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<SEC-DOCUMENT>0000765207-08-000016.txt : 20081106
<SEC-HEADER>0000765207-08-000016.hdr.sgml : 20081106
<ACCEPTANCE-DATETIME>20081106150216
ACCESSION NUMBER:		0000765207-08-000016
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20080930
FILED AS OF DATE:		20081106
DATE AS OF CHANGE:		20081106

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:		081166791

	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>fnlc10q08q3.htm
<TEXT>
<HTML>
<HEAD>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;border-top:solid 1.5pt;padding-top:1;'><font FACE="ARIAL" 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 FACE="ARIAL" SIZE=2>WASHINGTON, DC 20549</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font FACE="ARIAL" SIZE=3>FORM 10-Q
</font></B><font face="Arial" size=3>&nbsp;</font><b><font face="Arial" size=3>
</font><font face=Wingdings>x</font><font face="Arial" 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 face="Arial" size=2>For the quarterly period ended September 30, 2008</font></b></p>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font FACE="ARIAL" SIZE=3>THE FIRST BANCORP, INC.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font face="Arial" size=2>(Exact name of Registrant as specified in its charter)
</font><B><font FACE="ARIAL" SIZE=2>MAINE</font></B><font size=1></font><b><font face="Arial" size=2>                                   01-0404322</font></b></p>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font face="Arial" size=2>Indicate the number of shares outstanding of each of the registrant&#146;s classes of common stock as of November 1, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font face="Arial" size=2>Common Stock: 9,694,003  shares</font></b></p>

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<u><b><font face="Arial" size=2>Table of Contents</font></b></u></p>


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        <td width="16" nowrap valign=top >
<p  style='margin-right:0in'><font size=1>&nbsp;</font></p> </td>

        <td width="629" nowrap valign=top >
<p  style='margin-right:0in'><a href="#Fin_Info"><u><b><font face="Arial" size=2>Part I. Financial Information</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'><a href="#Fin_Info"><u><font face="Arial" size=2>1</font></u></a></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:0in'><a href="#Sel_Fin_Data"><u><b><font face="Arial" size=2>Selected Financial Data (Unaudited)</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'><a href="#Sel_Fin_Data"><u><font face="Arial" size=2>1</font></u></a></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:0in'><a href="#Fin_Stmts"><u><b><font face="Arial" size=2>Item 1 &#150; Financial 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'><a href="#Fin_Stmts"><u><font face="Arial" size=2>2</font></u></a></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:0in'><a href="#report"><u><i><font face="Arial" size=2>Report of Independent Registered Public Accounting Firm</font></i></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'><a href="#report"><u><font face="Arial" size=2>2</font></u></a></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:0in'><a href="#BalSheet"><u><i><font face="Arial" size=2>Consolidated Balance Sheets (Unaudited)</font></i></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'><a href="#BalSheet"><u><font face="Arial" size=2>3</font></u></a></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:0in'><a href="#Income"><u><i><font face="Arial" size=2>Consolidated Statements of Income (Unaudited)</font></i></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'><a href="#Income"><u><font face="Arial" size=2>4</font></u></a></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:0in'><a href="#Equity"><u><i><font face="Arial" size=2>Consolidated Statements of Changes in Shareholders&#146; Equity (Unaudited)</font></i></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'><a href="#Equity"><u><font face="Arial" size=2>5</font></u></a></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:0in'><a href="#CashFlow"><u><i><font face="Arial" size=2>Consolidated Statements of Cash Flows (Unaudited)</font></i></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'><a href="#CashFlow"><u><font face="Arial" size=2>6</font></u></a></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:0in'><a href="#Notes"><u><b><font face="Arial" size=2>Notes to Consolidated Financial 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'><a href="#Notes"><u><font face="Arial" size=2>7</font></u></a></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:0in'><a href="#note1"><u><i><font face="Arial" size=2>Note  1 &#150; Basis of Presentation</font></i></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'><a href="#note1"><u><font face="Arial" size=2>7</font></u></a></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:0in'><a href="#note2"><u><i><font face="Arial" size=2>Note  2 &#150; Common Stock</font></i></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'><a href="#note2"><u><font face="Arial" size=2>7</font></u></a></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:0in'><a href="#note3"><u><i><font face="Arial" size=2>Note  3 &#150; Stock Options</font></i></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'><a href="#note3"><u><font face="Arial" size=2>7</font></u></a></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:0in'><a href="#note4"><u><i><font face="Arial" size=2>Note  4 &#150; Earnings Per Share</font></i></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'><a href="#note4"><u><font face="Arial" size=2>8</font></u></a></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:0in'><a href="#note5"><u><i><font face="Arial" size=2>Note  5 &#150; Postretirement Benefit Plans</font></i></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'><a href="#note5"><u><font face="Arial" size=2>9</font></u></a></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:0in'><a href="#note6"><u><i><font face="Arial" size=2>Note  6 &#150; Goodwill and Other Intangible Assets</font></i></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'><a href="#note6"><u><font face="Arial" size=2>10</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#note7"><u><i><font face="Arial" size=2>Note  7 &#150; Mortgage Servicing Rights</font></i></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'><a href="#note7"><u><font face="Arial" size=2>10</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#note8"><u><i><font face="Arial" size=2>Note  8 &#150; Derivative Financial Instruments</font></i></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'><a href="#note8"><u><font face="Arial" size=2>11</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#note9"><u><i><font face="Arial" size=2>Note  9 &#150; Income Taxes</font></i></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'><a href="#note9"><u><font face="Arial" size=2>11</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#note10"><u><i><font face="Arial" size=2>Note10 &#150; Reclassifications</font></i></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'><i><a href="#note10"><u><i><font face="Arial" size=2>.</font></i><font face="Arial" size=2>11</font></u></a></i></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:0in'><a href="#note11"><u><i><font face="Arial" size=2>Note 11 &#150; Fair Value Disclosures</font></i></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'><a href="#note11"><u><font face="Arial" size=2>11</font></u></a></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:0in'><a href="#note11"><u><i><font face="Arial" size=2>Note12 &#150; Impact of Recently Issued Accounting Standards</font></i></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'><a href="#note11"><u><font face="Arial" size=2>13</font></u></a></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:0in'><a href="#item2"><u><b><font face="Arial" size=2>Item 2 &#150; Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</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'><a href="#item2"><u><font face="Arial" size=2>14</font></u></a></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:0in'><a href="#policies"><u><i><font face="Arial" size=2>Critical Accounting Policies</font></i></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'><a href="#policies"><u><font face="Arial" size=2>14</font></u></a></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:0in'><a href="#summary"><u><i><font face="Arial" size=2>Executive Summary</font></i></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'><a href="#summary"><u><font face="Arial" size=2>14</font></u></a></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:0in'><a href="#intinc"><u><i><font face="Arial" size=2>Net Interest Income</font></i></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'><a href="#intinc"><u><font face="Arial" size=2>15</font></u></a></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:0in'><a href="#loanloss"><u><i><font face="Arial" size=2>Provision for Loan Losses</font></i></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'><a href="#loanloss"><u><font face="Arial" size=2>17</font></u></a></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:0in'><a href="#nonintinc"><u><i><font face="Arial" size=2>Non-Interest Income</font></i></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'><a href="#nonintinc"><u><font face="Arial" size=2>17</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#nonintexp"><u><i><font face="Arial" size=2>Non-Interest Expense</font></i></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'><a href="#nonintexp"><u><font face="Arial" size=2>17</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#taxes"><u><i><font face="Arial" size=2>Income Taxes</font></i></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'><a href="#taxes"><u><font face="Arial" size=2>17</font></u></a></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:0in'><a href="#inv"><u><i><font face="Arial" size=2>Investments</font></i></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'><a href="#inv"><u><font face="Arial" size=2>18</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#loans"><u><i><font face="Arial" size=2>Loans</font></i></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'><a href="#loans"><u><font face="Arial" size=2>18</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#ALL"><u><i><font face="Arial" size=2>Allowance for Loan Losses</font></i></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'><a href="#ALL"><u><font face="Arial" size=2>18</font></u></a></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:0in'><a href="#nonperform"><u><i><font face="Arial" size=2>Non-Performing Assets</font></i></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'><a href="#nonperform"><u><font face="Arial" size=2>19</font></u></a></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:0in'><a href="#goodwill"><u><i><font face="Arial" size=2>Goodwill</font></i></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'><a href="#goodwill"><u><font face="Arial" size=2>19</font></u></a></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:0in'><a href="#deposits"><u><i><font face="Arial" size=2>Deposits</font></i></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'><a href="#deposits"><u><font face="Arial" size=2>20</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#borrowedfunds"><u><i><font face="Arial" size=2>Borrowed Funds</font></i></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'><a href="#borrowedfunds"><u><font face="Arial" size=2>20</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#Equity"><u><i><font face="Arial" size=2>Shareholders&#146; Equity</font></i></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'><a href="#Equity"><u><font face="Arial" size=2>20</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#avgbalsheet"><u><i><font face="Arial" size=2>Average Daily Balance Sheets</font></i></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'><a href="#avgbalsheet"><u><font face="Arial" size=2>21</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#offbal"><u><i><font face="Arial" size=2>Off-Balance Sheet Financial Instruments</font></i></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'><a href="#offbal"><u><font face="Arial" size=2>22</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#sale"><u><i><font face="Arial" size=2>Sale of Loans</font></i></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'><a href="#sale"><u><font face="Arial" size=2>22</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#obligations"><u><i><font face="Arial" size=2>Contractual Obligations</font></i></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'><a href="#obligations"><u><font face="Arial" size=2>22</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#liquidity"><u><i><font face="Arial" size=2>Liquidity Management</font></i></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'><a href="#liquidity"><u><font face="Arial" size=2>22</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#forward"><u><i><font face="Arial" size=2>Forward-Looking Statements</font></i></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'><a href="#forward"><u><font face="Arial" size=2>22</font></u></a></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:0in'><a href="#item3"><u><b><font face="Arial" size=2>Item 3 &#150; Quantitative and Qualitative Disclosures About Market Risk</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'><a href="#item3"><u><font face="Arial" size=2>23</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#market_risk"><u><i><font face="Arial" size=2>Market-Risk Management</font></i></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'><a href="#market_risk"><u><font face="Arial" size=2>23</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#assetliab"><u><i><font face="Arial" size=2>Asset/Liability Management</font></i></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'><a href="#assetliab"><u><font face="Arial" size=2>23</font></u></a></p> </td> </tr></table>
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<p  style='margin-left:0in'><a href="#irr"><u><i><font face="Arial" size=2>Interest Rate Risk Management</font></i></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'><a href="#irr"><u><font face="Arial" size=2>24</font></u></a></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:0in'><a href="#controls"><u><b><font face="Arial" size=2>Item 4: Controls and Procedures</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'><a href="#controls"><u><font face="Arial" size=2>25</font></u></a></p> </td> </tr></table>
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<p  style='margin-right:0in'><font size=1>&nbsp;</font></p> </td>

