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<SEC-DOCUMENT>0000765207-06-000020.txt : 20061108
<SEC-HEADER>0000765207-06-000020.hdr.sgml : 20061108
<ACCEPTANCE-DATETIME>20061108151858
ACCESSION NUMBER:		0000765207-06-000020
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20060930
FILED AS OF DATE:		20061108
DATE AS OF CHANGE:		20061108

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FIRST NATIONAL LINCOLN CORP /ME/
		CENTRAL INDEX KEY:			0000765207
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				010404322
		STATE OF INCORPORATION:			ME
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26589
		FILM NUMBER:		061197175

	BUSINESS ADDRESS:	
		STREET 1:		P.O. BOX 940
		STREET 2:		MAIN STREET
		CITY:			DAMARISCOTTA
		STATE:			ME
		ZIP:			04543
		BUSINESS PHONE:		2075633195

	MAIL ADDRESS:	
		STREET 1:		P.O. BOX 940
		CITY:			DAMARISCOTTA
		STATE:			ME
		ZIP:			04543
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>fnlc10q06q3.htm
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;border-top:solid 0.5pt;padding-top:1;'><font SIZE=2>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;border-bottom:solid 0.5pt;padding-bottom:1;'><font SIZE=2>WASHINGTON, DC 20549</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=3>FORM 10-Q</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font face=Wingdings>x</font><font size=2> Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>For the quarterly period ended September 30, 2006</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Commission File Number 0-26589</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=3>FIRST NATIONAL LINCOLN CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of Registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>MAINE</font></B><font size=1></font><b><font size=2>                                   01-0404322</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>MAIN STREET,   DAMARISCOTTA,   MAINE          04543</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Address of principal executive offices)                                 (Zip code)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(207) 563-3195</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Registrant&#146;s telephone number, including area code</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Yes </font><font face=Wingdings>x</font><font size=2>    No[_]</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of &#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 of the Exchange Act. (Check one):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Large accelerated filer [_]    Accelerated filer </font><font face=Wingdings>x</font><font size=2>    Non-accelerated filer [_]</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Yes [_]    No </font><font face=Wingdings>x</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Indicate the number of shares outstanding of each of the registrant&#146;s classes of common stock as of November 3, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Common Stock: 9,768,150 shares</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:1;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<u><b><font size=2>Table of Contents</font></b></u></p>
&nbsp;

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    <tr>
        <td width="2" nowrap valign=top >
            <p  style='margin-right:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="628" nowrap valign=top >
            <p  style='margin-right:0in'><u><a href="#Fin_Info"><b><font size=2>Part I. Financial Information</font></b></a></u></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td> </tr></table>
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&nbsp;

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    <tr>
        <td width="13" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="616" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Selected Financial Data (Unaudited)</font></b></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td> </tr></table>
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        <td width="13" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="616" nowrap valign=top >
            <p  style='margin-left:0in'><a href="#Fin_Stmts"><u><b><font size=2>Item 1 &#150; Financial Statements</font></b></u></a></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td> </tr></table>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="602" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Report of Independent Registered Public Accounting Firm</font></i></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td> </tr></table>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="602" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Consolidated Balance Sheets (Unaudited)</font></i></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3</font></p> </td> </tr></table>
</div>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="602" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Consolidated Statements of Income (Unaudited)</font></i></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4</font></p> </td> </tr></table>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="602" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Consolidated Statements of Changes in Shareholders' Equity (Unaudited)</font></i></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5</font></p> </td> </tr></table>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="602" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Consolidated Statements of Cash Flows (Unaudited)</font></i></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6</font></p> </td> </tr></table>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="616" nowrap valign=top >
            <p  style='margin-left:0in'><a href="#Notes"><u><b><font size=2>Notes to Consolidated Financials Statements</font></b></u></a></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td> </tr></table>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Note 1 &#150; Basis of Presentation</font></i></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Note 2 &#150; Common Stock</font></i></p> </td>
        <td width="27" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Note 3 &#150; Stock Options</font></i></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Note 4 &#150; Earnings Per Share</font></i></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9</font></p> </td> </tr></table>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Note 5 &#150; Postretirement Benefit Plans</font></i></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Note 6 &#150; Goodwill</font></i></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Note 7 &#150; Reclassifications</font></i></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Note 8 &#150; Pro-Forma Financial Information</font></i></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Note 9 &#150; Impact of Recently Issued Accounting Standards</font></i></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13</font></p> </td> </tr></table>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="611" nowrap valign=top >
            <p  style='margin-left:0in'><b><a href="#MDA"><font size=2>Item 2 &#150; Management's Discussion and Analysis of Financial Condition and Results of Operations</font></a></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Critical Accounting Policies</font></i></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14</font></p> </td> </tr></table>
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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>GAAP vs. Pro-Forma Results</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Executive Summary</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>15</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Net Interest Income</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>15</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Provision for Loan Losses</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Non-Interest Income</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18</font></p> </td> </tr></table>
</div>
&nbsp;

<div align=left>

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Non-Interest Expense</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Income Taxes</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18</font></p> </td> </tr></table>
</div>
&nbsp;

<div align=left>

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Investments</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18</font></p> </td> </tr></table>
</div>
&nbsp;

<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="656" style=' border-collapse:collapse'>
    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Loans</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Allowance for Loan Losses</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Non-Performing Assets</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>20</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Goodwill</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>20</font></p> </td> </tr></table>
</div>
&nbsp;

<div align=left>

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Deposits</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>21</font></p> </td> </tr></table>
</div>
&nbsp;

<div align=left>

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Borrowed Funds</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>21</font></p> </td> </tr></table>
</div>
&nbsp;

<div align=left>

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Shareholders' Equity</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>21</font></p> </td> </tr></table>
</div>
&nbsp;

<div align=left>

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Average Daily Balance Sheets</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>22</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Off-Balance Sheet Financial Instruments</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23</font></p> </td> </tr></table>
</div>
&nbsp;

<div align=left>

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Sale of Loans</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Contractual Obligations</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Liquidity Management</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Forward-Looking Statements</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23</font></p> </td> </tr></table>
</div>
&nbsp;

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    <tr>
        <td width="13" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="611" nowrap valign=top >
            <p  style='margin-left:0in'><b><a href="#item3"><font size=2>Item 3 &#150; Quantitative and Qualitative Disclosures About Market Risk</font></a></b></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>24</font></p> </td> </tr></table>
</div>
&nbsp;

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        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Market-Risk Management</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>24</font></p> </td> </tr></table>
</div>
&nbsp;

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        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Asset/Liability Management</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>24</font></p> </td> </tr></table>
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&nbsp;

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        <td width="28" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="597" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Interest Rate Risk Management</font></i></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>25</font></p> </td> </tr></table>
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&nbsp;

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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="611" nowrap valign=top >
            <p  style='margin-left:0in'><b><a href="#item4"><font size=2>Item 4: Controls and Procedures</font></a></b></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>26</font></p> </td> </tr></table>
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&nbsp;

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        <td width="2" nowrap valign=top >
            <p  style='margin-right:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="622" nowrap valign=top >
            <p  style='margin-right:0in'><u><a href="#other"><b><font size=2>Part II &#150; Other Information</font></b></a></u></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>27</font></p> </td> </tr></table>
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&nbsp;

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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="611" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 1 &#150; Legal Proceedings &amp; Risk Factors</font></b></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>27</font></p> </td> </tr></table>
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&nbsp;

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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="611" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 2 &#150; Unregistered Sales of Equity Securities and Use of Proceeds</font></b></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>27</font></p> </td> </tr></table>
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&nbsp;

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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="611" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 3 &#150; Default Upon Senior Securities</font></b></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28</font></p> </td> </tr></table>
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&nbsp;

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        <td width="13" nowrap valign=top >
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="611" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 4 &#150; Submission of Matters to a Vote of Security Holders</font></b></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28</font></p> </td> </tr></table>
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&nbsp;

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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="611" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 5 &#150; Other Information</font></b></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28</font></p> </td> </tr></table>
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&nbsp;

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            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="611" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 6 &#150; Exhibits</font></b></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>29</font></p> </td> </tr></table>
</div>
&nbsp;


