which is no later than the later of
    (A)&#160;five Business Days after such satisfaction or waiver or
    (B)&#160;the first month end following such satisfaction or
    waiver, or (ii)&#160;such other date to which the parties may
    mutually agree in writing. The Merger provided for herein shall
    become effective upon such filings or on such date as may be
    specified therein. The date of such filings or such later
    effective date is herein called the &#147;Effective Date.&#148;
    The &#147;Effective Time&#148; of the Merger shall be the time
    of such filings or as set forth in such filings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;A closing (the &#147;Closing&#148;) shall take place
    immediately prior to the Effective Time at 10:00&#160;a.m.,
    Eastern Time, at the offices of FCBI, One Community Place,
    Bluefield, Virginia 24605, or at such other place, at such other
    time, or on such other date as the parties may mutually agree
    upon (such date, the &#147;Closing Date&#148;). At the Closing,
    there shall be delivered to FCBI and CCFC the certificates and
    other documents required to be delivered under Article&#160;VII
    hereof.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;III<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">MERGER
    CONSIDERATION; EXCHANGE PROCEDURES
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.01&#160;&#160;<I><U>Conversion of
    Shares</U>.</I>&#160;&#160;At the Effective Time, by virtue of
    the Merger and without any action on the part of a holder of
    shares of CCFC Common Stock:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>FCBI Common Stock</U>.</I>&#160;&#160;Each share
    of FCBI Common Stock that is issued and outstanding immediately
    prior to the Effective Time shall remain issued and outstanding
    and shall be unchanged by the Merger.
</DIV>

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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>CCFC Common Stock</U>.</I>&#160;&#160;Subject to
    Sections&#160;3.04, 3.05, 3.06 and 8.01(h), each share of CCFC
    Common Stock issued and outstanding immediately prior to the
    Effective Time shall be converted into, and shall be canceled in
    exchange for, solely the right to receive (i)&#160;a cash amount
    equal to $19.60 (the &#147;Per Share Cash Consideration&#148;)
    and (ii)&#160;0.9046&#160;shares of FCBI Common Stock (the
    &#147;Exchange Ratio&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.02&#160;&#160;<I><U>Exchange Procedures</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Mailing of Transmittal
    Material</U>.</I>&#160;&#160;Provided that CCFC has delivered,
    or caused to be delivered, to the Exchange Agent all information
    which is necessary for the Exchange Agent to perform its
    obligations as specified herein, the Exchange Agent shall,
    promptly following the Effective Date, mail or make available to
    each holder of record of a Certificate or Certificates a notice
    and letter of transmittal (which shall specify that delivery
    shall be effected, and risk of loss and title to the
    Certificates theretofore representing shares of CCFC Common
    Stock shall pass, only upon proper delivery of the Certificates
    to the Exchange Agent) advising such holder of the effectiveness
    of the Merger and the procedure for surrendering to the Exchange
    Agent such Certificate or Certificates in exchange for the
    consideration set forth in Section&#160;3.01(b) hereof
    deliverable in respect thereof pursuant to this Agreement. A
    letter of transmittal will be properly completed only if
    accompanied by Certificates representing all shares of CCFC
    Common Stock covered thereby, subject to the provisions of
    paragraph (d)&#160;of this Section&#160;3.02.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>FCBI Deliveries</U>.</I>&#160;&#160;At the
    Effective Time, for the benefit of the holders of Certificates,
    (i)&#160;FCBI shall deliver to the Exchange Agent certificates
    evidencing the maximum number of shares of FCBI Common Stock
    issuable and (ii)&#160;FCBI shall deliver, or cause FC Bank to
    deliver, to the Exchange Agent, a cash amount equal to the
    aggregate Per Share Cash Consideration payable pursuant to this
    Article&#160;III in exchange for Certificates representing
    outstanding shares of CCFC Common Stock. The Exchange Agent
    shall not be entitled to vote or exercise any rights of
    ownership with respect to the shares of FCBI Common Stock held
    by it from time to time hereunder, except that it shall receive
    and hold all dividends or other distributions paid or
    distributed with respect to such shares for the account of the
    Persons entitled thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>Exchange Agent
    Deliveries</U>.</I>&#160;&#160;Each holder of an outstanding
    Certificate or Certificates who has surrendered such Certificate
    or Certificates to the Exchange Agent will, upon acceptance
    thereof by the Exchange Agent, be entitled to a certificate or
    certificates representing the number of whole shares of FCBI
    Common Stock and the amount of cash into which the aggregate
    number of shares of CCFC Common Stock previously represented by
    such Certificate or Certificates surrendered shall have been
    converted pursuant to this Agreement and any other distribution
    theretofore paid with respect to FCBI Common Stock issuable in
    the Merger, in each case without interest. The Exchange Agent
    shall accept such Certificates upon compliance with such
    reasonable terms and conditions as the Exchange Agent may impose
    to effect an orderly exchange thereof in accordance with normal
    exchange practices. Each outstanding Certificate which prior to
    the Effective Time represented CCFC Common Stock and which is
    not surrendered to the Exchange Agent in accordance with the
    procedures provided for herein shall, except as otherwise herein
    provided, until duly surrendered to the Exchange Agent, be
    deemed to evidence ownership of the number of shares of FCBI
    Common Stock and the right to receive the amount of cash into
    which such CCFC Common Stock shall have been converted. After
    the Effective Time, there shall be no further transfer on the
    records of CCFC of Certificates representing shares of CCFC
    Common Stock and, if such Certificates are presented to CCFC for
    transfer, they shall be cancelled against delivery of
    certificates for FCBI Common Stock and cash as hereinabove
    provided. No dividends which have been declared will be remitted
    to any person entitled to receive shares of FCBI Common Stock
    until such person surrenders the Certificate or Certificates
    representing CCFC Common Stock, at which time such dividends
    shall be remitted to such Person, without interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U>Lost or Destroyed Certificates; Issuances of FCBI
    Common Stock in New Names</U>.</I>&#160;&#160;The Exchange Agent
    and FCBI, as the case may be, shall not be obligated to deliver
    cash or a certificate or certificates representing shares of
    FCBI Common Stock to which a holder of CCFC Common Stock would
    otherwise be entitled as a result of the Merger until such
    holder surrenders the Certificate or Certificates representing
    the shares of CCFC Common Stock for exchange as provided in this
    Section&#160;3.02, or, in default thereof, an appropriate
    affidavit of loss and indemnity agreement
    <FONT style="white-space: nowrap">and/or</FONT> a
    bond in an amount as may be reasonably required in each case by
    FCBI. If any certificates evidencing shares of FCBI Common Stock
    are to be issued in a name other than that in which the
    Certificate evidencing CCFC Common Stock surrendered in exchange
    therefor is registered, it shall be a condition of the issuance
    thereof that the Certificate so surrendered shall be properly
    endorsed or accompanied by an executed form
</DIV>

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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of assignment separate from the Certificate and otherwise in
    proper form for transfer and that the Person requesting such
    exchange pay to the Exchange Agent any transfer or other tax
    required by reason of the issuance of a certificate for shares
    of FCBI Common Stock in any name other than that of the
    registered holder of the Certificate surrendered or otherwise
    establish to the satisfaction of the Exchange Agent that such
    tax has been paid or is not payable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>Unclaimed Merger
    Consideration</U>.</I>&#160;&#160;Any portion of the shares of
    FCBI Common Stock and cash delivered to the Exchange Agent by
    FCBI pursuant to Section&#160;3.02(b) that remains unclaimed by
    the stockholders of CCFC for six months after the Effective Time
    (as well as any proceeds from any investment thereof) shall be
    delivered by the Exchange Agent to FCBI. Any stockholders of
    CCFC who have not theretofore complied with Section&#160;3.02(c)
    shall thereafter look only to FCBI for the consideration
    deliverable in respect of each share of CCFC Common Stock such
    stockholder holds as determined pursuant to this Agreement
    without any interest thereon. If outstanding Certificates for
    shares of CCFC Common Stock are not surrendered or the payment
    for them is not claimed prior to the date on which such shares
    of FCBI Common Stock and cash would otherwise escheat to or
    become the property of any Governmental Authority, the unclaimed
    items shall, to the extent permitted by abandoned property and
    any other applicable law, become the property of FCBI (and to
    the extent not in its possession shall be delivered to it), free
    and clear of all claims or interest of any person previously
    entitled to such property. Neither the Exchange Agent nor any
    party to this Agreement shall be liable to any holder of stock
    represented by any Certificate for any consideration paid to a
    Governmental Authority pursuant to applicable abandoned
    property, escheat or similar laws. FCBI and the Exchange Agent
    shall be entitled to rely upon the stock transfer books of CCFC
    to establish the identity of those persons entitled to receive
    the consideration specified in this Agreement, which books shall
    be conclusive with respect thereto. In the event of a dispute
    with respect to ownership of stock represented by any
    Certificate, FCBI and the Exchange Agent shall be entitled to
    deposit any consideration represented thereby in escrow with an
    independent third party and thereafter be relieved with respect
    to any claims thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I><U>Affiliate
    Agreements</U>.</I>&#160;&#160;Notwithstanding anything in this
    Agreement to the contrary, Certificates surrendered for exchange
    by any CCFC Affiliate shall not be exchanged for certificates
    representing shares of FCBI Common Stock to which such CCFC
    Affiliate may be entitled pursuant to the terms of this
    Agreement until FCBI has received a written agreement from such
    person as specified in Section&#160;6.07.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.03&#160;&#160;<I><U>Rights as Shareholders; Stock
    Transfers</U>.</I>&#160;&#160;At the Effective Time, holders of
    CCFC Common Stock shall cease to be, and shall have no rights
    as, stockholders of CCFC other than to receive the consideration
    provided under this Article&#160;III. After the Effective Time,
    there shall be no transfers on the stock transfer books of CCFC
    or the Surviving Corporation of shares of CCFC Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.04&#160;&#160;<I><U>No Fractional
    Shares</U>.</I>&#160;&#160;Notwithstanding any other provision
    of this Agreement, neither certificates nor scrip for fractional
    shares of FCBI Common Stock shall be issued in the Merger. Each
    holder of CCFC Common Stock who otherwise would have been
    entitled to a fraction of a share of FCBI Common Stock (after
    taking into account all Certificates delivered by such holder)
    shall receive in lieu thereof cash (without interest) in an
    amount determined by multiplying the fractional share interest
    to which such holder would otherwise be entitled by the closing
    price of a share of FCBI Common Stock on Nasdaq on the business
    day preceding the Effective Time (as reported in <I>The Wall
    Street Journal</I>, or if not reported therein, in another
    mutually agreed upon authoritative source), rounded to the
    nearest whole cent. No such holder shall be entitled to
    dividends, voting rights or any other rights in respect of any
    fractional share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.05&#160;&#160;<I><U>Dissenting Shares</U>.</I>&#160;&#160;Each
    outstanding share of CCFC Common Stock the holder of which has
    perfected his right to dissent under the NCBCA and has not
    effectively withdrawn or lost such right as of the Effective
    Time (the &#147;Dissenting Shares&#148;) shall not be converted
    into or represent a right to receive shares of FCBI Common Stock
    and cash hereunder, and the holder thereof shall be entitled
    only to such rights as are granted by the NCBCA. CCFC shall give
    FCBI prompt notice upon receipt by CCFC of any such written
    demands for payment of the fair value of such shares of CCFC
    Common Stock and of withdrawals of such demands and any other
    instruments provided pursuant to the NCBCA. Any payments made in
    respect of Dissenting Shares shall be made by FCBI. If any
    holder of Dissenting Shares shall fail to perfect or shall have
    effectively withdrawn or lost the right to dissent and shall
    have delivered a properly completed letter of transmittal to the
    Exchange Agent, the Dissenting Shares held by such holder shall
    be converted into a right to receive FCBI Common Stock and cash
    in accordance with the applicable provisions of this Agreement.
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.06&#160;&#160;<I><U>Anti-Dilution
    Provisions</U>.</I>&#160;&#160;If, between the date hereof and
    the Effective Time, the shares of FCBI Common Stock shall be
    changed into a different number or class of shares by reason of
    any reclassification, recapitalization, reorganization,
    <FONT style="white-space: nowrap">split-up,</FONT>
    combination, exchange of shares or readjustment, or similar
    transaction with respect to FCBI Common Stock, or a stock
    dividend thereon shall be declared with a record date or ex
    dividend or distribution date within said period, the Exchange
    Ratio shall be adjusted accordingly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.07&#160;&#160;<I><U>Withholding
    Rights</U>.</I>&#160;&#160;FCBI (through the Exchange Agent, if
    applicable) shall be entitled to deduct and withhold from any
    amounts otherwise payable pursuant to this Agreement to any
    holder of shares of CCFC Common Stock such amounts as FCBI is
    required under the Code or any state, local or foreign tax law
    or regulation thereunder to deduct and withhold with respect to
    the making of such payment. Any amounts so withheld shall be
    treated for all purposes of this Agreement as having been paid
    to the holder of CCFC Common Stock in respect of which such
    deduction and withholding was made by FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.08&#160;&#160;<I><U>CCFC Options</U>.</I>&#160;&#160;At the
    Effective Time, each CCFC Option which is outstanding, vested
    and unexercised immediately prior to the Effective Time, shall
    be canceled in exchange for the right to receive a single lump
    sum cash payment, equal to the product of (i)&#160;the number of
    shares of CCFC Common Stock subject to such CCFC Option
    immediately prior to the Effective Time, and (ii) the excess, if
    any, of the Per Share Merger Consideration over the exercise
    price per share of such CCFC Option, less any applicable Taxes
    required to be withheld with respect to such payment. If the
    exercise price per share of any such CCFC Option is equal to or
    greater than the Per Share Merger Consideration, such CCFC
    Option shall be canceled without any cash payment being made in
    respect thereof. CCFC shall use its reasonable best efforts to
    obtain the written acknowledgment of each holder of a
    then-outstanding CCFC Option with regard to the cancellation of
    such CCFC Option and the payment therefor in accordance with the
    terms of this Agreement. Subject to the foregoing, the CCFC
    Stock Option Plans and all CCFC Options issued thereunder shall
    terminate at the Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.09&#160;&#160;<I><U>Bank Merger</U>.</I>&#160;&#160;As soon as
    practicable after the execution of this Agreement (or on such
    later date as FCBI shall specify), FCBI and CCFC shall cause FC
    Bank and Mooresville Savings to enter into the Bank Merger
    Agreement, the form of which is attached hereto as Annex&#160;C,
    which provides for the merger of Mooresville Savings with and
    into FC Bank (the &#147;Bank Merger&#148;), in accordance with
    applicable laws and regulations and the terms of the Bank Merger
    Agreement and as soon as practicable after consummation of the
    Merger (or on such later date as FCBI shall specify). The Bank
    Merger Agreement provides that the directors of FC Bank
    immediately preceding consummation of the Bank Merger shall be
    the directors of FC Bank immediately following the Bank Merger.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;IV<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ACTIONS
    PENDING ACQUISITION
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.01&#160;&#160;<I><U>Forbearances of
    CCFC</U>.</I>&#160;&#160;From the date hereof until the
    Effective Time, except as expressly contemplated or permitted by
    this Agreement or as Previously Disclosed, without the prior
    written consent of FCBI, CCFC will not, and will cause each of
    its Subsidiaries not to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Ordinary Course</U>.</I>&#160;&#160;Conduct its
    business other than in the ordinary and usual course consistent
    with past practice or fail to use reasonable best efforts to
    preserve its business organization, keep available the present
    services of its employees and preserve for itself and FCBI the
    goodwill of the customers of CCFC and its Subsidiaries and
    others with whom business relations exist.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Capital Stock</U>.</I>&#160;&#160;Other than
    pursuant to Rights set forth on Schedule&#160;4.01(b) of
    CCFC&#146;s Disclosure Schedule and outstanding on the date
    hereof, (i)&#160;issue, sell or otherwise permit to become
    outstanding, or authorize the creation of, any additional shares
    of stock or any Rights or (ii)&#160;permit any additional shares
    of stock to become subject to grants of employee or director
    stock options or other Rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>Dividends; Etc</U>.</I>&#160;&#160;(i)&#160;Make,
    declare, pay or set aside for payment any dividend on or in
    respect of, or declare or make any distribution on any shares of
    CCFC capital stock other than (1)&#160;the cash dividend of
    $0.25&#160;per share of CCFC Common Stock declared by CCFC on
    July&#160;22, 2008 and (2)&#160;dividends from wholly owned
    Subsidiaries to CCFC or another wholly owned Subsidiary of CCFC
    or (ii)&#160;directly or indirectly adjust, split, combine,
    redeem, reclassify, purchase or otherwise acquire, any shares of
    its capital stock.
</DIV>

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    <BR>
    A-9
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U>Compensation; Employment Agreements;
    Etc</U>.</I>&#160;&#160;Subject to Section&#160;6.12(f),
    (g)&#160;and (i), enter into or amend or renew any employment,
    consulting, severance, change in control, bonus, salary
    continuation or similar agreements or arrangements with any
    director, officer or employee of CCFC or its Subsidiaries or
    grant any salary or wage increase or increase any employee
    benefit (including incentive or bonus payments), except for
    (i)&#160;changes that are required by applicable law and
    (ii)&#160;the usual and customary accrued bonuses payable to
    employees of CCFC or its Subsidiaries set forth on
    Schedule&#160;4.01(d) of CCFC&#146;s Disclosure Schedule.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>Hiring</U>.</I>&#160;&#160;Hire any person as an
    employee of CCFC or any of its Subsidiaries or promote any
    employee, except (i)&#160;to satisfy contractual obligations
    existing as of the date hereof and set forth on
    Schedule&#160;4.01(e) of CCFC&#146;s Disclosure Schedule and
    (ii)&#160;persons hired to fill any non-executive officer
    vacancies arising after the date hereof and whose employment is
    terminable at the will of CCFC or a Subsidiary of CCFC, as
    applicable, and who are not subject to or eligible for any
    severance or similar benefits or payments that would become
    payable as a result of the Transaction or consummation thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I><U>Benefit Plans</U>.</I>&#160;&#160;Enter into,
    establish, adopt, amend or terminate, or make any contributions
    to (except (i)&#160;as may be required by applicable law,
    (ii)&#160;to satisfy contractual obligations existing as of the
    date hereof and set forth on Schedule&#160;4.01(f) of
    CCFC&#146;s Disclosure Schedule or (iii)&#160;to comply with the
    requirements of this Agreement), any pension, retirement, stock
    option, stock purchase, savings, profit sharing, deferred
    compensation, consulting, bonus, group insurance or other
    employee benefit, incentive or welfare contract, plan or
    arrangement, or any trust agreement (or similar arrangement)
    related thereto, in respect of any director, officer or employee
    of CCFC or its Subsidiaries or take any action to accelerate the
    vesting or exercisability of stock options, restricted stock or
    other compensation or benefits payable thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;<I><U>Dispositions</U>.</I>&#160;&#160;&#160;&#160;Except
    for OREO that is sold in the ordinary course of business
    consistent with past practices or as set forth in
    Schedule&#160;4.01(g) of CCFC&#146;s Disclosure Schedule, sell,
    transfer, mortgage, encumber or otherwise dispose of or
    discontinue any of its assets, deposits, business or properties
    without FCBI&#146;s written consent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;<I><U>Acquisitions</U>.</I>&#160;&#160;Acquire (other
    than by way of foreclosures or acquisitions of control in a bona
    fide fiduciary capacity or in satisfaction of debts previously
    contracted in good faith, in each case in the ordinary and usual
    course of business consistent with past practice), including
    without limitation, by merger or consolidation or by investment
    in a partnership or joint venture, all or any portion of the
    assets, business, securities (other than as permitted by
    Section&#160;4.01(r)), deposits or properties of any other
    Person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;<I><U>Capital Expenditures</U>.</I>&#160;&#160;Make any
    capital expenditures, other than capital expenditures in the
    ordinary course of business consistent with past practice, in
    amounts not exceeding $5,000 individually or $25,000 in the
    aggregate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;<I><U>Governing Documents</U>.</I>&#160;&#160;Amend the
    CCFC Articles or the CCFC Bylaws or the articles of
    incorporation or bylaws (or equivalent documents) of any
    Subsidiary of CCFC or enter into a plan of consolidation,
    merger, share exchange or reorganization with any Person, or a
    letter of intent or agreement in principle with respect thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;<I><U>Accounting Methods</U>.</I>&#160;&#160;Implement
    or adopt any change in its accounting principles, practices or
    methods, other than as may be required by changes in laws or
    regulations or GAAP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;<I><U>Contracts</U>.</I>&#160;&#160;Except as otherwise
    permitted under this Section&#160;4.01, enter into, cancel, fail
    to renew or terminate any Material Contract or amend or modify
    in any material respect any of its existing Material Contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (m)&#160;<I><U>Claims</U>.</I>&#160;&#160;Enter into any
    settlement or similar agreement with respect to any action,
    suit, proceeding, order or investigation to which CCFC or any of
    its Subsidiaries is or becomes a party after the date of this
    Agreement, which settlement, agreement or action involves
    payment by CCFC or any of its Subsidiaries of an amount which
    exceeds $20,000
    <FONT style="white-space: nowrap">and/or</FONT> would
    impose any material restriction on the business of CCFC or any
    of its Subsidiaries or create precedent for claims that are
    reasonably likely to be material to CCFC and its Subsidiaries
    taken as a whole.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-10
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (n)&#160;<I><U>Banking Operations</U>.</I>&#160;&#160;Enter into
    any new material line of business; introduce any material new
    products or services; change its material lending, investment,
    underwriting, pricing, servicing, risk and asset liability
    management and other material banking and operating policies,
    except as required by applicable law, regulation or policies
    imposed by any Governmental Authority, or the manner in which
    its investment securities or loan portfolio is classified or
    reported; or invest in any mortgage-backed or mortgage-related
    security that would be considered &#147;high risk&#148; under
    applicable regulatory guidance; or file any application or enter
    into any contract with respect to the opening, relocation or
    closing of, or open, relocate or close, any branch, office,
    service center or other facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (o)&#160;<I><U>Marketing</U>.</I>&#160;&#160;Introduce any
    material marketing campaigns or any material new sales
    compensation or incentive programs or arrangements (except those
    the material terms of which have been fully disclosed in writing
    to FCBI prior to the date hereof).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (p)&#160;<I><U>Derivatives Contracts</U>.</I>&#160;&#160;Enter
    into or settle any Derivatives Contract.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (q)&#160;<I><U>Indebtedness</U>.</I>&#160;&#160;Incur any
    indebtedness for borrowed money (other than deposits, federal
    funds purchased, cash management accounts, FHLB or FRB
    borrowings that mature within one year and that have no put or
    call features and securities sold under agreements to repurchase
    that mature within 90&#160;days, in each case in the ordinary
    course of business consistent with past practice); or assume,
    guarantee, endorse or otherwise as an accommodation become
    responsible for the obligations of any other Person, other than
    with respect to the collection of checks and other negotiable
    instruments in the ordinary course of business consistent with
    past practice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (r)&#160;<I><U>Investment
    Securities</U>.</I>&#160;&#160;(i)&#160;Acquire (other than by
    way of foreclosures or acquisitions in a bona fide fiduciary
    capacity or in satisfaction of debts previously contracted in
    good faith, in each case in the ordinary course of business
    consistent with past practice) any debt security or Equity
    Investment other than federal funds or United States Government
    securities or United States Government agency securities, in
    each case with a term of one year or less or (ii)&#160;dispose
    of any debt security or Equity Investment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (s)&#160;<I><U>Loans</U>.</I>&#160;&#160;(i)&#160;Make, renew or
    otherwise modify any loan, loan commitment, letter of credit or
    other extension of credit (collectively, &#147;Loans&#148;),
    other than Loans made or acquired in the ordinary course of
    business consistent with past practice which have (x)&#160;in
    the case of unsecured loans made to any one borrower that are
    originated in compliance with the entity&#146;s internal loan
    policies, a principal balance not in excess of $25,000,
    (y)&#160;in the case of loans secured other than by real estate
    that are originated in compliance with the entity&#146;s
    internal loan policies, a principal balance not in excess of
    $100,000 and (z)&#160;in the case of loans secured by real
    estate made to any one borrower that are originated in
    compliance with the entity&#146;s internal loan policies, a
    principal balance not in excess of $300,000; (ii)&#160;take any
    action that would result in any discretionary release of
    collateral or guarantees or otherwise restructure the respective
    amounts set forth in clause&#160;(i) above; or (iii)&#160;enter
    into any Loan securitization or create any special purpose
    funding entity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (t)&#160;<I><U>Investments in Real
    Estate</U>.</I>&#160;&#160;Make any investment or commitment to
    invest in real estate or in any real estate development project
    (other than by way of foreclosure or acquisitions in a bona fide
    fiduciary capacity or in satisfaction of a debt previously
    contracted in good faith, in each case in the ordinary course of
    business consistent with past practice).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (u)&#160;<I><U>Tax Elections</U>.</I>&#160;&#160;Make or change
    any material Tax election, settle or compromise any material Tax
    liability of CCFC or any of its Subsidiaries, agree to an
    extension or waiver of the statute of limitations with respect
    to the assessment or determination of a material amount of Taxes
    of CCFC or any of its Subsidiaries, enter into any closing
    agreement with respect to any material amount of Taxes or
    surrender any right to claim a material Tax refund, adopt or
    change any method of accounting with respect to Taxes, or file
    any amended Tax Return.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;<I><U>Antitakeover Statutes</U>.</I>&#160;&#160;Take
    any action (i)&#160;that would cause this Agreement or the
    Transaction to be subject to the provisions of any state
    antitakeover law or state law that purports to limit or restrict
    business combinations or the ability to acquire or vote shares
    or (ii)&#160;to exempt or make not subject to the provisions of
    any state antitakeover law or state law that purports to limit
    or restrict business combinations or the ability to acquire or
    vote shares, any Person (other than FCBI or its Subsidiaries) or
    any action taken thereby, which
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-11
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Person or action would have otherwise been subject to the
    restrictive provisions thereof and not exempt therefrom.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (w)&#160;<I><U>Adverse Actions</U>.</I>&#160;&#160;(i)&#160;Take
    any action that would, or is reasonably likely to, prevent or
    impede the Merger from qualifying as a reorganization within the
    meaning of Section&#160;368(a) of the Code or (ii)&#160;take any
    action that is intended or is reasonably likely to result in
    (x)&#160;any of its representations and warranties set forth in
    this Agreement being or becoming untrue in any material respect
    at any time at or prior to the Effective Time, (y)&#160;any of
    the conditions to the Merger set forth in Article&#160;VII not
    being satisfied or (z)&#160;a material violation of any
    provision of this Agreement, except as may be required by
    applicable law or regulation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (x)&#160;<I><U>Commitments</U>.</I>&#160;&#160;Enter into any
    contract with respect to, or otherwise agree or commit to do,
    any of the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.02&#160;&#160;<I><U>Forbearances of
    FCBI</U>.</I>&#160;&#160;From the date hereof until the
    Effective Time, except as expressly contemplated or permitted by
    this Agreement, without the prior written consent of CCFC, FCBI
    will not, and will cause each of its Subsidiaries not to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Adverse Actions</U>.</I>&#160;&#160;(i)&#160;Take
    any action that would, or is reasonably likely to, prevent or
    impede the Merger from qualifying as a reorganization within the
    meaning of Section&#160;368(a) of the Code or (ii)&#160;take any
    action that is intended or is reasonably likely to result in
    (x)&#160;any of its representations and warranties set forth in
    this Agreement being or becoming untrue in any material respect
    at any time at or prior to the Effective Time, (y)&#160;any of
    the conditions to the Merger set forth in Article&#160;VII not
    being satisfied or (z)&#160;a material violation of any
    provision of this Agreement, except as may be required by
    applicable law or regulation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Commitments</U>.</I>&#160;&#160;Enter into any
    contract with respect to, or otherwise agree or commit to do,
    any of the foregoing.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;V<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">REPRESENTATIONS
    AND WARRANTIES
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.01&#160;&#160;<I><U>Disclosure
    Schedules</U>.</I>&#160;&#160;On or prior to the date hereof,
    FCBI has delivered to CCFC a schedule and CCFC has delivered to
    FCBI a schedule (each respectively, its &#147;Disclosure
    Schedule&#148;) setting forth, among other things, items the
    disclosure of which is necessary or appropriate either in
    response to an express disclosure requirement contained in a
    provision hereof or as an exception to one or more
    representations or warranties contained in Section&#160;5.03 or
    5.04 or to one or more of its covenants contained in
    Article&#160;IV or Article&#160;VI; provided, however, that the
    mere inclusion of an item in a Disclosure Schedule as an
    exception to a representation or warranty shall not be deemed an
    admission by a party that such item represents a material
    exception or fact, event or circumstance or that, absent such
    inclusion in the Disclosure Schedule, such item is or would be
    reasonably likely to result in a Material Adverse Effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.02&#160;&#160;<I><U>Standard</U>.</I>&#160;&#160;Solely for
    the purposes of determining whether the conditions set forth in
    Sections&#160;7.02(a) or 7.03(a), as the case may be, have been
    satisfied (and without otherwise qualifying any representation
    or warranty made on the date hereof), no representation or
    warranty of CCFC or FCBI contained in Sections&#160;5.03 or
    5.04, respectively, other than the representations and
    warranties set forth in Section&#160;5.03(b), which shall be
    true in all respects, and the representations and warranties set
    forth in Sections&#160;5.03(m)(vi) and 5.03(m)(viii), which
    shall be true in all material respects, shall be deemed untrue
    or incorrect for purposes of Sections&#160;7.02(a) or 7.03(a),
    and no party hereto shall be deemed to have breached a
    representation or warranty for purposes of such Sections, as a
    consequence of the existence of any fact, event or circumstance
    unless such fact, circumstance or event, individually or taken
    together with all other facts, events or circumstances
    inconsistent with any representation or warranty contained in
    Section&#160;5.03 or 5.04, has had or is reasonably likely to
    have a Material Adverse Effect on the party making such
    representation or warranty.
</DIV>