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<p  style='margin-right:0in'><a href="#otherinfo"><u><b><font face="Arial" size=2>Part II &#150; Other Information</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'><a href="#otherinfo"><u><font face="Arial" size=2>26</font></u></a></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:0in'><a href="#legal"><u><b><font face="Arial" size=2>Item 1 &#150; Legal Proceedings</font></b></u></a></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'><a href="#legal"><u><font face="Arial" size=2>26</font></u></a></p> </td> </tr></table>
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        <td width="16" 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'><a href="#risk"><u><b><font face="Arial" size=2>Item 1a &#150; Risk Factors</font></b></u></a></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'><a href="#risk"><u><font face="Arial" size=2>26</font></u></a></p> </td> </tr></table>
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        <td width="16" 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'><a href="#equitysec"><u><b><font face="Arial" size=2>Item 2 &#150; Unregistered Sales of Equity Securities and Use of Proceeds</font></b></u></a></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'><a href="#equitysec"><u><font face="Arial" size=2>26</font></u></a></p> </td> </tr></table>
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        <td width="16" 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'><a href="#default"><u><b><font face="Arial" size=2>Item 3 &#150; Default Upon Senior Securities</font></b></u></a></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'><a href="#default"><u><font face="Arial" size=2>27</font></u></a></p> </td> </tr></table>
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        <td width="16" 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'><a href="#submission"><u><b><font face="Arial" size=2>Item 4 &#150; Submission of Matters to a Vote of Security Holders</font></b></u></a></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'><a href="#submission"><u><font face="Arial" size=2>27</font></u></a></p> </td> </tr></table>
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        <td width="16" 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'><a href="#other"><u><b><font face="Arial" size=2>Item 5 &#150; Other Information</font></b></u></a></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'><a href="#other"><u><font face="Arial" size=2>27</font></u></a></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'><a href="#exhibits"><u><b><font face="Arial" size=2>Item 6 &#150; Exhibits</font></b></u></a></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'><a href="#exhibits"><u><font face="Arial" size=2>28</font></u></a></p> </td> </tr></table>
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        <td width="16" nowrap valign=top >
<p  style='margin-right:0in'><font size=1>&nbsp;</font></p> </td>

        <td width="624" nowrap valign=top >
<p  style='margin-right:0in'><a href="#sign"><u><b><font face="Arial" size=2>Signatures</font></b></u></a></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'><a href="#sign"><u><font face="Arial" size=2>29</font></u></a></p> </td> </tr></table>
</div>

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

<div TITLE="EE+ Page Break" STYLE="PAGE-BREAK-AFTER: always">

<HR noshade align="center" width="100%" size="2">
</DIV>


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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The First Bancorp, Inc. and Subsidiary</font></p>

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

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="642" style='margin-left:5.4pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td width="258" 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td  nowrap colspan="2" 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 face="Arial" size=2>For the nine months ended</font></b></p> </td>

        <td  nowrap colspan="2" 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 face="Arial" size=2>For the quarters ended</font></b></p> </td> </tr>
    <tr
style='height:12.75pt'>

        <td width="258" 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'><i><font face="Arial" size=2>Dollars in thousands, </font></i><i></i></p> </td>

        <td  nowrap colspan="2" valign=bottom style='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'><u><b><font face="Arial" size=2>September 30</font></b></u><u></u></p> </td>

        <td  nowrap colspan="2" valign=bottom style='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'><u><b><font face="Arial" size=2>September 30</font></b></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>except for per share amounts</font></i><i></i></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td> </tr>
    <tr style='height:13.5pt'>

        <td width="258" nowrap valign=bottom style='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'><i><b><font face="Arial" size=2>Summary of Operations</font></b></i><i></i></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Interest Income</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'><b><font face="Arial" size=2>$      53,735</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 face="Arial" size=2>$     52,989</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'><b><font face="Arial" size=2>$     17,891</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 face="Arial" size=2>$      18,538</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Interest Expense</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'><b><font face="Arial" size=2>26,353</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 face="Arial" size=2>29,655</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'><b><font face="Arial" size=2>8,268</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 face="Arial" size=2>10,381</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Net Interest Income</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'><b><font face="Arial" size=2>27,382</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 face="Arial" size=2>23,334</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'><b><font face="Arial" size=2>9,623</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 face="Arial" size=2>8,157</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Provision for Loan Losses</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'><b><font face="Arial" size=2>2,314</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 face="Arial" size=2>850</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'><b><font face="Arial" size=2>875</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 face="Arial" size=2>300</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Non-Interest Income</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'><b><font face="Arial" size=2>7,550</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 face="Arial" size=2>7,603</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'><b><font face="Arial" size=2>2,856</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 face="Arial" size=2>2,985</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Non-Interest Expense</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'><b><font face="Arial" size=2>17,158</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 face="Arial" size=2>16,602</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'><b><font face="Arial" size=2>6,284</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 face="Arial" size=2>6,000</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="258" 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net Income</font></p> </td>

        <td width="96" 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 face="Arial" size=2>11,026</font></b></p> </td>

        <td width="96" 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'><font face="Arial" size=2>9,613</font></p> </td>

        <td width="96" 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 face="Arial" size=2>3,832</font></b></p> </td>

        <td width="96" 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'><font face="Arial" size=2>3,414</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="258" nowrap valign=bottom style='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'><i><b><font face="Arial" size=2>Per Common Share Data</font></b></i><i></i></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Basic Earnings per Share</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'><b><font face="Arial" size=2>$          1.14</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 face="Arial" size=2>$        0.98</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'><b><font face="Arial" size=2>$        0.40</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 face="Arial" size=2>$         0.35</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Diluted Earnings per Share</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'><b><font face="Arial" size=2>1.13</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 face="Arial" size=2>0.98</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'><b><font face="Arial" size=2>0.39</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 face="Arial" size=2>0.35</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Cash Dividends Declared</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'><b><font face="Arial" size=2>0.570</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 face="Arial" size=2>0.510</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'><b><font face="Arial" size=2>0.195</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 face="Arial" size=2>0.175</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Book Value</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'><b><font face="Arial" size=2>11.96</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 face="Arial" size=2>11.43</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'><b><font face="Arial" size=2>11.96</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 face="Arial" size=2>11.43</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Tangible Book Value</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'><b><font face="Arial" size=2>9.10</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 face="Arial" size=2>8.61</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'><b><font face="Arial" size=2>9.10</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 face="Arial" size=2>8.61</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="258" 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Market Value</font></p> </td>