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="656" style=' border-collapse:collapse'>
    <tr>
        <td width="2" nowrap valign=top >
            <p  style='margin-right:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="622" nowrap valign=top >
            <p  style='margin-right:0in'><u><a href="#sign"><b><font size=2>Signatures</font></b></a></u></p> </td>
        <td width="32" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>30</font></p> </td> </tr></table>
</div>
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<p style='page-break-before:always'></p><PAGE>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2><a name="fin_info"></a>Part I. Financial Information</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Selected Financial Data (Unaudited)</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation and Subsidiary</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="642" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' border-top:solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the nine months ended</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the quarters ended</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Dollars in thousands, </font></i><i></i></p> </td>
        <td  nowrap colspan="2" valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>September 30</font></b></u><u></u></p> </td>
        <td  nowrap colspan="2" valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>September 30</font></b></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>except for per share amounts</font></i><i></i></p> </td>
        <td width="98" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="102" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td>
        <td width="102" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="244" nowrap valign=bottom style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Summary of Operations</font></b></i><i></i></p> </td>
        <td width="98" nowrap valign=bottom style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=bottom style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=bottom style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating Income</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$     55,154</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   43,174</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$     20,075</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    16,092</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating Expense</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>42,146</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>29,927</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>15,626</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,403</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net Interest Income</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>22,981</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>23,398</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,738</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,989</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Provision for Loan Losses</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>900</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>100</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>300</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="244" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net Income</font></p> </td>
        <td width="98" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,325</font></b></p> </td>
        <td width="102" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,477</font></p> </td>
        <td width="102" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,177</font></b></p> </td>
        <td width="96" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,347</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="244" nowrap valign=bottom style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Per Common Share Data</font></b></i><i></i></p> </td>
        <td width="98" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic Earnings per Share</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$         0.95</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$       0.98</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$         0.32</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$       0.34</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted Earnings per Share</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.94</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.96</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.32</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.34</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash Dividends Declared</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.450</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.390</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.155</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.135</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Book Value</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.93</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10.36</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.93</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10.36</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="244" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Market Value</font></p> </td>
        <td width="98" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16.92</font></b></p> </td>
        <td width="102" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>19.25</font></p> </td>
        <td width="102" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16.92</font></b></p> </td>
        <td width="96" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>19.25</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="244" nowrap valign=bottom style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Financial Ratios</font></b></i><i></i></p> </td>
        <td width="98" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Return on Average Equity <sup>1</sup></font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>11.85%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12.97%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>11.95%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13.14%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Return on Average Tangible Equity <sup>1</sup></font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16.07%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.79%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16.21%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>18.16%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Return on Average Assets <sup>1</sup></font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.16%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1.37%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.17%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1.37%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Average Equity to Average Assets</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9.80%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10.55%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9.77%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10.42%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Average Tangible Equity to Average Assets</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.22%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7.69%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.20%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7.54%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net Interest Margin Tax-Equivalent <sup>1</sup></font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.29%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.88%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.28%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.76%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dividend Payout Ratio</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>47.37%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>39.80%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>48.44%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>39.71%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Allowance for Loan Losses/Total Loans</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.75%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.88%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.75%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.88%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-Performing Loans to Total Loans</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.46%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.40%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.46%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.40%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-Performing Assets to Total Assets</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.34%</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.30%</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0.34%</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.30%</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="244" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Efficiency Ratio <sup>2</sup></font></p> </td>
        <td width="98" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>51.97%</font></b></p> </td>
        <td width="102" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>53.31%</font></p> </td>
        <td width="102" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>54.08%</font></b></p> </td>
        <td width="96" nowrap valign=top style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>54.64%</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="244" nowrap valign=bottom style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>At  Period End</font></b></i><i></i></p> </td>
        <td width="98" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="102" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Assets</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,095,440</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 993,321</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,095,440</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 993,321</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Loans</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>828,539</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>739,597</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>828,539</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>739,597</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Investment Securities</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>178,954</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>163,439</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>178,954</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>163,439</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="244" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Deposits</font></p> </td>
        <td width="98" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>848,048</font></b></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>755,324</font></p> </td>
        <td width="102" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>848,048</font></b></p> </td>
        <td width="96" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>755,324</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="244" nowrap valign=bottom style=' border-bottom:solid black 1.5pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Shareholders&#146; Equity</font></p> </td>
        <td width="98" nowrap valign=top style='border-bottom: solid black 1.5pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>106,664</font></b></p> </td>
        <td width="102" nowrap valign=top style='border-bottom: solid black 1.5pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>101,844</font></p> </td>
        <td width="102" nowrap valign=top style='border-bottom: solid black 1.5pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>106,664</font></b></p> </td>
        <td width="96" nowrap valign=top style='border-bottom: solid black 1.5pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>101,844</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2><sup>1</sup>Annualized using a 365-day basis</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2><sup>2</sup>The Company uses the following formula in calculating its efficiency ratio:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:center;border-bottom:solid 0.5pt;padding-bottom:1;'><font size=2>Non-Interest Expense  -  Loss on Securities Sales</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.88in;text-align:center;'><font size=2>Tax-Equivalent Net Interest Income + Non-Interest Income &#150; Gains on Securities Sales</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 1</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<u><b><font size=2><a name="fin_stmts"></a>Item 1 &#150; Financial Statements</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Report of Independent Registered Public Accounting Firm</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The Board of Directors and Shareholders</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>We have reviewed the accompanying interim consolidated financial information of First National Lincoln Corporation and Subsidiary as of September 30, 2006 and 2005, for the three-month and nine-month periods then ended. These financial statements are the responsibility of the Company's management.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>We conducted our reviews in accordance with standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with standards of the Public Company Accounting Oversight Board (United States), the objective of which is to express an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Based on our reviews, we are not aware of any material modifications that should be made to the accompanying  interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>/s/ Berry, Dunn, McNeil &amp; Parker</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Portland, Maine</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>November 6, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 2</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<i><b><font size=2>Consolidated Balance Sheets (Unaudited)</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation and Subsidiary</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="606" style=' border-collapse:collapse'>
    <tr style='height:12.95pt'>
        <td width="320" nowrap valign=bottom style=' border-top:solid black 1.5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="104" nowrap valign=bottom style=' border-top:solid black 1.5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>September 30,</font></b></p> </td>
        <td width="92" nowrap valign=bottom style='border-top: solid black 1.5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>December 31,</font></p> </td>
        <td width="91" nowrap valign=bottom style='border-top: solid black 1.5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>September 30,</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars, except per share amounts</font></i><i></i></p> </td>
        <td width="105" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="93" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td>
        <td width="91" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Assets</font></b></p> </td>
        <td width="105" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash and due from banks</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$     26,512</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$     25,982</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    29,507</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Overnight funds sold</font></p> </td>
        <td width="105" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="93" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="91" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,500</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash and cash equivalents</font></p> </td>
        <td width="105" nowrap valign=top style='height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>26,512</font></b></p> </td>
        <td width="93" nowrap valign=top style='height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>25982</font></p> </td>
        <td width="91" nowrap valign=top style='height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>32,007</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Securities available for sale</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>45,190</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>54,743</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>49,171</font></p> </td> </tr>
    <tr style='height:39.0pt'>
        <td width="320" valign=bottom style=' height:39.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Securities to be held to maturity (fair value $133,015 at September 30, 2006, $128,563 at December 31, 2005, and $114,098 at September 30, 2005)</font></p> </td>
        <td width="105" nowrap valign=bottom style=' height:39.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>133,764</font></b></p> </td>
        <td width="93" nowrap valign=bottom style=' height:39.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>129,238</font></p> </td>
        <td width="91" nowrap valign=bottom style=' height:39.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>114,268</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans held for sale (fair value approximates cost)</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>40</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>828,539</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>772,338</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>739,597</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Less: allowance for loan losses</font></p> </td>
        <td width="105" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6,221</font></b></p> </td>
        <td width="93" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,086</font></p> </td>
        <td width="91" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,474</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net loans</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>822,318</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>766,252</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>733,123</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued interest receivable</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6,677</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,005</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,759</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Premises and equipment</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>15,697</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,712</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,987</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other real estate owned</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,413</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Goodwill</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>27,684</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>27,684</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>27,960</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other assets</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16,185</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,593</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>15,006</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total Assets</font></b></p> </td>
        <td width="105" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,095,440</font></b></p> </td>
        <td width="93" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,042,209</font></p> </td>
        <td width="91" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 993,321</font></p> </td> </tr>
    <tr style='height:9.35pt'>
        <td width="321" nowrap valign=bottom style=' height:9.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Liabilities</font></b></p> </td>
        <td width="105" nowrap valign=top style=' height:9.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=top style=' height:9.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=top style=' height:9.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Demand deposits</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$     68,455</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$     62,109</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   66,792</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>NOW deposits</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>106,785</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>109,124</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>127,312</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Money market deposits</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>143,600</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>127,630</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>119,419</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Savings deposits</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>103,272</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>109,615</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>116,440</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Certificates of deposit</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>178,164</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>125,741</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>140,450</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Certificates $100,000 and over</font></p> </td>
        <td width="105" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>247,772</font></b></p> </td>
        <td width="93" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>179,745</font></p> </td>
        <td width="91" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>184,911</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total deposits</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>848,048</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>713,964</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>755,324</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrowed funds</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>130,300</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>215,189</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>126,647</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other liabilities</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10,428</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,604</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,506</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Liabilities</font></p> </td>
        <td width="105" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>988,776</font></b></p> </td>
        <td width="93" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>938,757</font></p> </td>
        <td width="91" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>891,477</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Shareholders' Equity</font></b></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Common stock</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>98</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>99</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>99</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Additional paid-in capital</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>45,958</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>47,718</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>47,806</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Retained earnings</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>59,859</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>54,901</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>52,798</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="321" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net unrealized gains on available-for-sale securities</font></p> </td>
        <td width="105" nowrap valign=top style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>749</font></b></p> </td>
        <td width="93" nowrap valign=top style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>734</font></p> </td>
        <td width="91" nowrap valign=top style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,141</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Shareholders' Equity</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>106,664</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>103,452</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>101,844</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total Liabilities &amp; Shareholders' Equity</font></b></p> </td>
        <td width="105" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,095,440</font></b></p> </td>
        <td width="93" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,042,209</font></p> </td>
        <td width="91" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 993,321</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font><i></i></p> </td>
        <td width="105" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=top style='border-bottom: solid black .5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Common Stock</font></b></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Number of shares authorized</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>18,000,000</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>18,000,000</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>18,000,000</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Number of shares issued and outstanding</font></p> </td>
        <td width="105" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,762,868</font></b></p> </td>
        <td width="93" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,832,777</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,827,356</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="321" nowrap valign=bottom style=' border-bottom:solid black 1.5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Book value per share</font></p> </td>
        <td width="105" nowrap valign=top style='border-bottom: solid black 1.5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$       10.93</font></b></p> </td>
        <td width="93" nowrap valign=top style='border-bottom: solid black 1.5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$       10.52</font></p> </td>
        <td width="91" nowrap valign=top style='border-bottom: solid black 1.5pt;height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$     10.36</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>See Report of Independent Registered Public Accounting Firm.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The accompanying notes are an integral part of these consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 3</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<i><b><font size=2>Consolidated Statements of Income (Unaudited)</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation and Subsidiary</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="612" style=' border-collapse:collapse'>
    <tr style='height:15.75pt'>
        <td width="270" valign=bottom style='border-top:solid black 1.5pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>&nbsp;<i></i></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-top:solid black 1.5pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the nine months</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the quarters</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="270" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars,</font></i><i></i></p> </td>
        <td  nowrap colspan="2" valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>ended September 30,</font></b></u><u></u></p> </td>
        <td  nowrap colspan="2" valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>ended September 30,</font></b></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="270" valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>except number of shares and per share data</font></i><i></i></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="270" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest income</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.6pt'>
        <td width="270" valign=bottom style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest and fees on loans</font></p> </td>
        <td width="84" nowrap valign=top style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$40,164</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$30,619</font></p> </td>
        <td width="90" nowrap valign=top style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$14,253</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$11,157</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="270" valign=bottom style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest on deposits with other banks</font></p> </td>
        <td width="84" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>61</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9</font></p> </td>
        <td width="90" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>61</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5</font></p> </td> </tr>
    <tr style='height:9.0pt'>
        <td width="270" valign=bottom style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest and dividends on investments</font></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,250</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,701</font></p> </td>
        <td width="90" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2,515</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,976</font></p> </td> </tr>
    <tr style='height:10.75pt'>
        <td width="270" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest income</font></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>47,475</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>36,329</font></p> </td>
        <td width="90" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16,829</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,138</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="270" valign=bottom style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest expense</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:9.9pt'>
        <td width="270" valign=bottom style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest on deposits</font></p> </td>
        <td width="84" nowrap valign=top style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>18,539</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,978</font></p> </td>
        <td width="90" nowrap valign=top style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,486</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,911</font></p> </td> </tr>
    <tr style='height:7.65pt'>
        <td width="270" valign=bottom style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest on borrowed funds</font></p> </td>
        <td width="84" nowrap valign=top style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5,955</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,953</font></p> </td>
        <td width="90" nowrap valign=top style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,605</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,238</font></p> </td> </tr>
    <tr style='height:8.5pt'>
        <td width="270" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest expense</font></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>24,494</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12,931</font></p> </td>
        <td width="90" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,091</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,149</font></p> </td> </tr>
    <tr style='height:9.85pt'>
        <td width="270" valign=bottom style=' height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net interest income</font></p> </td>
        <td width="84" nowrap valign=top style=' height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>22,981</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>23,398</font></p> </td>
        <td width="90" nowrap valign=top style=' height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,738</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,989</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td width="270" valign=bottom style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Provision for loan losses</font></p> </td>
        <td width="84" nowrap valign=top style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>900</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>100</font></p> </td>
        <td width="90" nowrap valign=top style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>300</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:8.5pt'>
        <td width="270" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net interest income after provision for loan losses</font></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>22,081</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>23,298</font></p> </td>
        <td width="90" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,438</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:8.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,989</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="270" valign=bottom style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Non-interest income</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:8.1pt'>
        <td width="270" valign=bottom style=' height:8.1pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investment management and fiduciary income</font></p> </td>
        <td width="84" nowrap valign=top style=' height:8.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,447</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:8.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,245</font></p> </td>
        <td width="90" nowrap valign=top style=' height:8.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>474</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:8.1pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>426</font></p> </td> </tr>
    <tr style='height:9.9pt'>
        <td width="270" valign=bottom style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Service charges on deposit accounts</font></p> </td>
        <td width="84" nowrap valign=top style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2,054</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,779</font></p> </td>
        <td width="90" nowrap valign=top style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>704</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>628</font></p> </td> </tr>
    <tr style='height:9.0pt'>
        <td width="270" valign=bottom style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mortgage origination and servicing income</font></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>361</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>481</font></p> </td>
        <td width="90" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>109</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>106</font></p> </td> </tr>
    <tr style='height:10.35pt'>
        <td width="270" valign=bottom style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other operating income</font></p> </td>
        <td width="84" nowrap valign=top style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,817</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,340</font></p> </td>
        <td width="90" nowrap valign=top style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,959</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,794</font></p> </td> </tr>
    <tr style='height:7.15pt'>
        <td width="270" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:7.15pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total non-interest income</font></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:7.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,679</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:7.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,845</font></p> </td>
        <td width="90" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:7.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,246</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:7.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,954</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="270" valign=bottom style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Non-interest expense</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=top style=' height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td width="270" valign=bottom style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Salaries and employee benefits</font></p> </td>
        <td width="84" nowrap valign=top style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8,207</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,349</font></p> </td>
        <td width="90" nowrap valign=top style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,037</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,875</font></p> </td> </tr>
    <tr style='height:9.0pt'>
        <td width="270" valign=bottom style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Occupancy expense</font></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,058</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,016</font></p> </td>
        <td width="90" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>301</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>319</font></p> </td> </tr>
    <tr style='height:10.35pt'>
        <td width="270" valign=bottom style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Furniture and equipment expense</font></p> </td>
        <td width="84" nowrap valign=top style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,557</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,564</font></p> </td>
        <td width="90" nowrap valign=top style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>560</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:10.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>529</font></p> </td> </tr>
    <tr style='height:7.65pt'>
        <td width="270" valign=bottom style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Amortization of identified intangibles</font></p> </td>
        <td width="84" nowrap valign=top style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>213</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>200</font></p> </td>
        <td width="90" nowrap valign=top style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>71</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:7.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>71</font></p> </td> </tr>
    <tr style='height:9.0pt'>
        <td width="270" valign=bottom style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other operating expense</font></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5,717</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,767</font></p> </td>
        <td width="90" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2,266</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,460</font></p> </td> </tr>
    <tr style='height:10.75pt'>
        <td width="270" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total non-interest expense</font></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16,752</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,896</font></p> </td>
        <td width="90" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6,235</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:10.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,254</font></p> </td> </tr>
    <tr style='height:11.65pt'>
        <td width="270" valign=bottom style=' height:11.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Income before income taxes</font></p> </td>
        <td width="84" nowrap valign=top style=' height:11.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>13,008</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:11.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,247</font></p> </td>
        <td width="90" nowrap valign=top style=' height:11.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4,449</font></b></p> </td>
        <td width="84" nowrap valign=top style=' height:11.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,689</font></p> </td> </tr>
    <tr style='height:9.0pt'>
        <td width="270" valign=bottom style='border-bottom: solid black .5pt;height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Applicable income taxes</font></p> </td>
        <td width="84" nowrap valign=top style='border-bottom: solid black .5pt;height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,683</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-bottom: solid black .5pt;height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,770</font></p> </td>
        <td width="90" nowrap valign=top style='border-bottom: solid black .5pt;height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,272</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-bottom: solid black .5pt;height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,342</font></p> </td> </tr>
    <tr style='height:9.85pt'>
        <td width="270" valign=bottom style='border-bottom: solid black 1.5pt; height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>NET INCOME</font></B></p> </td>
        <td width="84" nowrap valign=top style='border-bottom: solid black 1.5pt; height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$9,325</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-bottom: solid black 1.5pt; height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,477</font></p> </td>
        <td width="90" nowrap valign=top style='border-bottom: solid black 1.5pt; height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$3,177</font></b></p> </td>
        <td width="84" nowrap valign=top style='border-bottom: solid black 1.5pt; height:9.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,347</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="270" valign=bottom style='height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Earnings per common share:</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style='height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="270" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic earnings per share</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.95</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.98</font></p> </td>
        <td width="90" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.32</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="270" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted earnings per share</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.94</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.96</font></p> </td>
        <td width="90" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.32</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="270" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash dividends declared per share</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.450</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.390</font></p> </td>
        <td width="90" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.155</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.135</font></p> </td> </tr>
    <tr style='height:12.6pt'>
        <td width="270" valign=bottom style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Weighted average number of shares outstanding</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,829,157</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,717,011</font></p> </td>
        <td width="90" nowrap valign=bottom style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,793,172</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,823,370</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="270" valign=bottom style='border-bottom: solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Incremental shares</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>84,199</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>124,417</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>84,310</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>128,621</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>See Report of Independent Registered Public Accounting Firm.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The accompanying notes are an integral part of these consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 4</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<i><b><font size=2>Consolidated Statements of Changes in Shareholders' Equity (Unaudited)</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation and Subsidiary</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="673" style=' border-collapse:collapse'>
    <tr style='height:13.5pt'>
        <td  colspan="2" rowspan=3 valign=bottom style=' border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt; border-right:none;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars except number of shares</font></i><i></i></p> </td>
        <td width="70" rowspan=3 valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Number of common shares</font></p> </td>
        <td width="66" rowspan=3 valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Common stock</font></p> </td>
        <td  colspan="2" rowspan=3 valign=bottom style=' border-top:solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt; border-right:none;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Additional paid-in capital</font></p> </td>
        <td width="84" rowspan=3 valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Retained earnings</font></p> </td>
        <td  colspan="2" rowspan=3 valign=bottom style='border-top: solid black 1.5pt;border-left:none;border-bottom:solid black 1.5pt; border-right:none;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Net unrealized gains on securities available for sale</font></p> </td>
        <td width="66" rowspan=3 valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Treasury stock</font></p> </td>
        <td width="84" rowspan=3 valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Total shareholders' equity</font></p> </td>
        <td style='height:13.5pt' width="0" height=18></td>  </tr>
                <tr style='height:12.75pt'>
        <td style='height:12.75pt' width="0" height=17></td>  </tr>
                <tr style='height:13.5pt'>
        <td style='height:13.5pt' width="0" height=18></td>  </tr>
                <tr style='height:24.75pt'>
        <td width="151" valign=bottom style='border-bottom: solid black 1.0pt;padding: .75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Balance at December 31, 2004</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:.75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,356,836</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:.75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$74</font></b></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: .75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$3,973</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:.75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$46,809</font></b></p> </td>
        <td width="71" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:.75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,959</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:.75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$   -</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding: .75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$52,815</font></b></p> </td>
        <td style='height:24.75pt' width="0" height=33></td>  </tr>
                <tr style='height:12.75pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,477</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,477</font></p> </td>
        <td style='height:12.75pt' width="0" height=17></td>  </tr>
                <tr style='height:38.25pt'>
        <td width="151" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:38.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net unrealized loss on securities available for sale, net of tax benefit of $421</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 38.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 38.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:38.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 38.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="71" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 38.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(818)</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 38.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:38.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(818)</font></p> </td>
        <td style='height:38.25pt' width="0" height=51></td>  </tr>
                <tr style='height:12.75pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Comprehensive income</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,477</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(818)</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,659</font></p> </td>
        <td style='height:12.75pt' width="0" height=17></td>  </tr>
                <tr style='height:12.75pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash dividends declared</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,835)</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,835)</font></p> </td>
        <td style='height:12.75pt' width="0" height=17></td>  </tr>
                <tr style='height:25.5pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Payment to repurchase common stock</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(162,199)</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,773)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,774)</font></p> </td>
        <td style='height:25.5pt' width="0" height=34></td>  </tr>
                <tr style='height:25.5pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proceeds from sale of common stock</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>168,121</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,245</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,246</font></p> </td>
        <td style='height:25.5pt' width="0" height=34></td>  </tr>
                <tr style='height:34.35pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:34.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tax benefit of disqualifying disposition of incentive stock option shares</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:34.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:34.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:34.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:34.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>347</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:34.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:34.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:34.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>347</font></p> </td>
        <td style='height:34.35pt' width="0" height=46></td>  </tr>
                <tr style='height:24.0pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Acquisition of FNB Bankshares</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,464,598</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>25</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>45,361</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>45,386</font></p> </td>
        <td style='height:24.0pt' width="0" height=32></td>  </tr>
                <tr style='height:22.15pt'>
        <td width="151" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:22.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Balance at September 30, 2005</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top: solid black .5pt;border-left:none;border-bottom:solid black 1.0pt; border-right:none;padding:.75pt .75pt 0in .75pt;height:22.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,827,356</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top: solid black .5pt;border-left:none;border-bottom:solid black 1.0pt; border-right:none;padding:.75pt .75pt 0in .75pt;height:22.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$99</font></b></p> </td>
        <td width="78" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:22.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$47,806</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:22.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$52,798</font></b></p> </td>
        <td width="71" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:22.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,141</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top: solid black .5pt;border-left:none;border-bottom:solid black 1.0pt; border-right:none;padding:.75pt .75pt 0in .75pt;height:22.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$   -</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:22.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$101,844</font></b></p> </td>
        <td style='height:22.15pt' width="0" height=30></td>  </tr>
                <tr style='height:13.5pt'>
        <td width="151" valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td style='height:13.5pt' width="0" height=18></td>  </tr>
                <tr style='height:24.75pt'>
        <td width="151" valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Balance at December 31, 2005</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,832,777</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$99</font></b></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$47,718</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$54,901</font></b></p> </td>
        <td width="71" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$734</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$   -</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:24.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$103,452</font></b></p> </td>
        <td style='height:24.75pt' width="0" height=33></td>  </tr>
                <tr style='height:12.75pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,325</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,325</font></p> </td>
        <td style='height:12.75pt' width="0" height=17></td>  </tr>
                <tr style='height:35.25pt'>
        <td width="151" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:35.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net unrealized gain on securities available for sale, net of taxes of $12</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 35.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 35.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:35.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 35.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="71" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 35.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>15</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 35.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:35.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>15</font></p> </td>
        <td style='height:35.25pt' width="0" height=47></td>  </tr>
                <tr style='height:13.65pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:13.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Comprehensive income</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:13.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:13.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:13.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:13.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,325</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:13.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>15</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:13.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:13.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,340</font></p> </td>
        <td style='height:13.65pt' width="0" height=18></td>  </tr>
                <tr style='height:11.85pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:11.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash dividends declared</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:11.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:11.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:11.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:11.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(4,422)</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:11.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:11.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:11.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(4,422)</font></p> </td>
        <td style='height:11.85pt' width="0" height=16></td>  </tr>
                <tr style='height:25.5pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Payment to repurchase common stock</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(135,503)</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,330)</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,331)</font></p> </td>
        <td style='height:25.5pt' width="0" height=34></td>  </tr>
                <tr style='height:25.5pt'>
        <td width="151" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proceeds from sale of common stock</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>65,594</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>570</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>570</font></p> </td>
        <td style='height:25.5pt' width="0" height=34></td>  </tr>
                <tr style='height:36.75pt'>
        <td width="151" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:36.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tax benefit of disqualifying disposition of incentive stock option shares</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 36.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 36.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:36.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 36.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>55</font></p> </td>
        <td width="71" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 36.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 36.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:36.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>55</font></p> </td>
        <td style='height:36.75pt' width="0" height=49></td>  </tr>
                <tr style='height:21.25pt'>
        <td width="151" valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:21.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Balance at September 30, 2006</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:21.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,762,868</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:21.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$98</font></b></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:21.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$45,958</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:21.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$59,859</font></b></p> </td>
        <td width="71" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:21.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$749</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:21.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$   -</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:21.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$106,664</font></b></p> </td>
        <td style='height:21.25pt' width="0" height=28></td>  </tr>
                <tr>
        <td width="151" ></td>