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    <BR>
    A-12
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.03&#160;&#160;<I><U>Representations and Warranties of
    CCFC</U>.</I>&#160;&#160;Subject to Sections&#160;5.01 and 5.02,
    CCFC hereby represents and warrants to FCBI:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Organization, Standing and
    Authority</U>.</I>&#160;&#160;CCFC is duly organized, validly
    existing and in good standing under the laws of the State of
    North Carolina. CCFC is duly licensed or qualified to do
    business and is in good standing in each jurisdiction where its
    ownership or leasing of property or assets or the conduct of its
    business requires it to be so licensed or qualified, except
    where the failure to be so licensed or qualified would not have
    nor reasonably be expected to have a Material Adverse Effect on
    CCFC. CCFC has in effect all federal, state, local and foreign
    governmental authorizations necessary for it to own or lease its
    properties and assets and to carry on its business as now
    conducted. The copies of the CCFC Articles and CCFC Bylaws which
    have previously been made available to FCBI are true, complete
    and correct copies of such documents as in effect on the date of
    this Agreement. Except as set forth in Section&#160;5.03(a) of
    CCFC&#146;s Disclosure Schedule, the minute books of CCFC and
    each of its Subsidiaries previously made available to FCBI
    contain true, complete and correct records in all material
    respects of all meetings and other material corporate actions
    held or taken of their respective stockholders and Boards of
    Directors (including committees of their respective Boards of
    Directors) through the date hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>CCFC Capital Stock</U>.</I>&#160;&#160;The
    authorized capital stock of CCFC consists solely of
    20,000,000&#160;shares of CCFC Common Stock, of which
    610,545&#160;shares are issued and outstanding as of the date
    hereof, and 5,000,000&#160;shares of CCFC Preferred Stock, of
    which no shares were issued and outstanding as of the date
    hereof. The outstanding shares of CCFC Common Stock have been
    duly authorized and validly issued and are fully paid and
    non-assessable, and none of the outstanding shares of CCFC
    Common Stock have been issued in violation of the preemptive
    rights of any Person. Section&#160;5.03(b) of CCFC&#146;s
    Disclosure Schedule sets forth for each CCFC Option, the name of
    the grantee, the date of the grant, the type of grant, the
    status of the option grant as qualified or non-qualified under
    Section&#160;422 of the Code, the number of shares of CCFC
    Common Stock subject to each option, the number of shares of
    CCFC Common Stock subject to options that are currently
    exercisable and the exercise price per share. Except as set
    forth in Section&#160;5.03(b) of CCFC&#146;s Disclosure Schedule
    and except as set forth in the preceding sentence, there are no
    shares of CCFC Common Stock reserved for issuance, CCFC does not
    have any Rights issued or outstanding with respect to CCFC
    Common Stock and CCFC does not have any commitment to authorize,
    issue or sell any CCFC Common Stock or Rights. No bonds,
    debentures, notes or other indebtedness having the right to vote
    on any matters on which stockholders of CCFC may vote are
    outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>Subsidiaries</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;(A)&#160;Section&#160;5.03(c)(i) of CCFC&#146;s
    Disclosure Schedule sets forth a list of all of its Subsidiaries
    together with the jurisdiction of organization of each such
    Subsidiary, (B)&#160;except as set forth in
    Section&#160;5.03(c)(i) of CCFC&#146;s Disclosure Schedule, CCFC
    owns, directly or indirectly, all the issued and outstanding
    equity securities of each of its Subsidiaries, (C)&#160;no
    equity securities of any of its Subsidiaries are or may become
    required to be issued (other than to CCFC) by reason of any
    Right or otherwise, (D)&#160;there are no contracts,
    commitments, understandings or arrangements by which any of its
    Subsidiaries is or may be bound to sell or otherwise transfer
    any of its equity securities (other than to CCFC or any of its
    wholly owned Subsidiaries), (E)&#160;there are no contracts,
    commitments, understandings, or arrangements relating to
    CCFC&#146;s rights to vote or to dispose of such securities and
    (F)&#160;all the equity securities of CCFC&#146;s Subsidiaries
    held by CCFC or its Subsidiaries are fully paid and
    nonassessable and are owned by CCFC or its Subsidiaries free and
    clear of any Liens. No bonds, debentures, notes or other
    indebtedness having the right to vote on any matters on which
    stockholders of any of the CCFC Subsidiaries may vote are
    outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Except as set forth in Section&#160;5.03(c)(ii) of
    CCFC&#146;s Disclosure Schedule and except for securities and
    other interests held in a fiduciary capacity and beneficially
    owned by third parties or taken in consideration of debts
    previously contracted, ownership interests in CCFC&#146;s
    Subsidiaries and stock in the FHLB, CCFC does not own
    beneficially, directly or indirectly, any Equity Securities or
    similar interests of any Person or any interest in a partnership
    or joint venture of any kind.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Each of CCFC&#146;s Subsidiaries has been duly
    organized, is validly existing and is in good standing, in each
    case under the laws of the jurisdiction of its organization, and
    is duly licensed or qualified to do business
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and in good standing in the jurisdictions where its ownership or
    leasing of property or the conduct of its business requires it
    to be so licensed or qualified, except where the failure to be
    so licensed or qualified would not have nor reasonably be
    expected to have a Material Adverse Effect on CCFC. Each of
    CCFC&#146;s Subsidiaries has in effect all federal, state, local
    and foreign governmental authorizations necessary for it to own
    or lease its properties and assets and to carry on its business
    as now conducted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;The deposit accounts of Mooresville Savings are
    insured by the FDIC in the manner and to the maximum extent
    provided by applicable law, and Mooresville Savings has paid all
    deposit insurance premiums and assessments required by
    applicable laws and regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U>Corporate Power</U>.</I>&#160;&#160;Each of CCFC
    and its Subsidiaries has the corporate power and authority to
    carry on its business as it is now being conducted and to own
    all its properties and assets; and CCFC has the corporate power
    and authority to execute, deliver and perform its obligations
    under this Agreement and to consummate the Transaction, and to
    cause Mooresville Savings to execute, deliver and perform its
    obligations under the&#160;Bank Merger Agreement and to
    consummate the Bank Merger, and Mooresville Savings has the
    corporate power and authority to execute, deliver and perform
    its obligations under the Bank Merger Agreement, in each case,
    subject to receipt of all necessary approvals of Governmental
    Authorities and the approval of CCFC&#146;s stockholders of this
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>Corporate Authority</U>.</I>&#160;&#160;Subject
    to the approval of this Agreement by the holders of the
    outstanding CCFC Common Stock, this Agreement and the
    Transaction and the Bank Merger and the Bank Merger Agreement
    have been authorized by all necessary corporate action of CCFC
    and Mooresville Savings and the CCFC Board and the Mooresville
    Savings Board on or prior to the date hereof and the CCFC Board
    will recommend that stockholders of CCFC adopt this Agreement
    and shall direct that such matter be submitted for consideration
    by CCFC&#146;s stockholders at the CCFC Meeting. CCFC has duly
    executed and delivered this Agreement and, assuming due
    authorization, execution and delivery by FCBI, this Agreement is
    a valid and legally binding obligation of CCFC, enforceable in
    accordance with its terms (except as enforceability may be
    limited by applicable bankruptcy, insolvency, reorganization,
    moratorium, fraudulent transfer and similar laws of general
    applicability relating to or affecting creditors&#146; rights or
    by general equity principles).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I><U>Regulatory Approvals; No Defaults</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;No consents or approvals of, or waivers by, or filings
    or registrations with, any Governmental Authority or with any
    third party are required to be made or obtained by CCFC or any
    of its Subsidiaries in connection with the execution, delivery
    or performance by CCFC of this Agreement and by Mooresville
    Savings of the Bank Merger Agreement or to consummate the
    Transaction, except for (A)&#160;filings of applications or
    notices with, and approvals or waivers by, the FRB, the OCC and
    the Commissioner, as required, (B)&#160;filings with the SEC and
    state securities authorities, as applicable, in connection with
    the submission of this Agreement for the approval of the holders
    of CCFC Common Stock and the issuance of FCBI Common Stock in
    the Merger, (C)&#160;the filing of Articles of Merger with the
    Secretary of State of the State of North Carolina pursuant to
    the NCBCA and the Secretary of State of the State of Nevada
    pursuant to the NGCL with respect to the Merger, (D)&#160;the
    filing of Articles of Merger with the Secretary of State of the
    State of North Carolina pursuant to Chapter&#160;54(C) of the
    North Carolina General Statutes with respect to the Bank Merger
    and (E)&#160;the approval of this Agreement by the holders of
    the outstanding shares of CCFC Common Stock. As of the date
    hereof, CCFC is not aware of any reason why the approvals set
    forth above and referred to in Section&#160;7.01(b) will not be
    received in a timely manner and without the imposition of a
    condition, restriction or requirement of the type described in
    Section&#160;7.01(b).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Subject to receipt, or the making, of the consents,
    approvals, waivers and filings referred to in the preceding
    paragraph and the expiration of related waiting periods, the
    execution, delivery and performance of this Agreement by CCFC,
    the Bank Merger Agreement by Mooresville Savings and the
    consummation of the Transaction do not and will not
    (A)&#160;constitute a breach or violation of, or a default
    under, or give rise to any Lien, any acceleration of remedies or
    any right of termination under, any law, code, ordinance, rule
    or regulation or any judgment, decree, injunction, order,
    governmental permit or license, or agreement, indenture or
    instrument of CCFC or any of its Subsidiaries or to which CCFC
    or any of its Subsidiaries or any of their respective properties
    is subject or bound, (B)&#160;constitute a breach or violation
    of, or a default under, the articles
</DIV>

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    <BR>
    A-14
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of incorporation or bylaws (or similar governing documents) of
    CCFC or any of its Subsidiaries or (C)&#160;require any consent
    or approval under any such law, code, ordinance, rule,
    regulation, judgment, decree, injunction, order, governmental
    permit or license, agreement, indenture or instrument.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;<I><U>Financial Statements; Undisclosed
    Liabilities</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;CCFC has previously delivered or made available to FCBI
    accurate and complete copies of the CCFC Financial Statements
    which, in the case of the consolidated statements of financial
    condition of CCFC as of December&#160;31, 2007, 2006 and 2005
    and the consolidated statements of operations and comprehensive
    income, stockholders&#146; equity and cash flows for each of the
    years ended December&#160;31, 2007, 2006 and 2005, are
    accompanied by the audit report of McGladrey&#160;&#038; Pullen,
    LLP. The CCFC Financial Statements referred to herein fairly
    present or will fairly present, as the case may be, the
    financial condition of CCFC as of the respective dates set forth
    therein, and the consolidated results of operations, changes in
    stockholders&#146; equity and cash flows of CCFC for the
    respective periods or as of the respective dates set forth
    therein, in each case in accordance with GAAP consistently
    applied during the periods involved, except in each case as may
    be noted therein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;The CCFC Financial Statements have been or will be, as
    the case may be, prepared in accordance with GAAP consistently
    applied during the periods involved, except as stated therein.
    The audits of CCFC have been conducted in accordance with
    generally accepted auditing standards of the United States of
    America.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Since December&#160;31, 2007, neither CCFC nor any of
    its Subsidiaries has incurred any liability other than in the
    ordinary course of business consistent with past practice
    (excluding the incurrence of expenses related to this Agreement
    and the Transaction).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;Since March&#160;31, 2008, (A)&#160;CCFC and its
    Subsidiaries have conducted their respective businesses in the
    ordinary and usual course consistent with past practice
    (excluding the incurrence of expenses related to this Agreement
    and the Transaction), (B)&#160;CCFC has not taken nor permitted
    any of the actions set forth in Section&#160;4.01 hereof between
    March&#160;31, 2008 and the date hereof and (C)&#160;no event
    has occurred or circumstance arisen that, individually or taken
    together with all other facts, circumstances and events
    (described in any paragraph of this Section&#160;5.03 or
    otherwise), is reasonably likely to have a Material Adverse
    Effect with respect to CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;No agreement pursuant to which any Loans or other
    assets have been or shall be sold by CCFC or its Subsidiaries
    entitle the buyer of such Loans or other assets, unless there is
    material breach of a representation or covenant by CCFC or its
    Subsidiaries, to cause CCFC or its Subsidiaries to repurchase
    such Loans or other assets or the buyer to pursue any other form
    of recourse against CCFC or its Subsidiaries. Except as set
    forth in Section&#160;5.03(g)(v) of CCFC&#146;s Disclosure
    Schedule, since December&#160;31, 2007, no cash, stock or other
    dividend or any other distribution with respect to the capital
    stock of CCFC has been declared, set aside or paid. Except as
    set forth in Section&#160;5.03(g)(v) of CCFC&#146;s Disclosure
    Schedule, no shares of capital stock of CCFC have been
    purchased, redeemed or otherwise acquired, directly or
    indirectly, by CCFC since December&#160;31, 2007, and no
    agreements have been made to do the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;CCFC maintains a system of internal accounting
    controls sufficient to provide reasonable assurances that all
    material information concerning CCFC is made known on a timely
    basis to permit the preparation of the CCFC Financial Statements
    and any public disclosure documents relating to CCFC or its
    Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;<I><U>Legal Proceedings</U>.</I>&#160;&#160;No
    litigation, arbitration, claim or other proceeding before any
    court or governmental agency is pending against CCFC or any of
    its Subsidiaries and, to CCFC&#146;s knowledge, no such
    litigation, arbitration, claim or other proceeding has been
    threatened and there are no facts which could reasonably give
    rise to such litigation, arbitration, claim or other proceeding.
    Neither CCFC nor any of its Subsidiaries nor any of their
    respective properties is a party to or subject to any order,
    judgment, decree or regulatory restriction that, individually or
    in the aggregate, has had or could reasonably be expected to
    have a Material Adverse Effect with respect to CCFC.
</DIV>

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    <BR>
    A-15
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;<I><U>Regulatory Matters</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;CCFC and its Subsidiaries have duly filed with the
    appropriate Governmental Authorities in substantially correct
    form the monthly, quarterly and annual reports required to be
    filed under applicable laws and regulations, and such reports
    were in all material respects complete and accurate and in
    compliance with the requirements of applicable laws and
    regulations, and CCFC has previously delivered or made available
    to FCBI accurate and complete copies of all such reports. Except
    as set forth in Section&#160;5.03(i)(i) of CCFC&#146;s
    Disclosure Schedule, in connection with the most recent
    examination of CCFC and its Subsidiaries by the appropriate
    Governmental Authorities, neither CCFC nor any of its
    Subsidiaries was required to correct or change any action,
    procedure or proceeding which CCFC believes in good faith has
    not been now corrected or changed, other than corrections or
    changes which, if not made, either individually or in the
    aggregate, would not have a Material Adverse Effect on CCFC. To
    the knowledge of CCFC, since its last regulatory examination of
    Community Reinvestment Act compliance, Mooresville Savings has
    not received any complaints as to Community Reinvestment Act
    compliance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Except as set forth in Section&#160;5.03(i)(ii) of
    CCFC&#146;s Disclosure Schedule, neither CCFC nor any of its
    Subsidiaries nor any of their respective properties is a party
    to or is subject to any order, decree, directive, agreement,
    memorandum of understanding or similar arrangement with, or a
    commitment letter or similar submission to, or extraordinary
    supervisory letter from, nor, since December&#160;31, 2001, has
    CCFC or any of its Subsidiaries adopted any policies, procedures
    or board resolutions at the request or suggestion of, any
    Governmental Authority. CCFC and its Subsidiaries have paid all
    assessments made or imposed by any Governmental Authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Except as set forth in Section&#160;5.03(i)(iii) of
    CCFC&#146;s Disclosure Schedule, neither CCFC nor any of its
    Subsidiaries has been advised by, nor does it have any knowledge
    of facts which could give rise to an advisory notice by, any
    Governmental Authority that such Governmental Authority is
    contemplating issuing or requesting (or is considering the
    appropriateness of issuing or requesting) any such order,
    decree, directive, agreement, memorandum of understanding,
    commitment letter, supervisory letter or similar submission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;<I><U>Compliance With Laws</U>.</I>&#160;&#160;Except
    as set forth in Section&#160;5.03(j) of CCFC&#146;s Disclosure
    Schedule, each of CCFC and its Subsidiaries:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;is and at all times since December&#160;31, 2004 has
    been in material compliance with all applicable federal, state,
    local and foreign statutes, laws, codes, regulations,
    ordinances, rules, judgments, injunctions, orders, decrees or
    policies
    <FONT style="white-space: nowrap">and/or</FONT>
    guidelines of a Governmental Authority applicable thereto or to
    the employees conducting such businesses, including, without
    limitation, Sections&#160;23A and 23B of the Federal Reserve Act
    and FRB regulations pursuant thereto, the Equal Credit
    Opportunity Act, the Fair Housing Act, the Community
    Reinvestment Act, the Home Mortgage Disclosure Act, the Bank
    Secrecy Act, the USA Patriot Act, all other applicable fair
    lending laws and other laws relating to discriminatory business
    practices and Environmental Laws and all posted and internal
    policies of CCFC and its Subsidiaries related to customer data,
    privacy and security;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;has and at all times since December&#160;31, 2004 has
    had all permits, licenses, franchises, authorizations, orders
    and approvals of, and has made all filings, applications and
    registrations with, all Governmental Authorities (and has paid
    all fees and assessments due and payable in connection
    therewith) that are required in order to permit them to own or
    lease their properties and to conduct their business as
    presently conducted; all such permits, licenses, franchises,
    certificates of authority, orders and approvals are in full
    force and effect and, to CCFC&#146;s knowledge, no suspension or
    cancellation of any of them is threatened;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;has received no notification or communication from
    any Governmental Authority (A)&#160;asserting that CCFC or any
    of its Subsidiaries is not in compliance with any of the
    statutes, regulations or ordinances which such Governmental
    Authority enforces or (B)&#160;threatening to revoke any
    license, franchise, permit or governmental authorization (nor,
    to CCFC&#146;s knowledge, do any grounds for any of the
    foregoing exist).
</DIV>

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    <BR>
    A-16
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;<I><U>Material Contracts; Defaults</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Except as set forth in Section&#160;5.03(k)(i) of
    CCFC&#146;s Disclosure Schedule, neither CCFC nor any of its
    Subsidiaries is a party to, bound by or subject to any
    agreement, contract, arrangement, commitment or understanding
    (whether written or oral) (A)&#160;with respect to the
    employment of any of its directors, officers, employees or
    consultants, (B)&#160;which would entitle any present or former
    director, officer, employee or agent of CCFC or any of its
    Subsidiaries to indemnification from CCFC or any of its
    Subsidiaries, (C)&#160;which is a material contract (as defined
    in Item&#160;601(b)(10) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    of the SEC), (D)&#160;which is an agreement (including data
    processing, software programming, consulting and licensing
    contracts) not terminable on 60&#160;days or less notice and
    involving the payment or value of more than $20,000 per annum,
    (E)&#160;which is with or to a labor union or guild (including
    any collective bargaining agreement), (F)&#160;which relates to
    the incurrence of indebtedness (other than deposit liabilities,
    advances and loans from the FHLB, and sales of securities
    subject to repurchase, in each case, in the ordinary course of
    business), (G)&#160;which grants any Person a right of first
    refusal, right of first offer or similar right with respect to
    any material properties, rights, assets or businesses of CCFC or
    its Subsidiaries, (H)&#160;which involves the purchase or sale
    of assets with a purchase price of $100,000 or more in any
    single case or $250,000 in all such cases, other than purchases
    and sales of investment securities and loans in the ordinary
    course of business consistent with past practice, (I)&#160;which
    is a consulting agreement, license or service contract
    (including data processing, software programming and licensing
    contracts and outsourcing contracts) which involve the payment
    of $20,000 or more in annual fees, (J)&#160;which provides for
    the payment by CCFC or its Subsidiaries of payments upon a
    change of control thereof, (K)&#160;which is a lease for any
    real or material personal property owned or presently used by
    CCFC or any of its Subsidiaries, (L)&#160;which materially
    restricts the conduct of any business by CCFC or by any of its
    Subsidiaries or limits the freedom of CCFC or any of its
    Subsidiaries to engage in any line of business in any geographic
    area (or would so restrict the Surviving Corporation or any of
    its affiliates after consummation of the Transaction) or which
    requires exclusive referrals of business or requires CCFC or any
    of its Subsidiaries to offer specified products or services to
    their customers or depositors on a priority or exclusive basis,
    or (M)&#160;which is with respect to, or otherwise commits CCFC
    or any of its Subsidiaries to do, any of the foregoing
    (collectively, &#147;Material Contracts&#148;). Set forth in
    Section&#160;5.03(k)(i) of CCFC&#146;s Disclosure Schedule are
    true and correct copies of each such Material Contract.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Each Material Contract is valid and binding on CCFC
    and its Subsidiaries and is in full force and effect (other than
    due to the ordinary expiration thereof) and, to the knowledge of
    CCFC, is valid and binding on the other parties thereto. Neither
    CCFC or any of its Subsidiaries nor, to the knowledge of CCFC,
    any other parties thereto, is in material default under any
    contract, agreement, commitment, arrangement, lease, insurance
    policy or other instrument to which it is a party, by which its
    assets, business, or operations may be bound or affected, or
    under which it or its respective assets, business, or operations
    receives benefits, and there has not occurred any event that,
    with the lapse of time or the giving of notice or both, would
    constitute such a default. Except as provided in this Agreement,
    no power of attorney or similar authorization given directly or
    indirectly by CCFC or any of its Subsidiaries is currently
    outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Section&#160;5.03(k)(iii) of CCFC&#146;s Disclosure
    Schedule sets forth a schedule of all officers and directors of
    CCFC and its Subsidiaries who have outstanding loans from CCFC
    or any of its Subsidiaries, and there has been no default on, or
    forgiveness or waiver of, in whole or in part, any such loan
    during the two years immediately preceding the date hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;<I><U>No Brokers</U>.</I>&#160;&#160;No action has been
    taken by CCFC or any of its Subsidiaries that would give rise to
    any valid claim against any party hereto for a brokerage
    commission, finder&#146;s fee or other like payment with respect
    to the Transaction, except the fee to be paid to Howe Barnes
    Hoefer&#160;&#038; Arnett, Inc. set forth in CCFC&#146;s
    agreement with Howe Barnes Hoefer&#160;&#038; Arnett, Inc., a
    copy of which is included in Section&#160;5.03(l) of CCFS&#146;s
    Disclosure Schedule. Copies of all agreements with Howe Barnes
    Hoefer&#160;&#038; Arnett, Inc. are set forth in
    Section&#160;5.03(l) of CCFC&#146;s Disclosure Schedule.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (m)&#160;<I><U>Employee Benefit Plans</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;All benefit and compensation plans, contracts, policies
    or arrangements covering current or former employees of CCFC and
    its Subsidiaries (the &#147;Employees&#148;) and current or
    former directors or independent
</DIV>