        <td width="96" 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 face="Arial" size=2>19.60</font></b></p> </td>

        <td width="96" 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'><font face="Arial" size=2>15.08</font></p> </td>

        <td width="96" 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 face="Arial" size=2>19.60</font></b></p> </td>

        <td width="96" 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'><font face="Arial" size=2>15.08</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="258" nowrap valign=bottom style='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'><i><b><font face="Arial" size=2>Financial Ratios</font></b></i><i></i></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Return on Average Equity <sup>1</sup></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'><b><font face="Arial" size=2>12.67%</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 face="Arial" size=2>11.74%</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'><b><font face="Arial" size=2>12.98%</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 face="Arial" size=2>12.22%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Return on Average Tangible Equity <sup>1</sup></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'><b><font face="Arial" size=2>16.63%</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 face="Arial" size=2>15.71%</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'><b><font face="Arial" size=2>16.95%</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 face="Arial" size=2>16.29%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Return on Average Assets <sup>1</sup></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'><b><font face="Arial" size=2>1.17%</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 face="Arial" size=2>1.13%</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'><b><font face="Arial" size=2>1.17%</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 face="Arial" size=2>1.15%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Average Equity to Average Assets</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'><b><font face="Arial" size=2>9.19%</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 face="Arial" size=2>9.60%</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'><b><font face="Arial" size=2>9.02%</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 face="Arial" size=2>9.38%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Average Tangible Equity to Average Assets</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'><b><font face="Arial" size=2>7.01%</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 face="Arial" size=2>7.17%</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'><b><font face="Arial" size=2>6.91%</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 face="Arial" size=2>7.03%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Net Interest Margin Tax-Equivalent <sup>1</sup></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'><b><font face="Arial" size=2>3.27%</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 face="Arial" size=2>3.11%</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'><b><font face="Arial" size=2>3.31%</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 face="Arial" size=2>3.11%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Dividend Payout Ratio</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'><b><font face="Arial" size=2>50.00%</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 face="Arial" size=2>52.04%</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'><b><font face="Arial" size=2>48.75%</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 face="Arial" size=2>50.00%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Allowance for Loan Losses/Total Loans</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'><b><font face="Arial" size=2>0.86%</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 face="Arial" size=2>0.75%</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'><b><font face="Arial" size=2>0.86%</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 face="Arial" size=2>0.75%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Non-Performing Loans to Total Loans</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'><b><font face="Arial" size=2>0.78%</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 face="Arial" size=2>0.20%</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'><b><font face="Arial" size=2>0.78%</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 face="Arial" size=2>0.20%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Non-Performing Assets to Total Assets</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'><b><font face="Arial" size=2>0.74%</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 face="Arial" size=2>0.20%</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'><b><font face="Arial" size=2>0.74%</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 face="Arial" size=2>0.20%</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="258" 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Efficiency Ratio <sup>2</sup></font></p> </td>

        <td width="96" 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 face="Arial" size=2>46.74%</font></b></p> </td>

        <td width="96" 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'><font face="Arial" size=2>50.96%</font></p> </td>

        <td width="96" 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 face="Arial" size=2>48.12%</font></b></p> </td>

        <td width="96" 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'><font face="Arial" size=2>51.28%</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="258" nowrap valign=bottom style='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'><i><b><font face="Arial" size=2>At Period End</font></b></i><i></i></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'></td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Total Assets</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'><b><font face="Arial" size=2>$1,311,262</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 face="Arial" size=2>$1,202,579</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'><b><font face="Arial" size=2>$1,311,262</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 face="Arial" size=2>$1,202,579</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Total Loans</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'><b><font face="Arial" size=2>960,897</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 face="Arial" size=2>891,675</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'><b><font face="Arial" size=2>960,897</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 face="Arial" size=2>891,675</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Total Investment Securities</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'><b><font face="Arial" size=2>261,057</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 face="Arial" size=2>219,855</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'><b><font face="Arial" size=2>261,057</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 face="Arial" size=2>219,855</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="258" 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 face="Arial" size=2>Total Deposits</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'><b><font face="Arial" size=2>918,992</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 face="Arial" size=2>811,395</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'><b><font face="Arial" size=2>918,992</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 face="Arial" size=2>811,395</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="258" 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 face="Arial" size=2>Total Shareholders&#146; Equity</font></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 face="Arial" size=2>115,872</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 face="Arial" size=2>112,105</font></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 face="Arial" size=2>115,872</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 face="Arial" size=2>112,105</font></p> </td> </tr></table>
</div>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 1</font>
</A></p>

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

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

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

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

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

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

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

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The First Bancorp, Inc.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>We have reviewed the accompanying interim consolidated financial information of The First Bancorp, Inc. and Subsidiary as of September 30, 2008 and 2007 and for the three-month and nine-month periods then ended. These financial statements are the responsibility of the Company&#146;s management.</font></p>

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

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>November 6, 2008</font></p>

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 2</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The First Bancorp, Inc. and Subsidiary</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="642" style='margin-left:5.4pt;border-collapse:collapse; '>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-top: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td width="108" nowrap valign=bottom style=' border-top:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>September 30,</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-top: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>December 31,</font></p> </td>

        <td width="102" nowrap valign=bottom style='
border-top:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>September 30,</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font face="Arial" size=2>In thousands of dollars</font></i><i></i></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2008</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>2007</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>2007</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Assets</font></b></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Cash and due from banks</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$      21,667</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$      17,254</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$     27,339</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Overnight funds sold</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>-</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Securities available for sale</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>35,306</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>40,461</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>44,430</font></p> </td> </tr>
    <tr style='height:38.25pt'>

        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Securities to be held to maturity (fair value $219,483 at September 30, 2008, $181,132 at December 31, 2007 and $171,645 at September 30, 2007)</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>225,751</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>181,354</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>175,425</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="336" 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 face="Arial" size=2>Loans held for sale (fair value approximates cost)</font></p> </td>

        <td width="108" 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 face="Arial" size=2>1,203</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 face="Arial" size=2>1,817</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 face="Arial" size=2>1,313</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Loans</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>960,897</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>920,164</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>891,675</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Less: allowance for loan losses</font></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>8,303</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>6,800</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>6,714</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net loans</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>952,594</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>913,364</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>884,961</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Accrued interest receivable</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>6,785</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>6,585</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>7,360</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Premises and equipment</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>16,301</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>16,481</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>15,526</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Other real estate owned</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2,168</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>827</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>625</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Goodwill</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>27,684</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>27,684</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>27,684</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Other assets</font></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>21,803</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>17,423</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>17,916</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Total Assets</font></b></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 1,311,262</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:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$1,223,250</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$1,202,579</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Liabilities</font></b></p> </td>

        <td width="108" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:12.95pt'></td>

        <td width="102" nowrap valign=bottom style=' padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Demand deposits</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$      75,753</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$     60,637</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$     72,597</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>NOW deposits</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>110,365</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>101,680</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>110,051</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Money market deposits</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>123,157</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>124,033</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>114,620</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Savings deposits</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>85,230</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>86,611</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>91,708</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Certificates of deposit</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>413,913</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>301,364</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>311,773</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Certificates $100,000 and over</font></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>110,574</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>106,955</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>110,646</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total deposits</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>918,992</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>781,280</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>811,395</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Borrowed funds</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>264,617</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>316,719</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>267,011</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Other liabilities</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>11,781</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>12,583</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>12,068</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total Liabilities</font></p> </td>

        <td width="108" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>1,195,390</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>1,110,582</font></p> </td>

        <td width="102" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>1,090,474</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Shareholders' Equity</font></b></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Common stock</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>97</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>97</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>98</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Additional paid-in capital</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>43,995</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>44,762</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>45,926</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Retained earnings</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>72,939</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>67,647</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>65,911</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Accumulated other comprehensive (loss) income</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net unrealized gain (loss) on securities available-for-sale</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(899)</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>436</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>507</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>Net unrealized loss on postretirement benefit costs</font></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>(260)</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>(274)</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>(337)</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total Shareholders' Equity</font></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>115,872</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>112,668</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>112,105</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Total Liabilities &amp; Shareholders' Equity</font></b></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 1,311,262</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:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$1,223,250</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$1,202,579</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font><i></i></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:12.95pt'></td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.95pt'></td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:12.95pt'></td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Common Stock</font></b></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'></td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Number of shares authorized</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>18,000,000</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>18,000,000</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>18,000,000</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Number of shares issued and outstanding</font></p> </td>

        <td width="108" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>9,689,711</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>9,732,493</font></p> </td>

        <td width="102" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>9,810,329</font></p> </td> </tr>
    <tr style='height:12.95pt'>

        <td width="336" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Book value per share</font></p> </td>