        <td width="2" ></td>

        <td width="70" ></td>

        <td width="66" ></td>

        <td width="1" ></td>

        <td width="78" ></td>

        <td width="84" ></td>

        <td width="71" ></td>

        <td width="1" ></td>

        <td width="66" ></td>

        <td width="84" ></td>

        <td style='height:21.25pt' width="0" height=28></td> </tr> </table>
            </div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>See Report of Independent Registered Public Accounting Firm. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The accompanying notes are an integral part of these consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 5</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<i><b><font size=2>Consolidated Statements of Cash Flows (Unaudited)</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation and Subsidiary</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2> </font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="653" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="468" nowrap valign=bottom style=' border-top:solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>For nine months ended Sept 30,</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars</font></i><i></i></p> </td>
        <td width="94" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="91" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Cash flows from operating activities</font></b></p> </td>
        <td width="94" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$   9,325</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   9,477</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Adjustments to reconcile net income to net cash provided by operating activities</font></b></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Depreciation</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,044</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>958</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Provision for loan losses</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>900</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>100</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans originated for resale</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(11,248)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(19,222)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proceeds from sales and transfers of loans</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>11,248</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>19,773</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in other assets and accrued interest</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(1,477)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(817)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in other liabilities</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>723</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,001</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net amortization (accretion) of premiums (discounts) on investments</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(142)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>95</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net acquisition amortization </font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>194</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>245</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net cash provided by operating activities</font></p> </td>
        <td width="94" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10,567</font></b></p> </td>
        <td width="91" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12,610</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Cash flows from investing activities</font></b></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proceeds from maturities, payments and calls of securities available for sale</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,618</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,153</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proceeds from maturities, payments and calls of securities to be held to maturity</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>13,320</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>20,234</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proceeds from sales of other real estate owned</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>551</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Purchases of securities available for sale</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(8)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(683)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Purchases of securities to be held to maturity</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(17,734)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(35,087)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in loans</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(59,048)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(76,656)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Capital expenditures</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(384)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,117)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proceeds from sale of premises and equipment</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>355</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash for acquisition, net of cash acquired</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,493</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net cash used in investing activities</font></p> </td>
        <td width="94" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(53,330)</font></b></p> </td>
        <td width="91" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(85,663)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Cash flows from financing activities</font></b></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in demand deposits, savings, money market and club accounts</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>13,634</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>51,587</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in certificates of deposit</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>120,570</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>141,208</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Repayment on long-term borrowings</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(37,118)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net decrease in short-term borrowings</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(84,872)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(60,459)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Payments to repurchase common stock</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(2,331)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,774)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Proceeds from sale of common stock</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>570</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,246</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dividends paid</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(4,278)</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,400)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net cash provided by financing activities</font></p> </td>
        <td width="94" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>43,293</font></b></p> </td>
        <td width="91" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>90,290</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in cash and cash equivalents</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>530</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17,237</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash and cash equivalents at beginning of year</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>25,982</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>14,770</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="469" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Cash and cash equivalents at end of period</font></b></p> </td>
        <td width="94" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$26,512</font></b></p> </td>
        <td width="91" nowrap valign=top style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$  32,007</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest paid</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$23,596</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$  12,285</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Income taxes paid</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  3,193</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    3,490</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Non-cash transactions</font></b></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Change in unrealized gain on available for sale securities, net of tax</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$       15</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    (818)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net transfer from loans to other real estate owned</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,964</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="469" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Fair value of assets acquired</font></p> </td>
        <td width="94" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="91" nowrap valign=top style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>258,631</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="469" nowrap valign=bottom style=' border-bottom:solid black 1.5pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Less liabilities assumed</font></p> </td>
        <td width="94" nowrap valign=top style='border-bottom: solid black 1.5pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="91" nowrap valign=top style='border-bottom: solid black 1.5pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>214,266</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>See Report of Independent Registered Public Accounting Firm. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The accompanying notes are an integral part of these consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 6</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<u><b><font size=2><a name="notes"></a>Notes to Consolidated Financials Statements</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation and Subsidiary</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Note 1 &#150; Basis of Presentation</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation (the Company) is a financial holding company that owns all of the common stock of The First, N.A. (the Bank). The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of Management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. All significant intercompany transactions and balances are eliminated in consolidation. On January 14, 2005, the Company completed the acquisition of FNB Bankshares (FNB) of Bar Harbor,
Maine, and operating results include the effect of the FNB acquisition only after the closing date (see Note 8 &#150; Pro-Forma Financial Information).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The income reported for the 2006 period is not necessarily indicative of the results that may be expected for the year ending December 31, 2006. For further information, refer to the consolidated financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Note 2 &#150; Common Stock</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>On January 20, 2005, the Company announced that its Board of Directors had authorized the repurchase of up to 250,000 shares of the Company's common stock or approximately 2.5% of the outstanding shares. This program ended in July of 2006, with 248,376 shares repurchased under the program at an average price of $17.15 and at a total cost of $4,261,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>On July 21, 2006, the Company announced that its Board of Directors had authorized a new program for the repurchase of up to 250,000 shares of the Company's common stock or approximately 2.5% of the outstanding shares. The Company expects such repurchases to be effected from time to time, in the open market, in private transactions or otherwise, during a period of up to 24 months. The amount and timing of shares to be purchased will be subject to market conditions and will be based on several factors, including the price of the Company's stock and the level of stock issuances under the Company's employee stock plans. No assurance can be given as to the specific timing of the share repurchases or as to whether and to what extent the share repurchase will be consummated. As of September 30, 2006, the Company had repurchased 63,363 shares under the new repurchase plan at an average price of
$17.44 and at a total cost of $1,105,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Note 3 &#150; Stock Options</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The Company established a shareholder-approved stock option plan in 1995, under which the Company may grant options to its employees for up to 600,000 shares of common stock. The Company believes that such awards align the interests of its employees with those of its shareholders. Only incentive stock options may be granted under the plan. The option price of each option grant is determined by the Options Committee of the Board of Directors, and in no instance shall be less than the fair market value on the date of the grant. An option's maximum term is ten years from the date of grant, with 50% of the options granted vesting two years from the date of grant and the remaining 50% vesting five years from date of grant. As of January 16, 2005, all options under this plan had been granted. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font size=2>In addition, options to acquire 40,630 FNB shares were converted into options to acquire an aggregate of 95,479 common shares of the Company at a purchase price of $3.80 per share as a result of the FNB acquisition. As of September 30, 2006, all options converted as a result of the FNB acquisition had been exercised. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font size=2>The Company applies the fair value recognition provisions of Statement of Financial Accounting Standards (SFAS) No. 123 (Revised 2004), &#147;Share-Based Payment&#148;, to stock-based employee compensation for fiscal years beginning on or after January 1, 2006. As a result, $29,000 in compensation cost, net of $16,000 in taxes, is included in the Company&#146;s financial statements for the current year. The unrecognized compensation cost to be amortized over a weighted average remaining vesting period of 3.4 years is $121,000, net of taxes of $65,000, which is comprised of $19,000 for 16,500 options granted in 2002 and $102,000 for 42,000 options granted in 2005, net of taxes of $10,000 and $55,000, respectively. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 7</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font size=2>The weighted average fair market value per share was $2.77 for options granted in 2002 and $4.41 for options granted in 2005. The fair market value was estimated using the Black-Scholes option pricing model and the following assumptions: quarterly dividends of $0.07 in 2002 and $0.12 in 2005, risk-free interest rate of 1.58% in 2002 and 4.20% in 2005, volatility of 37.73% in 2002 and 25.81% in 2005, and an expected life of 10 years for both years, the options&#146; maximum term. Volatility is based on the actual volatility of the Company&#146;s stock during the quarter in which the options were granted. The risk free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of the option grant.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font size=2>The following table summarizes the status of the Company&#146;s non-vested options as of September 30, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="651" style=' margin-left:4.4pt;border-collapse:collapse'>
    <tr style='height:37.25pt'>
        <td width="319" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:37.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="166" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:37.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Number of Shares</font></p> </td>
        <td width="166" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:37.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Weighted Average Grant Date Fair Value</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="319" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-vested at December 31, 2005</font></p> </td>
        <td width="166" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>58,500</font></p> </td>
        <td width="166" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3.95</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="319" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Granted in 2006</font></p> </td>
        <td width="166" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="166" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="319" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Vested in 2006</font></p> </td>
        <td width="166" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="166" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="319" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Forfeited in 2006</font></p> </td>
        <td width="166" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="166" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="319" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-vested at September 30, 2006</font></p> </td>
        <td width="166" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>58,500</font></p> </td>
        <td width="166" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3.95</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>During 2006, 39,750 options were exercised, with total proceeds paid to the Company of $124,000. The excess of the fair value of the stock issued upon option exercise over the exercise price was $559,000. The Company recognized a tax benefit of $55,000 on disqualifying dispositions related to stock option exercises during 2006. A summary of the status of the Company&#146;s Stock Option Plan as of September 30, 2006, and changes during the nine months then ended, is presented below.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="651" style=' margin-left:4.4pt;border-collapse:collapse'>
    <tr style='height:38.15pt'>
        <td width="214" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:38.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="109" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:38.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Number of Shares</font></p> </td>
        <td width="109" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:38.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Weighted Average Exercise Price</font></p> </td>
        <td width="109" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:38.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Weighted Average Remaining Contractual Term</font></p> </td>
        <td width="109" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:38.15pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Aggregate Intrinsic Value </font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(In thousands)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="214" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Outstanding at December 31, 2005</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>205,750</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$7.61</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="214" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Granted in 2006</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="214" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Vested in 2006</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="214" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Exercised in 2006</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(39,750)</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.13</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="214" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Forfeited in 2006</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="109" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="214" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Outstanding at September 30, 2006</font></p> </td>
        <td width="109" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>166,000</font></p> </td>
        <td width="109" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$8.69</font></p> </td>
        <td width="109" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.8</font></p> </td>
        <td width="109" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,412</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="214" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Exercisable at September 30, 2006</font></p> </td>
        <td width="109" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>107,500</font></p> </td>
        <td width="109" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$4.95</font></p> </td>
        <td width="109" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1.8</font></p> </td>
        <td width="109" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,287</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>In prior years, the Company applied Accounting Principles Board Opinion No. 25 and related interpretations in accounting for the stock option plan(s). Accordingly, no compensation cost was recognized in prior years. The following table illustrates the effect on net income and earnings per share if the Company had applied the fair value recognition provisions of SFAS No. 123 in prior years.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 8</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="508" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' border-top:solid black 1.5pt;height:12.75pt'>
            <div style='border-top:solid black .5pt;padding:1.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </div> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;height:12.75pt'>
            <div style='border-top:solid black .5pt;padding:1.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the nine months</font></b></p> </div> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;height:12.75pt'>
            <div style='border-top:solid black .5pt;padding:1.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the quarters</font></b></p> </div> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars,</font></i></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>ended September 30,</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>ended September 30,</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>except per share data</font></i><i></i></p> </td>
        <td width="72" nowrap valign=bottom style=' border-bottom:solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="76" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td width="72" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>As reported</font></p> </td>
        <td width="72" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$9,325</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,477</font></p> </td>
        <td width="78" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$3,177</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,347</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Value of option grants, net of tax</font></p> </td>
        <td width="72" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>136</font></p> </td>
        <td width="78" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="198" nowrap valign=bottom style=' border-bottom:solid black .5pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pro forma</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$9,325</font></b></p> </td>
        <td width="76" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,341</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$3,177</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,347</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic earnings per share </font></p> </td>
        <td width="72" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>As reported</font></p> </td>
        <td width="72" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  0.95</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.98</font></p> </td>
        <td width="78" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  0.32</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Value of option grants, net of tax</font></p> </td>
        <td width="72" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="78" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="198" nowrap valign=bottom style=' border-bottom:solid black .5pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pro forma</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  0.95</font></b></p> </td>
        <td width="76" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.97</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  0.32</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted earnings per share  </font></p> </td>
        <td width="72" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>As reported</font></p> </td>
        <td width="72" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  0.94</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.96</font></p> </td>
        <td width="78" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  0.32</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="198" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Value of option grants, net of tax</font></p> </td>
        <td width="72" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="198" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pro forma</font></p> </td>
        <td width="72" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  0.94</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.95</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.5pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  0.32</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.5pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Note 4 &#150; Earnings Per Share</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The following table sets forth the computation of basic and diluted earnings per share (EPS) for the nine months ended September 30, 2006 and 2005:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="621" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="352" nowrap valign=bottom style=' border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>&nbsp;<i></i></p> </td>
        <td width="87" nowrap valign=bottom style='border-top: solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Income</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top: solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Shares</font></p> </td>
        <td width="93" nowrap valign=bottom style='border-top: solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Per-Share</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="352" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands, except number of shares and per share data</font></i><i></i></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Numerator)</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Denominator)</font></p> </td>
        <td width="93" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Amount</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="352" nowrap valign=bottom style=' padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the nine months ended September 30, 2006</font></b></p> </td>
        <td width="87" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="352" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income as reported</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,325 </font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="352" valign=bottom style='padding:.75pt .75pt 0in .75pt;height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic EPS: Income available to common shareholders</font></p> </td>
        <td width="87" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,325 </font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,829,157</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.95 </font></p> </td> </tr>
    <tr style='height:12.0pt'>
        <td width="352" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Effect of dilutive securities: incentive stock options</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>84,199</font></p> </td>
        <td width="93" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:25.5pt'>
        <td width="352" valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted EPS: Income available to common shareholders plus assumed conversions</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,325 </font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,913,356</font></p> </td>
        <td width="93" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.94 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="352" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the nine months ended September 30, 2005</font></b></p> </td>
        <td width="87" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="352" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income as reported</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,477 </font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="93" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.0pt'>
        <td width="352" valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic EPS: Income available to common shareholders</font></p> </td>
        <td width="87" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,477 </font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,717,011</font></p> </td>
        <td width="93" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.98 </font></p> </td> </tr>
    <tr style='height:14.25pt'>
        <td width="352" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Effect of dilutive securities: incentive stock options</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>124,417</font></p> </td>
        <td width="93" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:22.6pt'>