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    <BR>
    A-17
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    contractors of CCFC and its Subsidiaries including, but not
    limited to, &#147;employee benefit plans&#148; within the
    meaning of Section&#160;3(3) of ERISA, and severance,
    employment, change in control, fringe benefit, deferred
    compensation, stock option, stock purchase, stock appreciation
    rights, stock based, incentive and bonus plans, agreements,
    programs, policies or other arrangements (the &#147;Benefit
    Plans&#148;), are set forth in Section&#160;5.03(m)(i) of
    CCFC&#146;s Disclosure Schedule. True and complete copies of
    (A)&#160;all Benefit Plans including, but not limited to, any
    trust instruments and insurance contracts forming a part of any
    Benefit Plans and all amendments thereto; (B)&#160;the most
    recent annual report (Form&#160;5500), together with all
    schedules, as required, filed with the Internal Revenue Service
    (&#147;IRS&#148;) or Department of Labor (the &#147;DOL&#148;),
    as applicable, and any financial statements and opinions
    required by Section&#160;103(e)(3) of ERISA with respect to each
    Benefit Plan; (C)&#160;for each Benefit Plan which is a
    &#147;top-hat&#148; plan, a copy of filings with the DOL;
    (D)&#160;the most recent determination letter issued by the IRS
    for each Benefit Plan that is intended to be
    &#147;qualified&#148; under Section&#160;401(a) of the Code or
    prototype determination letter issued to the plan document
    provider of the plan or prototype or volume submitter plan
    document; (E)&#160;the most recent summary plan description and
    any summary of material modifications, as required, for each
    Benefit Plan; (F)&#160;the most recent actuarial report, if any
    relating to each Benefit Plan; (G)&#160;the most recent
    actuarial valuation, study or estimate of any retiree medical
    and life insurance benefits plan or supplemental retirement
    benefits plan; and (H)&#160;the most recent summary annual
    report for each Benefit Plan required to provide summary annual
    reports by Section&#160;104 of ERISA, have been provided or made
    available to FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Except as set forth in Section&#160;5.03(m)(ii) of
    CCFC&#146;s Disclosure Schedule, each Benefit Plan has been
    established and administered to date in all material respects in
    accordance with the applicable provisions of ERISA, the Code and
    applicable law and with the terms and provisions of all
    documents, contracts or agreements pursuant to which such
    Benefit Plan is maintained. Each Benefit Plan which is an
    &#147;employee pension benefit plan&#148; within the meaning of
    Section&#160;3(2) of ERISA (a &#147;Pension Plan&#148;) and
    which is intended to be qualified under Section&#160;401(a) of
    the Code, has received a favorable determination letter from the
    IRS or is entitled to rely upon the prototype determination
    letter issued to the sponsors of the prototype or volume
    submitter plan documents, and CCFC is not aware of any
    circumstances likely to result in revocation of any such
    favorable determination letter or the loss of the qualification
    of such Pension Plan under Section&#160;401(a) of the Code.
    Neither CCFC nor any of its Subsidiaries has received any
    correspondence or written or verbal notice from the IRS, DOL,
    any other governmental agency, any participant in or beneficiary
    of, a Benefit Plan, or any agent representing any of the
    foregoing that brings into question the qualification of any
    such Benefit Plan. There is no material pending or, to
    CCFC&#146;s knowledge, threatened litigation relating to the
    Benefit Plans. Neither CCFC nor any of its Subsidiaries has
    engaged in a transaction with respect to any Benefit Plan or
    Pension Plan that could subject CCFC or any of its Subsidiaries
    to a tax or penalty imposed by either Section&#160;4975 of the
    Code or Section&#160;502(i) of ERISA in an amount which would be
    material. There are no matters pending before the IRS, DOL or
    other governmental agency with respect to any Benefit Plan.
    Since December&#160;31, 2001, no Benefit Plan or related trust
    has been the subject of an audit, investigation or examination
    by a Governmental Authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;No liability under Title&#160;IV of ERISA has been or
    is expected to be incurred by CCFC or any of its Subsidiaries
    with respect to any ongoing, frozen or terminated
    &#147;single-employer plan,&#148; within the meaning of
    Section&#160;4001(a)(15) of ERISA, currently or formerly
    maintained by any of them or the single-employer plan of any
    entity which is considered one employer with CCFC under
    Section&#160;4001 of ERISA or Section&#160;414 of the Code (an
    &#147;ERISA Affiliate&#148;). Neither CCFC nor any of its
    Subsidiaries has incurred, and neither expects to incur, any
    withdrawal liability with respect to a multiemployer plan (as
    defined in 4001(a)(3) of ERISA) under of Title&#160;IV of ERISA
    (regardless of whether based on contributions of an ERISA
    Affiliate). No notice of a &#147;reportable event,&#148; within
    the meaning of Section&#160;4043 of ERISA for which the
    <FONT style="white-space: nowrap">30-day</FONT>
    reporting requirement has not been waived, has been required to
    be filed for any Pension Plan or by any ERISA Affiliate or will
    be required to be filed in connection with the Transaction.
    There has been no termination or partial termination, as defined
    in Section&#160;411(d) of the Code and the regulations
    thereunder, of any Pension Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;All contributions required to be made under the terms
    of any Benefit Plan have been timely made or have been reflected
    in the CCFC Financial Statements. Neither any Pension Plan nor
    any single-employer plan of an ERISA Affiliate has an
    &#147;accumulated funding deficiency&#148; (whether or not
    waived) within the meaning of
</DIV>

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    <BR>
    A-18
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;412 of the Code or Section&#160;302 of ERISA and no
    ERISA Affiliate has an outstanding funding waiver. Neither CCFC
    nor any of its Subsidiaries has provided, or is required to
    provide, security to any Pension Plan or to any single-employer
    plan of an ERISA Affiliate pursuant to Section&#160;401(a)(29)
    of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;Except for such retirement health benefits which are
    set forth in Section&#160;5.03(m)(v) of CCFC&#146;s Disclosure
    Schedule, which benefits will continue for one year from the
    Closing Date, and except as otherwise set forth in
    Section&#160;5.03(m)(v) of CCFC&#146;s Disclosure Schedule,
    neither CCFC nor any of its Subsidiaries has any obligations for
    retiree health and life benefits under any Benefit Plan, other
    than coverage as may be required under Section&#160;4980B of the
    Code or Part&#160;6 of Title&#160;I of ERISA, or under the
    continuation of coverage provisions of the laws of any state or
    locality. CCFC or any of its Subsidiaries may amend or terminate
    any such Benefit Plan in accordance with and to the extent
    permitted by their terms at any time without incurring any
    liability thereunder. No event or condition exists with respect
    to a Benefit Plan that could subject CCFC to a material tax
    under Section&#160;4980B of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;Except as set forth in Section&#160;5.03(m)(vi) of
    CCFC&#146;s Disclosure Schedule, none of the execution of this
    Agreement, stockholder approval of this Agreement or
    consummation of the Transaction, either alone or in connection
    with a subsequent event, will (A)&#160;entitle any Employees or
    any current or former director or independent contractor of CCFC
    or any of its Subsidiaries to severance pay or any increase in
    severance pay upon any termination of employment after the date
    hereof, (B)&#160;accelerate the time of payment or vesting or
    trigger any payment or funding (through a grantor trust or
    otherwise) of compensation or benefits under, increase the
    amount payable or trigger any other material obligation pursuant
    to, any of the Benefit Plans, (C)&#160;result in any breach or
    violation of, or a default under, any of the Benefit Plans,
    (D)&#160;result in any payment that would be a &#147;parachute
    payment&#148; to a &#147;disqualified individual&#148; as those
    terms are defined in Section&#160;280G of the Code, without
    regard to whether such payment is reasonable compensation for
    personal services performed or to be performed in the future or
    (E)&#160;result in any payment or portion of any payment that
    would not be deductible by CCFC under Section&#160;162(m) of the
    Code when paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;Except as set forth in Section&#160;5.03(m)(vii) of
    CCFC&#146;s Disclosure Schedule, all required reports and
    descriptions (including but not limited to Form&#160;5500 annual
    reports and required attachments,
    <FONT style="white-space: nowrap">Forms&#160;1099-R,</FONT>
    summary annual reports,
    <FONT style="white-space: nowrap">Forms&#160;PBGC-1</FONT>
    and summary plan descriptions) have been filed or distributed
    appropriately with respect to each Benefit Plan. All required
    tax filings with respect to each Benefit Plan have been made,
    and any taxes due in connection with such filings have been paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (viii)&#160;Section&#160;5.03(m)(viii) of CCFC&#146;s Disclosure
    Schedule sets forth all plans or benefits to which each
    individual set forth on such Disclosure Schedule is entitled to
    receive, pursuant to all employment, salary continuation, bonus,
    change in control, and all other agreements, plans and
    arrangements, in connection with a termination of employment
    before or following, or otherwise in connection with or
    contingent upon, the transactions contemplated under this
    Agreement (each such total amount in respect of each such
    individual, the &#147;Change in Control Benefit&#148;), and none
    of the individuals set forth thereon is entitled to receive a
    gross up payment in respect of any excise tax imposed on the
    individual pursuant to Section&#160;4999 of the Code as
    calculated pursuant to the applicable agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ix)&#160;Except as set forth in Section&#160;5.03(m)(ix) of
    CCFC&#146;s Disclosure Schedule, no Benefit Plan is or has been
    funded by, associated with, or related to a &#147;voluntary
    employee&#146;s beneficiary association&#148; within the meaning
    of Section&#160;501(c)(9) of the Code, a &#147;welfare benefit
    fund&#148; within the meaning of Section&#160;419 of the Code, a
    &#147;qualified asset account&#148; within the meaning of
    Section&#160;419A of the Code or a &#147;multiple employer
    welfare arrangement&#148; within the meaning of
    Section&#160;3(40) of ERISA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (x)&#160;Each Benefit Plan which is a &#147;nonqualified
    deferred compensation plan&#148; (within the meaning of
    Section&#160;409A of the Code) has been operated in compliance
    with Section&#160;409A of the Code and the guidance issued by
    the IRS with respect to such plans or is not required to comply
    therewith due to its grandfathered status under
    Section&#160;409A of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (n)&#160;<I><U>Labor Matters</U>.</I>&#160;&#160;Neither CCFC
    nor any of its Subsidiaries is a party to and is bound by any
    collective bargaining agreement, contract or other agreement or
    understanding with a labor union or labor organization, nor is
    CCFC or any of its Subsidiaries the subject of a proceeding
    asserting that it has committed an unfair labor
</DIV>

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    <BR>
    A-19
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    practice (within the meaning of the National Labor Relations
    Act) or seeking to compel CCFC or any of its Subsidiaries to
    bargain with any labor organization as to wages or conditions of
    employment, nor is there any strike or other labor dispute
    involving it or any of its Subsidiaries pending or, to
    CCFC&#146;s knowledge, threatened, nor is CCFC or any of its
    Subsidiaries aware of any activity involving its employees
    seeking to certify a collective bargaining unit or engaging in
    other organizational activity. Except as set forth in
    Section&#160;5.03(n) of CCFC&#146;s Disclosure Schedule, each of
    CCFC and its Subsidiaries has paid in full all wages, salaries,
    commissions, bonuses, benefits and other compensation currently
    due to its employees or otherwise arising on a current basis
    under any policy, practice, agreement, plan, program, statute or
    other law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (o)&#160;<I><U>Environmental Matters</U>.</I>&#160;&#160;There
    are no legal, administrative, arbitral or other proceedings,
    claims, actions, causes of action, private environmental
    investigations, remediation activities or governmental
    investigations of any nature seeking to impose, or that
    reasonably could be expected to result in the imposition, on
    CCFC or any of its Subsidiaries of any liability or obligation
    arising under any Environmental Laws pending or, to the
    knowledge of CCFC, threatened against CCFC or any of its
    Subsidiaries, which liability or obligation could have or could
    reasonably be expected to have, individually or in the
    aggregate, a Material Adverse Effect on CCFC or its Subsidiaries
    taken as a whole. To the knowledge of CCFC, there is no
    reasonable basis for any such proceeding, claim, action,
    environmental remediation or investigation that could impose any
    liability or obligation that could have or could reasonably be
    expected to have, individually or in the aggregate, a Material
    Adverse Effect on CCFC or its Subsidiaries taken as a whole.
    CCFC and its Subsidiaries are in compliance in all material
    respects with applicable Environmental Laws. Except as set forth
    in Section&#160;5.03(o) of CCFC&#146;s Disclosure Schedule, to
    CCFC&#146;s knowledge, no real property (including buildings or
    other structures) currently or formerly owned or operated by
    CCFC or any of its Subsidiaries, or any property in which CCFC
    or any of its Subsidiaries has held a security interest, Lien or
    a fiduciary or management role (&#147;CCFC Loan Property&#148;),
    has been contaminated with, or has had any release of, any
    Hazardous Substance that has resulted, or would reasonably be
    expected to result, in a Material Adverse Effect with respect to
    CCFC. Neither CCFC nor any of its Subsidiaries could be deemed
    the owner or operator of, nor have any of them participated in
    the management regarding Hazardous Substances of, any CCFC Loan
    Property which has been contaminated with, or has had any
    release of, any Hazardous Substance that has resulted, or would
    reasonably be expected to result, in a Material Adverse Effect
    with respect to CCFC. Neither CCFC nor any of its Subsidiaries
    has any liability for any Hazardous Substance disposal or
    contamination on any third party property. Neither CCFC nor any
    of its Subsidiaries nor, to CCFC&#146;s knowledge, any Person
    whose liability CCFC or any of its Subsidiaries has assumed
    whether contractually or by operation of law, has received any
    notice, demand letter, claim or request for information alleging
    any material violation of, or material liability under, any
    Environmental Law. Neither CCFC nor any of its Subsidiaries is
    subject to any order, decree, injunction or other agreement with
    any Governmental Authority or any third party relating to any
    Environmental Law. Except as set forth in Section&#160;5.03(o)
    of CCFC&#146;s Disclosure Schedule, to CCFC&#146;s knowledge,
    there are no circumstances or conditions (including the presence
    of asbestos, underground storage tanks, lead products,
    polychlorinated biphenyls, prior manufacturing operations,
    dry-cleaning, or automotive services) involving CCFC or any of
    its Subsidiaries, any currently or formerly owned or operated
    property, any CCFC Loan Property, or, to CCFC&#146;s knowledge,
    any Person whose liability CCFC or any of its Subsidiaries has
    assumed whether contractually or by operation of law, that could
    reasonably be expected to result in any material claims,
    liability or investigations against CCFC or any of its
    Subsidiaries, result in any material restrictions on the
    ownership, use, or transfer of any property pursuant to any
    Environmental Law, or adversely affect the value of any CCFC
    Loan Property. CCFC has provided to FCBI true and correct copies
    of all environmental reports or studies, sampling data,
    correspondence and filings in its possession or reasonably
    available to it relating to CCFC, its Subsidiaries and any
    currently or formerly owned or operated property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used herein, the term &#147;Environmental Laws&#148; means
    any federal, state, local or foreign law, statute, code,
    ordinance, injunction, regulation, order, decree, permit,
    authorization, opinion or agency or Governmental Authority
    requirement relating to: (A)&#160;the protection or restoration
    of the environment, health, safety, or natural resources,
    (B)&#160;the handling, use, presence, disposal, release or
    threatened release of any Hazardous Substance or
    (C)&#160;wetlands, indoor air, pollution, contamination or any
    injury or threat of injury to persons or property in connection
    with any Hazardous Substance; and the term &#147;Hazardous
    Substance&#148; means any substance that is: (A)&#160;listed,
    classified or regulated pursuant to any Environmental Law,
    (B)&#160;any petroleum, petroleum product or
</DIV>

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    <BR>
    A-20
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">by-product,</FONT>
    asbestos-containing material, lead-containing paint or plumbing,
    polychlorinated biphenyls, radioactive materials, radon or
    urea-formaldehyde insulation or (C)&#160;any other substance
    which is the subject of regulatory action by any Governmental
    Authority in connection with any Environmental Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (p)&#160;<I><U>Tax Matters</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;(A)&#160;All Tax Returns that are required to be filed
    on or before the Effective Date (taking into account any
    extensions of time within which to file which have not expired)
    by or with respect to the CCFC Group, including CCFC and its
    Subsidiaries, have been or will be timely filed on or before the
    Effective Date, (B)&#160;all such Tax Returns are or will be
    true and complete in all material respects, (C)&#160;all Taxes
    shown to be due on the Tax Returns referred to in
    clause&#160;(A) have been or will be timely paid in full and all
    other Taxes that are imposed on any member of the CCFC Group and
    that have due dates on or before the Effective Date have or will
    be paid, (D)&#160;the Tax Returns referred to in clause&#160;(A)
    are not currently under examination and have not been examined
    by the IRS or the appropriate Tax authority, the CCFC Group has
    not extended or waived the statute of limitations for any such
    Tax Returns and the period for assessment of the Taxes in
    respect of which such Tax Returns were required to be filed has
    expired, (E)&#160;all deficiencies asserted or assessments made
    as a result of examinations conducted by any taxing authority
    have been paid in full, (F)&#160;no issues that have been raised
    by the appropriate taxing authority in writing in connection
    with the examination of any of the Tax Returns referred to in
    clause&#160;(A) are currently pending and (G)&#160;no member of
    the CCFC Group has extended or waived any statutes of limitation
    with respect to any Taxes of CCFC. There are no material Liens
    for Taxes upon the assets of CCFC or its Subsidiaries, other
    than with respect to Taxes not yet due and payable or that are
    being contested in good faith by appropriate proceedings and for
    which reserves adequate in accordance with GAAP have been
    provided. No written claim has ever been made by any
    Governmental Authority in a jurisdiction where neither CCFC nor
    any of its Subsidiaries files Tax Returns that it is or may be
    subject to taxation by that jurisdiction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;CCFC has made available to FCBI true and correct
    copies of the United States federal and state income Tax Returns
    filed by CCFC for each of the three most recent fiscal years for
    which such returns have been filed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Neither CCFC nor any of its Subsidiaries has any
    liability with respect to income, franchise or similar Taxes
    that accrued on or before the end of the most recent period
    covered by the CCFC Financial Statements in excess of the
    amounts accrued or subject to a reserve with respect thereto
    that are reflected in the CCFC Financial Statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;Except as set forth in Section&#160;5.03(p)(iv) of
    CCFC&#146;s Disclosure Schedule, neither CCFC nor any of its
    Subsidiaries is a party to any Tax allocation, Tax indemnity or
    Tax sharing agreement, is or has been a member of an affiliated
    group filing consolidated unitary or combined Tax Returns (other
    than a group the common parent of which is or was CCFC) or, to
    the knowledge of CCFC, has any liability for Taxes of any Person
    (other than a member of the CCFC Group) arising from the
    application of Treasury Regulation
    <FONT style="white-space: nowrap">section&#160;1.1502-6</FONT>
    or any analogous provision of state, local or foreign law, or
    otherwise has any liability for the Taxes of any Person (other
    than a member of the CCFC Group) as a transferee or successor,
    by contract, or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;No closing agreements, private letter rulings,
    technical advice memoranda or similar agreements or rulings have
    been entered into or issued by any taxing authority with respect
    to CCFC and its Subsidiaries and no such agreement or ruling has
    been applied for and is currently pending.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;Except as set forth in Section&#160;5.03(p)(vi) of
    CCFC&#146;s Disclosure Schedule, neither CCFC nor any of its
    Subsidiaries maintains any compensation or benefits plans,
    programs or arrangements the payments under which would not
    reasonably be expected to be deductible as a result of the
    limitations under Section&#160;162(m), 280G or 424 of the Code
    and the regulations issued thereunder (or any similar provision
    of state or local laws).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;(A)&#160;No Tax is required to be withheld pursuant
    to Section&#160;1445 of the Code as a result of the Transaction
    and (B)&#160;all Taxes that CCFC or any of its Subsidiaries is
    or was required by law to withhold, collect or deposit have been
    duly withheld, collected or deposited and, to the extent
    required by applicable law, have been paid to the proper
    Governmental Authority or other Person.
</DIV>

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    <BR>
    A-21
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (viii)&#160;None of CCFC or any of its Subsidiaries has been
    either a &#147;distributing corporation&#148; or a
    &#147;controlled corporation&#148; in a distribution occurring
    during the last five years in which the parties to such
    distribution treated the distribution as one to which
    Section&#160;355 of the Code is applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ix)&#160;FCBI will not on account of CCFC or any of its
    Subsidiaries be required to include amounts in income, or
    exclude items of deduction, in a taxable period beginning after
    the Effective Date as a result of (i)&#160;a change in method of
    accounting occurring prior to the Effective Date, (ii)&#160;an
    installment sale or open transaction arising in a taxable period
    (or portion thereof) ending on or before the Effective Date,
    (iii)&#160;a prepaid amount received, or paid, prior to the
    Effective Date or (iv)&#160;deferred intercompany gains or
    losses, intercompany items, or similar items arising prior to
    the Effective Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (x)&#160;None of CCFC or any of its Subsidiaries has engaged in
    any transaction that could give rise to (i)&#160;a registration
    obligation with respect to any Person under Section&#160;6111 of
    the Code or the regulations thereunder, (ii)&#160;a list
    maintenance obligation with respect to any Person under
    Section&#160;6112 of the Code or the regulations thereunder, or
    (iii)&#160;a disclosure obligation as a &#147;reportable
    transaction&#148; under Section&#160;6011 of the Code and the
    regulations thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xi)&#160;None of CCFC or any of its Subsidiaries has or has had
    a permanent establishment in any foreign country, as defined in
    any applicable Tax treaty or convention between the United
    States and such foreign country, and none of CCFC or any of its
    Subsidiaries has engaged in a trade or business within, or
    derived any income from, any foreign country.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (q)&#160;<I><U>Risk Management Instruments</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Neither CCFC nor any of its Subsidiaries is a party or
    has agreed to enter into a Derivatives Contract, whether for the
    account of CCFC or any of its Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;&#147;Derivatives Contract&#148; means any swap
    transaction, option, warrant, forward purchase or sale
    transaction, futures transaction, cap transaction, floor
    transaction or collar transaction relating to one or more
    currencies, commodities, bonds, equity securities, loans,
    interest rates, credit-related events or conditions or any
    indexes, or any other similar transaction or combination of any
    of these transactions, including collateralized mortgage
    obligations or other similar instruments or any debt or equity
    instruments evidencing or embedding any such types of
    transactions, and any related credit support, collateral or
    other similar arrangements related to such transactions;
    provided that, for the avoidance of doubt, the term
    &#147;Derivatives Contract&#148; shall not include any CCFC
    Options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (r)&#160;<I><U>Loans; Nonperforming and Classified
    Assets</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Except as set forth in Section&#160;5.03(r) of
    CCFC&#146;s Disclosure Schedule, each Loan on the books and
    records of CCFC and its Subsidiaries was made and has been
    serviced in all material respects in accordance with customary
    lending standards in the ordinary course of business, is
    evidenced in all material respects by appropriate and sufficient
    documentation and, to the knowledge of CCFC, constitutes the
    legal, valid and binding obligation of the obligor named
    therein, subject to bankruptcy, insolvency, reorganization,
    moratorium, fraudulent transfer and similar laws of general
    applicability relating to or affecting creditor&#146;s rights or
    by general equity principles.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Set forth in Section&#160;5.03(r)(ii) of CCFC&#146;s
    Disclosure Schedule, as to CCFC and each CCFC Subsidiary as of
    the latest practicable date are: (A)&#160;any written or, to
    CCFC&#146;s knowledge, oral Loan under the terms of which the
    obligor is 60 or more days delinquent in payment of principal or
    interest, or to CCFC&#146;s knowledge, in default of any other
    material provision thereof; (B)&#160;each Loan which has been
    classified as &#147;substandard,&#148; &#147;doubtful,&#148;
    &#147;loss&#148; or &#147;special mention&#148; (or words of
    similar import) by CCFC, a CCFC Subsidiary or an applicable
    regulatory authority (it being understood that no representation
    is being made that the Commissioner or the FDIC would agree with
    the loan classifications established by CCFC); (C)&#160;a
    listing of the OREO acquired by foreclosure or by
    <FONT style="white-space: nowrap">deed-in-lieu</FONT>
    thereof, including the book value thereof; and (D)&#160;each
    Loan with any director, executive officer or five percent or
    greater shareholder of CCFC or a CCFC Subsidiary, or to the best
    knowledge of CCFC, any Person controlling, controlled by or
    under common control with, any of the foregoing.
</DIV>