        <td width="108" nowrap valign=bottom style=' border-bottom:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$11.96</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:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$11.58</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$11.43</font></p> </td> </tr></table>
</div>

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

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

<div TITLE="EE+ Page Footer">
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font FACE="ARIAL" SIZE=2></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 3</font>
</A></p>

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

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

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<HR noshade align="center" width="100%" size="2">
</DIV>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<i><b><font face="Arial" size=2><a name="income"></a>Consolidated Statements of Income (Unaudited)</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The First Bancorp, Inc. and Subsidiary</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="637" style='margin-left:5.4pt;border-collapse:collapse; '>
    <tr style='height:15.75pt'>

        <td width="291" valign=bottom style='border-top:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>For the nine months ended</font></b></p> </td>

        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>For the quarters ended</font></b></p> </td> </tr>
    <tr
style='height:12.75pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td  nowrap colspan="2" valign=bottom style='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'><u><b><font face="Arial" size=2>September 30,</font></b></u><u></u></p> </td>

        <td  nowrap colspan="2" valign=bottom style='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'><u><b><font face="Arial" size=2>September 30,</font></b></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="291" valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>In thousands of dollars</font></i><i></i></p> </td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="291" 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 face="Arial" size=2>Interest income</font></b></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Interest and fees on loans</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$44,219</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$44,959</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$14,570</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$15,554</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Interest on deposits with other banks</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>-</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>-</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td> </tr>
    <tr style='height:16.5pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Interest and dividends on investments</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>9,516</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>8,030</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>3,321</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>2,984</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total interest income</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>53,735</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>52,989</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>17,891</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>18,538</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Interest expense</font></b></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Interest on deposits</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>18,041</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>22,661</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>5,692</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>7,792</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Interest on borrowed funds</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>8,312</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>6,994</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2,576</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>2,589</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total interest expense</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>26,353</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>29,655</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>8,268</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>10,381</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net interest income</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>27,382</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>23,334</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>9,623</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>8,157</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Provision for loan losses</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2,314</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>850</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>875</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>300</font></p> </td> </tr>
    <tr style='height:15.75pt'>

        <td width="291" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net interest income after provision for loan losses</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>25,068</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>22,484</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>8,748</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>7,857</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Non-interest income</font></b></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td> </tr>
    <tr style='height:13.5pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Investment management and fiduciary income</font></p> </td>

        <td width="92" 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'><b><font face="Arial" size=2>1,138</font></b></p> </td>

        <td width="81" 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 face="Arial" size=2>1,345</font></p> </td>

        <td width="92" 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'><b><font face="Arial" size=2>358</font></b></p> </td>

        <td width="81" 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 face="Arial" size=2>389</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Service charges on deposit accounts</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2,191</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>2,059</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>703</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>659</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net securities gains</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>6</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(22)</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Mortgage origination and servicing income</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>370</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>378</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>154</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>164</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Other operating income</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>3,845</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>3,821</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>1,663</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>1,773</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total non-interest income</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>7,550</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>7,603</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2,856</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>2,985</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Non-interest expense</font></b></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'></td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Salaries and employee benefits</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>8,625</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>8,153</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2,945</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>2,819</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Occupancy expense</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>1,150</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>1,089</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>376</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>341</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Furniture and equipment expense</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>1,508</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>1,456</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>566</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>487</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Amortization of identified intangibles</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>213</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>213</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>71</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>71</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Other operating expense</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>5,662</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>5,691</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2,326</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>2,282</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total non-interest expense</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>17,158</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>16,602</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>6,284</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>6,000</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Income before income taxes</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>15,460</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>13,485</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>5,320</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>4,842</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Applicable income taxes</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>4,434</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>3,872</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>1,488</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>1,428</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font FACE="ARIAL" SIZE=2>NET INCOME</font></B></p> </td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$11,026</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$9,613</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 3,832</font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$ 3,414</font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" nowrap valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font><i></i></p> </td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding: 0in 5.4pt 0in 5.4pt;height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding: 0in 5.4pt 0in 5.4pt;height:15.0pt'></td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding: 0in 5.4pt 0in 5.4pt;height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding: 0in 5.4pt 0in 5.4pt;height:15.0pt'></td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Earnings per common share:</font></b></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:15.0pt'></td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Basic earnings per share</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$  1.14 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$  0.98 </font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$  0.40 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$  0.35 </font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Diluted earnings per share</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$  1.13 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$  0.98 </font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$  0.39 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$  0.35 </font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Cash dividends declared per share</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$0.570 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$0.510 </font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$0.195 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$0.175 </font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Weighted average number of shares outstanding</font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>9,703,901 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>9,792,944 </font></p> </td>

        <td width="92" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>9,689,053 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>9,807,680 </font></p> </td> </tr>
    <tr style='height:15.0pt'>

        <td width="291" valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Incremental shares</font></p> </td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>20,103 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>26,097 </font></p> </td>

        <td width="92" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>21,290 </font></b></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>25,522 </font></p> </td> </tr></table>
</div>

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

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

<div TITLE="EE+ Page Footer">
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font FACE="ARIAL" SIZE=2></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 4</font>
</A></p>

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

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

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

<div TITLE="EE+ Page Break" STYLE="PAGE-BREAK-AFTER: always">

<HR noshade align="center" width="100%" size="2">
</DIV>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<i><b><font face="Arial" size=2>Consolidated Statements of Changes in Shareholders&#146; Equity (Unaudited)</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The First Bancorp, Inc. and Subsidiary</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="679" style='margin-left:4.65pt;border-collapse:collapse; '>
    <tr style='height:51.0pt'>

        <td  colspan="3" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:51.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font face="Arial" size=2>In thousands of dollars except number of shares</font></i><i></i></p> </td>

        <td width="70" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:51.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Number of common shares</font></p> </td>

        <td width="66" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;
padding:0in 5.4pt 0in 5.4pt;height:51.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Common stock</font></p> </td>

        <td width="72" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:51.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Additional paid-in capital</font></p> </td>

        <td width="66" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:51.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Retained earnings</font></p> </td>

        <td width="96" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:51.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Accumulated other comprehensive income (loss)</font></p> </td>

        <td width="90" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:51.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total shareholders&#146; equity</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='border-bottom:solid black 1.0pt;  padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Balance at December 31, 2006</font></b></p> </td>

        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>9,770,792 </font></b></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$     98 </font></b></p> </td>

        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 45,587 </font></b></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 61,298 </font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$     344 </font></b></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$  107,327 </font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net income</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>9,613</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="90" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>9,613</font></p> </td> </tr>
    <tr style='height:38.25pt'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='padding:0in 5.75pt 0in 0in;height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net unrealized loss on securities available for sale, net of tax benefit of $101</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='padding:0in 5.75pt 0in 0in; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(189)</font></p> </td>

        <td width="90" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:38.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(189)</font></p> </td> </tr>
    <tr style='height:33.3pt'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 0in; height:33.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net change in unrecognized transition obligation for postretirement benefits, net of tax of $9</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:33.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:33.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:33.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:33.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:33.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>15</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:33.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>15</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Comprehensive income</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>9,613</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(174)</font></p> </td>

        <td width="90" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>9,439</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Cash dividends declared</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(5,000)</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="90" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(5,000)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='padding:0in 5.75pt 0in 0in;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Equity compensation expense</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>48</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="90" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>48</font></p> </td> </tr>
    <tr style='height:8.55pt'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='padding:0in 5.75pt 0in 0in;height:8.55pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Payment to repurchase common stock</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='padding:0in 5.75pt 0in 0in; height:8.55pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(23,157)</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:8.55pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:8.55pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(375)</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:8.55pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:8.55pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="90" nowrap valign=bottom style='padding:0in 5.75pt 0in 0in; height:8.55pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(375)</font></p> </td> </tr>
    <tr style='height:.15in'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 0in; height:.15in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Proceeds from sale of common stock</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:.15in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>62,694</font></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:.15in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:.15in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>666</font></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:.15in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:.15in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 0in;height:.15in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>666</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td  width="1">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td width="216" style='border-bottom:solid black 1.5pt; padding:0in 5.75pt 0in 0in; height:13.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Balance at September 30, 2007</font></b></p> </td>

        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.5pt; padding:0in 5.75pt 0in 0in;height:13.5pt'>
<p style='margin-left:0pt;text-indent:6.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>9,810,329 </font></b></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.75pt 0in 0in; height:13.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$    98 </font></b></p> </td>

        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.75pt 0in 0in; height:13.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 45,926 </font></b></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.75pt 0in 0in; height:13.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 65,911 </font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.75pt 0in 0in; height:13.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$     170 </font></b></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.5pt;padding:0in 5.75pt 0in 0in; height:13.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$  112,105 </font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  colspan="3" 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="70" 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="66" 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="72" 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="66" 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="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=1>&nbsp;</font></p> </td>