        <td width="352" valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:22.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted EPS: Income available to common shareholders plus assumed conversions</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:22.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$9,477 </font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:22.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,841,428</font></p> </td>
        <td width="93" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:22.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.96 </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 9</font></p>
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<p style='page-break-before:always'></p><PAGE>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=2>The following table sets forth the computation of basic and diluted earnings per share for the quarters ended September 30, 2006 and 2005:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="624" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="354" nowrap valign=bottom style=' border-top:solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>&nbsp;<i></i></p> </td>
        <td width="84" nowrap valign=bottom style='border-top: solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Income</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-top: solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Shares</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top: solid black 1.5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Per-Share</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="354" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands, except number of shares and per share data</font></i><i></i></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Numerator)</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Denominator)</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Amount</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="354" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the quarter ended September 30, 2006</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="354" valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income as reported</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,177</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:14.25pt'>
        <td width="354" valign=bottom style='height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic EPS: Income available to common shareholders</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,177</font></p> </td>
        <td width="90" nowrap valign=bottom style=' height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,793,172</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.32</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="354" valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Effect of dilutive securities: incentive stock options</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>84,310</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:24.0pt'>
        <td width="354" valign=bottom style='border-bottom: solid black 1.5pt; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted EPS: Income available to common shareholders plus assumed conversions</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,177</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,877,482</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; height:24.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.32</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="354" nowrap valign=bottom style=' height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the quarter ended September 30, 2005</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="354" valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income as reported</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,347 </font></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:14.25pt'>
        <td width="354" valign=bottom style='height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic EPS: Income available to common shareholders</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,347 </font></p> </td>
        <td width="90" nowrap valign=bottom style=' height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,823,370</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:14.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34 </font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td width="354" valign=bottom style='border-bottom: solid black .25pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Effect of dilutive securities: incentive stock options</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .25pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black .25pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>128,621</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .25pt;height:11.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:27.75pt'>
        <td width="354" valign=bottom style='border-bottom: solid black 1.5pt;height:27.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted EPS: Income available to common shareholders plus assumed conversions</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.5pt;height:27.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,347 </font></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.5pt;height:27.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,951,991</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.5pt;height:27.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34 </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>All earnings per share calculations have been made using the weighted average number of shares outstanding during the period. All of the dilutive securities are incentive stock options granted to certain key members of Management. The dilutive number of shares has been calculated using the treasury method, assuming that all granted options were exercisable at the end of each period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Note 5 &#150; Postretirement Benefit Plans</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The Bank sponsors postretirement benefit plans which provide certain life insurance and health insurance benefits for certain retired employees and health insurance for retired directors. None of these plans are pre-funded. The following table sets forth the accumulated postretirement benefit obligation and funded status:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="529" style=' border-collapse:collapse'>
    <tr style='height:8.55pt'>
        <td width="283" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:8.55pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top: solid black 1.5pt;border-left:none;border-bottom:solid black .5pt; border-right:none;padding:.75pt .75pt 0in .75pt;height:8.55pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>At September 30, </font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style=' border-bottom:solid black .5pt; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars</font></i><i></i></p> </td>
        <td width="126" nowrap valign=bottom style=' border-bottom:solid black .5pt; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="120" nowrap valign=bottom style=' border-bottom:solid black .5pt; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Change in benefit obligation</font></b></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Benefit obligation at beginning of year</font></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  1,705</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    531</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Plan assumed in FNB acquisition</font></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,189</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Service cost</font></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest cost</font></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>89</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>89</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Benefits paid</font></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(118)</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(81)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Actuarial gain (loss)</font></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>239</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(18)</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="283" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Benefit obligation at end of period</font></p> </td>
        <td width="126" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,923</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,718</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Funded status</font></b></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Benefit obligation at end of period</font></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(1,923)</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,718)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unamortized prior service cost</font></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(11)</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(11)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unamortized net actuarial loss</font></p> </td>
        <td width="126" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>278</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>42</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="283" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unrecognized transition obligation</font></p> </td>
        <td width="126" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>186</font></b></p> </td>
        <td width="120" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>215</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="283" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued benefit cost</font></p> </td>
        <td width="126" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$(1,470)</font></b></p> </td>
        <td width="120" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$(1,472)</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 10</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The following table sets forth the net periodic pension cost:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="637" style=' margin-left:4.65pt;border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="241" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top: solid black 1.5pt;border-left:none;border-bottom:solid black .5pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For nine months ended September 30,</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-top:solid black 1.5pt;border-left:none;border-bottom:solid black .5pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the quarters ended September 30,</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="241" nowrap valign=bottom style=' border-bottom:solid black .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars</font></i></p> </td>
        <td width="102" nowrap valign=bottom style=' border-bottom:solid black .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td>
        <td width="103" nowrap valign=bottom style=' border-bottom:solid black .5pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="241" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Components of net periodic benefit cost</font></b></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="103" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="241" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Service cost</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$   8</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   8</font></p> </td>
        <td width="103" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  2</font></b></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$  1</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="241" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest cost</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>89</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>89</font></p> </td>
        <td width="103" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>29</font></b></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>27</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="241" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Amortization of unrecognized transition obligation</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>22</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>22</font></p> </td>
        <td width="103" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7</font></b></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="241" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Amortization of prior service cost</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(2)</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)</font></p> </td>
        <td width="103" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="95" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(4)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="241" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Amortization of accumulated losses</font></p> </td>
        <td width="102" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5</font></p> </td>
        <td width="103" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2</font></b></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="241" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net periodic benefit cost</font></p> </td>
        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$122</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$122</font></p> </td>
        <td width="103" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$40</font></b></p> </td>
        <td width="95" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$25</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>A weighted average discount rate of 7.0% was used in determining both the accumulated benefit obligation and the net periodic benefit cost. The measurement date for benefit obligations was as of year-end for prior years presented. The estimated amount of benefits to be paid in 2006 is $157,000. For years ending 2007 through 2010, the estimated amount of benefits to be paid is $155,000 per year, and the total estimated amount of benefits to be paid for years ended 2011 through 2015 is $788,000. Plan expense for 2006 is estimated to be $168,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Note 6 &#150; Goodwill</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>As of March 31, 2006, in accordance with SFAS No. 142, the Company completed its annual review of goodwill and determined there has been no impairment.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Note 7 &#150; Reclassifications</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Certain items from the prior year were reclassified in the financial statements to conform with the current year presentation. These do not have a material impact on the balance sheet or income statement presentations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Note 8 &#150; Pro-Forma Financial Information</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>On August 25, 2004, the Company entered into an agreement to acquire FNB Bankshares (FNB) of Bar Harbor, Maine, and its subsidiary, The First National Bank of Bar Harbor. This acquisition was completed on January 14, 2005. In its 2004 Strategic Plan, the Company identified certain markets in which it would consider future growth opportunities, including the area served by FNB Bankshares. Management expects that the products and services available in the FNB Bankshares market area will be enhanced as a result of the combination of the two companies, and that this will also provide a larger capacity to lend money and a stronger overall funding base. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>As part of the acquisition, the Company issued 2.35 shares of its common stock to the shareholders of FNB in exchange for each of the 1,048,814 shares of the common stock outstanding of FNB. Cash in lieu of fractional shares of the Company's stock was paid at the rate of $17.87 per share, which was the average high/low price of the Company's stock for the 30-day period ended January 9, 2005, under terms specified in the Merger Agreement. At the time of the acquisition, there were outstanding options to purchase 126,208 shares of FNB common stock under the FNB Bankshares Stock Option Plan. Of these, options to acquire 40,630 FNB shares were converted into options to acquire an aggregate of 95,479 common shares of the Company at a purchase price of $3.80 per share. Unexercised options not converted were paid cash at the rate of $42.00 for each share subject to the option, less the option
exercise price per share. The total amount paid to retire the remaining options was approximately $2.6 million. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The total value of the transaction was $47,955,000, and all of the voting equity interest of FNB was acquired in the transaction. The Company assumed all outstanding liabilities of FNB, including liabilities under certain Employment Continuity Agreements and Split Dollar Agreements with executive officers of FNB. The acquisition was intended to qualify as a reorganization for federal income tax purposes and provide for a tax-free exchange of shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The transaction was accounted for as a purchase and the operations of FNB are included in the Company&#146;s consolidated financial statements from the date of acquisition. The purchase price was allocated to assets acquired and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 11</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>liabilities assumed at the date of acquisition. The excess of purchase price over the fair value of net tangible assets acquired was recorded as goodwill, none of which is expected to be deductible for tax purposes.  The core deposit intangible is being amortized over its expected economic life, and goodwill is evaluated annually for possible impairment under the provisions of SFAS No. 142, Goodwill and Other Intangible Assets.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The pro forma statements of income in the following table show how the Company's results of operations would have been presented if the Company and FNB had operated as one entity for the entire periods presented. Management has made adjustments to incorporate FNB&#146;s results for the entire year in 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="630" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style='border-top:solid black 2.25pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars, </font></i><i></i></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top: solid black 2.25pt;border-left:none;border-bottom:solid black .5pt; border-right:none;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For nine months ended</font></b></p>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>September 30,</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top: solid black 2.25pt;border-left:none;border-bottom:solid black .5pt; border-right:none;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For quarters ended</font></b></p>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>September 30,</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>except share and per share information</font></i><i></i></p> </td>
        <td width="98" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest income</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$47,475 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$36,710 </font></p> </td>
        <td width="96" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$16,829 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$13,138 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest expense</font></p> </td>
        <td width="98" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>24,494 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,040 </font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,091 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,149 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net interest income</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>22,981 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>23,670</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,738 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,989 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Provision for loan losses</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>900 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>100 </font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>300 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>- </font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="268" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net interest income after provision for loan losses</font></p> </td>
        <td width="98" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>22,081 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>23,570 </font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,438 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,989 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other operating income</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,679 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,990 </font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,246 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,954 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other operating expenses</font></p> </td>
        <td width="98" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16,752 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17,590 </font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6,235 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,254 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Income before income taxes</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>13,008 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12,970 </font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4,449 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,689 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Applicable income taxes</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3,683 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,668 </font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,272 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,342 </font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="268" valign=bottom style='border-bottom: solid black 1.0pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td width="98" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$ 9,325 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 9,302 </font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$ 3,177 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 3,347 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Operating Statistics</font></b></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic earnings per share</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.95 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.96 </font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.32 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34 </font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="268" valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted earnings per share</font></p> </td>
        <td width="98" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.94 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.95 </font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.32 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.34 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash dividends declared per share</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.450 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.390 </font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$0.155 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.135 </font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="268" valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dividend payout ratio</font></p> </td>
        <td width="98" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>47.37%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>40.63%</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>48.44%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>39.71%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Return on average assets</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.16%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1.34%</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.17%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1.37%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Return on average equity</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>11.85%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12.74%</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>11.95%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13.14%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="268" valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Return on average tangible equity</font></p> </td>
        <td width="98" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16.07%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.46%</font></p> </td>
        <td width="96" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16.21%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>18.16%</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="268" valign=bottom style='border-bottom: solid black 2.25pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Efficiency ratio (tax equivalent)</font></p> </td>
        <td width="98" nowrap valign=bottom style='border-bottom: solid black 2.25pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>51.97%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 2.25pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>54.75%</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 2.25pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>54.08%</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 2.25pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>54.64%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2><a name="mda"></a></font></b></i><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Note 9 &#150; Impact of Recently Issued Accounting Standards</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>SFAS No. 156, Accounting for Servicing of Financial Assets &#150; an amendment to The Financial Accounting Standards Board (FASB) Statement No. 140, requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable. Servicing assets and servicing liabilities will subsequently be reported using the amortization method or the fair value measurement method. An entity should adopt this Statement as of the beginning of its first fiscal year that begins after September 15, 2006 with earlier application permitted with certain restrictions. The initial application of the fair value measurement method would be reported as a cumulative effect adjustment to beginning retained earnings. The Statement requires certain disclosures about the basis for measurement and regarding risks, activity, and fair value of servicing assets and of servicing liabilities.
Management does not expect SFAS No.156 to have a material impact on the Company's financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>In July 2006, FASB issued Financial Accounting Standards Interpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in a company's financial statements in accordance with FASB Statement No. 109, Accounting for Income Taxes. FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosures and transitions. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Company is analyzing effects of FIN 48.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The FASB has issued SFAS No. 123(R), Share-Based Payment. SFAS No. 123(R), with certain exceptions, requires entities that grant stock options and shares to employees to recognize the fair value of those options and shares </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 12</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>as compensation cost over the service (vesting) period in their financial statements. The measurement of that cost is based on the fair value of the equity or liability instruments issued. The Securities and Exchange Commission (&#147;SEC&#148;) has issued Staff Accounting Bulletin (SAB) No. 107, which provides guidance regarding the interaction between SFAS No. 123(R) and certain SEC rules and regulations. The Company adopted SFAS No. 123(R) effective January 1, 2006 and has applied the guidance in SAB No. 107 in the financial statements for the nine-month period ended September, 2006, the effect of which was limited to disclosure in Note 3 to the Company&#146;s financial statements. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>FASB Staff Position (&#147;FSP&#148;) 115-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments, was issued on November 3, 2005. This FSP addresses the determination as to when an investment is considered impaired, whether that impairment is other than temporary, and the measurement of an impairment loss. This FSP also includes accounting considerations subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about unrealized losses that have not been recognized as other-than-temporary impairments. Guidance in the FSP shall be applied to reporting periods beginning after December 15, 2005, with earlier application permitted. Application of this FSP to the first quarter of 2006 did not have a material effect on the consolidated financial condition and results of operations of the Company. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>In September 2006, FASB issued SFAS No. 157, Fair Value Measurements. SFAS No. 157 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007 and early application is encouraged. This Statement does not require any new fair value measurements and the Company does not expect application of this Statement will change current practice. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>In September 2006, FASB issued SFAS No. 158, Employers&#146; Accounting for Defined Benefit Pension and Other Postretirement Plans &#150; an amendment of FASB Statements No. 87, 88, 106, and 132(R). This Statement requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in the funded status in the year in which the changes occur through comprehensive income of a business entity. The funded status of a plan should be measured as of the date of the Company&#146;s year-end statement of financial position, with limited exceptions. As of December 31, 2005, the Company&#146;s postretirement benefit plan was underfunded by $1,705,000, as defined in the statement; accordingly, Management expects the cumulative effect of