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    <BR>
    A-22
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (s)&#160;<I><U>Properties</U>.</I>&#160;&#160;All real and
    personal property owned by CCFC or a CCFC Subsidiary or
    presently used by any of them in their respective business is in
    a good condition (ordinary wear and tear excepted) and is
    sufficient to carry on its business in the ordinary course of
    business consistent with their past practices. Except as set
    forth in Section&#160;5.03(s) of CCFC&#146;s Disclosure
    Schedule, CCFC has good and marketable title, free and clear of
    all Liens, to all of the material properties and assets, real
    and personal, reflected on the consolidated statement of
    financial condition of CCFC as of March&#160;31, 2008, or
    acquired after such date, other than properties sold by CCFC in
    the ordinary course of business, except (i)&#160;Liens for
    current taxes and assessments not yet due or payable for which
    adequate reserves have been established, (ii)&#160;pledges to
    secure deposits incurred in the ordinary course of its banking
    business consistent with past practice, (iii)&#160;such
    imperfections of title, easements and encumbrances, if any, as
    are not material in character, amount or extent and (iv)&#160;as
    reflected on the consolidated statement of financial condition
    of CCFC as of March&#160;31, 2008. All real and personal
    property which is material to CCFC&#146;s business on a
    consolidated basis and leased or licensed by CCFC or a
    Subsidiary of CCFC is held pursuant to leases or licenses which
    are valid and enforceable in accordance with their respective
    terms and such leases will not terminate or lapse prior to the
    Effective Time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (t)&#160;<I><U>Intellectual Property</U>.</I>&#160;&#160;CCFC
    and each Subsidiary of CCFC owns or possesses valid and binding
    licenses and other rights to use without payment of any material
    amount all material patents, copyrights, trade secrets, trade
    names, service marks, trademarks and other intellectual property
    rights used in its businesses, free and clear of all material
    Liens, all of which have been Previously Disclosed by CCFC, and
    none of CCFC or any of its Subsidiaries has received any notice
    of conflict or allegation of invalidity with respect thereto
    that asserts the intellectual property rights of others. To the
    knowledge of CCFC, the operation of the business of CCFC and
    each of its Subsidiaries does not infringe or violate the
    intellectual property of any third party. CCFC and each of its
    Subsidiaries have performed in all material respects all the
    obligations required to be performed by them and are not in
    default under any contract, agreement, arrangement or commitment
    relating to any of the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (u)&#160;<I><U>Fiduciary Accounts</U>.</I>&#160;&#160;CCFC and
    each of its Subsidiaries have properly administered all accounts
    for which it acts as a fiduciary, including but not limited to
    accounts for which it serves as a trustee, agent, custodian,
    personal representative, guardian, conservator or investment
    advisor, in accordance with the terms of the governing documents
    and applicable laws and regulations. Neither CCFC nor any of its
    Subsidiaries, nor, to CCFC&#146;s knowledge, any of their
    respective directors, officers or employees, has committed any
    breach of trust with respect to any fiduciary account and the
    records for each such fiduciary account are true and correct and
    accurately reflect the assets of such fiduciary account.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;<I><U>Books and Records</U>.</I>&#160;&#160;The books
    and records of CCFC and its Subsidiaries have been fully,
    properly and accurately maintained in material compliance with
    applicable legal and accounting requirements, and such books and
    records accurately reflect in all material respects all dealings
    and transactions in respect of the business, assets, liabilities
    and affairs of CCFC and its Subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (w)&#160;<I><U>Insurance</U>.</I>&#160;&#160;Set forth in
    Section&#160;5.03(w) of CCFC&#146;s Disclosure Schedule are all
    of the material insurance policies, binders, or bonds currently
    maintained by CCFC and its Subsidiaries (&#147;Insurance
    Policies&#148;). CCFC and its Subsidiaries are insured with
    reputable insurers against such risks and in such amounts as the
    management of CCFC reasonably has determined to be prudent in
    accordance with industry practices. All the Insurance Policies
    are in full force and effect; CCFC and its Subsidiaries are not
    in material default thereunder; and all claims thereunder have
    been filed in due and timely fashion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (x)&#160;<I><U>Allowance For Loan
    Losses</U>.</I>&#160;&#160;CCFC&#146;s allowance for loan losses
    is, and shall be as of the Effective Date, in compliance with
    CCFC&#146;s existing methodology for determining the adequacy of
    its allowance for loan losses as well as the standards
    established by GAAP and is and shall be adequate under all such
    standards. CCFC has complied with all orders, comments and
    directives provided to it by any Governmental Authorities
    relating to CCFC&#146;s allowance for loan losses since
    December&#160;31, 2004.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (y)&#160;<I><U>Transactions With
    Affiliates</U>.</I>&#160;&#160;Except as set forth in
    Schedule&#160;5.03(y) of CCFC&#146;s Disclosure Schedule, all
    &#147;covered transactions&#148; between CCFC and an
    &#147;affiliate,&#148; within the meaning of Sections&#160;23A
    and 23B of the Federal Reserve Act and regulations promulgated
    thereunder, have been in compliance with such provisions.
</DIV>

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    <BR>
    A-23
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (z)&#160;<I><U>Required Vote; Antitakeover Provisions</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;The affirmative vote of the holders of a majority of
    the outstanding shares of CCFC Common Stock is necessary to
    approve this Agreement and the Transaction on behalf of CCFC. No
    other vote of the stockholders of CCFC is required by law, the
    CCFC Articles, the CCFC Bylaws or otherwise to approve this
    Agreement, the Bank Merger Agreement and the Transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Based on the representation and warranty of FCBI
    contained in Section&#160;5.04(n), no &#147;control share
    acquisition,&#148; &#147;business combination moratorium,&#148;
    &#147;fair price&#148; or other form of antitakeover statute or
    regulation under the NCBCA or any applicable provisions of the
    takeover laws of any other state (and any comparable provisions
    of the CCFC Articles and CCFC Bylaws), apply or will apply to
    this Agreement, the Bank Merger Agreement or the Transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (aa)&#160;<I><U>Fairness Opinion</U>.</I>&#160;&#160;The CCFC
    Board has received the opinion of Howe Barnes Hoefer&#160;&#038;
    Arnett, Inc. to the effect that as of the date hereof the Merger
    Consideration is fair to the holders of CCFC Common Stock from a
    financial point of view.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (bb)&#160;<I><U>Transactions in
    Securities</U>.</I>&#160;&#160;(i)&#160;All offers and sales of
    CCFC Common Stock by CCFC were at all relevant times exempt from
    or complied with the registration requirements of the Securities
    Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Neither CCFC, none of CCFC&#146;s Subsidiaries, nor,
    to CCFC&#146;s knowledge, (a)&#160;any director or executive
    officer of CCFC or of a CCFC Subsidiary, (b)&#160;any person
    related to any such director or officer by blood, marriage or
    adoption and residing in the same household and (c)&#160;any
    person who has been knowingly provided material nonpublic
    information by any one or more of these persons, has purchased
    or sold, or caused to be purchased or sold, any shares of CCFC
    Common Stock or other securities issued by CCFC (i)&#160;during
    any period when CCFC was in possession of material nonpublic
    information or (ii)&#160;in violation of any applicable
    provision of the Exchange Act or the rules and regulations of
    the SEC thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (cc)&#160;<I><U>Disclosure</U>.</I>&#160;&#160;The
    representations and warranties contained in this
    Section&#160;5.03, when considered as a whole, do not contain
    any untrue statement of a material fact or omit to state any
    material fact necessary in order to make the statements and
    information contained in this Section&#160;5.03 not misleading.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.04&#160;&#160;<I><U>Representations and Warranties of
    FCBI</U>.</I>&#160;&#160;Subject to Sections&#160;5.01 and 5.02,
    FCBI hereby represents and warrants to CCFC as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Organization, Standing and
    Authority</U>.</I>&#160;&#160;FCBI is duly organized, validly
    existing and in good standing under the laws of the State of
    Nevada. FCBI is duly licensed or qualified to do business and is
    in good standing in each jurisdiction where its ownership or
    leasing of property or assets or the conduct of its business
    requires it to be so licensed or qualified, except where the
    failure to be so licensed or qualified would not have nor
    reasonably be expected to have a Material Adverse Effect on
    FCBI. FCBI has in effect all federal, state, local and foreign
    governmental authorizations necessary for it to own or lease its
    properties and assets and to carry on its business as it is now
    conducted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>FCBI Capital Stock</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;As of the date hereof, the authorized capital stock of
    FCBI consists solely of 25,000,000&#160;shares of FCBI Common
    Stock, of which 10,950,078&#160;shares were issued and
    outstanding as of the close of business on July&#160;24, 2008,
    and 1,000,000&#160;shares of FCBI Preferred Stock, of which no
    shares were issued and outstanding as of the date hereof. The
    outstanding shares of FCBI Common Stock have been duly
    authorized and validly issued and are fully paid and
    non-assessable, and none of the shares of FCBI Common Stock have
    been issued in violation of the preemptive rights of any Person.
    As of the date hereof, there are no Rights authorized, issued or
    outstanding with respect to the capital stock of FCBI, except
    for shares of FCBI Common Stock issuable pursuant to the FCBI
    Benefit Plans and by virtue of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;The shares of FCBI Common Stock to be issued in
    exchange for shares of CCFC Common Stock in the Merger, when
    issued in accordance with the terms of this Agreement, will be
    duly authorized, validly issued, fully paid and nonassessable
    and the issuance thereof is not subject to any preemptive right.
</DIV>

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    <BR>
    A-24
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>FC Bank</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;FC Bank has been duly organized and is validly existing
    in good standing under the laws of the United States and is duly
    qualified to do business and is in good standing in the
    jurisdictions where its ownership or leasing of property or the
    conduct of its business requires it to be so qualified. FC Bank
    is duly licensed by the OCC and its deposits are insured by the
    FDIC in the manner and to the maximum extent provided by law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;(A)&#160;FCBI owns, directly or indirectly, all the
    issued and outstanding equity securities of FC Bank, (B)&#160;no
    equity securities of FC Bank are or may become required to be
    issued (other than to FCBI) by reason of any Right or otherwise,
    (C)&#160;there are no contracts, commitments, understandings or
    arrangements by which FC Bank is or may be bound to sell or
    otherwise transfer any of its equity securities (other than to
    FCBI or any of its wholly-owned Subsidiaries) and (D)&#160;there
    are no contracts, commitments, understandings, or arrangements
    relating to FCBI&#146;s right to vote or to dispose of such
    securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U>Corporate Power</U>.</I>&#160;&#160;Each of FCBI
    and FC Bank has the corporate power and authority to carry on
    its business as it is now being conducted and to own all its
    properties and assets. FCBI has the corporate power and
    authority to execute, deliver and perform its obligations under
    this Agreement and to consummate the Transaction, and to cause
    FC Bank to execute, deliver and perform its obligations under
    the Bank Merger Agreement and consummate the Bank Merger, and FC
    Bank has the corporate power and authority to execute, deliver
    and perform its obligations under the Bank Merger Agreement, in
    each case, subject to the receipt of all necessary approvals of
    Governmental Authorities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>Corporate Authority</U>.</I>&#160;&#160;This
    Agreement, the Bank Merger and the Bank Merger Agreement have
    been authorized by all necessary corporate action of FCBI, the
    FCBI Board, FC Bank and the FC Bank Board, as applicable. This
    Agreement has been duly executed and delivered by FCBI and,
    assuming due authorization, execution and delivery by CCFC, this
    Agreement is a valid and legally binding agreement of FCBI
    enforceable in accordance with its terms (except as
    enforceability may be limited by applicable bankruptcy,
    insolvency, reorganization, moratorium, fraudulent transfer and
    similar laws of general applicability relating to or affecting
    creditors&#146; rights or by general equity principles).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I><U>Regulatory Approvals; No Defaults</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;No consents or approvals of, or waivers by, or filings
    or registrations with, any Governmental Authority or with any
    third party are required to be made or obtained by FCBI or any
    of its Subsidiaries in connection with the execution, delivery
    or performance by FCBI of this Agreement and by FC Bank of the
    Bank Merger Agreement or to consummate the Transaction, except
    for (A)&#160;filings of applications or notices with and
    approvals or waivers by the FRB, the OCC, and the Commissioner,
    as required, (B)&#160;filings with the SEC and state securities
    authorities, as applicable, in connection with the submission of
    this Agreement for the approval of the holders of CCFC Common
    Stock and the issuance of FCBI Common Stock in the Merger,
    (C)&#160;the approval of the listing on Nasdaq of the FCBI
    Common Stock to be issued in the Merger and (D)&#160;the filing
    of Articles of Merger with the Secretary of State of the State
    of North Carolina pursuant to the NCBCA and the Secretary of
    State of the State of Nevada pursuant to the NGCL with respect
    to the Merger. As of the date hereof, FCBI is not aware of any
    reason why the approvals set forth above and referred to in
    Section&#160;7.01(b) will not be received in a timely manner and
    without the imposition of a condition, restriction or
    requirement of the type described in Section&#160;7.01(b).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Subject to receipt, or the making, of the consents,
    approvals, waivers and filings referred to in the preceding
    paragraph and expiration of the related waiting periods, the
    execution, delivery and performance of this Agreement by FCBI,
    the Bank Merger Agreement by FC Bank and the consummation of the
    Transaction do not and will not (A)&#160;constitute a breach or
    violation of, or a default under, or give rise to any Lien, any
    acceleration of remedies or any right of termination under, any
    law, code, ordinance, rule or regulation or any judgment,
    decree, injunction, order, governmental permit or license, or
    agreement, indenture or instrument of FCBI or of any of its
    Subsidiaries or to which FCBI or any of its Subsidiaries or any
    of their respective properties is subject or bound,
    (B)&#160;constitute a breach or violation of, or a default
    under, the articles of incorporation or bylaws (or similar
    governing documents) of FCBI or any of its Subsidiaries or
    (C)&#160;require any consent or approval under any such law,
    code, ordinance, rule, regulation, judgment, decree, injunction,
    order, governmental permit or license, agreement, indenture or
    instrument.
</DIV>

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    <BR>
    A-25
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;<I><U>Financial Reports and Securities Documents;
    Material Adverse Effect</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;FCBI&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007 and all other reports,
    registration statements, definitive proxy statements or
    information statements filed or to be filed by it subsequent to
    December&#160;31, 2004 under the Securities Act, or under
    Section&#160;13(a), 13(c), 14 or 15(d) of the Exchange Act in
    the form filed or to be filed (collectively, FCBI&#146;s
    &#147;Securities Documents&#148;) with the SEC, as of the date
    filed or to be filed, (A)&#160;complied or will comply in all
    material respects as to form with the applicable requirements
    under the Securities Act or the Exchange Act, as the case may be
    and (B)&#160;did not and will not contain any untrue statement
    of a material fact or omit to state a material fact required to
    be stated therein or necessary to make the statements therein,
    in the light of the circumstances under which they were made,
    not misleading, except that information as of a later date shall
    be deemed to modify information as of an earlier date; and each
    of the consolidated balance sheets contained in or incorporated
    by reference into any such Securities Documents (including the
    related notes and schedules thereto) fairly presents, or will
    fairly present, the consolidated financial position of FCBI and
    its Subsidiaries as of its date, and each of the consolidated
    statements of income and changes in stockholders&#146; equity
    and cash flows or equivalent statements in such Securities
    Documents (including any related notes and schedules thereto)
    fairly presents, or will fairly present, the consolidated
    results of operations, changes in stockholders&#146; equity and
    cash flows, as the case may be, of FCBI and its Subsidiaries for
    the periods to which they relate, in each case in accordance
    with GAAP consistently applied during the periods involved,
    except in each case as may be noted therein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Since March&#160;31, 2008, no event has occurred or
    circumstance arisen that, individually or taken together with
    all other facts, circumstances and events (described in any
    paragraph of this Section&#160;5.04 or otherwise), is reasonably
    likely to have a Material Adverse Effect with respect to FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;<I><U>Legal Proceedings</U>.</I>&#160;&#160;Except as
    set forth in Section&#160;5.04(h) of FCBI&#146;s Disclosure
    Schedule, no litigation, arbitration, claim or other proceeding
    before any court or governmental agency is pending against FCBI
    or its Subsidiaries and, to FCBI&#146;s knowledge, no such
    litigation, arbitration, claim or other proceeding has been
    threatened and there are no facts which could reasonably give
    rise to such litigation, arbitration, claim or other proceeding.
    Neither FCBI nor any of its Subsidiaries nor any of their
    respective properties is a party to or subject to any order,
    judgment, decree or regulatory restrictions that, individually
    or in the aggregate, has or could reasonably be expected to have
    a Material Adverse Effect with respect to FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;<I><U>No Brokers</U>.</I>&#160;&#160;Except for an
    agreement with The Orr Group, no action has been taken by FCBI
    or its Subsidiaries that would give rise to any valid claim
    against any party hereto for a brokerage commission,
    finder&#146;s fee or other like payment with respect to the
    Transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;<I><U>Tax Matters</U>.</I>&#160;&#160;As of the date
    hereof, FCBI does not have any reason to believe that any
    conditions exist that might prevent or impede the Merger from
    qualifying as a reorganization within the meaning of
    Section&#160;368(a) of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;<I><U>Regulatory Matters</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;FCBI and its Subsidiaries have duly filed with the
    appropriate Governmental Authorities in substantially correct
    form the monthly, quarterly and annual reports required to be
    filed under applicable laws and regulations, and such reports
    were in all material respects complete and accurate and in
    compliance with the requirements of applicable laws and
    regulations. In connection with the most recent examination of
    FCBI and its Subsidiaries by the appropriate regulatory
    authorities, neither FCBI nor any of its Subsidiaries was
    required to correct or change any action, procedure or
    proceeding which FCBI believes in good faith has not been now
    corrected or changed, other than corrections or changes which,
    if not made, either individually or in the aggregate, would not
    have a Material Adverse Effect on FCBI. To the knowledge of
    FCBI, since its last regulatory examination of Community
    Reinvestment Act compliance, FC Bank has not received any
    complaints as to Community Reinvestment Act compliance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Neither FCBI nor any of its Subsidiaries nor any of
    any of their respective properties is a party to or is subject
    to any order, decree, directive, agreement, memorandum of
    understanding or similar arrangement with, or a commitment
    letter or similar submission to, or extraordinary supervisory
    letter from, nor has FCBI or any of its Subsidiaries adopted any
    policies, procedures or board resolutions at the request or
    suggestion of, any
</DIV>

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    <BR>
    A-26
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Governmental Authority. FCBI and its Subsidiaries have paid all
    assessments made or imposed by any Governmental Authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Neither FCBI nor any its Subsidiaries has been
    advised by, and does not have any knowledge of facts which could
    give rise to an advisory notice by, any Governmental Authority
    that such Governmental Authority is contemplating issuing or
    requesting (or is considering the appropriateness of issuing or
    requesting) any such order, decree, agreement, memorandum of
    understanding, commitment letter, supervisory letter or similar
    submission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;<I><U>Compliance With Laws</U>.</I>&#160;&#160;Each of
    FCBI and its Subsidiaries:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;is in material compliance with all applicable federal,
    state, local and foreign statutes, laws, codes, regulations,
    ordinances, rules, judgments, injunctions, orders, decrees or
    policies
    <FONT style="white-space: nowrap">and/or</FONT>
    guidelines of a Governmental Authority applicable thereto or to
    the employees conducting such businesses, including, without
    limitation, Section&#160;23A and 23B of the Federal Reserve Act
    and FRB regulations pursuant thereto, the Equal Credit
    Opportunity Act, the Fair Housing Act, the Community
    Reinvestment Act, the Home Mortgage Disclosure Act, the Bank
    Secrecy Act, the USA Patriot Act, all other applicable fair
    lending laws and other laws relating to discriminatory business
    practices and Environmental Laws and all posted and internal
    policies of FCBI and its Subsidiaries related to customer data,
    privacy and security;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;has all permits, licenses, franchises, authorizations,
    orders and approvals of, and has made all filings, applications
    and registrations with, all Governmental Authorities that are
    required in order to permit them to own or lease their
    properties and to conduct their businesses as presently
    conducted; all such permits, licenses, certificates of
    authority, orders and approvals are in full force and effect
    and, to FCBI&#146;s knowledge, no suspension or cancellation of
    any of them is threatened;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;has received no notification or communication from
    any Governmental Authority (A)&#160;asserting that FCBI or any
    of its Subsidiaries is not in compliance with any of the
    statutes, regulations or ordinances which such Governmental
    Authority enforces or (B)&#160;threatening to revoke any
    license, franchise, permit or governmental authorization (nor,
    to FCBI&#146;s knowledge, do any grounds for any of the
    foregoing exist).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (m)&#160;<I><U>Allowance For Loan
    Losses</U>.</I>&#160;&#160;FCBI&#146;s allowance for loan losses
    is, and shall be as of the Effective Date, in compliance with
    FCBI&#146;s existing methodology for determining the adequacy of
    its allowance for loan losses as well as the standards
    established by applicable Governmental Authorities and the
    Financial Accounting Standards Board and is and shall be
    adequate under all such standards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (n)&#160;<I><U>Ownership of CCFC Common
    Stock</U>.</I>&#160;&#160;None of FCBI or any of its
    Subsidiaries, or to FCBI&#146;s knowledge, any of its other
    affiliates or associates (as such terms are defined under the
    Exchange Act), owns beneficially or of record, directly or
    indirectly, or is a party to any agreement, arrangement or
    understanding for the purpose of acquiring, holding, voting or
    disposing of, shares of CCFC Common Stock (other than shares
    held in a fiduciary capacity that are beneficially owned by
    third parties or as a result of debts previously contracted).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (o)&#160;<I><U>Financial Ability</U>.</I>&#160;&#160;On the
    Effective Date and through the date of payment of the Merger
    Consideration by FCBI, FCBI or FC Bank will have all funds
    necessary to consummate the Merger and pay the aggregate Per
    Share Cash Consideration to holders of CCFC Common Stock
    pursuant to Section&#160;3.01 hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (p)&#160;<I><U>Disclosure</U>.</I>&#160;&#160;The
    representations and warranties contained in this
    Section&#160;5.04, when considered as a whole, do not contain
    any untrue statement of a material fact or omit to state any
    material fact necessary in order to make the statements and
    information contained in this Section&#160;5.04 not misleading.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VI<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">COVENANTS
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.01&#160;&#160;<I><U>Reasonable Best
    Efforts</U>.</I>&#160;&#160;Subject to the terms and conditions
    of this Agreement, each of CCFC and FCBI agrees to use its
    reasonable best efforts in good faith, and to cause its
    Subsidiaries to use their reasonable best efforts in good faith,
    to take, or cause to be taken, all actions, and to do, or cause
    to be done, all things necessary,
</DIV>