        <td width="90" 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  colspan="3" style='border-top:solid black 1.0pt; 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:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Balance at December 31, 2007 </font></b></p>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>as previously stated</font></b></p> </td>

        <td width="70" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>9,732,493</font></b></p> </td>

        <td width="66" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$    97</font></b></p> </td>

        <td width="72" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$44,762</font></b></p> </td>

        <td width="66" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$ 67,647</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$     162</font></b></p> </td>

        <td width="90" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$  112,668</font></b></p> </td> </tr>
    <tr style='height:.3in'>

        <td  colspan="3" style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Cumulative effect of accounting change for split-dollar life insurance</font></p> </td>

        <td width="70" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(215)</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(215)</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td  colspan="3" style='border-top:solid black 1.0pt; 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:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Balance at January 1, 2008</font></b></p>
<p style='margin-left:-4.65pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>after accounting change</font></b></p> </td>

        <td width="70" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>9,732,493</font></b></p> </td>

        <td width="66" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$    97</font></b></p> </td>

        <td width="72" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$ 44,762</font></b></p> </td>

        <td width="66" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$ 67,432</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$     162</font></b></p> </td>

        <td width="90" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$  112,453</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  colspan="3" style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net income</font></p> </td>

        <td width="70" 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 face="Arial" size=2>-</font></p> </td>

        <td width="66" 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 face="Arial" size=2>-</font></p> </td>

        <td width="72" 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 face="Arial" size=2>-</font></p> </td>

        <td width="66" 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 face="Arial" size=2>11,026</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 face="Arial" size=2>-</font></p> </td>

        <td width="90" 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 face="Arial" size=2>11,026</font></p> </td> </tr>
    <tr style='height:.4in'>

        <td  colspan="3" style='padding:0in 5.4pt 0in 5.4pt; height:.4in'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net unrealized loss on securities available for sale, net of tax benefit of $719</font></p> </td>

        <td width="70" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(1,335)</font></p> </td>

        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(1,335)</font></p> </td> </tr>
    <tr style='height:.4in'>

        <td  colspan="3" style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:.4in'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Unrecognized transition obligation for postretirement benefits, net of taxes of $8</font></p> </td>

        <td width="70" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>14</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:.4in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>14</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  colspan="3" style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Comprehensive income</font></p> </td>

        <td width="70" 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 face="Arial" size=2>-</font></p> </td>

        <td width="66" 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 face="Arial" size=2>-</font></p> </td>

        <td width="72" 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 face="Arial" size=2>-</font></p> </td>

        <td width="66" 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 face="Arial" size=2>11,026</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 face="Arial" size=2>(1,321)</font></p> </td>

        <td width="90" 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 face="Arial" size=2>9,705</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  colspan="3" style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Cash dividends declared</font></p> </td>

        <td width="70" 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 face="Arial" size=2>-</font></p> </td>

        <td width="66" 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 face="Arial" size=2>-</font></p> </td>

        <td width="72" 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 face="Arial" size=2>-</font></p> </td>

        <td width="66" 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 face="Arial" size=2>(5,527)</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 face="Arial" size=2>-</font></p> </td>

        <td width="90" 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 face="Arial" size=2>(5,527)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  colspan="3" style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Equity compensation expense</font></p> </td>

        <td width="70" 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 face="Arial" size=2>-</font></p> </td>

        <td width="66" 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 face="Arial" size=2>-</font></p> </td>

        <td width="72" 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 face="Arial" size=2>28</font></p> </td>

        <td width="66" 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 face="Arial" size=2>-</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 face="Arial" size=2>-</font></p> </td>

        <td width="90" 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 face="Arial" size=2>28</font></p> </td> </tr>
    <tr style='height:.1in'>

        <td  colspan="3" style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Payment to repurchase common stock</font></p> </td>

        <td width="70" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(84,868)</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(1,347)</font></p> </td>

        <td width="66" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="90" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(1,347)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  colspan="3" style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Proceeds from sale of common stock</font></p> </td>

        <td width="70" 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 face="Arial" size=2>42,086</font></p> </td>

        <td width="66" 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 face="Arial" size=2>-</font></p> </td>

        <td width="72" 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 face="Arial" size=2>552</font></p> </td>

        <td width="66" 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 face="Arial" size=2>-</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 face="Arial" size=2>-</font></p> </td>

        <td width="90" 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 face="Arial" size=2>552</font></p> </td> </tr>
    <tr style='height:27.0pt'>

        <td  colspan="3" style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:27.0pt'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Tax benefit of disqualifying disposition of incentive stock option shares</font></p> </td>

        <td width="70" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:27.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:27.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="72" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:27.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="66" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:27.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>8</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:27.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:27.0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>8</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td  colspan="3" style='border-bottom:solid black 1.5pt; padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Balance at September 30, 2008</font></b></p> </td>

        <td width="70" 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 face="Arial" size=2>9,689,711</font></b></p> </td>

        <td width="66" 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 face="Arial" size=2>$    97</font></b></p> </td>

        <td width="72" 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 face="Arial" size=2>$ 43,995</font></b></p> </td>

        <td width="66" 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 face="Arial" size=2>$ 72,939</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 face="Arial" size=2>$  (1,159)</font></b></p> </td>

        <td width="90" 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 face="Arial" size=2>$  115,872</font></b></p> </td> </tr>
    <tr>

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

        <td width="154" ></td>

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

        <td width="72" ></td>

        <td width="67" ></td>

        <td width="73" ></td>

        <td width="67" ></td>

        <td width="97" ></td>

        <td width="149" ></td> </tr> </table>
</div>

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

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

<div TITLE="EE+ Page Footer">
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font FACE="ARIAL" SIZE=2></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 5</font>
</A></p>

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

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

<div TITLE="EE+ Page Break" STYLE="PAGE-BREAK-AFTER: always">

<HR noshade align="center" width="100%" size="2">
</DIV>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<i><b><font face="Arial" size=2><a name="cashflow"></a>Consolidated Statements of Cash Flows (Unaudited)</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The First Bancorp, Inc. and Subsidiary</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="624" style='margin-left:5.4pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td width="390" nowrap valign=bottom style=' border-top:solid black 1.0pt;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 face="Arial" size=2>&nbsp;</font></p> </td>

        <td  nowrap colspan="3" valign=bottom style='border-top:solid black 1.0pt;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 face="Arial" size=2>For nine months ended September 30,</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="390" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>In thousands of
dollars</font></i><i></i></p> </td>

        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td width="390" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Cash flows from operating activities</font></b></p> </td>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'></td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'></td> </tr>
    <tr style='height:12.25pt'>

        <td width="390" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net income</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 11,026</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$  9,613</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="3" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Adjustments to reconcile net income to net cash provided by operating activities</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'></td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Depreciation</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>923</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>921</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Provision for loan losses</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2,314</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>850</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Loans originated for resale</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(16,543)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(19,027)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Proceeds from sales and transfers of loans</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>17,157</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>18,174</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net gain on sale or call of securities held-to-maturity</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(6)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net loss on sale of other real estate owned</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>-</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>20</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Equity compensation expense</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>28</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>48</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net increase in other assets and accrued interest</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(4,313)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(2,292)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net decrease in other liabilities</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(2,734)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(412)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net amortization of premiums on investments</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(3,496)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(1,933)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net acquisition amortization</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>180</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>235</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Provision for losses on other real estate owned</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>-</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>75</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net (gain) loss on sale of real estate</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(27)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='border-top: solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net cash provided by operating activities</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>4,538</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>6,245</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Cash flows from investing activities</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'></td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'></td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Proceeds from maturities, payments and calls of securities available for sale</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>4,641</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>3,173</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Proceeds from maturities, payments and calls of securities to be held to maturity</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>83,831</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>78,989</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Proceeds from sales of other real estate owned</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>-</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>959</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Purchases of securities available for sale</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(1,463)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(2,985)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Purchases of securities to be held to maturity</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(124,803)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(116,840)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net increase in loans</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(42,885)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(54,610)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Capital expenditures</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(745)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(825)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Proceeds from sale of premises and equipment</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>250</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='border-top: solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net cash used in investing activities</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(81,424)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(91,889)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Cash flows from financing activities</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'></td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'></td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net increase (decrease) in demand, savings, and money market accounts</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>21,544</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(8,087)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net increase in certificates of deposit</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>116,184</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>14,302</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Advances on long-term borrowings</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>50,000</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>90,000</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Repayment on long-term borrowings</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>-</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(62,000)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net increase (decrease) in short-term borrowings</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(102,085)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>59,138</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Payments to repurchase common stock</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(1,347)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(375)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Proceeds from sale of common stock</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>552</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>666</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Dividends paid</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>(3,549)</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(4,849)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='border-top: solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net cash provided by financing activities</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>81,299</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>88,795</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net increase in cash and cash equivalents</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>4,413</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>3,151</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Cash and cash equivalents at beginning of year</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>17,254</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>24,188</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='border-top: solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Cash and cash equivalents at end of period</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 21,667</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$ 27,339</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Interest paid</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 26,122</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$ 29,102</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Income taxes paid</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$   5,346</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$   4,363</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Non-cash transactions</font></b></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'></td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'></td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='padding: 0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Change in net unrealized gain on available for sale securities, net of tax</font></p> </td>