initially applying this Statement to be a reduction in shareholders&#146; equity, net of tax, of $57,000. An employer with publicly traded equity securities is required to initially recognize the funded status of a defined benefit postretirement plan and to provide required disclosures as of the end of the fiscal year ending after December 15, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>In September 2006, the SEC issued SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements. SAB No. 108 requires registrants to evaluate the materiality of unadjusted financial statement misstatements using both the rollover and iron curtain methods. The rollover method quantifies a misstatement based on the amount of the error originating in the current period statement of income. The iron curtain method quantifies a misstatement based on the effects of correcting the misstatement existing in the statement of financial condition at the end of the current period, irrespective of the misstatement&#146;s year(s) of origination. SAB No. 108 is effective for years ending after November 15, 2006. The cumulative effect of the initial application on prior years is required to be reported as an adjustment to retained
earnings at the beginning of the year of initial application. Management is studying the effects of SAB No. 108 on the Company&#146;s financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 13</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<u><b><font size=2>Item 2 &#150; Management's Discussion and Analysis of Financial Condition and Results of Operations</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation and Subsidiary</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Critical Accounting Policies</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Management's discussion and analysis of the Company's financial condition is based on the consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of such financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, Management evaluates its estimates, including those related to the allowance for loan losses, the valuation of mortgage servicing rights, and goodwill. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis in making judgments about the carrying values of assets that are not readily apparent from
other sources. Actual results could differ from the amount derived from Management's estimates and assumptions under different assumptions or conditions.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><b><font size=2>Allowance for Loan Losses.</font></b><font size=2> Management believes the allowance for loan losses requires the most significant estimates and assumptions used in the preparation of the consolidated financial statements. The allowance for loan losses is based on Management's evaluation of the level of the allowance required in relation to the estimated loss exposure in the loan portfolio. Management believes the allowance for loan losses is a significant estimate and therefore regularly evaluates it for adequacy by taking into consideration factors such as prior loan loss experience, the character and size of the loan portfolio, business and economic conditions and Management's estimation of potential losses. The use of different estimates or assumptions could produce different provisions for loan losses.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><b><font size=2>Mortgage Servicing Rights.</font></b><font size=2> The valuation of mortgage servicing rights also requires significant estimates and assumptions. The Bank often sells mortgage loans it originates and retains the ongoing servicing of such loans, receiving a fee for these services, generally 0.25% of the outstanding balance of the loan per annum. Mortgage servicing rights are recognized when they are acquired through sale of loans and are reported in other assets. They are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Management uses an independent firm that specializes in the valuation of mortgage servicing rights to determine the fair value, which is recorded on the balance sheet. This includes an evaluation for impairment based upon the fair value of the rights, which can vary
depending upon current interest rates and prepayment expectations, as compared to amortized cost. The Company&#146;s assumptions are adjusted periodically to reflect current circumstances. Stratifying rights determine impairment by predominant characteristics, such as interest rates and terms. The use of different assumptions could produce a different valuation for both mortgage servicing rights and impairment.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><b><font size=2>Goodwill. </font></b><font size=2>Management utilizes numerous techniques to estimate the value of various assets held by the Company, including methods to determine the appropriate carrying value of goodwill as required under SFAS No. 142. In addition, goodwill from a purchase acquisition is subject to ongoing periodic impairment tests, which include an evaluation of the ongoing assets, liabilities and revenues from the acquisition and an estimation of the impact of business conditions. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><b><font size=2>Acquired Assets and Liabilities.</font></b><font size=2> Different estimates or assumptions are also utilized to determine the appropriate carrying value of other assets including, but not limited to, premises and equipment, overall collectibility of loans and receivables. The use of different estimates or assumptions could produce different estimates of carrying value. Management prepares the valuation analyses, which are then reviewed by the Board of Directors of the Company. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>GAAP vs. Pro-Forma Results</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Operating results for the Company are prepared using accounting principles generally accepted in the United States of America (GAAP) which, under the purchase method of accounting, exclude FNB Bankshares results prior to the closing date of the acquisition on January 14, 2005. This discussion also includes pro-forma information which shows how the Company's results of operations would have been presented if the Company and FNB had operated as one entity for the entire periods presented (for a presentation of pro-forma results, see Note 8 to the Consolidated Financial Statements &#150; Pro-Forma Financial Information).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 14</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Executive Summary</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net income for the nine months ended September 30, 2006 was $9,325,000, a decrease of 1.6% from net income of $9,477,000 for the comparable period of 2005. Although the Company had modest growth in earning assets this year, it experienced margin compression due to the flat-to-inverted yield curve. In addition, liability costs have increased more rapidly than yield on assets. The net interest margin on a tax-equivalent basis declined to 3.29% for the first nine months of 2006 from 3.88% for the same period in 2005, which, in turn, has resulted in a modest decline in net interest income. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The Company posted excellent growth in non-interest income, however, as well as a slight reduction in non-interest expense. Investment management and fiduciary revenues from First Advisors were up $202,000 or 16.2% for the first nine months of 2006 when compared to the same period in 2005, as are fees from deposit accounts, which have increased $275,000 or 15.5% for the first nine months of 2006 when compared to the same period in 2005. On the expense side, the savings are in employee costs, which are down $142,000 or 1.7% for the first nine months of 2006 when compared to the same period in 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>These increased revenues and expense savings have more than offset the $900,000 provision to the allowance for loan losses posted in the first nine months of 2006 compared to $100,000 for the same period in 2005. This increase in the provision is not indicative of a significant decline in loan quality &#150; it was to maintain the allowance for loan losses at an adequate level given continued growth in our loan portfolio and our level of chargeoffs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Net income for the three months ended September 30, 2006 was $3,177,000, a decrease of 5.1% from net income of $3,347,000 for the comparable period of 2005. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>On a pro-forma basis, net income for the nine months ended September 30, 2006, was $9,325,000, an increase of $23,000 or 0.2% over pro-forma net income of $9,302,000 for the first nine months of 2005. Pro-forma fully diluted earnings per share for the first nine months of 2006 were $0.94, a decrease of $0.01 or 1.1% from the $0.95 reported for the first nine months of 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>On a pro-forma basis, net income for the three months ended September 30, 2006 and 2005 was the same as that reported in the Company&#146;s consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Net Interest Income</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Total interest income of $47,475,000 for the nine months ended September 30, 2006 is a 30.7% increase from total interest income of $36,329,000 in the comparable period of 2005. Rising interest rates resulted in significantly higher asset yields in 2006 compared to 2005. Total interest expense of $24,494,000 for the first nine months of 2006 is a 89.4% increase from total interest expense of $12,931,000 for the first nine months of 2005. This was a direct result of the rising interest rate climate and increased volume in certificates of deposit. Net interest income decreased 1.8% to $22,981,000 for the nine months ended September 30, 2006, from $23,298,000 reported for the same period in 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.24in;text-align:left;'><font size=2>Total interest income of $16,829,000 for the three months ended September 30, 2006, is a 28.1% increase from total interest income of $13,138,000 in the comparable period of 2005. This increase was due to rising interest rates which resulted in higher asset yields in 2006 compared to 2005. Total interest expense of $9,091,000 for the three months ended September 30, 2006, is a 76.6% increase from total interest expense of $5,149,000 in the comparable period of 2005. This was a direct result of the rising interest rate climate and increased volume in certificates of deposit. Net interest income decreased 3.1% to $7,738,000 for the three months ended September 30, 2006, from $7,989,000 reported for the same period in 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The Company's net interest margin on a tax-equivalent basis decreased from 3.88% in the first nine months of 2005 to 3.29% for the nine months ended September 30, 2006.  For the three months ended September 30, 2006, the Company&#146;s net interest margin was 3.28%, a decrease from 3.76% in the same period of 2005. This is due to the current flat yield curve and liability costs increasing at a faster rate than the yield on assets. These results are consistent with the Company's expectations for changes in its net interest income in the current rate environment. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Tax-exempt interest income amounted to $2,722,000 and $2,485,000 for the nine months ended September 30, 2006 and 2005, respectively.  For the three months ended September 30, 2006 and 2005, tax-exempt interest income amounted to $948,000 and $869,000, respectively.  Tax equivalency is calculated using a 35.0% effective tax rate. The following table presents the effect of tax-exempt income on the calculation of the net interest margin, using a 35.0% tax rate in 2006 and 2005:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 15</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="541" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="202" nowrap valign=bottom style=' border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the nine months</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the quarter</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="202" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>ended September 30,</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>ended September 30,</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="202" nowrap valign=bottom style=' border-bottom:solid black .25pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black .25pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .25pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black .25pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black .25pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="202" valign=bottom style='height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net interest income as presented</font></p> </td>
        <td width="87" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$22,981 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$23,398 </font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$7,738 </font></b></p> </td>
        <td width="90" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$7,989 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="202" nowrap valign=bottom style=' border-bottom:solid black .25pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Effect of tax-exempt income</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black .25pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,465 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .25pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,338 </font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black .25pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>510 </font></b></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black .25pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>467 </font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="202" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net interest income, tax equivalent</font></p> </td>
        <td width="87" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding: .75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$24,446 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding: .75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$24,736 </font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding: .75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$8,248 </font></b></p> </td>
        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding: .75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$8,456 </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The following table presents the amount of interest earned or paid, as well as the average yield or rate on an annualized basis, for each major category of assets or liabilities for the nine months ended September 30, 2006 and 2005. Tax-exempt income is calculated on a tax-equivalent basis, using a 35.0% tax rate in 2006 and 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="572" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style=' border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine months ended September 30, </font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>2006</font></b></u><u></u></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>2005</font></u><u></u></p> </td> </tr>
    <tr style='height:25.5pt'>
        <td width="215" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Dollars in thousands</font></i><i></i></p> </td>
        <td width="89" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Amount of interest</font></b></p> </td>
        <td width="89" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Average yield/rate</font></b></p> </td>
        <td width="89" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Amount of interest</font></p> </td>
        <td width="89" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Average yield/rate</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest on earning assets</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest-bearing deposits</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$       61</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.33%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$        9</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.62%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investments</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8,328</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.97%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,684</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5.64%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans held for sale</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.36%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>24</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7.64%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans  </font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>40,549</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.74%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>30,950</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5.97%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest-earning assets</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>48,940</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.59%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>37,667</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5.91%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest-bearing liabilities</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Deposits</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>18,539</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.45%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,978</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.08%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other borrowings</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5,955</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.44%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,953</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.82%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest-bearing liabilities</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>24,494</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.64%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12,931</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.26%</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="215" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net interest income</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$24,446</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$24,736</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style=' border-bottom:solid black .5pt; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest rate spread</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.95%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.65%</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="215" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net interest margin</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.29%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.88%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The following table presents changes in interest income and expense attributable to changes in interest rates and volume for interest-earning assets and interest-bearing liabilities for the nine months ended September 30, 2006 compared to 2005. Tax-exempt income is calculated on a tax-equivalent basis, using a 35.0% tax rate in both years.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="572" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td  nowrap colspan="3" valign=bottom style=' border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine months ended September 30, 2006 compared to 2005</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-top: solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top: solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Dollars in thousands</font></i><i></i></p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Volume</font></p> </td>
        <td width="71" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Rate</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Rate/Volume<sup>1</sup></font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest on earning assets</font></b></p> </td>
        <td width="67" nowrap valign=top style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" nowrap valign=top style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=top style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=top style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest-bearing deposits</font></p> </td>
        <td width="67" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$     21</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$        9</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    22</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    52</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investment securities</font></p> </td>
        <td width="67" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,180</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>394</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>70</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,644</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans held for sale</font></p> </td>
        <td width="67" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(21)</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(7)</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(22)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans  </font></p> </td>
        <td width="67" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,992</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,967</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>640</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,599</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest income</font></p> </td>
        <td width="67" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,172</font></p> </td>
        <td width="71" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,363</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>738</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,273</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest expense</font></b></p> </td>
        <td width="67" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Deposits</font></p> </td>
        <td width="67" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,232</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,869</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,459</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,561</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other borrowings<sup>2</sup></font></p> </td>
        <td width="67" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(172)</font></p> </td>
        <td width="71" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,273</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(99)</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,002</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="255" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest expense</font></p> </td>
        <td width="67" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,060</font></p> </td>
        <td width="71" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,142</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,360</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,563</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="255" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Change in net interest income</font></p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$4,112</font></p> </td>
        <td width="71" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$(3,779)</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$(622)</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$(290)</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2><sup>1</sup> Represents the change attributable to a combination of change in rate and change in volume.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2><sup>2</sup> Includes federal funds purchased.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 16</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The following table presents the amount of interest earned or paid, as well as the average yield or rate on an annualized basis, for each major category of assets or liabilities for the quarter ended September 30, 2006 and 2005. Tax-exempt income is calculated on a tax-equivalent basis, using a 35.0% tax rate in 2006 and 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="572" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style=' border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Quarters ended September 30, </font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>2006</font></b></u><u></u></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>2005</font></u><u></u></p> </td> </tr>
    <tr style='height:25.5pt'>
        <td width="215" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Dollars in thousands</font></i><i></i></p> </td>
        <td width="89" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Amount of interest</font></b></p> </td>
        <td width="89" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Average yield/rate</font></b></p> </td>
        <td width="89" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Amount of interest</font></p> </td>
        <td width="89" valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Average yield/rate</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest on earning assets</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest-bearing deposits</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$61</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.55%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$5</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.02%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investments</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2,885</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.16%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,324</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5.64%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans held for sale</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.24%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5.71%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans  </font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>14,392</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.05%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,269</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6.15%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest-earning assets</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>17,339</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.89%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,605</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6.05%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest-bearing liabilities</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Deposits</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,486</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.05%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,911</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.39%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other borrowings</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,605</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.78%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,238</font></p> </td>
        <td width="89" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.25%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="215" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest-bearing liabilities</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,091</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.00%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,149</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.55%</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="215" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net interest income</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$8,248</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$8,456</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="215" nowrap valign=bottom style=' border-bottom:solid black .5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest rate spread</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.90%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.50%</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="215" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net interest margin</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.28%</font></b></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3.76%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The following table presents changes in interest income and expense attributable to changes in interest rates and volume for interest-earning assets and interest-bearing liabilities for the quarter ended September 30, 2006 compared to 2005. Tax-exempt income is calculated on a tax-equivalent basis, using a 35.0% tax rate in 2006 and 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="572" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td  nowrap colspan="5" valign=bottom style='border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Quarter ended September 30, 2006 compared to 2005</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Dollars in thousands</font></i><i></i></p> </td>
        <td width="68" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Volume</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Rate</font></p> </td>