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    <BR>
    A-27
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    proper or desirable, or advisable under applicable laws, so as
    to permit consummation of the Transaction as promptly as
    practicable and otherwise to enable consummation of the
    Transaction, including the satisfaction of the conditions set
    forth in Article&#160;VII hereof, and shall cooperate fully with
    the other party hereto to that end.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.02&#160;&#160;<I><U>Stockholder Approval</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;CCFC agrees to take, in accordance with applicable law
    and the CCFC Articles and the CCFC Bylaws, all action necessary
    to convene as soon as reasonably practicable a special meeting
    of its stockholders to consider and vote upon the approval of
    this Agreement and any other matters required to be approved by
    CCFC&#146;s stockholders for consummation of the Transaction
    (including any adjournment, the &#147;CCFC Meeting&#148;).
    Except with the prior written consent of FCBI, no other matters
    shall be submitted for the approval of the CCFC stockholders at
    the CCFC Meeting. Subject to Section&#160;6.02(b), the CCFC
    Board shall at all times prior to and during such meeting
    recommend such approval and shall take all reasonable lawful
    action to solicit such approval by its stockholders and shall
    not (x)&#160;withdraw, modify or qualify in any manner adverse
    to FCBI such recommendation or (y)&#160;take such other action
    or make any other public statement in connection with the CCFC
    Meeting inconsistent with such recommendation (collectively, a
    &#147;Change in Recommendation&#148;), except as and to the
    extent permitted by Section&#160;6.02(b). Notwithstanding any
    Change in Recommendation, this Agreement shall be submitted to
    the stockholders of CCFC at the CCFC Meeting for the purpose of
    approving the Agreement and any other matters required to be
    approved by CCFC&#146;s stockholders for consummation of the
    Transaction. In addition to the foregoing, CCFC shall not submit
    to the vote of its stockholders any Acquisition Proposal other
    than the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Notwithstanding the foregoing, CCFC and the CCFC Board
    shall be permitted to effect a Change in Recommendation if and
    only to the extent that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;CCFC shall have complied in all material respects with
    Section&#160;6.08;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;the CCFC Board, based on advice of its outside
    counsel, shall have determined in good faith that failure to do
    so would be reasonably expected to result in a violation of its
    fiduciary duties under applicable law;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;if the CCFC Board intends to effect a Change in
    Recommendation following an Acquisition Proposal, (A)&#160;the
    CCFC Board shall have concluded in good faith, after giving
    effect to all of the adjustments which may be offered by FCBI
    pursuant to clause&#160;(C) below, that such Acquisition
    Proposal constitutes a Superior Proposal, (B)&#160;CCFC shall
    notify FCBI at least five Business Days in advance of its
    intention to effect a Change in Recommendation in response to
    such Superior Proposal (including the identity of the party
    making such Acquisition Proposal) and furnish to FCBI a detailed
    summary of all material terms of such Superior Proposal and all
    other material documents, and (C)&#160;prior to effecting such a
    Change in Recommendation, CCFC shall, and shall cause its
    financial and legal advisors to, during the period following
    CCFC&#146;s delivery of the notice referred to in
    clause&#160;(B) above, negotiate with FCBI in good faith for a
    period of up to five Business Days (to the extent FCBI desires
    to negotiate) to make such adjustments in the terms and
    conditions of this Agreement so that such Acquisition Proposal
    ceases to constitute a Superior Proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.03&#160;&#160;<I><U>Registration Statement</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;FCBI agrees to prepare a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    or other applicable form (the &#147;Registration
    Statement&#148;) to be filed by FCBI with the SEC in connection
    with the issuance of FCBI Common Stock in the Merger (including
    the proxy statement and prospectus and other proxy solicitation
    materials of CCFC and FCBI constituting a part thereof (the
    &#147;Proxy Statement&#148;) and all related documents). CCFC
    shall prepare and furnish such information relating to it and
    its directors, officers and stockholders as may be reasonably
    required in connection with the above referenced documents based
    on its knowledge of and access to the information required for
    said documents, and CCFC, and its legal, financial and
    accounting advisors, shall have the right to review, comment
    upon and consult with FCBI and its counsel in advance such
    Registration Statement, and all supplements and amendments
    thereto, prior to its or their filing. CCFC agrees to cooperate
    with FCBI and FCBI&#146;s counsel and accountants in requesting
    and obtaining appropriate opinions, consents and letters from
    its financial advisor and independent auditor in connection with
    the Registration
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Statement and the Proxy Statement. Provided that CCFC has
    cooperated as described above, FCBI agrees to file, or cause to
    be filed, the Registration Statement and the Proxy Statement
    with the SEC as promptly as reasonably practicable. Each of CCFC
    and FCBI agrees to use its reasonable best efforts to cause the
    Registration Statement to be declared effective under the
    Securities Act as promptly as reasonably practicable after the
    filing thereof. FCBI also agrees to use its reasonable best
    efforts to obtain all necessary state securities law or
    &#147;Blue Sky&#148; permits and approvals required to carry out
    the transactions contemplated by this Agreement. After the
    Registration Statement is declared effective under the
    Securities Act, CCFC shall promptly mail at its expense the
    Proxy Statement to its stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Each of CCFC and FCBI agrees that none of the
    information supplied or to be supplied by it for inclusion or
    incorporation by reference in (i)&#160;the Registration
    Statement shall, at the time the Registration Statement and each
    amendment or supplement thereto, if any, becomes effective under
    the Securities Act, contain any untrue statement of a material
    fact or omit to state any material fact required to be stated
    therein or necessary to make the statements therein not
    misleading and (ii)&#160;the Proxy Statement and any amendment
    or supplement thereto shall, at the date(s) of mailing to
    CCFC&#146;s stockholders and at the time of the CCFC Meeting,
    contain any untrue statement of a material fact or omit to state
    any material fact required to be stated therein or necessary to
    make the statements therein not misleading. Each of CCFC and
    FCBI further agrees that if such party shall become aware prior
    to the Effective Date of any information furnished by such party
    that would cause any of the statements in the Registration
    Statement or the Proxy Statement to be false or misleading with
    respect to any material fact, or to omit to state any material
    fact necessary to make the statements therein not false or
    misleading, to promptly inform the other parties thereof and to
    take the necessary steps to correct the Registration Statement
    or the Proxy Statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;FCBI agrees to advise CCFC, promptly after FCBI
    receives notice thereof, of the time when the Registration
    Statement has become effective or any supplement or amendment
    has been filed, of the issuance of any stop order or the
    suspension of the qualification of FCBI Common Stock for
    offering or sale in any jurisdiction, of the initiation or, to
    the extent FCBI is aware thereof, threat of any proceeding for
    any such purpose, or of any request by the SEC for the amendment
    or supplement of the Registration Statement or for additional
    information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.04&#160;&#160;<I><U>Regulatory Filings</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Each of FCBI and CCFC and their respective Subsidiaries
    shall cooperate and use their respective reasonable best efforts
    to prepare all documentation, to effect all filings and to
    obtain all permits, consents, approvals and authorizations of
    all third parties and Governmental Authorities necessary to
    consummate the Transaction; and any initial filings with
    Governmental Authorities shall be made by FCBI as soon as
    reasonably practicable after the execution hereof. Each of FCBI
    and CCFC shall have the right to review in advance, and to the
    extent practicable each shall consult with the other, in each
    case subject to applicable laws relating to the exchange of
    information, with respect to all written information submitted
    to any third party or any Governmental Authority in connection
    with the Transaction. In exercising the foregoing right, each of
    such parties agrees to act reasonably and as promptly as
    practicable. Each party hereto agrees that it shall consult with
    the other parties hereto with respect to the obtaining of all
    permits, consents, approvals, waivers and authorizations of all
    third parties and Governmental Authorities necessary or
    advisable to consummate the Transaction, and each party shall
    keep the other parties apprised of the status of material
    matters relating to completion of the Transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Each party agrees, upon request, to furnish the other
    parties with all information concerning itself, its
    Subsidiaries, directors, officers and stockholders and such
    other matters as may be reasonably necessary or advisable in
    connection with any filing, notice or application made by or on
    behalf of such other parties or any of their Subsidiaries to any
    third party or Governmental Authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.05&#160;&#160;<I><U>Press Releases</U>.</I>&#160;&#160;CCFC
    and FCBI shall consult with each other before issuing any press
    release with respect to the Transaction or this Agreement and
    shall not issue any such press release or make any such public
    statements without the prior consent of the other party, which
    shall not be unreasonably withheld; provided, however, that a
    party may, without the prior consent of the other party (but
    after such consultation, to the extent practicable under the
    circumstances), issue such press release or make such public
    statements as may upon the
</DIV>

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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    advice of outside counsel be required by law or the rules or
    regulations of the SEC or Nasdaq. CCFC and FCBI shall cooperate
    to develop all public announcement materials and make
    appropriate management available at presentations related to the
    Transaction as reasonably requested by the other party.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.06&#160;&#160;<I><U>Access; Information</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;CCFC agrees that upon reasonable notice and subject to
    applicable laws relating to the exchange of information, it
    shall afford FCBI and FCBI&#146;s officers, employees, counsel,
    accountants and other authorized representatives such access
    during normal business hours throughout the period prior to the
    Effective Time to the books, records (including, without
    limitation, Tax Returns and work papers of independent auditors
    (which CCFC shall use its reasonable best efforts to obtain from
    its independent auditors)), systems, properties, personnel and
    advisors of CCFC and to such other information relating to CCFC
    as FCBI may reasonably request and, during such period, it shall
    furnish promptly to FCBI (i)&#160;a copy of each report,
    schedule, registration statement and other document filed or
    received during such period pursuant to the requirements of
    federal or state securities laws and federal or state banking,
    lending, consumer finance or privacy laws and (ii)&#160;all
    other information concerning the business, properties and
    personnel of CCFC as FCBI may reasonably request.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;During the period from the date of this Agreement to
    the Effective Time, CCFC shall, upon the request of FCBI, cause
    one or more of its designated representatives to confer on a
    monthly or more frequent basis with representatives of FCBI
    regarding its financial condition, operations and business and
    matters relating to the completion of the Transaction. As soon
    as reasonably available, but in no event more than 30&#160;days
    after the end of each calendar quarter ending after the date of
    this Agreement (other than the last quarter of each fiscal year
    ending December 31), CCFC will deliver to FCBI its consolidated
    statements of financial condition and consolidated statements of
    operations and comprehensive income, statements of
    stockholders&#146; equity and cash flows, without related notes,
    for such quarter prepared in accordance with GAAP and, as soon
    as reasonably available, but in no event more than 60&#160;days
    after the end of each fiscal year, CCFC will deliver to FCBI its
    consolidated statements of financial condition and consolidated
    statements of operations and comprehensive income, statements of
    stockholders&#146; equity and cash flows for such year prepared
    in accordance with GAAP. Within 15&#160;days after the end of
    each month, CCFC will deliver to FCBI a consolidated statements
    of financial condition and consolidated statement of operations
    and comprehensive income, without related notes, for such month
    prepared in accordance with GAAP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;All information furnished pursuant to this
    Section&#160;6.06 shall be subject to the provisions of the
    Confidentiality Agreement, dated as of April&#160;25, 2008
    between FCBI and Howe Barnes Hoefer&#160;&#038; Arnett, Inc., on
    behalf of CCFC (the &#147;Confidentiality Agreement&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;No investigation by any of the parties or their
    respective representatives shall affect the representations,
    warranties, covenants or agreements of the other parties set
    forth herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;CCFC shall allow a representative of FCBI to attend as
    an observer all CCFC Board and CCFC Board committee meetings as
    well as all Board of Directors and Board of Director committee
    meetings for each Subsidiary of CCFC (including, without
    limitation, loan committee meetings), except that no FCBI
    representative will be entitled to attend any meeting in which
    the CCFC Board considers the Merger, an Acquisition Proposal or
    a Change in Recommendation. CCFC shall give reasonable notice to
    FCBI of any such meeting and, if known, the agenda for or
    business to be discussed at such meeting. CCFC shall also
    provide to FCBI all written agendas and meeting or written
    consent materials provided to the directors of CCFC and each
    CCFC Subsidiary in connection with Board and committee meetings.
    All information obtained by FCBI at these meetings shall be
    treated in confidence as provided in this Section&#160;6.06.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.07&#160;&#160;<I><U>Affiliates</U>.</I>&#160;&#160;CCFC shall
    use its reasonable best efforts to identify those persons who
    may be deemed to be &#147;affiliates&#148; of CCFC within the
    meaning of Rule&#160;145 promulgated by the SEC under the
    Securities Act (&#147;CCFC Affiliates&#148;) and to cause each
    person so identified to deliver to FCBI as soon as practicable,
    and in any event prior to the date of the CCFC Meeting, a
    written agreement to comply with the requirements of
    Rule&#160;145 under the Securities Act in connection with the
    sale or other transfer of FCBI Common Stock received in the
    Merger, which agreement shall be in the form attached hereto as
    Annex&#160;B (the &#147;Affiliate Letter&#148;).
</DIV>

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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.08&#160;&#160;<I><U>Acquisition Proposals</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;CCFC agrees that it shall, and shall direct and use its
    reasonable best efforts to cause its affiliates, directors,
    officers, employees, agents and representatives (including,
    without limitation, any investment banker, financial advisor,
    attorney, accountant or other representative retained by it)
    (all of the foregoing, collectively,
    &#147;Representatives&#148;) to, immediately cease any
    discussions or negotiations with any other parties that may be
    ongoing with respect to the possibility or consideration of any
    Acquisition Proposal (as defined below), and will use its
    reasonable best efforts to enforce any confidentiality or
    similar agreement relating to any Acquisition Proposal,
    including by requesting the other party to promptly return or
    destroy any confidential information previously furnished by or
    on behalf of CCFC thereunder and by specifically enforcing the
    terms thereof in a court of competent jurisdiction. From the
    date of this Agreement through the Effective Time, CCFC shall
    not, and shall cause its directors, officers or employees (and
    those of any CCFC Subsidiary) or any Representative retained by
    it (or any Subsidiary) not to, directly or indirectly through
    another Person, (i)&#160;solicit, initiate or encourage
    (including by way of furnishing information or assistance), or
    take any other action designed to facilitate or that is likely
    to result in, any inquiries or the making of any proposal or
    offer that constitutes, or is reasonably likely to lead to, any
    Acquisition Proposal, (ii)&#160;provide any confidential
    information or data to any Person relating to any Acquisition
    Proposal, (iii)&#160;participate in any discussions or
    negotiations regarding any Acquisition Proposal,
    (iv)&#160;waive, terminate, modify or fail to enforce any
    provision of any contractual &#147;standstill&#148; or similar
    obligations of any Person other than FCBI or its affiliates,
    (v)&#160;approve or recommend, propose to approve or recommend,
    or execute or enter into, any letter of intent, agreement in
    principle, merger agreement, asset purchase agreement or share
    exchange agreement, option agreement or other similar agreement
    related to any Acquisition Proposal or propose to do any of the
    foregoing, or (vi)&#160;make or authorize any statement,
    recommendation or solicitation in support of any Acquisition
    Proposal; provided, however, that prior to the date of the CCFC
    Meeting, if the CCFC Board determines in good faith, after
    consulting with its outside legal and financial advisors, that
    the failure to do so would breach, or would reasonably be
    expected to result in a breach of, the CCFC Board&#146;s
    fiduciary duties under applicable law, CCFC may, in response to
    a bona fide, written Acquisition Proposal not solicited in
    violation of this Section&#160;6.08(a)(i) that the CCFC Board
    determines in good faith constitutes a Superior Proposal (as
    defined below), subject to providing 48&#160;hour prior written
    notice of its decision to take such action to FCBI and
    identifying the Person making the proposal and all the material
    terms and conditions of such proposal and compliance with
    Section&#160;6.08(b), (1)&#160;furnish information with respect
    to itself and its Subsidiaries to any Person making such a
    Superior Proposal pursuant to a customary confidentiality
    agreement (as determined by CCFC after consultation with its
    outside counsel) on terms no more favorable to such Person than
    the terms contained in the Confidentiality Agreement are to
    FCBI, and (2)&#160;participate in discussions or negotiations
    regarding such a Superior Proposal. For purposes of this
    Agreement, the term &#147;Acquisition Proposal&#148; means any
    inquiry, proposal or offer, filing of any regulatory application
    or notice (whether in draft or final form) or disclosure of an
    intention to do any of the foregoing from any Person relating to
    any (w)&#160;direct or indirect acquisition or purchase of a
    business that constitutes 10% or more of the total revenues, net
    income, assets or deposits of CCFC and its Subsidiaries taken as
    a whole, (x)&#160;direct or indirect acquisition or purchase of
    any class of Equity Securities representing 10% or more of the
    voting power of CCFC or any of its Subsidiaries, (y)&#160;tender
    offer or exchange offer that if consummated would result in any
    person beneficially owning 10% or more of any class of Equity
    Securities of CCFC or (z)&#160;merger, consolidation, business
    combination, recapitalization, liquidation, dissolution or
    similar transaction involving CCFC or any of its Subsidiaries,
    other than the transactions contemplated by this Agreement. For
    purposes of this Agreement, the term &#147;Superior
    Proposal&#148; means any bona fide written proposal made by a
    third party to acquire, directly or indirectly, including
    pursuant to a tender offer, exchange offer, merger,
    consolidation, business combination, recapitalization,
    liquidation, dissolution or similar transaction, for
    consideration consisting of cash
    <FONT style="white-space: nowrap">and/or</FONT>
    securities, more than 50% of the combined voting power of the
    shares of CCFC Common Stock then outstanding or all or
    substantially all of CCFC&#146;s consolidated assets, which the
    CCFC Board determines in good faith, after taking into account
    all legal, financial, regulatory and other aspects of the
    proposal and the Person making the proposal (including any
    <FONT style="white-space: nowrap">break-up</FONT>
    fees, expense reimbursement provisions and conditions to
    consummation), and after taking into account the advice of
    CCFC&#146;s financial advisor (which shall be a nationally
    recognized investment banking firm and which is agreed to
    include Howe Barnes Hoefer&#160;&#038; Arnett,&#160;Inc.) and
    outside counsel, (i)&#160;is more favorable from a financial
    point of view to its stockholders than the Merger, (ii)&#160;is
    reasonably likely to
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    be consummated on the terms set forth, and (iii)&#160;for which
    financing, to the extent required, is then committed or which,
    in the good faith judgment of the CCFC Board, is reasonably
    likely to be obtained by such third party.
</DIV>

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    (b)&#160;In addition to the obligations of CCFC set forth in
    Section&#160;6.08(a), CCFC shall promptly (within 48&#160;hours)
    advise FCBI orally and in writing of its receipt of any
    Acquisition Proposal (or any inquiry which could reasonably lead
    to an Acquisition Proposal) and keep FCBI informed, on a current
    basis, of the continuing status thereof, including the terms and
    conditions thereof and any changes thereto, and shall
    contemporaneously provide to FCBI all materials provided to or
    made available to any third party pursuant to this
    Section&#160;6.08 which were not previously provided to FCBI.
</DIV>

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    (c)&#160;CCFC agrees that any violation of the restrictions set
    forth in this Section&#160;6.08 by any Representative of CCFC or
    its Subsidiaries shall be deemed a breach of this
    Section&#160;6.08 by CCFC.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.09&#160;&#160;<I><U>Certain Policies</U>.</I>&#160;&#160;Prior
    to the Effective Date, each of CCFC and its Subsidiaries shall,
    consistent with GAAP and applicable banking laws and
    regulations, modify or change its Loan, OREO, accrual, reserve,
    Tax, litigation and real estate valuation policies and practices
    (including loan classifications and levels of reserves) so as to
    be applied on a basis that is consistent with that of FCBI;
    provided, however, that no such modifications or changes need be
    made prior to the satisfaction of the conditions set forth in
    Section&#160;7.01(b); and further provided that in any event, no
    accrual or reserve made by CCFC or any of its Subsidiaries
    pursuant to this Section&#160;6.09 shall constitute or be deemed
    to be a breach, violation of or failure to satisfy any
    representation, warranty, covenant, agreement, condition or
    other provision of this Agreement or otherwise be considered in
    determining whether any such breach, violation or failure to
    satisfy shall have occurred. The recording of any such
    adjustments shall not be deemed to imply any misstatement of
    previously furnished financial statements or information and
    shall not be construed as concurrence of CCFC or its management
    with any such adjustments.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.10&#160;&#160;<I><U>Nasdaq Listing</U>.</I>&#160;&#160;FCBI
    agrees to use its reasonable best efforts to list, prior to the
    Effective Date, on the Nasdaq the shares of FCBI Common Stock to
    be issued in connection with the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.11&#160;&#160;<I><U>Indemnification</U>.</I>
</DIV>

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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;From and after the Effective Time through the sixth
    anniversary of the Effective Time, FCBI (the &#147;Indemnifying
    Party&#148;) shall indemnify and hold harmless each present and
    former director, officer and employee of CCFC or a CCFC
    Subsidiary, as applicable, determined as of the Effective Time
    (the &#147;Indemnified Parties&#148;) against any costs or
    expenses (including reasonable attorneys&#146; fees), judgments,
    fines, losses, claims, damages or liabilities incurred in
    connection with any claim, action, suit, proceeding or
    investigation, whether civil, criminal, administrative or
    investigative, arising out of matters existing or occurring at
    or prior to the Effective Time, whether asserted or claimed
    prior to, at or after the Effective Time, arising in whole or in
    part out of or pertaining to the fact that he or she was a
    director, officer, employee, fiduciary or agent of CCFC or any
    CCFC Subsidiary or is or was serving at the request of CCFC or
    any CCFC Subsidiary as a director, officer, employee, fiduciary
    or agent of another corporation, partnership, joint venture,
    trust or other enterprise, including without limitation matters
    related to the negotiation, execution and performance of this
    Agreement or consummation of the Transaction, to the fullest
    extent which such Indemnified Parties would be entitled under
    the CCFC Articles and the CCFC Bylaws or equivalent documents of
    any CCFC Subsidiary, as applicable, or any agreement,
    arrangement or understanding which is set forth in
    Section&#160;6.11(a) of CCFC&#146;s Disclosure Schedule, in each
    case as in effect on the date hereof.
</DIV>

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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Any Indemnified Party wishing to claim indemnification
    under this Section&#160;6.11, upon learning of any such claim,
    action, suit, proceeding or investigation, shall promptly notify
    the Indemnifying Party, but the failure to so notify shall not
    relieve the Indemnifying Party of any liability it may have to
    such Indemnified Party if such failure does not actually
    prejudice the Indemnifying Party. In the event of any such
    claim, action, suit, proceeding or investigation (whether
    arising before or after the Effective Time), (i)&#160;the
    Indemnifying Party shall have the right to assume the defense
    thereof and the Indemnifying Party shall not be liable to such
    Indemnified Parties for any legal expenses of other counsel or
    any other expenses subsequently incurred by such Indemnified
    Parties in connection with the defense thereof, except that if
    the Indemnifying Party elects not to assume such defense or
    counsel for the Indemnified Parties advises that there are
    issues which raise conflicts of interest between the
    Indemnifying Party and the Indemnified Parties that make joint
    representation inappropriate, the Indemnified Parties may retain
    counsel which is reasonably satisfactory to the Indemnifying
</DIV>

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    <BR>
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    Party, and the Indemnifying Party shall pay, promptly as
    statements therefore are received, the reasonable fees and
    expenses of such counsel for the Indemnified Parties (which may
    not exceed one firm in any jurisdiction unless the Indemnified
    Parties have conflicts of interest), (ii)&#160;the Indemnified
    Parties will cooperate in the defense of any such matter,
    (iii)&#160;the Indemnifying Party shall not be liable for any
    settlement effected without its prior written consent and
    (iv)&#160;the Indemnifying Party shall have no obligation
    hereunder in the event that a federal or state banking agency or
    a court of competent jurisdiction shall determine that
    indemnification of an Indemnified Party in the manner
    contemplated hereby is prohibited by applicable laws and
    regulations.
</DIV>

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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;FCBI shall maintain CCFC&#146;s existing
    directors&#146; and officers&#146; liability insurance policy
    (or provide a policy providing comparable coverage and amounts
    on terms no less favorable to the persons currently covered by
    CCFC&#146;s existing policy, including FCBI&#146;s existing
    policy if it meets the foregoing standard) covering persons who
    are currently covered by such insurance for a period of five
    (5)&#160;years after the Effective Time; provided, however, that
    in no event shall FCBI be obligated to expend, in order to
    maintain or provide insurance coverage pursuant to this
    Section&#160;6.11(c), an aggregate amount in excess of 150% of
    the premium paid by CCFC as of the date hereof for such
    insurance (&#147;Maximum Insurance Amount&#148;); provided
    further, that if the amount of the annual premiums necessary to
    maintain or procure such insurance coverage exceeds the Maximum
    Insurance Amount, FCBI shall obtain the most advantageous
    coverage obtainable for an annual premium equal to the Maximum
    Insurance Amount.
</DIV>

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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;If FCBI or any of its successors or assigns shall
    consolidate with or merge into any other entity and shall not be
    the continuing or surviving entity of such consolidation or
    merger or shall transfer all or substantially all of its assets
    to any other entity, then and in each case, proper provision
    shall be made so that the successors and assigns of FCBI shall
    assume the obligations set forth in this Section&#160;6.11.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.12&#160;&#160;<I><U>Benefit Plans</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;As soon as administratively practicable after the
    Effective Time, FCBI shall take all reasonable action so that
    employees of CCFC and its Subsidiaries shall be entitled to
    participate in each employee benefit plan, program or
    arrangement of FCBI of general applicability (the &#147;FCBI
    Benefit Plans&#148;) to the same extent as similarly-situated
    employees of FCBI and its Subsidiaries (it being understood that
    inclusion of the employees of CCFC and its Subsidiaries in the
    FCBI Benefit Plans may occur at different times with respect to
    different plans), provided that coverage shall be continued
    under the corresponding Benefit Plans of CCFC and its
    Subsidiaries until such employees are permitted to participate
    in the FCBI Benefit Plans and provided further, however, that
    nothing contained herein shall require FCBI or any of its
    Subsidiaries to make any grants to any former employee of CCFC
    or its Subsidiaries under any discretionary equity compensation
    plan of FCBI. FCBI shall cause each FCBI Benefit Plan in which
    employees of CCFC and its Subsidiaries are eligible to
    participate to recognize, for purposes of determining
    eligibility to participate in, the vesting of benefits and for
    all other purposes (but not for accrual of pension benefits)
    under the FCBI Benefit Plans, the service of such employees with
    CCFC and its Subsidiaries to the same extent as such service was
    credited for such purpose by CCFC or its Subsidiaries, provided,
    however, that such service shall not be recognized to the extent
    that such recognition would result in a duplication of benefits.
    Nothing herein shall limit the ability of FCBI to amend or
    terminate any of CCFC&#146;s Benefit Plans in accordance with
    their terms at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Subject to Sections&#160;6.12(f), (g)&#160;and (i), at
    and following the Effective Time, FCBI shall honor, and the
    Surviving Corporation shall continue to be obligated to perform,
    in accordance with their terms, all benefit obligations to, and
    contractual rights of, current and former employees of CCFC and
    its Subsidiaries and current and former directors of CCFC and
    its Subsidiaries existing as of the Effective Date, as well as
    all employment, severance, bonus, salary continuation, deferred
    compensation, split dollar, supplemental retirement or
    <FONT style="white-space: nowrap">&#147;change-in-control&#148;</FONT>
    agreements, plans or policies of CCFC and its Subsidiaries to
    the extent that each of the foregoing are Previously Disclosed.
    The severance or termination payments which are payable pursuant
    to such agreements, plans or policies of CCFC or its
    Subsidiaries (which have been quantified in reasonable detail)
    are set forth in Section&#160;6.12(b) of CCFC&#146;s Disclosure
    Schedule.
</DIV>

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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;At such time as employees of CCFC or its Subsidiaries
    become eligible to participate in a medical, dental or health
    plan of FCBI or its Subsidiaries, FCBI shall cause each such
    plan to (i)&#160;waive any preexisting condition limitations to
    the extent such conditions covered under the applicable medical,
    health or dental plans
</DIV>