        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$   1,335</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$    (189)</font></p> </td> </tr>
    <tr style='height:12.25pt'>

        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt; height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net transfer from loans to other real estate owned</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$   1,341</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$     535</font></p> </td> </tr>
    <tr>

        <td width="390" ></td>

        <td width="54" ></td>

        <td width="96" ></td>

        <td width="84" ></td> </tr> </table>
</div>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The First Bancorp, Inc. and Subsidiary</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="note1"></a>Note 1 &#150; Basis of Presentation</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The First Bancorp, Inc. (the Company) is a financial holding company that owns all of the common stock of The First, N.A. (the Bank). At the Company&#146;s Annual Meeting of Shareholders on April 30, 2008, the Company&#146;s name was changed from First National Lincoln Corporation to The First Bancorp, Inc. 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. The income reported for the 2008 period is not necessarily indicative of the results that may be expected for the year ending December 31, 2008. For further information, refer to the consolidated financial statements and notes included in the Company&#146;s annual report on Form 10-K for the year ended December 31, 2007.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="note2"></a>Note 2 &#150; Common Stock</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>On August 16, 2007, the Company announced that its Board of Directors had authorized a new program for the repurchase of up to 300,000 shares of the Company&#146;s common stock or approximately 3.1% of the outstanding shares. The Board of Directors feels that repurchasing shares continues to be in the best interest of the Company&#146;s shareholders and sees stock repurchases as an appropriate use of capital, especially given the recent decline in stock prices for the banking industry. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>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&#146;s stock and the level of stock issuances under the Company&#146;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. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>As of September 30, 2008, the Company had repurchased 171,579 shares under the current repurchase plan at an average price of $15.50 per share and at a total cost of $2.7 million. This new stock plan supersedes the buyback program that had been in place since July 21, 2006, which had authorized the repurchase of up to 250,000 or 2.5% of the Company&#146;s outstanding shares. As of August 16, 2007, the date the new plan was effective, the Company had repurchased 130,186 shares under the old repurchase plan at an average price of $16.89 and at a total cost of $2.2 million.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="note3"></a>Note 3 &#150; Stock Options</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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&#146;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 face="Arial" 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. As a result, $28,000 in compensation cost is included in the Company&#146;s financial statements for the first nine months of 2008. The unrecognized compensation cost to be amortized over a weighted average remaining vesting period of 2.25 years is $83,000, which is for 21,000 options granted in 2005. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.31in;text-align:left;'><font face="Arial" size=2>The weighted average fair market value per share was $4.41 at the time of grant. The fair market value was estimated using the Black-Scholes option pricing model and the following assumptions: quarterly dividends of $0.12, risk-free interest rate of 4.20%, volatility of 25.81%, and an expected life of ten 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 </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 7</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>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 face="Arial" size=2>The following table summarizes the status of the Company&#146;s non-vested options as of September 30, 2008:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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 face="Arial" size=2>Non-vested at December 31, 2007</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 face="Arial" size=2>21,000</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 face="Arial" size=2>$4.41</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:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Granted in 2008</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 face="Arial" 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 face="Arial" 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:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Vested in 2008</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 face="Arial" 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 face="Arial" size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="319" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Forfeited in 2008</font></p> </td>

        <td width="166" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>-</font></p> </td>

        <td width="166" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" 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 face="Arial" size=2>Non-vested at September 30, 2008</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 face="Arial" size=2>21,000</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 face="Arial" size=2>$4.41</font></p> </td> </tr></table>
</div>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>During 2008, 13,000 options were exercised, with proceeds paid to the Company of $84,000. The excess of the fair value of the stock issued upon exercise over the exercise price was $115,000. A summary of the status of the Company&#146;s Stock Option Plan as of September 30, 2008 and changes during the nine-month period then ended, is presented below.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;border-right:none;  height:38.15pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 1.0pt;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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>Outstanding at December 31, 2007</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 face="Arial" size=2>89,500</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 face="Arial" size=2>$12.28</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 face="Arial" size=2>Granted in 2008</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 face="Arial" 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 face="Arial" 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:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Vested in 2008</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 face="Arial" 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 face="Arial" 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:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Exercised in 2008</font></p> </td>

        <td width="109" nowrap valign=top 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 face="Arial" size=2>(13,000)</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 face="Arial" size=2>6.43</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 face="Arial" size=2>Forfeited in 2008</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 face="Arial" 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 face="Arial" 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 1.0pt; 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Outstanding at September 30, 2008</font></p> </td>

        <td width="109" nowrap valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>76,500</font></p> </td>

        <td width="109" nowrap valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$13.27</font></p> </td>

        <td width="109" nowrap valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>4.3</font></p> </td>

        <td width="109" nowrap valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$484</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 face="Arial" size=2>Exercisable at September 30, 2008</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 face="Arial" size=2>55,500</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 face="Arial" size=2>$11.49</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 face="Arial" size=2>3.6</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 face="Arial" size=2>$450</font></p> </td> </tr></table>
</div>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="note4"></a>Note 4 &#150; Earnings Per Share</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The following table sets forth the computation of basic and diluted earnings per share (EPS) for the nine months ended September 30, 2008 and 2007:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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'><i>&nbsp;</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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>Per-Share</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="352" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" 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 1.0pt; 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 face="Arial" size=2>(Numerator)</font></p> </td>

        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>(Denominator)</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" 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 face="Arial" size=2>For the nine months ended September 30, 2008</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 1.0pt; 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 face="Arial" size=2>Net income as reported</font></p> </td>

        <td width="87" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:.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 face="Arial" size=2>$11,026 </font></p> </td>

        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>&nbsp;</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>11,026 </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 face="Arial" size=2>9,703,901</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 face="Arial" size=2>$1.14 </font></p> </td> </tr>
    <tr style='height:12.0pt'>

        <td width="352" valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>Effect of dilutive securities: incentive stock options</font></p> </td>

        <td width="87" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 1.0pt; 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 face="Arial" size=2>20,103</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" 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 face="Arial" size=2>$11,026 </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 face="Arial" size=2>9,724,004</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 face="Arial" size=2>$1.13 </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 face="Arial" size=2>For the nine months ended September 30, 2007</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" style='border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Net income as reported</font></p> </td>

        <td width="87" nowrap style='border-bottom:solid black 1.0pt; padding:.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 face="Arial" size=2>$  9,613 </font></p> </td>

        <td width="89" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>&nbsp;</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>9,613 </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 face="Arial" size=2>9,792,944</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 face="Arial" size=2>$0.98 </font></p> </td> </tr>
    <tr style='height:14.25pt'>

        <td width="352" style='border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Effect of dilutive securities: incentive stock options</font></p> </td>

        <td width="87" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 style='border-bottom:solid black 1.0pt; 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 face="Arial" size=2>26,097</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" 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 face="Arial" size=2>$  9,613 </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 face="Arial" size=2>9,819,041</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 face="Arial" size=2>$0.98 </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 8</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The following table sets forth the computation of basic and diluted earnings per share (EPS) for the three months ended September 30, 2008 and 2007:</font></p>

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


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<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'><i>&nbsp;</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 face="Arial" 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 face="Arial" 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
face="Arial" size=2>Per-Share</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="354" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font face="Arial" 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 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(Numerator)</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>(Denominator)</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Amount</font></p> </td> </tr>
    <tr style='height:12.75pt'>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>For the quarter ended September 30, 2008</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="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="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:12.75pt'>

        <td width="354" valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net income as reported</font></p> </td>

        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$3,832</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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='border-bottom: solid black 1.0pt; 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: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 face="Arial" 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 face="Arial" size=2>3,832</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 face="Arial" size=2>9,689,053</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 face="Arial" size=2>$0.40</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="354" valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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: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 face="Arial" size=2>21,290</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: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 face="Arial" 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 1.0pt; 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 face="Arial" size=2>$3,832</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>9,710,343</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$0.39</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 face="Arial" size=2>For the quarter ended September 30, 2007</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 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net income as reported</font></p> </td>

        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>$3,414</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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='border-bottom: solid black 1.0pt; 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: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 face="Arial" 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 face="Arial" size=2>3,414</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 face="Arial" size=2>9,807,680</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 face="Arial" size=2>$0.35</font></p> </td> </tr>
    <tr style='height:11.25pt'>