        <td width="117" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Rate/Volume<sup>1</sup></font></p> </td>
        <td width="57" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest on earning assets</font></b></p> </td>
        <td width="68" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="117" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest-bearing deposits</font></p> </td>
        <td width="68" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$12</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$12</font></p> </td>
        <td width="117" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$31</font></p> </td>
        <td width="57" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$56</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investment securities</font></p> </td>
        <td width="68" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>317</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>215</font></p> </td>
        <td width="117" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>29</font></p> </td>
        <td width="57" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>561</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans held for sale</font></p> </td>
        <td width="68" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(6)</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td>
        <td width="117" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>
        <td width="57" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(6)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans  </font></p> </td>
        <td width="68" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,280</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,654</font></p> </td>
        <td width="117" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>190</font></p> </td>
        <td width="57" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,123</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest income</font></p> </td>
        <td width="68" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,603</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,882</font></p> </td>
        <td width="117" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>249</font></p> </td>
        <td width="57" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,734</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interest expense</font></b></p> </td>
        <td width="68" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="117" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Deposits</font></p> </td>
        <td width="68" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>509</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,713</font></p> </td>
        <td width="117" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>353</font></p> </td>
        <td width="57" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,575</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other borrowings<sup>2</sup></font></p> </td>
        <td width="68" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>141</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>203</font></p> </td>
        <td width="117" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>23</font></p> </td>
        <td width="57" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>367</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="259" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total interest expense</font></p> </td>
        <td width="68" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>650</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,916</font></p> </td>
        <td width="117" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>376</font></p> </td>
        <td width="57" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,942</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="259" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Change in net interest income</font></p> </td>
        <td width="68" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$953</font></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$(1,034)</font></p> </td>
        <td width="117" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$(127)</font></p> </td>
        <td width="57" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$(208)</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2><sup>1</sup> Represents the change attributable to a combination of change in rate and change in volume.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2><sup>2</sup> Includes federal funds purchased.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>On a pro-forma basis, net interest income for the first nine months of 2006 was $22,981,000, a decrease of $690,000 or 2.9% compared to net interest income of $23,670,000 for the first nine months of 2005. The growth in earning assets was offset by margin compression as a result of the flat yield curve. On a pro-forma basis, net interest income for the three months ended September 30, 2006 and 2005 was the same as that reported in the Company&#146;s consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 17</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Provision for Loan Losses</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>A $900,000 provision to the allowance for loan losses was made during the first nine months of 2006, compared to a $100,000 provision made for the same period of 2005. This additional provision is not indicative of a significant decline in loan quality &#150; it was to maintain the allowance for loan losses at an adequate level given continued growth in our loan portfolio and our level of chargeoffs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Non-Interest Income</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Non-interest income was $7,679,000 for the nine months ended September 30, 2006, an increase of 12.2% from $6,845,000 reported for the first nine months of 2005. This rise in non-interest income was primarily due to increases in investment management and fiduciary income as well as increased levels of revenue on deposit accounts. There was also a posting of $285,000 to other income due to amendments to certain employment continuity agreements. On a pro-forma basis, non-interest income increased by $689,000 or 9.9% from $6,990,000 in 2005 to $7,679,000 in 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Non-interest income was $3,246,000 for the three months ended September 30, 2006, an increase of 9.9% from $2,954,000 reported in the same period for 2005. While investment management income increased 11.3% and deposit accounts revenues increased by 12.1%, mortgage origination income declined due to higher interest rates and lower levels of loans sold to the secondary market. There was also a posting of $285,000 to other income due to amendments to certain employment continuity agreements. On a pro-forma basis, non-interest income for the three months ended September 30, 2006 and 2005 was the same as that reported in the Company&#146;s consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Non-Interest Expense</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Non-interest expense of $16,752,000 for the nine months ended September 30, 2006, is a decrease of 0.9% compared to non-interest expense of $16,896,000 for the same period in 2005. This decline was attributable to lower employee costs through attrition as well as a reduction in the accrual for the Company&#146;s Stakeholder bonus program and lower health insurance costs. In addition, savings were realized from outsourced services that were absorbed into existing in-house operations. On a pro-forma basis, non-interest expense decreased by $838,000 or 4.8% during the nine months ended September 30, 2006 compared to the nine months ended September 30, 2005, with the largest decrease in salaries and employee benefits, which were down by 4.9%. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Non-interest expense of $6,235,000 for the three months ended September 30, 2006, is a decrease of 0.3% compared to non-interest expense of $6,254,000 for the three months ended September 30, 2005. This level of decrease in non-interest expense for the quarter was for the same reasons cited above as well as a decrease in other operating expenses. On a pro-forma basis, non-interest expense for the three months ended September 30, 2006 and 2005 was the same as that reported in the Company&#146;s consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Income Taxes</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Income taxes on operating earnings were $3,683,000 for the nine months ended September 30, 2006, down from $3,770,000 in the same period a year ago. This is in line with the Company&#146;s level of income before taxes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Investments</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The Company's investment portfolio decreased by $5.0 million or 2.7% to $179.0 million between December 31, 2005, and September 30, 2006. At September 30, 2006, the Company's available-for-sale portfolio had an unrealized gain, net of taxes, of $0.7 million. Between September 30, 2005, and September 30, 2006, the Company's investment portfolio increased by $15.5 million or 9.5%. This was due to increased investing activities.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Loans</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Loans grew by $56.2 million or 7.3% during the first nine months of 2006. The growth in commercial loans was $18.9 million or 6.0% and municipal loans increased $2.5 million or 12.5%. The residential mortgage portfolio increased by $27.7 million or 8.8%, and home equity lines of credit decreased $8.1 million or 9.7% year-to-date. Between September 30, 2005 and September 30, 2006, the loan portfolio increased $88.9 million or 12.0%, as a result of strong customer demand.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 18</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Allowance for Loan Losses</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The allowance for loan losses represents the amount available for credit losses inherent in the Company's loan portfolio. Loans are charged off when deemed uncollectible, after giving consideration to factors such as the customer's financial condition, underlying collateral and guarantees, as well as general and industry economic conditions.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Adequacy of the allowance for loan losses is determined using a consistent, systematic methodology, which analyzes the risk inherent in the loan portfolio. In addition to evaluating the collectibility of specific loans when determining the adequacy of the allowance for loan losses, Management also takes into consideration other factors such as changes in the mix and size of the loan portfolio, historic loss experience, the amount of delinquencies and loans adversely classified, and economic trends. The adequacy of the allowance for loan losses is assessed by an allocation process whereby specific loss allocations are made against certain adversely classified loans, and general loss allocations are made against segments of the loan portfolio that have similar attributes. The Company&#146;s historical loss experience, industry trends, and the impact of the local and regional economy on the
Company&#146;s borrowers, are considered by Management in determining the adequacy of the allowance for loan losses. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The allowance for loan losses is increased by provisions charged against current earnings. Loan losses are charged against the allowance when Management believes that the collectibility of the loan principal is unlikely. Recoveries on loans previously charged off are credited to the allowance. While Management uses available information to assess possible losses on loans, future additions to the allowance may be necessary based on increases in non-performing loans, changes in economic conditions, growth in loan portfolios, or for other reasons. Any future additions to the allowance would be recognized in the period in which they were determined to be necessary. In addition, various regulatory agencies periodically review the Company&#146;s allowance for loan losses as an integral part of their examination process. Such agencies may require the Company to record additions to the allowance
based on judgments different from those of Management. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Credit quality of the commercial portfolios is quantified by a credit rating system designed to parallel regulatory criteria and categories of loan risk. Individual loan officers monitor their loans to ensure appropriate rating assignments are made on a timely basis. Risk ratings and quality of the commercial loan portfolio are also assessed on a regular basis by an independent loan review consulting firm. Ongoing portfolio trend analyses and individual credit reviews to evaluate loan risk and compliance with corporate lending policies are also performed. The level of allowance allocable to each group of risk-rated loans is then determined by applying a loss factor that estimates the amount of probable loss in each category. The assigned loss factor for each risk rating is based upon Management&#146;s assessment of historical loss data, portfolio characteristics, economic trends, overall
market conditions and past experience. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Consumer loans, which include residential mortgages, home equity loans/lines, and direct/indirect loans, are generally evaluated as a group based on product type and on the basis of delinquency data and other credit data available due to the large number of such loans and the relatively small size of individual credits. Allocations for these loan categories are principally determined by applying loss factors that represent Management&#146;s estimate of inherent losses. In each category, inherent losses are estimated based upon Management&#146;s assessment of historical loss data, portfolio characteristics, economic trends, overall market conditions and past experience. In addition, certain loans in these categories may be individually risk-rated if considered necessary by Management. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The other method used to allocate the allowance for loan losses entails the assignment of reserve amounts to individual loans on the basis of loan impairment. Certain loans are evaluated individually and are judged to be impaired when Management believes it is probable that the Company will not collect all of the contractual interest and principal payments as scheduled in the loan agreement. Under this method, loans are selected for evaluation based on internal risk ratings or non-accrual status. A specific reserve is allocated to an individual loan when that loan has been deemed impaired and when the amount of a probable loss is estimable on the basis of its collateral value, the present value of anticipated future cash flows, or its net realizable value. At September 30, 2006, impaired loans with specific reserves totaled $1,011,000 (all of these loans were on non-accrual status) and the
amount of such reserves were $260,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>All of these analyses are reviewed and discussed by the Directors' Loan Committee, and recommendations from these processes provide Management and the Board of Directors with independent information on loan portfolio condition. As a result of these analyses, the Company has concluded that the level of the allowance for loan losses was adequate as of September 30, 2006. As of that date, the balance of $6,221,000 was 0.75% of total loans, compared to 0.79% at December 31, 2005 and 0.88% at September 30, 2005. Loans considered to be impaired according to SFAS 114/118 totaled $3,775,000 at September 30, 2006 compared to $3,081,000 at December 31, 2005. The portion of the allowance for loan losses allocated to impaired loans at September 30, 2006, was $260,000 compared to $392,000 at December 31, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 19</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>In Management's opinion, the level of the Company's allowance for loan losses is adequate. Although the allowance is lower as a percentage of loans than many peers, the Bank's loan portfolio has a higher percentage of residential mortgage loans than peers, which typically reflects a much lower level of credit risk. The Company&#146;s actual historical experience supports this by the overall credit quality of the portfolio and historically low level of chargeoffs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Non-Performing Assets</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>At September 30, 2006, loans on non-accrual status totaled $3.8 million, which compares to non-accrual loans of $3.1 million as of December 31, 2005. In addition to loans on non-accrual status at September 2006, loans past due 90 days or more and accruing (calculated on a constant 30-day month basis) totaled $756,000 which compares to $325,000 as of December 31, 2005. The Company continues to accrue interest on these loans because it believes collection of the interest is reasonably assured. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Goodwill</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>On January 14, 2005, the Company completed the acquisition of FNB Bankshares (&#147;FNB&#148;) of Bar Harbor, Maine, and its subsidiary, The First National Bank of Bar Harbor, which was merged into the Bank. Management believes that the products and services offered in FNB&#146;s market have been enhanced by the combination of the two companies, providing a larger capacity to lend money and a stronger overall funding base. In 2005, the combined entity realized approximately $1.0 million in initial cost savings from redundant expenses, such as regulatory fees, audit costs, legal costs, and outsourced costs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The total value of the transaction was $47,955,000, and all of the voting equity interest of FNB was acquired in the transaction. As required under GAAP, the purchase price was allocated to assets acquired and liabilities assumed at the date of acquisition. The excess of purchase price over the fair value of net tangible and identified intangible assets acquired was recorded as goodwill, which totaled $27,559,000 and included $972,000 in direct expenses. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The following table shows the adjusted fair value of assets and liabilities recorded on the Company&#146;s balance sheet from the FNB acquisition, including the associated goodwill in the transaction:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="410" style=' margin-left:5.4pt;border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .25pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars</font></i><i></i></p> </td>
        <td width="120" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .25pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Assets</font></b></p> </td>
        <td width="120" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash and due from banks</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$       6,963</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investments</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>26,562</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans held for sale (fair value approximates cost)</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>591</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>185,357</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Less: allowance for loan losses</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(2,164)</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net loans</font></p> </td>
        <td width="120" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>183,193</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Bank premises and equipment</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7,767</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Goodwill</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>27,559</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other assets</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,311</font></b></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="290" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total Assets</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  261,946</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Liabilities &amp; Shareholders&#146; Equity</font></b></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Deposits</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  192,860</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrowed funds</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>17,044</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other liabilities</font></p> </td>
        <td width="120" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4,086</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total liabilities</font></p> </td>
        <td width="120" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>213,990</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="290" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Shareholders&#146; equity</font></p> </td>
        <td width="120" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>47,956</font></b></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="290" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total Liabilities &amp; Shareholders&#146; Equity</font></b></p> </td>
        <td width="120" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$  261,946</font></b></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The majority of the $1,830,000 difference between actual goodwill booked and the $26,005,000 of goodwill estimated in the Company&#146;s December 31, 2004 financial statements was due to deferred income taxes. During the fourth quarter of 2005, goodwill and other liabilities were reduced by $276,000, net of tax, as a result of changes in employment continuity agreements with FNB employees who became employees of the Bank, which resulted in lower reserves for the these agreements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 20</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Deposits</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>During the first nine months of 2006, total deposits increased by $134.1 million or 18.8% over December 31, 2005. Core deposits (demand, NOW, savings and money market accounts) increased by $13.6 million or 3.3% in the first nine months of 2006, and during the same period, certificates of deposit increased $120.5 million or 39.4%. Between September 30, 2005, and September 30, 2006, deposits grew by 12.3%, or $92.7 million. Demand deposits grew $1.6 million, money market accounts also grew by $24.2 million and certificates of deposit grew by $100.6 million, while NOW accounts decreased by $20.5 million, and savings decreased by $13.2 million. The majority of the growth in certificates of deposit, both year-to-date and year-over-year, was from wholesale and brokered sources. The Company saw a decline in core deposits year-over-year due to transfers to higher-yielding certificates of deposit due to higher interest rates.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Borrowed Funds</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The Company's funding includes borrowings from the Federal Home Loan Bank of Boston, the Federal Reserve System, and repurchase agreements, enabling it to grow its balance sheet and its revenues. They may also be used to carry out interest rate risk management stategies, and are increased to replace or supplement other sources of funding, including core deposits and certificates of deposit. During the nine months ended September 30, 2006, borrowed funds decreased $84.9 million or 39.4% from December 31, 2005, as a result of the deposit growth previously noted. Between September 30, 2005 and September 30, 2006, borrowed funds increased $3.7 million or 2.9%. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Shareholders' Equity</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Shareholders' equity as of September 30, 2006 was $106.7 million, compared to $103.4 million as of December 31, 2005. The Company's earnings in the first nine months of 2006, net of dividends paid, added to shareholders' equity. The net unrealized loss on available-for-sale securities, presented in accordance with SFAS 115, remained relatively the same at $749,000 for quarter ended September 30, 2006 compared to $734,000 at December 31, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>In 2006, a cash dividend of 15.5 cents per share was declared in the third quarter compared to 13.5 cents in the third quarter of 2005. The dividend payout ratio was 47.37% in the third quarter of 2006 compared to 39.8% in the third quarter of 2005. In determining future dividend payout levels, the Board of Directors carefully analyzes capital requirements and earnings retention, as set forth in the Company's Dividend Policy. The ability of the Company to pay cash dividends to its shareholders depends on receipt of dividends from its subsidiary, the Bank. The subsidiary may pay dividends to its parent out of so much of its net profits as the Bank's directors deem appropriate, subject to the limitation that the total of all dividends declared by the Bank in any calendar year may not exceed the total of its net profits of that year combined with its retained net profits of the preceding two
years. The amount available for dividends in 2006 is this year's net income plus $9.8 million.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Regulatory leverage capital ratios for the Company were 7.21% and 7.66% at September 30, 2006 and December 31, 2005, respectively. The Company had a tier one risk-based capital ratio of 10.30% and tier two risk-based capital ratio of 11.14% at September 30, 2006, compared to 10.74% and 11.61%, respectively, at December 31, 2005. These are comfortably above the standards to be rated "well-capitalized" by regulatory authorities &#150; qualifying the Company for lower deposit-insurance premiums.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>On January 20, 2005, the Company announced that its Board of Directors had authorized the repurchase of up to 250,000 shares of the Company's common stock or approximately 2.5% of the outstanding shares. This program ended in July of 2006, with 248,376 shares repurchased under the program at an average price of $17.15 and at a total cost of $4,261,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>On July 21, 2006, the Company announced that its Board of Directors had authorized a new program for the repurchase of up to 250,000 shares of the Company's common stock or approximately 2.5% of the outstanding shares. The Company expects such repurchases to be effected from time to time, in the open market, in private transactions or otherwise, during a period of up to 24 months. The amount and timing of shares to be purchased will be subject to market conditions and will be based on several factors, including the price of the Company's stock and the level of stock issuances under the Company's employee stock plans. No assurance can be given as to the specific timing of the share repurchases or as to whether and to what extent the share repurchase will be consummated. As of September 30, 2006, the Company had repurchased 63,363 shares under the new repurchase plan at an average price of
$17.44 and at a total cost of $1,105,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 21</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<i><b><font size=2>Average Daily Balance Sheets</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The following table shows the Company's average daily balance sheets for the nine month and three month periods ended September 30, 2006 and 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="637" style=' border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="311" nowrap rowspan=2 valign=bottom style='border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=bottom style=' border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the nine months </font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For quarters ended</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td  nowrap colspan="2" valign=bottom style=' padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>ended September 30,</font></b></p> </td>