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    <BR>
    A-33
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    of FCBI, (ii)&#160;provide full credit under such plans for any
    deductibles, co-payment and out-of-pocket expenses incurred by
    the employees and their beneficiaries during the portion of the
    calendar year prior to such participation and (iii)&#160;waive
    any waiting period limitation or evidence of insurability
    requirement which would otherwise be applicable to such employee
    on or after the Effective Time to the extent such employee had
    satisfied any similar limitation or requirement under an
    analogous Plan prior to the Effective Time.
</DIV>

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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Each of CCFC, its Subsidiaries, and FCBI acknowledges
    and agrees that all provisions contained within this
    Section&#160;6.12 with respect to employees are included for the
    sole benefit of CCFC and FCBI and shall not create any right
    (i)&#160;in any other Person, including, Benefit Plans or any
    beneficiary thereof or (ii)&#160;to continued employment with
    CCFC, its Subsidiaries, FCBI, its Subsidiaries or any of their
    respective affiliates.
</DIV>

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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;The CCFC Employee Stock Ownership Plan
    (&#147;ESOP&#148;) shall be terminated as of the Effective Time.
    The Merger Consideration received by the ESOP trustees with
    respect to the unallocated shares of CCFC Common Stock held by
    the ESOP shall be first applied by the ESOP trustees to the full
    repayment of the ESOP loan. The shares of FCBI Common Stock and
    the remaining cash received by the ESOP shall be allocated to
    the ESOP participants in accordance with the terms of the ESOP
    and applicable laws and regulations as soon as practicable after
    the Effective Time. In connection with the termination of the
    ESOP, CCFC shall promptly apply to the IRS for a favorable
    determination letter on the tax-qualified status of the ESOP on
    terminations and any amendments made to the ESOP in connection
    with its termination or otherwise, if such amendments have not
    previously received a favorable determination letter from the
    IRS with respect to their qualification under Code
    Section&#160;401(a). Any amendments to the ESOP requested by the
    IRS prior to the Effective Time shall be adopted by CCFC and any
    amendments requested by the IRS after the Effective Time shall
    be promptly adopted by FCBI. Any and all distributions from the
    ESOP after its termination shall be made consistent with the
    aforementioned determination letter from the IRS. CCFC shall not
    make any further contributions to the ESOP or permit the ESOP to
    make any allocations to the ESOP participants other than in
    connection with the termination of the ESOP or as may be
    required by applicable law or regulation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Effective as of the Effective Time, (i)&#160;FC Bank
    shall have entered into consulting agreements with each of
    George W. Brawley,&#160;Jr. and Billy R. Williams, the forms of
    which are attached as Annexes&#160;D and F, respectively,
    hereto, and (ii)&#160;Mooresville Savings shall have entered
    into an employment agreement with Dale&#160;W. Brawley, the form
    of which is attached as Annex&#160;E hereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;Effective as of the Effective Time, FC Bank shall enter
    into a one-year consulting agreement with each non-employee
    director of CCFC and Mooresville Savings, the form of which is
    attached as Annex&#160;G hereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;An employee of CCFC or its Subsidiaries (other than an
    employee who is a party to an employment agreement or a
    severance agreement) whose employment is involuntarily
    terminated other than for cause following the Effective Time but
    on or before the date which is six months from the Effective
    Time, shall be entitled to receive severance payments pursuant
    to CCFC&#146;s severance plan which is set forth in
    Section&#160;6.12(h) of CCFC&#146;s Disclosure Schedule.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Simultaneously with the execution of this Agreement,
    FCBI, Mooresville Savings and each of George W.
    Brawley,&#160;Jr., Dale W. Brawley and Billy R. Williams shall
    execute and deliver a Settlement Agreement in the forms of
    Annexes&#160;H, I and J, respectively, pursuant to which
    Messrs.&#160;George Brawley, Dale Brawley and Williams agree to
    terminate their existing employment agreements with Mooresville
    Savings on the terms set forth therein and, in the case of Dale
    Brawley, amend Plans&#160;IV and V of his Retirement Payment
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.13&#160;&#160;<I><U>Notification of Certain
    Matters</U>.</I>&#160;&#160;Each of CCFC and FCBI shall give
    prompt notice to the other of any fact, event or circumstance
    known to it that (i)&#160;is reasonably likely, individually or
    taken together with all other facts, events and circumstances
    known to it, to result in any Material Adverse Effect with
    respect to it or (ii)&#160;would cause or constitute a material
    breach of any of its representations, warranties, covenants or
    agreements contained herein.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.14&#160;&#160;<I><U>Antitakeover
    Statutes</U>.</I>&#160;&#160;Each of FCBI and CCFC and their
    respective Boards of Directors shall, if any state antitakeover
    statute or similar statute becomes applicable to this Agreement
    and the Transaction, take all action reasonably necessary to
    ensure that the Transaction may be consummated as promptly as
    practicable on the terms contemplated hereby and otherwise to
    minimize the effect of such statute or regulation on this
    Agreement and the Transaction.
</DIV>

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    <BR>
    A-34
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    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VII<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">CONDITIONS
    TO CONSUMMATION OF THE MERGER
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.01&#160;&#160;<I><U>Conditions to Each Party&#146;s Obligation
    to Effect the Merger</U>.</I>&#160;&#160;The respective
    obligation of each of the parties hereto to consummate the
    Merger is subject to the fulfillment or, to the extent permitted
    by applicable law, written waiver by the parties hereto prior to
    the Effective Date of each of the following conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Stockholder Approval</U>.</I>&#160;&#160;This
    Agreement shall have been duly approved by the requisite vote of
    the holders of outstanding shares of CCFC Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Regulatory Approvals</U>.</I>&#160;&#160;All
    regulatory approvals required to consummate the Transaction
    shall have been obtained and shall remain in full force and
    effect and all statutory waiting periods in respect thereof
    shall have expired and no such approvals shall contain any
    conditions, restrictions or requirements which the FCBI Board
    reasonably determines in good faith would, individually or in
    the aggregate, materially reduce the benefits of the Transaction
    to such a degree that FCBI would not have entered into this
    Agreement had such conditions, restrictions or requirements been
    known at the date hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>No Injunction</U>.</I>&#160;&#160;No Governmental
    Authority of competent jurisdiction shall have enacted, issued,
    promulgated, enforced or entered any statute, rule, regulation,
    judgment, decree, injunction or other order (whether temporary,
    preliminary or permanent) which is in effect and prohibits
    consummation of the Transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U>Registration Statement</U>.</I>&#160;&#160;The
    Registration Statement shall have become effective under the
    Securities Act and no stop order suspending the effectiveness of
    the Registration Statement shall have been issued and no
    proceedings for that purpose shall have been initiated by the
    SEC and not withdrawn.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>Listing</U>.</I>&#160;&#160;The shares of FCBI
    Common Stock to be issued in the Merger shall have been approved
    for listing on the Nasdaq.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I><U>Tax Opinion</U>.</I>&#160;&#160;Each of FCBI and
    CCFC shall have received the written opinion of Patton Boggs
    LLP, in form and substance reasonably satisfactory to both CCFC
    and FCBI, dated as of the Effective Date, substantially to the
    effect that, on the basis of the facts, representations and
    assumptions set forth in such opinion which are consistent with
    the state of facts existing at the Effective Time, the Merger
    will be treated for federal income tax purposes as a
    reorganization within the meaning of Section&#160;368(a) of the
    Code. In rendering any such opinion, such counsel may require
    and rely upon representations and covenants, including those
    contained in certificates of officers of FCBI, CCFC and others,
    reasonably satisfactory in form and substance to such counsel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;<I><U>Consulting Agreements</U>.</I>&#160;&#160;FC Bank
    shall have entered into a consulting agreement with each of
    George W. Brawley,&#160;Jr. and Billy R. Williams, the forms of
    which are attached hereto as Annexes&#160;D and F, respectively.
    Provided that FC Bank executes such consulting agreements, the
    failure of Mr.&#160;George Brawley or Mr.&#160;Williams, as
    applicable, to execute his respective agreement shall not
    constitute a failure of this condition for CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;<I><U>Consulting Agreement</U>.</I>&#160;&#160;FC Bank
    shall have entered into a consulting agreement with each of the
    non-employee directors of CCFC and Mooresville Savings, the form
    of which is attached hereto as Annex&#160;G. Provided that FC
    Bank executes such consulting agreements, the failure of any
    non-employee director to execute his respective agreement shall
    not constitute a failure of this condition for CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;<I><U>Settlement Agreement</U>.</I>&#160;&#160;FCBI and
    Mooresville Savings shall have entered into a Settlement
    Agreement with each of George W. Brawley,&#160;Jr., Dale W.
    Brawley and Billy R. Williams, the forms of which are attached
    as Annexes&#160;H, I and J, respectively. Provided that FCBI
    executes such agreements, the failure of any other party to
    execute such agreements shall not constitute a failure of this
    condition for CCFC.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-35
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.02&#160;&#160;<I><U>Conditions to Obligation of
    CCFC</U>.</I>&#160;&#160;The obligation of CCFC to consummate
    the Merger is also subject to the fulfillment or written waiver
    by CCFC prior to the Effective Date of each of the following
    conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Representations and
    Warranties</U>.</I>&#160;&#160;The representations and
    warranties of FCBI set forth in this Agreement, subject in all
    cases to the standard set forth in Section&#160;5.02, shall be
    true and correct as of the date of this Agreement and as of the
    Effective Date as though made on and as of the Effective Date
    (except that representations and warranties that by their terms
    speak as of the date of this Agreement or some other date shall
    be true and correct as of such date), and CCFC shall have
    received a certificate, dated the Effective Date, signed on
    behalf of FCBI by the Chief Executive Officer and the Chief
    Financial Officer of FCBI to such effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Performance of Obligations of
    FCBI</U>.</I>&#160;&#160;FCBI shall have performed in all
    material respects all obligations required to be performed by it
    under this Agreement at or prior to the Effective Time, and CCFC
    shall have received a certificate, dated the Effective Date,
    signed on behalf of FCBI by the Chief Executive Officer and the
    Chief Financial Officer of FCBI to such effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>Other Actions</U>.</I>&#160;&#160;FCBI shall have
    furnished CCFC with such certificates of its respective officers
    or others and such other documents to evidence fulfillment of
    the conditions set forth in Sections&#160;7.01 and 7.02 as CCFC
    may reasonably request.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.03&#160;&#160;<I><U>Conditions to Obligation of
    FCBI</U>.</I>&#160;&#160;The obligation of FCBI to consummate
    the Merger is also subject to the fulfillment or written waiver
    by FCBI prior to the Effective Date of each of the following
    conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Representations and
    Warranties</U>.</I>&#160;&#160;The representations and
    warranties of CCFC set forth in this Agreement, subject in all
    cases to the standard set forth in Section&#160;5.02, shall be
    true and correct as of the date of this Agreement and as of the
    Effective Date as though made on and as of the Effective Date
    (except that representations and warranties that by their terms
    speak as of the date of this Agreement or some other date shall
    be true and correct as of such date), and FCBI shall have
    received a certificate, dated the Effective Date, signed on
    behalf of CCFC by the Chief Executive Officer and the Chief
    Financial Officer of CCFC to such effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Performance of Obligations of
    CCFC</U>.</I>&#160;&#160;CCFC shall have performed in all
    material respects all obligations required to be performed by it
    under this Agreement at or prior to the Effective Time, and FCBI
    shall have received a certificate, dated the Effective Date,
    signed on behalf of CCFC by the Chief Executive Officer and the
    Chief Financial Officer of CCFC to such effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>Dissenting Shares</U>.</I>&#160;&#160;Dissenting
    Shares shall not represent 10% or more of the outstanding shares
    of CCFC Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U> Employment
    Agreement</U>.</I>&#160;&#160;Mooresville Savings shall have
    entered into an employment agreement with Dale W. Brawley, the
    form of which is attached hereto as Annex&#160;E.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>Other Actions</U>.</I>&#160;&#160;CCFC shall have
    furnished FCBI with such certificates of its officers or others
    and such other documents to evidence fulfillment of the
    conditions set forth in Sections&#160;7.01 and 7.03 as FCBI may
    reasonably request.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VIII<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">TERMINATION
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.01&#160;&#160;<I><U>Termination</U>.</I>&#160;&#160;This
    Agreement may be terminated, and the Transaction may be
    abandoned, at any time prior to the Effective Time:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Mutual Consent</U>.</I>&#160;&#160;By the mutual
    consent in writing of FCBI and CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Breach</U>.</I>&#160;&#160;Provided that the
    terminating party is not then in material breach of any
    representation, warranty, covenant or agreement contained
    herein, by FCBI or CCFC, in the event of a breach by the other
    party of any representation, warranty, covenant or agreement
    contained herein, which breach (i)&#160;cannot be or has not
    been cured within 30&#160;days after the giving of written
    notice to the breaching party or parties of such
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-36
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    breach and (ii)&#160;would entitle the non-breaching party not
    to consummate the transactions contemplated hereby under
    Section&#160;7.02(a) or (b)&#160;or 7.03(a) or (b), as the case
    may be.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>Delay</U>.</I>&#160;&#160;By FCBI or CCFC, in the
    event that the Merger is not consummated by February&#160;27,
    2009, except to the extent that the failure of the Merger then
    to be consummated by such date shall be due to (i)&#160;the
    failure of the party seeking to terminate pursuant to this
    Section&#160;8.01(c) to perform or observe the covenants and
    agreements of such party set forth in this Agreement or
    (ii)&#160;the failure of any of the Shareholders (if CCFC is the
    party seeking to terminate) to perform or observe his covenants
    and agreements under the relevant Shareholder Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U>No Regulatory Approval</U>.</I>&#160;&#160;By
    FCBI or CCFC in the event the approval of any Governmental
    Authority required for consummation of the Merger and the other
    transactions contemplated by this Agreement shall have been
    denied by final nonappealable action of such Governmental
    Authority or an application therefor shall have been permanently
    withdrawn at the request of a Governmental Authority, provided,
    however, that no party shall have the right to terminate this
    Agreement pursuant to this Section&#160;8.01(d) if such denial
    shall be due to the failure of the party seeking to terminate
    this Agreement to perform or observe the covenants of such party
    set forth herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>No CCFC Stockholder
    Approval</U>.</I>&#160;&#160;By either FCBI or CCFC, if any
    approval of the stockholders of CCFC contemplated by this
    Agreement shall not have been obtained by reason of the failure
    to obtain the required vote at the CCFC Meeting or at any
    adjournment thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I><U>CCFC Failure to Recommend;
    Etc</U>.</I>&#160;&#160;By FCBI if (i)&#160;CCFC shall have
    materially breached the provisions of Section&#160;6.08 in any
    respect adverse to FCBI, (ii)&#160;the CCFC Board shall have
    failed to make its recommendation referred to in
    Section&#160;6.02(a), withdrawn such recommendation or modified
    or changed such recommendation in a manner adverse in any
    respect to the interests of FCBI, or (iii)&#160;CCFC shall have
    materially breached its obligations under Section&#160;6.02(a)
    by failing to call, give notice of, convene and hold the CCFC
    Meeting in accordance with Section&#160;6.02(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;<I><U>Certain Tender or Exchange
    Offers</U>.</I>&#160;&#160;By FCBI if a tender offer or exchange
    offer for 15% or more of the outstanding shares of CCFC Common
    Stock is commenced (other than by FCBI or a Subsidiary thereof),
    and the CCFC Board recommends that the stockholders of CCFC
    tender their shares in such tender or exchange offer or
    otherwise fails to recommend that such stockholders reject such
    tender offer or exchange offer within the ten-Business Day
    period specified in
    <FONT style="white-space: nowrap">Rule&#160;14e-2(a)</FONT>
    under the Exchange Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;<I><U>FCBI Optional Adjustment</U>.</I>&#160;&#160;By
    CCFC at any time during the
    <FONT style="white-space: nowrap">two-day</FONT>
    period following the Determination Date, if the Average Closing
    Price shall be less than $22.75; subject to the following: If
    CCFC elects to exercise its termination right pursuant to this
    Section&#160;8.01(h), it shall give prompt written notice to
    FCBI; provided that such notice of election to terminate may be
    withdrawn at any time within the aforementioned
    <FONT style="white-space: nowrap">two-day</FONT>
    period. During the period commencing with its receipt of such
    notice and ending at the Effective Time, FCBI shall have the
    option of increasing the Exchange Ratio to equal a number equal
    to a quotient (rounded to the nearest one one-thousandth), the
    numerator of which is the product of the $22.75 and the Exchange
    Ratio (as then in effect) and the denominator of which is the
    Average Closing Price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If FCBI makes this election, within such period, it shall give
    prompt written notice to CCFC of such election and the revised
    Exchange Ratio, whereupon no termination shall have occurred
    pursuant to this Section&#160;8.01(h) and this Agreement shall
    remain in effect in accordance with its terms (except as the
    Exchange Ratio shall have been so modified), and any references
    in this Agreement to &#147;Exchange Ratio&#148; shall thereafter
    be deemed to refer to the Exchange Ratio after giving effect to
    any adjustment made pursuant to this Section&#160;8.01(h).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.02&#160;&#160;<I><U>Effect of Termination and
    Abandonment</U>.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;In the event of termination of this Agreement and the
    abandonment of the Merger pursuant to this Article&#160;VIII, no
    party to this Agreement shall have any liability or further
    obligation to any other party hereunder except that
    (i)&#160;this Section&#160;8.02, Section&#160;6.06(c) and
    Article&#160;IX shall survive any termination of this Agreement
    and (ii)&#160;notwithstanding anything to the contrary, neither
    FCBI nor CCFC shall be relieved or
</DIV>

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    <BR>
    A-37
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    released from any liabilities or damages arising out of its
    fraud or willful breach of any provision of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The parties hereto agree that CCFC shall pay FCBI the
    sum of $1.0&#160;million (the &#147;Termination Fee&#148;) if
    this Agreement is terminated as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;if this Agreement is terminated by FCBI pursuant to
    Section&#160;8.01(f) or (g), CCFC shall pay the entire
    Termination Fee to FCBI on the second Business Day following the
    termination of this Agreement;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;if this Agreement is terminated by (A)&#160;FCBI
    pursuant to Section&#160;8.01(b), (B)&#160;by either FCBI or
    CCFC pursuant to Section&#160;8.01(c) and at the time of such
    termination no vote of the CCFC stockholders contemplated by
    this Agreement at the CCFC Meeting shall have occurred, or
    (C)&#160;by either FCBI or CCFC pursuant to
    Section&#160;8.01(e), and in the case of any termination
    pursuant to clause (A), (B)&#160;or (C), an Acquisition Proposal
    shall have been publicly announced or otherwise communicated or
    made known to the senior management of CCFC or the CCFC Board
    (or any Person shall have publicly announced, communicated or
    made known an intention, whether or not conditional, to make an
    Acquisition Proposal, or reiterated a previously expressed plan
    or intention to make an Acquisition Proposal) at any time after
    the date of this Agreement and prior to the taking of the vote
    of the stockholders of CCFC contemplated by this Agreement at
    the CCFC Meeting, in the case of clause (C), or the date of
    termination, in the case of clause&#160;(A) or (B), then
    (1)&#160;if within 12&#160;months after such termination CCFC
    enters into an agreement with respect to a Control Transaction,
    then CCFC shall pay to FCBI the Termination Fee on the date of
    execution of such agreement and (2)&#160;if a Control
    Transaction is consummated otherwise than pursuant to an
    agreement with CCFC within 15&#160;months after such
    termination, then CCFC shall pay to FCBI the Termination Fee on
    the date of such consummation of such Control Transaction. As
    used in this Section&#160;8.02(b), a &#147;Control
    Transaction&#148; means (i)&#160;the acquisition by any Person
    whether by purchase, merger, consolidation, sale, transfer or
    otherwise, in one transaction or any series of transactions, of
    a majority of the voting power of the outstanding securities of
    CCFC or Mooresville Savings or a majority of the assets or CCFC
    or Mooresville Savings, (ii)&#160;any issuance of securities
    resulting in the ownership by any Person of more than 50% of the
    voting power of CCFC or by any Person other than CCFC or its
    Subsidiaries of more than 50% of the voting power of Mooresville
    Savings or (iii)&#160;any merger, consolidation or other
    business combination transaction involving CCFC or any of its
    Subsidiaries as a result of which the stockholders of CCFC cease
    to own, in the aggregate, at least 50% of the total voting power
    of the entity surviving or resulting from such transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any amount that becomes payable pursuant to this
    Section&#160;8.02(b) shall be paid by wire transfer of
    immediately available funds to an account designated by FCBI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;CCFC and FCBI agree that the agreement contained in
    paragraph (b)&#160;above is an integral part of the transactions
    contemplated by this Agreement, that without such agreement FCBI
    would not have entered into this Agreement, and that such
    amounts do not constitute a penalty or liquidated damages in the
    event of a breach of this Agreement by CCFC. If CCFC fails to
    pay FCBI the amounts due under paragraph (b)&#160;above within
    the time periods specified in such paragraph (b), CCFC shall pay
    the costs and expenses (including reasonable legal fees and
    expenses) incurred by FCBI in connection with any action,
    including the filing of any lawsuit, taken to collect payment of
    such amounts, provided FCBI prevails on the merits, together
    with interest on the amount of any such unpaid amounts at the
    prime lending rate prevailing during such period as published in
    <I>The Wall Street Journal</I>, calculated on a daily basis from
    the date such amounts were required to be paid until the date of
    actual payment.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;IX<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">MISCELLANEOUS
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.01&#160;&#160;<I><U>Survival</U>.</I>&#160;&#160;No
    representations, warranties, agreements and covenants contained
    in this Agreement shall survive the Effective Time (other than
    agreements or covenants contained herein that by their express
    terms are to be performed after the Effective Time) or the
    termination of this Agreement if this Agreement is terminated
    prior
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-38
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    to the Effective Time (other than Sections&#160;6.06(c), 8.02
    and this Article&#160;IX, which shall survive any such
    termination). Notwithstanding anything in the foregoing to the
    contrary, no representations, warranties, agreements and
    covenants contained in this Agreement shall be deemed to be
    terminated or extinguished so as to deprive a party hereto or
    any of its affiliates of any defense at law or in equity which
    otherwise would be available against the claims of any Person,
    including without limitation any shareholder or former
    shareholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.02&#160;&#160;<I><U>Waiver;
    Amendment</U>.</I>&#160;&#160;Prior to the Effective Time, any
    provision of this Agreement may be (i)&#160;waived, by the party
    benefited by the provision or (ii)&#160;amended or modified at
    any time, by an agreement in writing among the parties hereto
    executed in the same manner as this Agreement, except that after
    the CCFC Meeting no amendment shall be made which by law
    requires further approval by the stockholders of CCFC without
    obtaining such approval.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.03&#160;&#160;<I><U>Counterparts</U>.</I>&#160;&#160;This
    Agreement may be executed in one or more counterparts, each of
    which shall be deemed to constitute an original.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.04&#160;&#160;<I><U>Governing Law</U>.</I>&#160;&#160;This
    Agreement shall be governed by, and interpreted in accordance
    with, the laws of the State of Nevada applicable to contracts
    made and to be performed entirely within such State.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.05&#160;&#160;<I><U>Expenses</U>.</I>&#160;&#160;Each party
    hereto will bear all expenses incurred by it in connection with
    this Agreement and the transactions contemplated hereby,
    including fees and expenses of its own financial consultants,
    accountants and counsel, except that expenses of printing the
    Proxy Statement and the registration fee to be paid to the SEC
    in connection with the Registration Statement shall be shared
    equally between FCBI and CCFC, and provided further that nothing
    contained herein shall limit either party&#146;s rights to
    recover any liabilities or damages arising out of the other
    party&#146;s fraud or willful breach of any provision of this
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.06&#160;&#160;<I><U>Notices</U>.</I>&#160;&#160;All notices,
    requests and other communications hereunder to a party shall be
    in writing and shall be deemed given if personally delivered,
    telecopied (with confirmation) or mailed by registered or
    certified mail (return receipt requested) or delivered by an
    overnight courier (with confirmation) to such party at its
    address set forth below or such other address as such party may
    specify by notice to the parties hereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If to CCFC to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>


<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
Coddle Creek Financial Corp.<BR>
    347 North Main Street, Post Office Box 117<BR>
    Mooresville, North Carolina 28115<BR>
    Attention:&#160; George W. Brawley, Jr.<BR>
    &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp;President and Chief Executive Officer<BR>
    Fax:  <FONT style="white-space: nowrap">(704)&#160;664-2290</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With a copy to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Brooks, Pierce, McLendon, Humphrey&#160;&#038; Leonard, LLP<BR>
    2000 Renaissance Plaza<BR>
    230 North Elm Street<BR>
    Greensboro, NC 27401<BR>
    Post Office Box 26000<BR>
    Greensboro, NC 27420<BR>
    Attention: Robert A. Singer,&#160;Esq.<BR>
    Fax:
    <FONT style="white-space: nowrap">(336)&#160;232-9123</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If to FCBI to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
   First Community Bancshares, Inc.<BR>
    One Community Place<BR>
    Bluefield, Virginia 24605<BR>
    Attention:&#160; John M. Mendez<BR>
    &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;President and Chief Executive Officer<BR>
    Fax:
    <FONT style="white-space: nowrap">(276)&#160;326-9010</FONT>
</DIV>


<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-39
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With a copy to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Patton Boggs LLP
</DIV>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2550&#160;M&#160;Street, N.W.
</DIV>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Washington,&#160;D.C. 20037
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="9%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Attention:
</TD>
    <TD align="left">
    Norman B. Antin, Esq.<BR>
    Jeffrey D. Haas,&#160;Esq.
</TD>
</TR>