        <td width="354" valign=bottom style='border-bottom: solid black 1.0pt; height:11.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Effect of dilutive securities: incentive stock options</font></p> </td>

        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:11.25pt'>
<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='border-bottom: solid black 1.0pt; height:11.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>25,522</font></p> </td>

        <td width="96" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:11.25pt'>
<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:27.75pt'>

        <td width="354" 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 face="Arial" 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 face="Arial" size=2>$3,414</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 face="Arial" size=2>9,833,202</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 face="Arial" size=2>$0.35</font></p> </td> </tr></table>
</div>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="note5"></a>Note 5 &#150; Postretirement Benefit Plans</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>In December 2006, the Company implemented SFAS No. 158, &#147;Employers&#146; Accounting for Defined Benefit Pension and Other Postretirement Plans &#150; an amendment of FASB Statements No. 87, 88, 106, and 132(R)&#148;. 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 balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income of a business entity. 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 face="Arial" 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;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 face="Arial" size=2>&nbsp;</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.5pt;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'><u><b><font face="Arial" size=2>At September 30, </font></b></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="283" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>In thousands of
dollars</font></i><i></i></p> </td>

        <td width="126" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="120" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>2007</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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>$1,949</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 face="Arial" size=2>$2,005</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 face="Arial" 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 face="Arial" size=2>12</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 face="Arial" size=2>10</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 face="Arial" 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 face="Arial" size=2>102</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 face="Arial" size=2>94</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 face="Arial" 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 face="Arial" size=2>(131)</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 face="Arial" size=2>(87)</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="283" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>Benefit obligation at end of period</font></p> </td>

        <td width="126" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>1,932</font></b></p> </td>

        <td width="120" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>2,022</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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>(1,932)</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 face="Arial" size=2>(2,022)</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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>-</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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="283" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Unrecognized transition obligation</font></p> </td>

        <td width="126" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:.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 face="Arial" size=2>-</font></b></p> </td>

        <td width="120" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:.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 face="Arial" size=2>-</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 face="Arial" 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:12.0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$(1,932)</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 face="Arial" size=2>$(2,022)</font></p> </td> </tr></table>
</div>

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

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

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

<div TITLE="EE+ Page Footer">
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font FACE="ARIAL" SIZE=2></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 9</font>
</A></p>

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

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

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

<div TITLE="EE+ Page Break" STYLE="PAGE-BREAK-AFTER: always">

<HR noshade align="center" width="100%" size="2">
</DIV>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="649" style='margin-left:4.65pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td width="253" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>&nbsp;</font></p> </td>

        <td  nowrap colspan="4" valign=bottom style='border-top: solid black 1.5pt;border-left:none;border-bottom:solid black 1.0pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:-.9pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><b><font face="Arial" size=2>For nine months ended </font></b><br> <b><font face="Arial" size=2>September 30,</font></b></p> </td>

        <td  nowrap colspan="3" valign=bottom style=' border-top:solid black
1.5pt;border-left:none;border-bottom:solid black 1.0pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:-5.4pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><b><font face="Arial" size=2>For the quarters ended September 30,</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="253" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font face="Arial" size=2>In thousands of dollars</font></i></p> </td>

        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;  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 face="Arial" size=2>2008</font></b></p> </td>

        <td  nowrap colspan="3" valign=bottom style=' border-bottom:solid black 1.0pt;  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 face="Arial" size=2>2007</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt;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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="84" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;  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 face="Arial" size=2>2007</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="253" 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 face="Arial" size=2>Components of net periodic benefit cost</font></b></p> </td>

        <td  nowrap colspan="2" 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  nowrap colspan="3" 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="90" 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="84" 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  nowrap colspan="2" 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 face="Arial" size=2>Service cost</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'><b><font face="Arial" size=2>$  12</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>$  10</font></p> </td>

        <td  nowrap colspan="3" 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 face="Arial" size=2>$  4</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>$  4</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  nowrap colspan="2" 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 face="Arial" size=2>Interest cost</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'><b><font face="Arial" size=2>102</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>94</font></p> </td>

        <td  nowrap colspan="3" 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 face="Arial" size=2>31</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>31</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  nowrap colspan="2" 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 face="Arial" size=2>Amortization of unrecognized transition obligation</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'><b><font face="Arial" size=2>21</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>22</font></p> </td>

        <td  nowrap colspan="3" 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 face="Arial" size=2>8</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>8</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  nowrap colspan="2" 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 face="Arial" size=2>Amortization of prior service credit</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'><b><font face="Arial" size=2>(3)</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>(2)</font></p> </td>

        <td  nowrap colspan="3" 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 face="Arial" size=2>(1)</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>(1)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  nowrap colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Amortization of accumulated losses</font></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>3</font></p> </td>

        <td  nowrap colspan="3" valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>1</font></b></p> </td>

        <td width="84" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>1</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td  nowrap colspan="2" 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 face="Arial" size=2>Net periodic benefit cost</font></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 face="Arial" size=2>$134</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>$127</font></p> </td>

        <td  nowrap colspan="3" 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 face="Arial" size=2>$43</font></b></p> </td>

        <td width="84" 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 face="Arial" size=2>$43</font></p> </td> </tr>
    <tr>

        <td width="253" ></td>

        <td width="36" ></td>

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

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

        <td width="6" ></td>

        <td width="18" ></td>

        <td width="90" ></td>

        <td width="84" ></td> </tr> </table>
</div>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income are as follows:</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="529" style='margin-left:4.95pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td width="289" 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td  nowrap colspan="2" 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:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font face="Arial" size=2>At September 30, </font></b></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="289" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>In thousands of
dollars</font></i><i></i></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2008</font></b></p> </td>

        <td width="138" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="289" 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 face="Arial" size=2>Unamortized prior service credit</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 face="Arial" size=2>$       3</font></b></p> </td>

        <td width="138" 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 face="Arial" size=2>$       7</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="289" 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 face="Arial" size=2>Unamortized net actuarial loss</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 face="Arial" size=2>(274)</font></b></p> </td>

        <td width="138" 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 face="Arial" size=2>(368)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="289" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Unrecognized transition obligation</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>(129)</font></b></p> </td>

        <td width="138" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>(157)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="289" 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="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 face="Arial" size=2>(400)</font></b></p> </td>

        <td width="138" 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 face="Arial" size=2>(518)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="289" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Deferred tax benefit at 35%</font></p> </td>

        <td width="102" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>140</font></b></p> </td>

        <td width="138" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>181</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="289" 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 face="Arial" size=2>Net unrecognized postretirement benefits included in accumulated other comprehensive income</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 face="Arial" size=2>$ (260)</font></b></p> </td>

        <td width="138" 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 face="Arial" size=2>$ (337)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>A weighted average discount rate of 7.0% was used in determining 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 expected benefit payments for the fourth quarter of 2008 are $37,000 and the expected benefit payments for all of 2008 are $141,000. There is no expected contribution for 2008. Plan expense for 2008 is estimated to be $180,000.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="note6"></a>Note 6 &#150; Goodwill and Other Intangible Assets</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>As of December 31, 2007, in accordance with SFAS No. 142, &#147;Goodwill and Other Intangible Assets,&#148; 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 face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="note7"></a>Note 7 &#150; Mortgage Servicing Rights</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>SFAS No. 156, &#147;Accounting for Servicing of Financial Assets&#148;, requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable. Servicing assets and servicing liabilities are reported using the amortization method or the fair value measurement method. In evaluating the carrying values of mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. The model utilizes several assumptions, the most significant of which is loan prepayments, calculated using a three-month moving average of weekly prepayment data published by the Public Securities Association (PSA) and modeled against the serviced loan portfolio, and the discount rate to discount future cash flows. As of September 30, 2008, the prepayment assumption using the PSA
model was 175, which translates into an anticipated prepayment rate of 10.50%. The discount rate is the quarterly average ten-year U.S. Treasuries plus 5.0%. Other assumptions include delinquency rates, foreclosure rates, servicing cost inflation, and annual unit loan cost. All assumptions are adjusted periodically to reflect current circumstances. Amortization of mortgage servicing rights, as well as write-offs due to prepayments of the related mortgage loans, are recorded as a charge against mortgage servicing fee income. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2><a name="note8"></a>For the nine months ended September 30, 2008 and 2007, servicing rights capitalized totaled $236,000 and $258,000, respectively. Servicing rights capitalized for the three month periods ended September 30, 2008 and 2007, were $72,000 and $99,000 respectively. For the nine months ended September 30, 2008 and 2007, servicing rights amortized totaled $338,000 and $362,000, respectively. Servicing rights amortized for the three month periods ended </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>September 30, 2008 and 2007, were $101,000 and $125,000, respectively. At September 30, 2008 and 2007, the Bank serviced loans for others totaling $170.0 million and $168.0 million, respectively. Mortgage servicing rights are included in other assets and detailed in the following table:</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="383" style='margin-left:4.95pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td width="203" 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td  nowrap colspan="2" 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'><u><b><font face="Arial" size=2>At September 30,</font></b></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="203" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>In thousands of
dollars</font></i><i></i></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="203" 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 face="Arial" size=2>Mortgage servicing rights</font></p> </td>