        <td  nowrap colspan="2" valign=bottom style='padding: .75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>September 30,</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars</font></i><i></i></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2005</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Assets</font></b></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash and due from banks</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$    21,066 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$  20,904 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$      21,465 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   25,586 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Overnight funds sold</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1,530 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>459 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2,295 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>656 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Investments</font></b></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>U.S. Treasury securities &amp; government agency securities</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>89,947 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>64,771 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>89,369 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>66,390 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Obligations of states and political subdivisions</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>56,830 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>51,254 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>57,298 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>55,004 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other securities</font></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>39,598 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>42,376 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>39,089 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>42,073 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total investments</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>186,375 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>158,401 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>185,755 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>163,467 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans held for sale</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>51 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>420 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>60 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>520 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Loans</font></b></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>- </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Commercial</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>327,932 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>280,383 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>329,353 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>297,901 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Consumer</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>45,307 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>34,745 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>46,829 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>35,432 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>State and municipal</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>21,816 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>22,226 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>22,122 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>21,508 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Real estate</font></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>409,364 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>355,336 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>411,430 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>372,307 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total loans</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>804,419 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>692,690 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>809,733 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>727,148 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Allowance for loan losses</font></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(6,131)</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(6,525)</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(6,129)</font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(6,529)</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net loans</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>798,288 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>686,165 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>803,605 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>720,619 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Premises and equipment</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16,413 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,501 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16,357 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,849 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Goodwill</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>22,719 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>18,397 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>22,703 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>19,662 </font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other assets</font></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>27,684 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>26,430 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>27,684 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>27,961 </font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total assets</font></b></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,074,126 </font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$927,677 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,079,916 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$975,320 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Liabilities and shareholders' equity</font></b></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Deposits</font></b></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Demand</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$     61,377</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$  57,802 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$     63,020 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$  64,869 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>NOW</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>101,131</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>105,713 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>101,668 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>113,018 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Money market</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>121,885</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>112,502 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>123,071 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>115,752 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Savings</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>102,698</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>111,832 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>102,441 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>117,229 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Certificates of deposit</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>161,175</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>115,686 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>166,768 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>131,687 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Certificates of deposit over $100,000</font></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>232,366</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>130,297 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>239,950 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>171,654 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total deposits</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>780,632</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>633,832 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>796,918 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>714,209 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrowed funds</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>179,192</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>187,342 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>168,301 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>151,067 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other liabilities</font></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,058</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,848 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9,239 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,966 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total liabilities</font></b></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>968,882</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>830,022 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>974,457 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>874,242 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Common stock</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>99</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>98 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>99 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>98 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Additional paid-in capital</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>47,126</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>46,208 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>46,965 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>47,912 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Retained earnings</font></p> </td>
        <td width="86" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>57,457</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>49,687 </font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>57,872 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='padding:.75pt .75pt 0in .75pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>51,588 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Unrealized gain on available-for-sale securities</font></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>562</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,662 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>524 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,480 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total shareholders' equity</font></b></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:.75pt .75pt 0in .75pt;height: 12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>105,244</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>97,655 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>105,459 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:.75pt .75pt 0in .75pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>101,078 </font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="311" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total liabilities and shareholders' equity</font></b></p> </td>
        <td width="86" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:.75pt .75pt 0in .75pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,074,126</font></b></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$927,677 </font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$1,079,916 </font></b></p> </td>
        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:.75pt .75pt 0in .75pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$975,320 </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 22</font></p>
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<p style='page-break-before:always'></p><PAGE>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Off-Balance Sheet Financial Instruments</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>No material off-balance sheet risk exists that requires a separate liability presentation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Sale of Loans</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>No recourse obligations have been incurred in connection with the sale of loans.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Contractual Obligations</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The following table sets forth the contractual obligations of the Company as of September 30, 2006:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="643" style=' border-collapse:collapse'>
    <tr style='height:25.5pt'>
        <td width="287" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>In thousands of dollars </font></i><i></i></p> </td>
        <td width="81" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total </font></b></p> </td>
        <td width="76" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Less than 1 year </font></b></p> </td>
        <td width="67" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1-3 years </font></b></p> </td>
        <td width="65" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3-5 years </font></b></p> </td>
        <td width="67" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; height:25.5pt'>
            <p style='margin-left:0pt;text-indent:3.0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>More than 5 years </font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="287" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrowed funds </font></p> </td>
        <td width="81" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$130,300 </font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>113,100 </font></p> </td>
        <td width="67" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,000 </font></p> </td>
        <td width="65" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>15,000 </font></p> </td>
        <td width="67" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>200 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="287" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating leases </font></p> </td>
        <td width="81" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>576 </font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:39.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>205 </font></p> </td>
        <td width="67" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>232 </font></p> </td>
        <td width="65" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>102 </font></p> </td>
        <td width="67" nowrap valign=bottom style=' height:12.75pt'>
            <p style='margin-left:0pt;text-indent:37.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>37 </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="287" nowrap valign=bottom style=' border-bottom:solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Certificates of deposit </font></p> </td>
        <td width="81" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>425,936 </font></b></p> </td>
        <td width="76" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>113,073 </font></p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>300,274 </font></p> </td>
        <td width="65" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12,589 </font></p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black .5pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- </font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="287" nowrap valign=bottom style=' border-bottom:solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total </font></p> </td>
        <td width="81" nowrap valign=bottom style='border-bottom: solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$556,812 </font></b></p> </td>
        <td width="76" nowrap valign=bottom style='border-bottom: solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>226,378 </font></p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>302,506 </font></p> </td>
        <td width="65" nowrap valign=bottom style='border-bottom: solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>27,691 </font></p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black .5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>237 </font></p> </td> </tr>
    <tr style='display:none'>
        <td width="287" valign=bottom >
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>Unused line, collateralized by residential real estate </p> </td>
        <td width="81" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>$        78,083 </p> </td>
        <td width="76" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>78,083 </p> </td>
        <td width="67" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td>
        <td width="65" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td>
        <td width="67" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td> </tr>
    <tr style='display:none'>
        <td width="287" valign=bottom >
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>Other unused commitments </p> </td>
        <td width="81" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>$        50,126 </p> </td>
        <td width="76" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>50,126 </p> </td>
        <td width="67" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td>
        <td width="65" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td>
        <td width="67" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td> </tr>
    <tr style='display:none'>
        <td width="287" valign=bottom >
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>Standby letters of credit </p> </td>
        <td width="81" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>$          1,466 </p> </td>
        <td width="76" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>1,466 </p> </td>
        <td width="67" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td>
        <td width="65" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td>
        <td width="67" nowrap valign=bottom >
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td> </tr>
    <tr style='display:none'>
        <td width="287" valign=bottom style='border-bottom: solid black .5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>Commitments to extend credit </p> </td>
        <td width="81" nowrap valign=bottom style='border-bottom: solid black .5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>$        20,869 </p> </td>
        <td width="76" nowrap valign=bottom style='border-bottom: solid black .5pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>20,869 </p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black .5pt'>
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td>
        <td width="65" nowrap valign=bottom style='border-bottom: solid black .5pt'>
            <p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black .5pt'>
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>- </p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="287" valign=bottom style='border-bottom: solid black 1.5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total loan commitments and unused lines of credit </font></p> </td>
        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$150,544 </font></b></p> </td>
        <td width="76" nowrap valign=bottom style='border-bottom: solid black 1.5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>150,544 </font></p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black 1.5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- </font></p> </td>
        <td width="65" nowrap valign=bottom style='border-bottom: solid black 1.5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- </font></p> </td>
        <td width="67" nowrap valign=bottom style='border-bottom: solid black 1.5pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:45.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Liquidity Management</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>As of September 30, 2006 the Bank had primary sources of liquidity of $268.8 million. It is Management's opinion this is adequate. In its Asset/Liability policy, the Bank has guidelines for liquidity. The Company is not aware of any recommendations by the regulatory authorities which, if they were to be implemented, would have a material effect on the Company's liquidity, capital resources or results of operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Forward-Looking Statements</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Certain disclosures in Management's Discussion and Analysis of Financial Condition and Results of Operations contain certain forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). In preparing these disclosures, Management must make assumptions, including, but not limited to, the level of future interest rates, prepayments on loans and investment securities, required levels of capital, needs for liquidity, and the adequacy of the allowance for loan losses. These forward-looking statements may be subject to significant known and unknown risks uncertainties, and other factors, including, but not limited to, those matters referred to in the preceding sentence. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Although First National Lincoln Corporation believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures made by the Company, which attempt to advise interested parties of the facts that affect the Company's business.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2><a name="item3"></a></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 23</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<u><b><font size=2>Item 3 &#150; Quantitative and Qualitative Disclosures About Market Risk</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Market-Risk Management</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due to changes in interest rates. First National Lincoln Corporation's market risk is composed primarily of interest rate risk. The Bank's Asset/Liability Committee (ALCO) is responsible for reviewing the interest rate sensitivity position of the Company and establishing policies to monitor and limit exposure to interest rate risk. All guidelines and policies established by ALCO have been approved by the Board of Directors.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Asset/Liability Management</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The primary goal of asset/liability management is to maximize net interest income within the interest rate risk limits set by ALCO. Interest rate risk is monitored through the use of two complementary measures: static gap analysis and earnings simulation modeling. While each measurement has limitations, taken together they represent a reasonably comprehensive view of the magnitude of interest rate risk in the Company, the level of risk through time, and the amount of exposure to changes in certain interest rate relationships. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>Static gap analysis measures the amount of repricing risk embedded in the balance sheet at a point in time. It does so by comparing the differences in the repricing characteristics of assets and liabilities. A gap is defined as the difference between the principal amount of assets and liabilities that reprice within a specified time period. The Bank's cumulative one-year gap, at September 30, 2006, was -14.35% of total assets.  Core deposits with non-contractual maturities are presented based upon historical patterns of balance attrition and pricing behavior, which are reviewed at least annually.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The gap repricing distributions include principal cash flows from residential mortgage loans and mortgage-backed securities in the time frames in which they are expected to be received. Mortgage prepayments are estimated by applying industry median projections of prepayment speeds to portfolio segments based on coupon range and loan age.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>A summary of the Bank's static gap, as of September 30, 2006 is presented in the following table:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="608" style=' margin-left:4.65pt;border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style=' border-top:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="88" nowrap valign=bottom style='border-top: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0-90</font></b></p> </td>
        <td width="88" nowrap valign=bottom style='border-top: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>90-365</font></b></p> </td>
        <td width="83" nowrap valign=bottom style=' border-top:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1-5</font></b></p> </td>
        <td width="83" nowrap valign=bottom style=' border-top:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5+</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="88" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Days</font></b></p> </td>
        <td width="88" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Days</font></b></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Years</font></b></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Years</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investment securities at amortized cost             </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$16,718</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$30,451</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$76,238</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$53,657</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans held for sale                  </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Loans                            </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>296,786</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>112,629</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>334,215</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>85,909</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other interest-earning assets  </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,413</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-rate-sensitive assets             </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>72</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>216</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,140</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>50,147</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="267" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total assets                  </font></b></p> </td>
        <td width="88" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>313,576</font></b></p> </td>
        <td width="88" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>151,709</font></b></p> </td>
        <td width="83" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>411,593</font></b></p> </td>
        <td width="83" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>189,713</font></b></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest-bearing deposits</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>257,847</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>242,244</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>69,968</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>209,534</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrowed funds</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>50,823</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>62,255</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17,082</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>140</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-rate-sensitive liabilities and equity           </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,281</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,843</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>20,496</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>131,078</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="267" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total liabilities and equity  </font></b></p> </td>
        <td width="88" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>309,951</font></b></p> </td>
        <td width="88" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>308,342</font></b></p> </td>
        <td width="83" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>107,546</font></b></p> </td>
        <td width="83" nowrap valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>340,752</font></b></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="267" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Period gap   </font></b></p> </td>
        <td width="88" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$3,625</font></b></p> </td>
        <td width="88" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$(156,633)</font></b></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$304,047</font></b></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$(151,039)</font></b></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent of total assets   </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.34%</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-14.69%</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>28.51%</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-14.16%</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="267" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cumulative gap (current)  </font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,625</font></p> </td>
        <td width="88" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(153,008)</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>151,039</font></p> </td>
        <td width="83" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="267" nowrap valign=bottom style=' border-bottom:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent of total assets </font></p> </td>
        <td width="88" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.34%</font></p> </td>
        <td width="88" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-14.35%</font></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>14.16%</font></p> </td>
        <td width="83" nowrap valign=bottom style=' border-bottom:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The earnings simulation model forecasts capture the impact of changing interest rates on one-year and two-year net interest income. The modeling process calculates changes in interest income received and interest expense paid on all interest-earning assets and interest-bearing liabilities reflected on the Company's balance sheet. None of the assets used in the simulation are held for trading purposes. The modeling is done for a variety of scenarios that incorporate changes in the absolute level of interest rates as well as basis risk, as represented by changes in the shape of the yield curve and changes in interest rate relationships. Management evaluates the effects on income of alternative interest rate scenarios </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 24</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>against earnings in a stable interest rate environment. This analysis is also most useful in determining the short-run earnings exposures to changes in customer behavior involving loan payments and deposit additions and withdrawals.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The Bank's most recent simulation model projects net interest income would increase by approximately 4.47% of stable-rate net interest income if short-term rates affected by Federal Open Market Committee actions fall gradually by two percentage points over the next year, and decrease by approximately 6.59% if rates rise gradually by two percentage points. Both scenarios are well within ALCO's policy limit of a decrease in net interest income of no more than 10.0% given a 2.0% move in interest rates, up or down. Management believes this reflects a reasonable interest rate risk position. In year two, and assuming no additional movement in rates, the model forecasts that net interest income would be higher than that earned in a stable rate environment by 19.11% in a falling-rate scenario, and lower than that earned in a stable rate environment by 15.83% in a rising rate scenario, when compared