</TABLE>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fax:
    <FONT style="white-space: nowrap">(202)&#160;457-6315</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.07&#160;&#160;<I><U>Entire Understanding; No Third Party
    Beneficiaries</U>.</I>&#160;&#160;This Agreement, the Bank
    Merger Agreement, the Shareholder Agreements and the
    Confidentiality Agreement represent the entire understanding of
    the parties hereto and thereto with reference to the
    Transaction, and this Agreement, the Bank Merger Agreement, the
    Shareholder Agreements and the Confidentiality Agreement
    supersede any and all other oral or written agreements
    heretofore made. Except for the Indemnified Parties&#146; right
    to enforce FCBI&#146;s obligation under Section&#160;6.11, which
    are expressly intended to be for the irrevocable benefit of, and
    shall be enforceable by, each Indemnified Party and his or her
    heirs and representatives, nothing in this Agreement, expressed
    or implied, is intended to confer upon any Person, other than
    the parties hereto or their respective successors, any rights,
    remedies, obligations or liabilities under or by reason of this
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.08&#160;&#160;<I><U>Severability</U>.</I>&#160;&#160;Except to
    the extent that application of this Section&#160;9.08 would have
    a Material Adverse Effect on CCFC or FCBI, any term or provision
    of this Agreement which is invalid or unenforceable in any
    jurisdiction shall, as to that jurisdiction, be ineffective to
    the extent of such invalidity or unenforceability without
    rendering invalid or unenforceable the remaining terms and
    provisions of this Agreement or affecting the validity or
    enforceability of any of the terms or provisions of this
    Agreement in any other jurisdiction. If any provision of this
    Agreement is so broad as to be unenforceable, the provision
    shall be interpreted to be only so broad as is enforceable. In
    all such cases, the parties shall use their reasonable best
    efforts to substitute a valid, legal and enforceable provision
    which, insofar as practicable, implements the original purposes
    and intents of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.09&#160;&#160;<I><U>Enforcement of the
    Agreement</U>.</I>&#160;&#160;The parties hereto agree that
    irreparable damage would occur in the event that any of the
    provisions of this Agreement were not performed in accordance
    with their specific terms or were otherwise breached. It is
    accordingly agreed that the parties shall be entitled to an
    injunction or injunctions to prevent breaches of this Agreement
    and to enforce specifically the terms and provisions hereof in
    any court of the United States or any state having jurisdiction,
    this being in addition to any other remedy to which they are
    entitled at law or in equity. In the event attorneys&#146; fees
    or other costs are incurred to secure performance of any of the
    obligations herein provided for, or to establish damages for the
    breach thereof, or to obtain any other appropriate relief,
    whether by way of prosecution or defense, the prevailing party
    shall be entitled to recover reasonable attorneys&#146; fees and
    costs incurred therein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.10&#160;&#160;<I><U>Interpretation</U>.</I>&#160;&#160;When a
    reference is made in this Agreement to Sections, Exhibits or
    Schedules, such reference shall be to a Section of, or Exhibit
    or Schedule to, this Agreement unless otherwise indicated. The
    table of contents and headings contained in this Agreement are
    for reference purposes only and are not part of this Agreement.
    Whenever the words &#147;include,&#148; &#147;includes&#148; or
    &#147;including&#148; are used in this Agreement, they shall be
    deemed to be followed by the words &#147;without
    limitation.&#148; Whenever the words &#147;as of the date
    hereof&#148; are used in this Agreement, they shall be deemed to
    mean the day and year first above written.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.11&#160;&#160;<I><U>Assignment</U>.</I>&#160;&#160;No party
    may assign either this Agreement or any of its rights, interests
    or obligations hereunder without the prior written approval of
    the other parties. Subject to the preceding sentence, this
    Agreement shall be binding upon and shall inure to the benefit
    of the parties hereto and their respective successors and
    permitted assigns.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.12&#160;&#160;<I><U>Alternative
    Structure</U>.</I>&#160;&#160;Notwithstanding any provision of
    this Agreement to the contrary, FCBI may at any time modify the
    structure of the acquisition of CCFC set forth herein, provided
    that (i)&#160;the Merger Consideration to be paid to the holders
    of CCFC Common Stock is not thereby changed in kind or reduced
    in amount as a result of such modification, (ii)&#160;such
    modification will not adversely affect the tax treatment to
    CCFC&#146;s stockholders as a result of receiving the Merger
    Consideration and (iii)&#160;such modification will not
    materially jeopardize receipt of any required approvals of
    Governmental Authorities.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">[Signature
    Page&#160;Follows]</FONT></B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-40
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>IN WITNESS WHEREOF</B>, the parties hereto have caused this
    Agreement to be executed in counterparts by their duly
    authorized officers, all as of the day and year first above
    written.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>FIRST COMMUNITY BANCSHARES, INC.</B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;John
    M. Mendez</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;John M. Mendez
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="53%"></TD>
    <TD width="8%"></TD>
    <TD width="39%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Title:&#160;
</TD>
    <TD align="left">
    President and Chief Executive Officer
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CODDLE CREEK FINANCIAL CORP.</B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;George
    W. Brawley, Jr.</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;George W. Brawley, Jr.
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="53%"></TD>
    <TD width="8%"></TD>
    <TD width="39%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Title:&#160;
</TD>
    <TD align="left">
    President and Chief Executive Officer
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-41
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNEX&#160;A</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHAREHOLDER
    AGREEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>SHAREHOLDER AGREEMENT </B>(the &#147;Agreement&#148;), dated
    as of July&#160;&#160;&#160;, 2008,
    among&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    a shareholder (&#147;Shareholder&#148;) of Coddle Creek
    Financial Corp., a North Carolina corporation
    (&#147;CCFC&#148;), First Community Bancshares, Inc., a Nevada
    corporation (&#147;FCBI&#148;), and, solely for purposes of the
    last sentence of Section&#160;8, CCFC. All terms used herein and
    not defined herein shall have the meanings assigned thereto in
    the Merger Agreement (defined below).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, FCBI and CCFC are entering into an Agreement and
    Plan of Merger, dated as of the date hereof (the &#147;Merger
    Agreement&#148;), pursuant to which CCFC will merge with and
    into FCBI on the terms and conditions set forth therein (the
    &#147;Merger&#148;) and, in connection therewith, outstanding
    shares of CCFC Common Stock will be converted into shares of
    FCBI Common Stock
    <FONT style="white-space: nowrap">and/or</FONT> cash
    in the manner set forth therein;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, Shareholder owns the shares of CCFC Common Stock
    identified on Exhibit&#160;I hereto (such shares, together with
    all shares of CCFC Common Stock subsequently acquired by
    Shareholder during the term of this Agreement, being referred to
    as the &#147;Shares&#148;);&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>WHEREAS</B>, in order to induce FCBI to enter into the Merger
    Agreement, Shareholder, solely in such Shareholder&#146;s
    capacity as a shareholder of CCFC and not in any other capacity,
    has agreed to enter into and perform this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>NOW, THEREFORE</B>, for good and valuable consideration, the
    receipt, sufficiency and adequacy of which are hereby
    acknowledged, the parties hereto agree as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;&#160;<I><U>Agreement to Vote
    Shares</U>.</I>&#160;&#160;Shareholder agrees that at any
    meeting of the stockholders of CCFC, or in connection with any
    written consent of the stockholders of CCFC, Shareholder shall:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;appear at each such meeting or otherwise cause the
    Shares to be counted as present thereat for purposes of
    calculating a quorum;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;vote (or cause to be voted), in person or by proxy, or
    deliver a written consent (or cause a consent to be delivered)
    covering, all the Shares (whether acquired heretofore or
    hereafter) that are beneficially owned by Shareholder or as to
    which Shareholder has, directly or indirectly, the right to vote
    or direct the voting, (x)&#160;in favor of adoption and approval
    of the Merger Agreement and the Merger; (y)&#160;against any
    action or agreement that could reasonably be expected to result
    in a breach of any covenant, representation or warranty or any
    other obligation or agreement of CCFC contained in the Merger
    Agreement or of Shareholder contained in this Agreement; and
    (z)&#160;against any Acquisition Proposal or any other action,
    agreement or transaction that is intended, or could reasonably
    be expected, to materially impede, interfere or be inconsistent
    with, delay, postpone, discourage or materially and adversely
    affect consummation of the Merger or the performance by
    Shareholder of his, her or its obligations under this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;&#160;<I><U>Transfer of Shares.</U></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Prohibition on Transfers of Shares; Other
    Actions</U>.</I>&#160;&#160;Shareholder hereby agrees that while
    this Agreement is in effect, Shareholder shall not,
    (i)&#160;sell, transfer, pledge, encumber (except for pledges or
    encumbrances existing as of the date of this Agreement),
    distribute by gift or donation, or otherwise dispose of any of
    the Shares (or any securities convertible into or exercisable or
    exchangeable for Shares) or any interest therein, whether by
    actual disposition, physical settlement or effective economic
    disposition through hedging transactions, derivative instruments
    or other means, (ii)&#160;enter into any agreement, arrangement
    or understanding with any Person, or take any other action, that
    violates or conflicts with or could reasonably be expected to
    violate or conflict with Shareholder&#146;s representations,
    warranties, covenants and obligations under this Agreement, or
    (iii)&#160;take any other action that could reasonably be
    expected to impair or otherwise adversely affect, in any
    material respect, Shareholder&#146;s power, authority and
    ability to comply with and perform his, her or its covenants and
    obligations under this Agreement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-42
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Transfer of Voting
    Rights</U>.</I>&#160;&#160;Shareholder hereby agrees that
    Shareholder shall not deposit any Shares in a voting trust,
    grant any proxy or enter into any voting agreement or similar
    agreement or arrangement with respect to any of the Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;&#160;<I><U>Representations and Warranties of
    Shareholder</U>.</I>&#160;&#160;Shareholder represents and
    warrants to and agrees with FCBI as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Capacity</U>.</I>&#160;&#160;Shareholder has all
    requisite capacity and authority to enter into and perform his,
    her or its obligations under this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Binding Agreement</U>.</I>&#160;&#160;This
    Agreement has been duly executed and delivered by Shareholder
    and constitutes the valid and legally binding obligation of
    Shareholder, subject to bankruptcy, insolvency, fraudulent
    transfer, reorganization, moratorium and similar laws of general
    applicability relating to or affecting creditors&#146; rights
    and to general equity principles.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>Non-Contravention</U>.</I>&#160;&#160;The
    execution and delivery of this Agreement by Shareholder does
    not, and the performance by Shareholder of his, her or its
    obligations hereunder and the consummation by Shareholder of the
    transactions contemplated hereby will not, violate or conflict
    with, or constitute a default under, any agreement, instrument,
    contract or other obligation or any order, arbitration award,
    judgment or decree to which Shareholder is a party or by which
    Shareholder is bound, or any statute, rule or regulation to
    which Shareholder is subject or, in the event that Shareholder
    is a corporation, partnership, trust or other entity, any
    charter, bylaw or other organizational document of Shareholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U>Ownership</U>.</I>&#160;&#160;Shareholder&#146;s
    Shares are, and through the term of this Agreement will be,
    owned beneficially and of record solely by Shareholder except as
    otherwise disclosed on Exhibit&#160;I hereto. Shareholder has
    good and marketable title to the Shares, free and clear of any
    lien, pledge, mortgage, security interest or other encumbrance.
    As of the date hereof, the Shares identified on Exhibit&#160;I
    hereto constitute all of the shares of CCFC Common Stock owned
    beneficially or of record by Shareholder. Shareholder has and
    will have at all times during the term of this Agreement
    (i)&#160;sole voting power and sole power to issue instructions
    with respect to the matters set forth in Section&#160;1 hereof,
    (ii)&#160;sole power of disposition and (iii)&#160;sole power to
    agree to all of the matters set forth in this Agreement, in each
    case with respect to all of the Shares owned by Shareholder on
    the date of this Agreement and all of the Shares hereafter
    acquired by Shareholder and owned beneficially or of record by
    him, her or it during the term of this Agreement. For purposes
    of this Agreement, the term &#147;beneficial ownership&#148;
    shall be interpreted in accordance with
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    under the Exchange Act, <U>provided</U> that a Person shall be
    deemed to beneficially own any securities which may be acquired
    by such Person pursuant to any agreement, arrangement or
    understanding or upon the exercise of conversion rights,
    exchange rights, warrants or options, or otherwise (irrespective
    of whether the right to acquire such securities is exercisable
    immediately or only after the passage of time, including the
    passage of time within 60&#160;days, the satisfaction of any
    conditions, the occurrence of any event or any combination of
    the foregoing).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>Consents and Approvals</U>.</I>&#160;&#160;The
    execution and delivery of this Agreement by Shareholder does
    not, and the performance by Shareholder of his, her or its
    obligations under this Agreement and the consummation by him,
    her or it of the transactions contemplated hereby will not,
    require Shareholder to obtain any consent, approval,
    authorization or permit of, or to make any filing with or
    notification to, any Governmental Authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I><U>Absence of Litigation</U>.</I>&#160;&#160;There
    is no suit, action, investigation or proceeding pending or, to
    the knowledge of Shareholder, threatened against or affecting
    Shareholder or any of his, her or its affiliates before or by
    any Governmental Authority that could reasonably be expected to
    materially impair the ability of Shareholder to perform his, her
    or its obligations hereunder or to consummate the transactions
    contemplated hereby on a timely basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;&#160;<I><U>No
    Solicitation</U>.</I>&#160;&#160;Shareholder hereby agrees that
    during the term of this Agreement he, she or it shall not, and
    shall not permit any investment banker, financial advisor,
    attorney, accountant or other representative retained by him,
    her or it to, directly or indirectly, (a)&#160;take any of the
    actions specified in clauses (i)-(vi) of Section&#160;6.08 of
    the Merger Agreement, (b)&#160;agree to release, or release, any
    Person from any obligation under
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-43
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    any existing standstill agreement or arrangement relating to
    CCFC, or (c)&#160;participate in, directly or indirectly, a
    &#147;solicitation&#148; of &#147;proxies&#148; (as such terms
    are used in the rules of the SEC) or powers of attorney or
    similar rights to vote, or seek to advise or influence any
    Person with respect to the voting of, any shares of CCFC Common
    Stock in connection with any vote or other action on any matter
    of a type described in Section&#160;1(b), other than to
    recommend that stockholders of CCFC vote in favor of the
    adoption and approval of the Merger Agreement and the Merger and
    as otherwise expressly permitted by this Agreement. Shareholder
    agrees immediately to cease and cause to be terminated any
    activities, discussions or negotiations conducted before the
    date of this Agreement with any Persons other than FCBI with
    respect to any possible Acquisition Proposal and will take all
    necessary steps to inform any investment banker, financial
    advisor, attorney, accountant or other representative retained
    by him, her or it of the obligations undertaken by Shareholder
    pursuant to this Section&#160;4. Nothing contained in this
    Section&#160;4 shall prevent a Shareholder who is an officer or
    a member of the CCFC Board from discharging his or her fiduciary
    duties solely in his or her capacity as such an officer or
    director.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;&#160;<I><U>Notice of Acquisitions;
    Proposals&#160;Regarding Prohibited
    Transactions</U>.</I>&#160;&#160;Shareholder hereby agrees to
    notify FCBI promptly (and in any event within two
    (2)&#160;Business Days) in writing of the number of any
    additional shares of CCFC Common Stock or other securities of
    CCFC of which Shareholder acquires beneficial or record
    ownership on or after the date hereof. Shareholder will comply
    with the provisions of Section&#160;6.08(b) of the Merger
    Agreement as if he, she or it were CCFC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;&#160;<I><U>Specific Performance and
    Remedies</U>.</I>&#160;&#160;Shareholder acknowledges that it
    will be impossible to measure in money the damage to FCBI if
    Shareholder fails to comply with the obligations imposed by this
    Agreement and that, in the event of any such failure, FCBI will
    not have an adequate remedy at law. Accordingly, Shareholder
    agrees that injunctive relief or other equitable remedy, in
    addition to remedies at law or in damages, is the appropriate
    remedy for any such failure and will not oppose the granting of
    such relief on the basis that FCBI may have an adequate remedy
    at law. Shareholder agrees that Shareholder will not seek, and
    agrees to waive any requirement for, the securing or posting of
    a bond in connection with FCBI&#146;s seeking or obtaining such
    equitable relief.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;&#160;<I><U>Term of Agreement;
    Termination</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The term of this Agreement shall commence on the date
    hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;This Agreement shall terminate upon the earlier to
    occur of (i)&#160;the date, if any, of termination of the Merger
    Agreement in accordance with its terms, or (ii)&#160;the
    Effective Time of the Merger. Upon such termination, no party
    shall have any further obligations or liabilities hereunder;
    provided, however, such&#160;termination shall not relieve any
    party from liability for any willful breach of this Agreement
    prior to such termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;&#160;<I><U>Stop Transfer Order</U>.</I>&#160;&#160;In
    furtherance of this Agreement, Shareholder hereby authorizes and
    instructs CCFC to instruct its transfer agent to enter a stop
    transfer order with respect to all of Shareholder&#146;s Shares
    for the period from the date hereof through the date this
    Agreement is terminated in accordance with Section&#160;7. CCFC
    agrees that as promptly as practicable after the date of this
    Agreement it shall give such stop transfer instructions to the
    transfer agent for the CCFC Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;&#160;<I><U>Entire Agreement</U>.</I>&#160;&#160;This
    Agreement supersedes all prior agreements, written or oral,
    among the parties hereto with respect to the subject matter
    hereof and contains the entire agreement among the parties with
    respect to the subject matter hereof. This Agreement may not be
    amended, supplemented or modified, and no provisions hereof may
    be modified or waived, except by an instrument in writing signed
    by each party hereto. No waiver of any provisions hereof by any
    party shall be deemed a waiver of any other provisions hereof by
    any such party, nor shall any such waiver be deemed a continuing
    waiver of any provision hereof by such party.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-44
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;&#160;<I><U>Notices</U>.</I>&#160;&#160;All notices,
    requests, claims, demands or other communications hereunder
    shall be in writing and shall be deemed given when delivered
    personally, upon receipt of a transmission confirmation if sent
    by telecopy or like transmission and on the next Business Day
    when sent by a reputable overnight courier service to the
    parties at the following addresses (or at such other address for
    a party as shall be specified by like notice):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If to FCBI to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Community Bancshares, Inc.
</DIV>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    One Community Place
</DIV>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Bluefield, Virginia 24605
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="9%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Attention:&#160;
</TD>
    <TD align="left">
    John M. Mendez, President<BR>
    and Chief Executive Officer
</TD>
</TR>

</TABLE>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fax:
    <FONT style="white-space: nowrap">(276)&#160;326-9010</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With a copy to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Patton Boggs LLP
</DIV>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2550&#160;M&#160;Street, N.W.
</DIV>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Washington,&#160;D.C. 20037
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="9%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Attention:&#160;
</TD>
    <TD align="left">
    Norman B. Antin,&#160;Esq.<BR>
    Jeffrey D. Haas,&#160;Esq.
</TD>
</TR>

</TABLE>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fax:
    <FONT style="white-space: nowrap">(202)&#160;457-6315</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If to CCFC to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek Financial Corp.
</DIV>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    347 North Main Street, Post Office Box 117
</DIV>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mooresville, North Carolina 28115
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="9%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Attention:&#160;
</TD>
    <TD align="left">
    George W. Brawley, Jr.<BR>
    President and Chief Executive Officer
</TD>
</TR>