to the year-one base scenario. A summary of the Bank's interest rate risk simulation modeling, as of September 30, 2006 is presented in the following table:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="453" style=' border-collapse:collapse; '>
    <tr>
        <td width="2" nowrap valign=top style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="402" nowrap valign=top style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Changes in Net Interest Income</font></b></p> </td>
        <td width="48" nowrap valign=top style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Year 1</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="453" style=' border-collapse:collapse'>
    <tr>
        <td width="2" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="389" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Projected change if rates decrease by 2.0%</font></p> </td>
        <td width="61" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>+4.47%</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="453" style=' border-collapse:collapse; '>
    <tr>
        <td width="2" nowrap valign=top style='border-bottom: solid black 1.5pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="392" nowrap valign=top style='border-bottom: solid black 1.5pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Projected change if rates increase by 2.0%</font></p> </td>
        <td width="58" nowrap valign=top style='border-bottom: solid black 1.5pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>-6.59%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Year 2</font></b></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="453" style=' border-collapse:collapse'>
    <tr>
        <td width="2" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="382" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Projected change if rates decrease by 2.0%</font></p> </td>
        <td width="68" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>+19.11%</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="453" style=' border-collapse:collapse; '>
    <tr>
        <td width="2" nowrap valign=top style='border-bottom: solid black 1.5pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="385" nowrap valign=top style='border-bottom: solid black 1.5pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Projected change if rates increase by 2.0%</font></p> </td>
        <td width="65" nowrap valign=top style='border-bottom: solid black 1.5pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>-15.83%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>This dynamic simulation model includes assumptions about how the balance sheet is likely to evolve through time and in different interest rate environments. Loans and deposits are projected to maintain stable balances. All maturities, calls and prepayments in the securities portfolio are assumed to be reinvested in similar assets. Mortgage loan prepayment assumptions are developed from industry median estimates of prepayment speeds for portfolios with similar coupon ranges and seasoning. Non-contractual deposit volatility and pricing are assumed to follow historical patterns. The sensitivities of key assumptions are analyzed annually and reviewed by ALCO.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The information for static gap and changes in net interest income presented in this section pertains to the Bank only and does not include goodwill and a small volume of assets and liabilities owned by the Company and included in its consolidated financial statements as of September 30, 2006. This sensitivity analysis does not represent a Company forecast and should not be relied upon as being indicative of expected operating results. These hypothetical estimates are based upon numerous assumptions including, among others, the nature and timing of interest rate levels, yield curve shape, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, and reinvestment/ replacement of asset and liability cash flows. While assumptions are developed based upon current economic and local market conditions, the Company cannot make any assurances as to the
predictive nature of these assumptions, including how customer preferences or competitor influences might change.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Interest Rate Risk Management</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>A variety of financial instruments can be used to manage interest rate sensitivity. These may include investment securities, interest rate swaps, and interest rate caps and floors. Frequently called interest rate derivatives, interest rate swaps, caps and floors have characteristics similar to securities but possess the advantages of customization of the risk-reward profile of the instrument, minimization of balance sheet leverage and improvement of liquidity. As of September 30, 2006, the Company was not using any derivative instruments for interest rate risk management.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The Company engages an independent consultant to periodically review its interest rate risk position, as well as the effectiveness of simulation modeling and reasonableness of assumptions used. As of September 30, 2006, there were no significant differences between the views of the independent consultant and Management regarding the Company's interest rate risk exposure. Management expects interest rates will continue to rise in the near term and believes that the current level of interest rate risk is acceptable.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 25</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<u><b><font size=2><a name="item4"></a>Item 4: Controls and Procedures</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of September 30, 2006, the end of the quarter covered by this report, the Company carried out an evaluation under the supervision and with the participation of the Company&#146;s management, including the Company&#146;s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company&#146;s disclosure controls and procedures. In designing and evaluating the Company&#146;s disclosure controls and procedures, the Company and its management recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and the Company&#146;s management necessarily was required to apply its judgment in evaluating and implementing possible controls and procedures. Based upon that evaluation, the Chief
Executive Officer and Chief Financial Officer concluded that the Company&#146;s disclosure controls and procedures were effective at the reasonable assurance level to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission&#146;s rules and forms. There was no change in the Company&#146;s internal control over financial reporting that occurred during the quarter ended September 30, 2006 that has materially affected, or is reasonably likely to materially affect, the Company&#146;s internal control over financial reporting. The Company reviews its disclosure controls and procedures, which may include its internal controls over financial reporting on an ongoing basis, and may from time to time make changes aimed at enhancing their effectiveness and to ensure that the Company&#146;s systems evolve with
its business. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 26</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<b><font size=2><a name="other"></a>Part II &#150; Other Information</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Item 1 &#150; Legal Proceedings</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The Company was not involved in any legal proceedings requiring disclosure under Item 103 of Regulation S-K during the reporting period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Item 1A &#150; Risk Factors</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>There have been no material changes to the Risk Factors previously disclosed in Item 1A of the Company&#146;s Annual Report on Form 10-K for the period ended December 31, 2005. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Item 2 &#150; Unregistered Sales of Equity Securities and Use of Proceeds </font></b></u><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>a. The Company issues shares to the Bank's 401k Investment and Savings Plan pursuant to an exemption from registration under the Securities Act of 1933, as amended (the "Securities Act"), contained in Section 3(a)(11) thereof and Rule 147 promulgated thereunder, as presented in the following table:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="401" style=' margin-left:4.65pt;border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Month</font></b></p> </td>
        <td width="78" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Shares</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Average Price</font></b></p> </td>
        <td width="76" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Proceeds</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 2006</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>599</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$17.41</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$10,000</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>February 2006</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,275</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.51</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>40,000</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 2006</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>454</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.55</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,000</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>April 2006</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>633</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.21</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,000</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>May 2006</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>451</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16.84</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,000</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>June 2006</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>456</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.25</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,000</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>July 2006</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>467</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.04</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,000</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>August 2006</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>878</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.40</font></p> </td>
        <td width="76" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>15,000</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="151" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>September 2006</font></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>387</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.21</font></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,000</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="151" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total</font></b></p> </td>
        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6,600</font></b></p> </td>
        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$17.35</font></b></p> </td>
        <td width="76" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$115,000</font></b></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>b. None</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>c.  On January 20, 2005, the Company announced that its Board of Directors had authorized the repurchase of up to 250,000 shares of the Company's common stock or approximately 2.5% of the outstanding shares. This program ended in July of 2006, with 248,376 shares repurchased under the program at an average price of $17.15 and at a total cost of $4,261,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>On July 21, 2006, the Company announced that its Board of Directors had authorized a new program for the repurchase of up to 250,000 shares of the Company's common stock or approximately 2.5% of the outstanding shares. The Company expects such repurchases to be effected from time to time, in the open market, in private transactions or otherwise, during a period of up to 24 months. The amount and timing of shares to be purchased will be subject to market conditions and will be based on several factors, including the price of the Company's stock and the level of stock issuances under the Company's employee stock plans. No assurance can be given as to the specific timing of the share repurchases or as to whether and to what extent the share repurchase will be consummated. As of September 30, 2006, the Company had repurchased 63,363 shares under the new repurchase plan at an average price of
$17.44 and at a total cost of $1,105,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font size=2>The following table details repurchases under both programs during the nine months ended September 30, 2006:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 27</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="582" style=' margin-left:4.65pt;border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Month</font></b></p> </td>
        <td width="102" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Number of</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Shares Purchased</font></b></p> </td>
        <td width="78" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Average Price Paid Per Share</font></b></p> </td>
        <td width="131" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program</font></b></p> </td>
        <td width="124" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Maximum Number of Shares that may yet be Purchased under the Plan or Program</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>January 2006</font></p> </td>
        <td width="102" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>26</font></p> </td>
        <td width="78" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$16.89</font></p> </td>
        <td width="131" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>26</font></p> </td>
        <td width="124" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>73,738</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>February 2006</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>21,025</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.77</font></p> </td>
        <td width="131" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>21,025</font></p> </td>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>52,713</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 2006</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,836</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.58</font></p> </td>
        <td width="131" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,836</font></p> </td>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>40,877</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>April 2006</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="131" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>40,877</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>May 2006</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>39,033</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16.53</font></p> </td>
        <td width="131" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>39,033</font></p> </td>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,844</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>June 2006</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>219</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.06</font></p> </td>
        <td width="131" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>219</font></p> </td>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,625</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>July 2006</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="131" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>250,000</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>August 2006</font></p> </td>
        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>57,064</font></p> </td>
        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.45</font></p> </td>
        <td width="131" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>57,064</font></p> </td>
        <td width="124" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>192,936</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="147" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>September 2006</font></p> </td>
        <td width="102" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,299</font></p> </td>
        <td width="78" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17.31</font></p> </td>
        <td width="131" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,299</font></p> </td>
        <td width="124" nowrap valign=bottom style=' border-bottom:solid black .5pt;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>186,637</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="147" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total</font></b></p> </td>
        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>135,502</font></b></p> </td>
        <td width="78" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$17.24</font></b></p> </td>
        <td width="131" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>135,502</font></b></p> </td>
        <td width="124" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>186,637</font></b></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Item 3 &#150; Default Upon Senior Securities</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>None.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Item 4 &#150; Submission of Matters to a Vote of Security Holders</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>None</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Item 5 &#150; Other Information</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="74" style=' border-collapse:collapse'>
    <tr>
        <td width="2" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="21" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>A.  </font></p> </td>
        <td width="51" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>None.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="75" style=' border-collapse:collapse'>
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        <td width="2" nowrap valign=top >
            <p ><font size=1>&nbsp;</font></p></td>
        <td width="21" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>B.  </font></p> </td>
        <td width="52" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>None.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 28</font></p>
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<u><b><font size=2>Item 6 &#150; Exhibits</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 2.1 Agreement and Plan of Merger With FNB Bankshares Dated August 25, 2004, incorporated by reference to Exhibit 2.1 to the Registrant's Form 8-K dated August 25, 2004, filed under item 1.01 on August 27, 2004.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 3.1 Conformed Copy of the Registrants Articles of Incorporation, incorporated by reference to Exhibit 3.1 to the Company&#146;s Form 8-K filed under item 5.03 on October 7, 2004.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 3.2 Conformed Copy of the Registrant's Bylaws, incorporated by reference to Exhibit 3.2 to the Company&#146;s Form 8-K filed under item 5.03 on October 7, 2004.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 10.1(a) FNB Bankshares' Stock Option Plan. incorporated by reference to Exhibit 10.1 to the Company&#146;s Form 8-K filed under item 5.03 on October 7, 2004.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 10.1(b) Specimen FNB Bankshares Non-Qualified Stock Option Agreement entered into with Messrs. Rosborough, McKim, Wrobel, Dalrymple and Lay, whose FNB Bankshares options have been converted into options to purchase 5,287, 34,086, 15,275, 11,750 and 21,150 shares of the Registrant's stock, respectively, all at $3.80 per share, incorporated by reference to Exhibit 10.1(b) to the Company&#146;s Form 8-K filed under item 1.01 on January 14, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 10.2(a) Specimen Employment Continuity Agreement entered into with Messrs. McKim, Wroble, Dalrymple and Lay, incorporated by reference to Exhibit 10.2(a) to the Company&#146;s Form 8-K filed under item 1.01 on January 14, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 10.2(b) Specimen Amendment to Employment Continuity Agreement entered into with Messrs. McKim, Wrobel, Dalrymple and Lay, incorporated by reference to Exhibit 10.2(b) to the Company&#146;s Form 8-K filed under item 1.01 on January 14, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 10.3(a) Specimen Split Dollar Agreement entered into with Messrs. McKim, Wrobel, Dalrymple and Lay. For Mr. McKim, the amount of the death benefit is $250,000; for Messrs. Lay, Dalrymple and Wrobel, the death benefit is $150,000. Incorporated by reference to Exhibit 10.3(a) to the Company&#146;s Form 8-K filed under item 1.01 on January 14, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 10.3(b) Specimen Amendment to Split Dollar Agreement entered into with Messrs. McKim, Wrobel, Dalrymple and Lay, incorporated by reference to Exhibit 10.3(b) to the Company&#146;s Form 8-K filed under item 1.01 on January 14, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 10.4 Specimen Amendment to Employment Continuity Agreement entered into with Messrs. McKim and Wrobel, incorporated by reference to Exhibit 10.1 to the Company&#146;s Form 8-K filed under item 1.01 on January 31, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 10.4 Specimen Amendment to Employment Continuity Agreement entered into with Mr. Dalrymple, incorporated by reference to Exhibit 10.1 to the Company&#146;s Form 8-K filed under item 1.01 on September 27, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 31.1 Certification of Chief Executive Officer Persuant to Rule 13A-14(A) of The Securities Exchange Act of 1934</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 31.2 Certification of Chief Financial Officer Persuant to Rule 13A-14(A) of The Securities Exchange Act of 1934</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 32.1 Certification of Chief Executive Officer Persuant to 18 U.S.C. Section 1350, As Adopted Persuant to Section 906 of The Sarbanes-Oxley Act of 2002</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Exhibit 32.2 Certification of Chief Financial Officer Persuant to 18 U.S.C. Section 1350, As Adopted Persuant to Section 906 of The Sarbanes-Oxley Act of 2002</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 29</font></p>
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<b><font size=2><a name="sign"></a>Signatures</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>FIRST NATIONAL LINCOLN CORPORATION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:1;'><font size=2>/s/ Daniel R. Daigneault</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Daniel R. Daigneault</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>President &amp; Chief Executive Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date: November 8, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:1;'><font size=2>/s/ F. Stephen Ward</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>F. Stephen Ward</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Executive Vice President &amp; Chief Financial Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date: November 8, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 30</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Exhibit 31.1</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Certification of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley Act of 2002</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>I, Daniel R. Daigneault, certify that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>1. I have reviewed this Quarterly Report on Form 10-Q of First National Lincoln Corporation;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>4. The Registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(c) Evaluated the effectiveness of the Registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(d) Disclosed in this report any change in the Registrant&#146;s internal control over financial reporting that occurred during the Registrant&#146;s most recent fiscal quarter (the Registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant&#146;s internal control over financial reporting; and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>5. The Registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant&#146;s auditors and the audit committee of Registrant&#146;s board of directors (or persons performing the equivalent functions): </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant&#146;s ability to record, process, summarize and report financial information; and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant&#146;s internal control over financial reporting.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date: November 8, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;border-bottom:solid 0.25pt;padding-bottom:1;'><font size=2>/s/ Daniel R. Daigneault</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Daniel R. Daigneault</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>President &amp; Chief Executive Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Exhibit 31.2</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Certification of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley Act of 2002</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>I, F. Stephen Ward, certify that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>1. I have reviewed this Quarterly Report on Form 10-Q of First National Lincoln Corporation;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>4. The Registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(c) Evaluated the effectiveness of the Registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(d) Disclosed in this report any change in the Registrant&#146;s internal control over financial reporting that occurred during the Registrant&#146;s most recent fiscal quarter (the Registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant&#146;s internal control over financial reporting; and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>5. The Registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant&#146;s auditors and the audit committee of Registrant&#146;s board of directors (or persons performing the equivalent functions): </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant&#146;s ability to record, process, summarize and report financial information; and </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant&#146;s internal control over financial reporting.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date: November 8, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;border-bottom:solid 0.25pt;padding-bottom:1;'><font size=2>/s/ F. Stephen Ward</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>F. Stephen Ward</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Executive Vice President &amp; Chief Financial Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Exhibit 32.1</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Certification of Chief Executive Officer Under Section 906 of the Sarbanes-Oxley Act of 2002</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The undersigned officer of First National Lincoln Corporation (the "Company") hereby certifies that the Company's quarterly report on Form 10-Q for the period ended September 30, 2006 to which this certification is being furnished as an exhibit (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. This certification is provided pursuant to 18 U.S.C. Section 1350 and Item 601(b)(32) of Regulation S-K ("Item 601(b)(32)") promulgated under the Securities Act of 1933, as amended (the "Securities Act"), and the Exchange Act. In accordance with clause (ii) of Item 601(b)(32),
this certification (A) shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and (B) shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date: November 8, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;border-bottom:solid 0.25pt;padding-bottom:1;'><font size=2>/s/ Daniel R. Daigneault</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Daniel R. Daigneault</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>President &amp; Chief Executive Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Exhibit 32.2</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Certification of Chief financial Officer Under Section 906 of the Sarbanes-Oxley Act of 2002</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The undersigned officer of First National Lincoln Corporation (the "Company") hereby certifies that the Company's quarterly report on Form 10-Q for the period ended September 30, 2006 to which this certification is being furnished as an exhibit (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. This certification is provided pursuant to 18 U.S.C. Section 1350 and Item 601(b)(32) of Regulation S-K ("Item 601(b)(32)") promulgated under the Securities Act of 1933, as amended (the "Securities Act"), and the Exchange Act. In accordance with clause (ii) of Item 601(b)(32),
this certification (A) shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and (B) shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Date: November 8, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;border-bottom:solid 0.25pt;padding-bottom:1;'><font size=2>/s/ F. Stephen Ward</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>F. Stephen Ward</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Executive Vice President &amp; Chief Financial Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>First National Lincoln Corporation</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Page 1</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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