</TABLE>



<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fax:
    <FONT style="white-space: nowrap">(704)&#160;664-2290</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With a copy to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Brooks, Pierce, McLendon, Humphrey&#160;&#038; Leonard, LLP<BR>
    2000 Renaissance Plaza<BR>
    230 North Elm Street<BR>
    Greensboro, NC 27401<BR>
    Post Office Box 26000<BR>
    Greensboro, NC 27420<BR>
    Attention: Robert A. Singer,&#160;Esq.<BR>
    Fax:
    <FONT style="white-space: nowrap">(336)&#160;232-9123</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.&#160;&#160;<I><U>Miscellaneous</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<I><U>Severability</U>.</I>&#160;&#160;If any provision
    of this Agreement or the application of such provision to any
    person or circumstances shall be held invalid or unenforceable
    by a court of competent jurisdiction, such provision or
    application shall be unenforceable only to the extent of such
    invalidity or unenforceability, and the remainder of the
    provision held invalid or unenforceable and the application of
    such provision to persons or circumstances, other than the party
    as to which it is held invalid, and the remainder of this
    Agreement, shall not be affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<I><U>Capacity</U>.</I>&#160;&#160;The covenants
    contained herein shall apply to Shareholder solely in his or her
    capacity as a shareholder of CCFC, and no covenant contained
    herein shall apply to Shareholder in his or her capacity as a
    director, officer or employee of CCFC or in any other capacity.
    Nothing contained in this Agreement shall be deemed to apply to,
    or limit in any manner, the obligations of the Shareholder to
    comply with his or her fiduciary duties as a director, officer
    or employee of CCFC.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-45
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<I><U>Counterparts</U>.</I>&#160;&#160;This Agreement
    may be executed in one or more counterparts, each of which shall
    be deemed to be an original but all of which together shall
    constitute one and the same instrument.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;<I><U>Headings</U>.</I>&#160;&#160;All Section headings
    herein are for convenience of reference only and are not part of
    this Agreement, and no construction or reference shall be
    derived therefrom.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;<I><U>Governing Law; Consent to Jurisdiction; Waiver of
    Jury Trial</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;This Agreement shall be governed by and construed in
    accordance with the laws of the Commonwealth of Virginia without
    giving effect to the principles of conflicts of law. Each of the
    parties irrevocably and unconditionally waives, to the fullest
    extent permitted by applicable law, any and all rights to trial
    by jury in connection with any action, suit, proceeding or
    investigation in any court or before any Governmental Authority
    (&#147;Litigation&#148;), arising out of or relating to this
    Agreement or the transactions contemplated hereby.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Each of the parties hereto irrevocably consents to the
    service of process out of any of the aforementioned courts in
    any such Litigation by the mailing of copies thereof by
    registered mail, postage prepaid, to such party at his, her or
    its address set forth in this Agreement, such service of process
    to be effective upon acknowledgment of receipt of such
    registered mail.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Each of the parties hereto expressly acknowledges
    that the foregoing waivers are intended to be irrevocable under
    the laws of the State of Nevada and of the United States of
    America; provided that consent by the parties to jurisdiction
    and service contained in this Section&#160;11(e) is solely for
    the purpose referred to in this Section&#160;11(e) and shall not
    be deemed to be a general submission to said courts or in the
    State of Nevada other than for such purpose.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;<I><U>Successors and Assigns; Third Party
    Beneficiaries</U>.</I>&#160;&#160;Neither this Agreement nor any
    of the rights or obligations of any party under this Agreement
    shall be assigned, in whole or in part, by any party without the
    prior written consent of the other parties hereto. Subject to
    the foregoing, this Agreement shall bind and inure to the
    benefit of and be enforceable by the parties hereto and their
    respective successors and permitted assigns. Nothing in this
    Agreement, express or implied, is intended to confer on any
    Person other than the parties hereto or their respective
    successors and permitted assigns any rights, remedies,
    obligations or liabilities under or by reason of this Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.&#160;&#160;<I><U>Attorney&#146;s
    Fees</U>.</I>&#160;&#160;The prevailing party or parties in any
    litigation, arbitration, mediation, bankruptcy, insolvency or
    other proceeding (&#147;Proceeding&#148;) relating to the
    enforcement or interpretation of this Agreement may recover from
    the unsuccessful party or parties all reasonable fees and
    disbursements of counsel (including expert witness and other
    consultants&#146; fees and costs) relating to or arising out of
    (a)&#160;the Proceeding (whether or not the Proceeding proceeds
    to judgment), and (b)&#160;any post-judgment or post-award
    proceeding including, without limitation, one to enforce or
    collect any judgment or award resulting from the Proceeding. All
    such judgments and awards shall contain a specific provision for
    the recovery of all such subsequently incurred costs, expenses,
    and fees and disbursements of counsel.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">[Signature
    Page&#160;Follows]</FONT></B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-46
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>IN WITNESS WHEREOF</B>, the parties hereto have executed and
    delivered this Agreement as of the date first written above.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>FIRST COMMUNITY BANCSHARES, INC.</B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">&#160;&#160;&#160;<FONT style="font-variant: SMALL-CAPS">&#160;</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;John M. Mendez
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="53%"></TD>
    <TD width="8%"></TD>
    <TD width="39%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Title:&#160;
</TD>
    <TD align="left">
    President and Chief Executive Officer
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CODDLE CREEK FINANCIAL CORP.</B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">&#160;&#160;&#160;<FONT style="font-variant: SMALL-CAPS">&#160;</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Name:&#160;&#160;&#160;&#160;&#160;George W. Brawley, Jr.
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="53%"></TD>
    <TD width="8%"></TD>
    <TD width="39%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    Title:&#160;
</TD>
    <TD align="left">
    President and Chief Executive Officer
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>SHAREHOLDER</B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 49%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (Signature)
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-47
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;I</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHAREHOLDER
    AGREEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>CCFC Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beneficially Owned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Exclusive of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unexercised Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Options on CCFC<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Shareholder</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options or Warrants)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-48
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='176'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;B</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    July&#160;22, 2008
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Board of Directors
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coddle Creek Financial Corp.
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    347 North Main Street
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mooresville, NC 28115
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Members of the Board:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You have requested our opinion as to the fairness, from a
    financial point of view, of the shareholder consideration to be
    received by the holders of the outstanding shares of common
    stock of Coddle Creek Financial Corp. (&#147;Coddle Creek&#148;)
    in the merger (the &#147;Merger&#148;) with First Community
    Bancshares, Inc. (&#147;First Community&#148;), pursuant to the
    Agreement and Plan of Merger by and between Coddle Creek and
    First Community (the &#147;Merger Agreement&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Merger Agreement, each share of Coddle Creek
    common stock outstanding immediately prior to the effective time
    of the Merger will be converted into 0.9046&#160;shares of
    common stock of First Community and $19.60 in cash. Options to
    purchase shares of Coddle Creek common stock will be canceled in
    exchange for a single lump sum cash payment. The terms of the
    Merger are more fully set forth in the Merger Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In arriving at our opinion, we have reviewed certain publicly
    available business, financial and stockholder information
    relating to First Community and its subsidiaries and to Coddle
    Creek and its subsidiary. In addition, we have reviewed certain
    financial information provided to us by both Coddle Creek and
    First Community pertaining to their respective business plans
    and projections.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the foregoing, we have:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;Reviewed the draft Merger Agreement dated July&#160;18,
    2008;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2.&#160;
</TD>
    <TD align="left">
    Reviewed First Community&#146;s recent filings with the
    Securities and Exchange Commission including its proxy statement
    filed on March&#160;27, 2008, annual reports on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the three years ended December&#160;31, 2007, 2006 and 2005,
    and a quarterly report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3.&#160;
</TD>
    <TD align="left">
    Reviewed First Community&#146;s earnings press release for the
    quarter ended June&#160;30, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    4.&#160;
</TD>
    <TD align="left">
    Reviewed current reports of First Community as filed on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    with the Securities and Exchange Commission from January&#160;1,
    2005 to the date hereof;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    5.&#160;
</TD>
    <TD align="left">
    Reviewed Coddle Creek&#146;s annual reports for the three years
    ended December&#160;31, 2007, 2006 and 2005;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    6.&#160;
</TD>
    <TD align="left">
    Reviewed Coddle Creek&#146;s proxy statement dated
    March&#160;18, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    7.&#160;
</TD>
    <TD align="left">
    Reviewed certain internal financial information and financial
    forecasts relating to the business, earnings, cash flows, assets
    and prospects of the respective companies furnished to us by
    Coddle Creek and First Community;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    8.&#160;
</TD>
    <TD align="left">
    Held discussions with members of executive and senior management
    of Coddle Creek and First Community, including without
    limitation, their respective legal advisors and others
    concerning the past and current results of operations of Coddle
    Creek and First Community, their respective current financial
    condition and managements&#146; opinion of their respective
    future prospects;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    9.&#160;
</TD>
    <TD align="left">
    Reviewed the historical record of reported trading prices,
    trading activity and dividend payments for both Coddle Creek and
    First Community;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-1
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    10.&#160;
</TD>
    <TD align="left">
    Compared the reported financial terms of selected recent
    business combinations in the banking industry;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    11.&#160;
</TD>
    <TD align="left">
    Performed such other studies and analyses as we considered
    appropriate under the circumstances.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this opinion, we have assumed and relied on,
    without independent verification, the accuracy and completeness
    of the material furnished to us by Coddle Creek and First
    Community and the material otherwise made available to us,
    including information from published sources, and we have not
    independently verified such data. With respect to the financial
    information, including forecasts we received from Coddle Creek
    and First Community, we assumed that they had been reasonably
    prepared reflecting the best currently available estimates and
    good faith judgment of the management of Coddle Creek and First
    Community. In addition, we have not made or obtained any
    independent appraisals or valuations of the assets or
    liabilities, and potential
    <FONT style="white-space: nowrap">and/or</FONT>
    contingent liabilities of Coddle Creek or First Community. We
    have further relied on the assurances of management of Coddle
    Creek and First Community that they are not aware of any facts
    that would make such information inaccurate or misleading. We
    express no opinion on matters of a legal, regulatory, tax or
    accounting nature or the ability of the Merger, as set forth in
    the Merger Agreement, to be consummated. No opinion is expressed
    as to whether any alternative transaction might produce
    consideration for Coddle Creek or its stockholders in an amount
    in excess of that contemplated in the Merger. Coddle Creek
    management has informed us that no alternative transaction is,
    and we are not otherwise aware of any alternative transaction
    that is, currently being contemplated by Coddle Creek.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In rendering our opinion, we have assumed that the Merger will
    be consummated on the terms described in the Merger Agreement
    and that in the course of obtaining the necessary approvals for
    the Merger, no restrictions or conditions will be imposed that
    would have a material adverse effect on the contemplated
    benefits of the Merger to Coddle Creek or First Community or the
    ability to consummate the Merger. Our opinion is based on the
    market, economic and other relevant considerations as they exist
    and have been evaluated by us on the date hereof. This opinion
    was approved by the Fairness Committee of Howe Barnes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have acted as financial advisor to Coddle Creek in connection
    with the Merger and have received a fee for such services, and
    expect an additional fee that is contingent upon consummation of
    the Merger. In addition, Coddle Creek has agreed to indemnify us
    for certain liabilities arising out of our engagement by Coddle
    Creek in connection with the Merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This opinion may not be disclosed, communicated, reproduced,
    disseminated, quoted or referred to at any time (in whole or
    part), to any third party or in any manner or for any purpose
    whatsoever without our prior written consent, although this
    opinion may be (i)&#160;furnished to First Community for
    inspection purposes only, provided however, that such consent to
    provide First Community with a copy of this opinion is based on
    the condition that each of Coddle Creek and First Community have
    acknowledged and agreed that First Community is not authorized
    to and shall not rely on this opinion, and (ii)&#160;included in
    its entirety in the proxy&#160;statement/prospectus of Coddle
    Creek used to solicit stockholder approval of the Merger so long
    as any description of or reference to us or this opinion and the
    related analysis in such filing is in a form reasonably
    acceptable to us and our counsel. It should be understood that
    subsequent developments may affect this opinion and we do not
    have any obligation to revise or reaffirm this opinion. The
    opinion does not in any matter address the prices at which the
    capital stock of Coddle Creek or First Community or any of their
    respective affiliates may trade after the announcement of the
    Merger. It is understood that this letter is directed to the
    Board of Directors of Coddle Creek in its consideration of the
    Merger Agreement, and is not intended to be and does not
    constitute a recommendation to any stockholder as to how such
    stockholder should vote with respect to the Merger. In rendering
    this opinion, we express no opinion with respect to the amount
    or nature of any compensation to any officers, directors, or
    employees of Coddle Creek, or any class of such persons relative
    to the shareholder consideration to be received by the holders
    of the common stock of Coddle Creek in the transaction or with
    respect to the fairness of any such compensation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the two years preceding the date of the opinion, other
    than this engagement, Howe Barnes has not had a material
    relationship with Coddle Creek where compensation was received
    or that it contemplates will
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    be received after closing of the transaction. Furthermore, Howe
    Barnes has not received compensation from First Community in the
    last two years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based upon and subject to the foregoing, including the various
    assumptions and limitations set forth herein, and based on such
    other matters as we considered relevant, it is our opinion that
    as of the date hereof that the shareholder consideration is
    fair, from a financial point of view, to the holders of Coddle
    Creek common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-variant: SMALL-CAPS">Howe Barnes
    Hoefer&#160;&#038; Arnett, Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="1%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">William
    J. Wagner</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 50%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    William J. Wagner
</DIV>

<DIV align="left" style="margin-left: 50%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    First Vice President and Managing Director
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-3
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='177'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;C</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Chapter&#160;55,
    Article&#160;13 of the North Carolina General Statutes<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dissenters&#146;
    Rights.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Part&#160;1.
    Right to Dissent and Obtain Payment for Shares.</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-01.</FONT>
    Definitions.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this Article:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;<I>&#147;Corporation&#148;</I> means the issuer of the
    shares held by a dissenter before the corporate action, or the
    surviving or acquiring corporation by merger or share exchange
    of that issuer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;<I>&#147;Dissenter&#148;</I> means a shareholder who is
    entitled to dissent from corporate action under
    <FONT style="white-space: nowrap">G.S.&#160;55-13-02</FONT>
    and who exercises that right when and in the manner required by
    G.S.
    <FONT style="white-space: nowrap">55-13-20</FONT>
    through
    <FONT style="white-space: nowrap">55-13-28.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;<I>&#147;Fair value&#148;,</I> with respect to a
    dissenter&#146;s shares, means the value of the shares
    immediately before the effectuation of the corporate action to
    which the dissenter objects, excluding any appreciation or
    depreciation in anticipation of the corporate action unless
    exclusion would be inequitable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;<I>&#147;Interest&#148;</I> means interest from the
    effective date of the corporate action until the date of
    payment, at a rate that is fair and equitable under all the
    circumstances, giving due consideration to the rate currently
    paid by the corporation on its principal bank loans, if any, but
    not less than the rate provided in G.S.
    <FONT style="white-space: nowrap">24-1.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;<I>&#147;Record shareholder&#148;</I> means the person
    in whose name shares are registered in the records of a
    corporation or the beneficial owner of shares to the extent of
    the rights granted by a nominee certificate on file with a
    corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (6)&#160;<I>&#147;Beneficial shareholder&#148;</I> means the
    person who is a beneficial owner of shares held in a voting
    trust or by a nominee as the record shareholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (7)&#160;<I>&#147;Shareholder&#148;</I> means the record
    shareholder or the beneficial shareholder.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-02.</FONT>
    Right to dissent.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;In addition to any rights granted under Article&#160;9,
    a shareholder is entitled to dissent from, and obtain payment of
    the fair value of his shares in the event of, any of the
    following corporate actions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;Consummation of a plan of merger to which the
    corporation (other than a parent corporation in a merger whose
    shares are not affected under G.S.
    <FONT style="white-space: nowrap">55-11-04)</FONT> is
    a party unless (i)&#160;approval by the shareholders of that
    corporation is not required under G.S.
    <FONT style="white-space: nowrap">55-11-03(g)</FONT>
    or (ii)&#160;such shares are then redeemable by the corporation
    at a price not greater than the cash to be received in exchange
    for such shares;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Consummation of a plan of share exchange to which the
    corporation is a party as the corporation whose shares will be
    acquired, unless such shares are then redeemable by the
    corporation at a price not greater than the cash to be received
    in exchange for such shares;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2a)&#160;Consummation of a plan of conversion pursuant to
    Part&#160;2 of Article&#160;11A of this Chapter;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;Consummation of a sale or exchange of all, or
    substantially all, of the property of the corporation other than
    as permitted by G.S.
    <FONT style="white-space: nowrap">55-12-01,</FONT>
    including a sale in dissolution, but not including a sale
    pursuant to court order or a sale pursuant to a plan by which
    all or substantially all of the net proceeds of the sale will be
    distributed in cash to the shareholders within one year after
    the date of sale;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;An amendment of the articles of incorporation that
    materially and adversely affects rights in respect of a
    dissenter&#146;s shares because it (i)&#160;alters or abolishes
    a preferential right of the shares; (ii)&#160;creates, alters,
    or abolishes a right in respect of redemption, including a
    provision respecting a sinking
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-1
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    fund for the redemption or repurchase, of the shares;
    (iii)&#160;alters or abolishes a preemptive right of the holder
    of the shares to acquire shares or other securities;
    (iv)&#160;excludes or limits the right of the shares to vote on
    any matter, or to cumulate votes, other than an amendment of the
    articles of incorporation permitting action without meeting to
    be taken by less than all shareholders entitled to vote, without
    advance notice, or both, as provided in G.S.
    <FONT style="white-space: nowrap">55-7-04;</FONT>
    (v)&#160;reduces the number of shares owned by the shareholder
    to a fraction of a share if the fractional share so created is
    to be acquired for cash under
    <FONT style="white-space: nowrap">G.S.&#160;55-6-04;</FONT>
    or (vi)&#160;changes the corporation into a nonprofit
    corporation or cooperative organization;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;Any corporate action taken pursuant to a shareholder
    vote to the extent the articles of incorporation, bylaws, or a
    resolution of the board of directors provides that voting or
    nonvoting shareholders are entitled to dissent and obtain
    payment for their shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;A shareholder entitled to dissent and obtain payment
    for his shares under this Article may not challenge the
    corporate action creating his entitlement, including without
    limitation a merger solely or partly in exchange for cash or
    other property, unless the action is unlawful or fraudulent with
    respect to the shareholder or the corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Notwithstanding any other provision of this Article,
    there shall be no right of shareholders to dissent from, or
    obtain payment of the fair value of the shares in the event of,
    the corporate actions set forth in subdivisions (1), (2), or
    (3)&#160;of subsection&#160;(a) of this section if the affected
    shares are any class or series which, at the record date fixed
    to determine the shareholders entitled to receive notice of and
    to vote at the meeting at which the plan of merger or share
    exchange or the sale or exchange of property is to be acted on,
    were (i)&#160;listed on a national securities exchange or
    designated as a national market system security on an
    interdealer quotation system by the National Association of
    Securities Dealers, Inc., or (ii)&#160;held by at least 2,000
    record shareholders. This subsection does not apply in cases in
    which either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;The articles of incorporation, bylaws, or a resolution
    of the board of directors of the corporation issuing the shares
    provide otherwise;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;In the case of a plan of merger or share exchange, the
    holders of the class or series are required under the plan of
    merger or share exchange to accept for the shares anything
    except:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    a.&#160;Cash;
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    b.&#160;Shares, or shares and cash in lieu of fractional shares
    of the surviving or acquiring corporation, or of any other
    corporation which, at the record date fixed to determine the
    shareholders entitled to receive notice of and vote at the
    meeting at which the plan of merger or share exchange is to be
    acted on, were either listed subject to notice of issuance on a
    national securities exchange or designated as a national market
    system security on an interdealer quotation system by the
    National Association of Securities Dealers, Inc., or held by at
    least 2,000 record shareholders;&#160;or
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    c.&#160;A combination of cash and shares as set forth in
    sub-subdivisions a. and b. of this subdivision.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-03.</FONT>
    Dissent by nominees and beneficial owners.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;A record shareholder may assert dissenters&#146; rights
    as to fewer than all the shares registered in his name only if
    he dissents with respect to all shares beneficially owned by any
    one person and notifies the corporation in writing of the name
    and address of each person on whose behalf he asserts
    dissenters&#146; rights. The rights of a partial dissenter under
    this subsection are determined as if the shares as to which he
    dissents and his other shares were registered in the names of
    different shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;A beneficial shareholder may assert dissenters&#146;
    rights as to shares held on his behalf only if:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;He submits to the corporation the record
    shareholder&#146;s written consent to the dissent not later than
    the time the beneficial shareholder asserts dissenters&#146;
    rights;&#160;and
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;He does so with respect to all shares of which he is
    the beneficial shareholder.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#167;&#167;
    <FONT style="white-space: nowrap">55-13-04</FONT>
    through
    <FONT style="white-space: nowrap">55-13-19.</FONT>
    Reserved for future codification purposes.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Part&#160;2.
    Procedure for Exercise of Dissenters&#146; Rights.</FONT></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-20.</FONT>
    Notice of dissenters&#146; rights.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;If proposed corporate action creating dissenters&#146;
    rights under G.S.
    <FONT style="white-space: nowrap">55-13-02</FONT> is
    submitted to a vote at a shareholders&#146; meeting, the meeting
    notice must state that shareholders are or may be entitled to
    assert dissenters&#146; rights under this Article and be
    accompanied by a copy of this Article.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;If corporate action creating dissenters&#146; rights
    under G.S.
    <FONT style="white-space: nowrap">55-13-02</FONT> is
    taken without a vote of shareholders or is taken by shareholder
    action without meeting under G.S.
    <FONT style="white-space: nowrap">55-7-04,</FONT> the
    corporation shall no later than 10&#160;days thereafter notify
    in writing all shareholders entitled to assert dissenters&#146;
    rights that the action was taken and send them the
    dissenters&#146; notice described in G.S.
    <FONT style="white-space: nowrap">55-13-22.</FONT> A
    shareholder who consents to shareholder action taken without
    meeting under G.S.
    <FONT style="white-space: nowrap">55-7-04</FONT>
    approving a corporate action is not entitled to payment for the
    shareholder&#146;s shares under this Article with respect to
    that corporate action.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;If a corporation fails to comply with the requirements
    of this section, such failure shall not invalidate any corporate
    action taken; but any shareholder may recover from the
    corporation any damage which he suffered from such failure in a
    civil action brought in his own name within three years after
    the taking of the corporate action creating dissenters&#146;
    rights under G.S.
    <FONT style="white-space: nowrap">55-13-02</FONT>
    unless he voted for such corporate action.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-21.</FONT>
    Notice of intent to demand payment.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;If proposed corporate action creating dissenters&#146;
    rights under G.S.
    <FONT style="white-space: nowrap">55-13-02</FONT> is
    submitted to a vote at a shareholders&#146; meeting, a
    shareholder who wishes to assert dissenters&#146; rights:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;Must give to the corporation, and the corporation must
    actually receive, before the vote is taken written notice of his
    intent to demand payment for his shares if the proposed action
    is effectuated;&#160;and
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Must not vote his shares in favor of the proposed
    action.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;A shareholder who does not satisfy the requirements of
    subsection&#160;(a) is not entitled to payment for his shares
    under this Article.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-22.</FONT>
    Dissenters&#146; notice.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;If proposed corporate action creating dissenters&#146;
    rights under G.S.
    <FONT style="white-space: nowrap">55-13-02</FONT> is
    approved at a shareholders&#146; meeting, the corporation shall
    mail by registered or certified mail, return receipt requested,
    a written dissenters&#146; notice to all shareholders who
    satisfied the requirements of G.S.
    <FONT style="white-space: nowrap">55-13-21.</FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The dissenters&#146; notice must be sent no later than
    10&#160;days after shareholder approval, or if no shareholder
    approval is required, after the approval of the board of
    directors, of the corporate action creating dissenters&#146;
    rights under G.S.
    <FONT style="white-space: nowrap">55-13-02,</FONT>
    and must:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;State where the payment demand must be sent and where
    and when certificates for certificated shares must be deposited;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Inform holders of uncertificated shares to what extent
    transfer of the shares will be restricted after the payment
    demand is received;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;Supply a form for demanding payment;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;Set a date by which the corporation must receive the
    payment demand, which date may not be fewer than 30 nor more
    than 60&#160;days after the date the subsection&#160;(a) notice
    is mailed;&#160;and
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;Be accompanied by a copy of this Article.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-23.</FONT>
    Duty to demand payment.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;A shareholder sent a dissenters&#146; notice described
    in G.S.
    <FONT style="white-space: nowrap">55-13-22</FONT>
    must demand payment and deposit his share certificates in
    accordance with the terms of the notice.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The shareholder who demands payment and deposits his
    share certificates under subsection&#160;(a) retains all other
    rights of a shareholder until these rights are cancelled or
    modified by the taking of the proposed corporate action.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;A shareholder who does not demand payment or deposit
    his share certificates where required, each by the date set in
    the dissenters&#146; notice, is not entitled to payment for his
    shares under this Article.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-24.</FONT>
    Share restrictions.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The corporation may restrict the transfer of
    uncertificated shares from the date the demand for their payment
    is received until the proposed corporate action is taken or the
    restrictions released under G.S.
    <FONT style="white-space: nowrap">55-13-26.</FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The person for whom dissenters&#146; rights are
    asserted as to uncertificated shares retains all other rights of
    a shareholder until these rights are cancelled or modified by
    the taking of the proposed corporate action.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-25.</FONT>
    Payment.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;As soon as the proposed corporate action is taken, or
    within 30&#160;days after receipt of a payment demand, the
    corporation shall pay each dissenter who complied with G.S.
    <FONT style="white-space: nowrap">55-13-23</FONT> the
    amount the corporation estimates to be the fair value of his
    shares, plus interest accrued to the date of payment.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The payment shall be accompanied by:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;The corporation&#146;s most recent available balance
    sheet as of the end of a fiscal year ending not more than
    16&#160;months before the date of payment, an income statement
    for that year, a statement of cash flows for that year, and the
    latest available interim financial statements, if any;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;An explanation of how the corporation estimated the
    fair value of the shares;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;An explanation of how the interest was calculated;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;A statement of the dissenter&#146;s right to demand
    payment under G.S.
    <FONT style="white-space: nowrap">55-13-28;&#160;and</FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;A copy of this Article.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-26.</FONT>
    Failure to take action.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;If the corporation does not take the proposed action
    within 60&#160;days after the date set for demanding payment and
    depositing share certificates, the corporation shall return the
    deposited certificates and release the transfer restrictions
    imposed on uncertificated shares.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;If after returning deposited certificates and releasing
    transfer restrictions, the corporation takes the proposed
    action, it must send a new dissenters&#146; notice under G.S.
    <FONT style="white-space: nowrap">55-13-22</FONT> and
    repeat the payment demand procedure.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-27.</FONT>
    Reserved for future codification purposes.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-28.</FONT>
    Procedure if shareholder dissatisfied with corporation&#146;s
    payment or failure to perform.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;A dissenter may notify the corporation in writing of
    his own estimate of the fair value of his shares and amount of
    interest due, and demand payment of the amount in excess of the
    payment by the corporation under G.S.
    <FONT style="white-space: nowrap">55-13-25</FONT> for
    the fair value of his shares and interest due, if:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;The dissenter believes that the amount paid under G.S.
    <FONT style="white-space: nowrap">55-13-25</FONT> is
    less than the fair value of his shares or that the interest due
    is incorrectly calculated;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;The corporation fails to make payment under G.S.
    <FONT style="white-space: nowrap">55-13-25;&#160;or</FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;The corporation, having failed to take the proposed
    action, does not return the deposited certificates or release
    the transfer restrictions imposed on uncertificated shares
    within 60&#160;days after the date set for demanding payment.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;A dissenter waives his right to demand payment under
    this section unless he notifies the corporation of his demand in
    writing (i)&#160;under subdivision (a)(1) within 30&#160;days
    after the corporation made payment for his shares or
    (ii)&#160;under subdivisions (a)(2) and (a)(3) within
    30&#160;days after the corporation has failed to perform timely.
    A dissenter who fails to notify the corporation of his demand
    under subsection&#160;(a) within such
    <FONT style="white-space: nowrap">30-day</FONT>
    period shall be deemed to have withdrawn his dissent and demand
    for payment.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#167;
    <FONT style="white-space: nowrap">55-13-29.</FONT>
    Reserved for future codification purposes.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-4
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Part&#160;3.
    Judicial Appraisal of Shares.</FONT></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-30.</FONT>
    Court action.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;If a demand for payment under G.S.
    <FONT style="white-space: nowrap">55-13-28</FONT>
    remains unsettled, the dissenter may commence a proceeding
    within 60&#160;days after the earlier of (i)&#160;the date
    payment is made under G.S.
    <FONT style="white-space: nowrap">55-13-25,</FONT> or
    (ii)&#160;the date of the dissenter&#146;s payment demand under
    G.S.
    <FONT style="white-space: nowrap">55-13-28</FONT> by
    filing a complaint with the Superior Court Division of the
    General Court of Justice to determine the fair value of the
    shares and accrued interest. A dissenter who takes no action
    within the
    <FONT style="white-space: nowrap">60-day</FONT>
    period shall be deemed to have withdrawn his dissent and demand
    for payment.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a1) Repealed by Session Laws
    <FONT style="white-space: nowrap">1997-202,</FONT> s.
    4.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Reserved for future codification purposes.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The court shall have the discretion to make all
    dissenters (whether or not residents of this State) whose
    demands remain unsettled parties to the proceeding as in an
    action against their shares and all parties must be served with
    a copy of the complaint. Nonresidents may be served by
    registered or certified mail or by publication as provided by
    law.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;The jurisdiction of the superior court in which the
    proceeding is commenced under subsection&#160;(a) is plenary and
    exclusive. The court may appoint one or more persons as
    appraisers to receive evidence and recommend decision on the
    question of fair value. The appraisers have the powers described
    in the order appointing them, or in any amendment to it. The
    parties are entitled to the same discovery rights as parties in
    other civil proceedings. The proceeding shall be tried as in
    other civil actions. However, in a proceeding by a dissenter in
    a corporation that was a public corporation immediately prior to
    consummation of the corporate action giving rise to the right of
    dissent under G.S.
    <FONT style="white-space: nowrap">55-13-02,</FONT>
    there is no right to a trial by jury.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Each dissenter made a party to the proceeding is
    entitled to judgment for the amount, if any, by which the court
    finds the fair value of his shares, plus interest, exceeds the
    amount paid by the corporation.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">&#167;
    <FONT style="white-space: nowrap">55-13-31.</FONT>
    Court costs and counsel fees.</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The court in an appraisal proceeding commenced under
    G.S.
    <FONT style="white-space: nowrap">55-13-30</FONT>
    shall determine all costs of the proceeding, including the
    reasonable compensation and expenses of appraisers appointed by
    the court, and shall assess the costs as it finds equitable.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The court may also assess the fees and expenses of
    counsel and experts for the respective parties, in amounts the
    court finds equitable:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;Against the corporation and in favor of any or all
    dissenters if the court finds the corporation did not
    substantially comply with the requirements of G.S.
    <FONT style="white-space: nowrap">55-13-20</FONT>
    through
    <FONT style="white-space: nowrap">55-13-28;&#160;or</FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Against either the corporation or a dissenter, in favor
    of either or any other party, if the court finds that the party
    against whom the fees and expenses are assessed acted
    arbitrarily, vexatiously, or not in good faith with respect to
    the rights provided by this Article.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;If the court finds that the services of counsel for any
    dissenter were of substantial benefit to other dissenters
    similarly situated, and that the fees for those services should
    not be assessed against the corporation, the court may award to
    these counsel reasonable fees to be paid out of the amounts
    awarded the dissenters who were benefited.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-5
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