        <td width="90" 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 face="Arial" size=2>$  3,989</font></b></p> </td>

        <td width="90" 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 face="Arial" size=2>$   3,685</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="203" 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 face="Arial" size=2>Accumulated amortization</font></p> </td>

        <td width="90" 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 face="Arial" size=2>(3,247)</font></b></p> </td>

        <td width="90" 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 face="Arial" size=2>(2,801)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="203" 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 face="Arial" size=2>Impairment reserve</font></p> </td>

        <td width="90" 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 face="Arial" size=2>(26)</font></b></p> </td>

        <td width="90" 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 face="Arial" size=2>(5)</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="203" nowrap valign=bottom style='border-top:solid black 1.0pt; 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$     716</font></b></p> </td>

        <td width="90" nowrap valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$      879</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>Note 8 &#150; Derivative Financial Instruments</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The Bank uses an interest rate protection agreement (cap) as a cash flow hedge to eliminate the cash flow exposure of interest rate movements on money-market deposits. The premium paid for the cap is amortized over its life. Any cash payments received are recorded as an adjustment to net interest income. The Bank documents its risk management strategy and hedge effectiveness at the inception of and during the term of the hedge. The cap is designated and qualifies as a cash flow hedge, and thus is recorded at fair value. SFAS No. 133, &#147;Accounting for Derivative Instruments and Hedging Activities&#148;, provides that a cash flow hedge is effective to the extent the variability in its cash flows offsets the variability in the cash flows of the hedged item, in this case the increase in cost of money market deposits. Management has determined that the hedge relationship is 100 percent effective.
The amortized cost of the cap, $30,000 at September 30, 2008, is recorded on the balance sheet. This approximates the fair value of the derivative, and as a result, no unrealized gain or loss, net of applicable income taxes, is recorded in other comprehensive loss in the statement of changes in shareholders&#146; equity for the period ended September 30, 2008.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="note9"></a>Note 9 &#150; Income Taxes</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>In June 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No.&nbsp;48, &#147;Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement 109&#148; (&#147;FIN 48&#148;). This statement clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company&#146;s financial statements. FIN 48 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. Effective January&nbsp;1, 2007, the Company has adopted the provisions of FIN 48 and there was no material effect on the financial statements, and no cumulative effect. The Company is currently open to audit under the statute of limitations by the IRS for the
years ended December&nbsp;31, 2005 through 2007.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="note10"></a>Note 10 &#150; Reclassifications</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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 statement of income presentations.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>Note 11 &#150; Fair Value Disclosures</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2><a name="note11"></a>Certain assets and liabilities are recorded at fair value to provide additional insight into the Company&#146;s quality of earnings. Some of these assets and liabilities are measured on a recurring basis while others are measured on a nonrecurring basis, with the determination based upon applicable existing accounting pronouncements. For example, securities available for sale and derivative financial instruments are recorded at fair value on a recurring basis. Other assets, such as, mortgage servicing rights, loans held for sale, and impaired loans, are recorded at fair value on a nonrecurring basis using the lower of cost or market methodology to determine impairment of individual assets. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>Under Statement of Financial Accounting 157, Fair Value Measurements, the Company groups assets and liabilities which are recorded at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. A financial instrument&#146;s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with level 1 considered highest and level 3 considered lowest). A brief description of each level follows. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><b><font face="Arial" size=2>Level 1</font></b><font face="Arial" size=2> &#150; Valuation is based upon quoted prices for identical instruments in active markets. </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><b><font face="Arial" size=2>Level 2</font></b><font face="Arial" size=2> &#150; Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><b><font face="Arial" size=2>Level 3</font></b><font face="Arial" size=2> &#150; Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>The most significant instruments that The First Bancorp fair values include securities and derivative instruments, all of which fall into Level 2 in the fair value hierarchy. The securities in the available for sale portfolio are priced by independent providers. In obtaining such valuation information from third parties, the Company has evaluated their valuation methodologies used to develop the fair values in order to determine whether the valuations are representative of an exit price in the Company&#146;s principal markets. The Company&#146;s principal markets for its securities portfolios are the secondary institutional markets, with an exit price that is predominantly reflective of bid level pricing in those markets. Derivative instruments are priced by independent providers using observable market assumptions with adjustments based on widely accepted valuation techniques.
A discounted cash flow analysis on the expected cash flows of each derivative reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, implied volatilities, and credit valuation adjustments. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font face="Arial" size=2>Assets and Liabilities Recorded at Fair Value on a Recurring Basis</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>Securities Available for Sale. </font></b></i><font face="Arial" size=2>Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices for similar assets, if available. If quoted prices are not available, fair values are measured using matrix pricing models, or other model-based valuation techniques requiring observable inputs other than quoted prices such as yield curves, prepayment speeds, and default rates. Recurring Level 1 securities would include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Recurring Level 2 securities include federal agency securities, mortgage-backed securities, collateralized mortgage obligations, municipal bonds and corporate debt securities. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>Derivative Financial Instruments. </font></b></i><font face="Arial" size=2>Substantially all derivative financial instruments held by the Company are traded in over-the-counter markets where quoted market prices are not readily available. For those derivatives, the Company measures fair value based upon pricing for similar derivative instruments if they were purchased today. The Company classifies derivative financial instruments held or issued for risk management as recurring Level 2.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>The following table presents the balances of assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2008. </font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="493" style='margin-left:4.95pt;border-collapse:collapse; '>
    <tr style='height:14.25pt'>

        <td width="196" valign=bottom style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:14.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td  nowrap colspan="4" valign=bottom style=' border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font face="Arial" size=2>At September 30, 2008 </font></b></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="196" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>In thousands of
dollars</font></i><i></i></p> </td>

        <td width="68" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Level 1 </font></b></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Level 2 </font></b></p> </td>

        <td width="66" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Level 3 </font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Total </font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="196" 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 face="Arial" size=2>Securities available for sale</font></p> </td>

        <td width="68" 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 face="Arial" size=2>$            -</font></p> </td>

        <td width="78" 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 face="Arial" size=2>$    35,306</font></p> </td>

        <td width="66" 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 face="Arial" size=2>$            -</font></p> </td>

        <td width="84" 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 face="Arial" size=2>$    35,306</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="196" 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 face="Arial" size=2>Derivative financial instruments</font></p> </td>

        <td width="68" 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 face="Arial" size=2>-</font></p> </td>

        <td width="78" 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 face="Arial" size=2>30</font></p> </td>

        <td width="66" 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 face="Arial" size=2>-</font></p> </td>

        <td width="84" 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 face="Arial" size=2>30</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="196" valign=bottom style='border-top:solid black 1.0pt; 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:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Total Assets</font></b></p> </td>

        <td width="68" valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$            -</font></p> </td>

        <td width="78" valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$    35,336</font></p> </td>

        <td width="66" valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$            -</font></p> </td>

        <td width="84" valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$    35,336</font></p> </td> </tr></table>
</div>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font face="Arial" size=2>Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>Mortgage Servicing Rights</font></b></i><font face="Arial" size=2>. Mortgage servicing rights represent the value associated with servicing residential mortgage loans. Servicing assets and servicing liabilities are reported using the amortization method or the fair value measurement method. In evaluating the carrying values of mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. As such, the Company classifies mortgage servicing rights as nonrecurring Level 2. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>Loans Held for Sale. </font></b></i><font face="Arial" size=2>Mortgage loans held for sale are recorded at the lower of carrying value or market value. The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies mortgage loans held for sale as nonrecurring Level 2.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>Other Real Estate Owned.</font></b></i><font face="Arial" size=2> Real estate acquired through foreclosure is recorded at the lower of carrying value or market value. The fair value of other real estate owned is based on property appraisals and an analysis of similar properties currently available. As such, the Company records other real estate owned as nonrecurring Level 2.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>Impaired Loans. </font></b></i><font face="Arial" size=2>A loan is considered to be impaired when it is probable that all of the principal and interest due under the original underwriting terms of the loan may not be collected. Impairment is measured based on the fair value of the </font></p>

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

<div TITLE="EE+ Page Footer">
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font FACE="ARIAL" SIZE=2></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 12</font>
</A></p>

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

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

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

<div TITLE="EE+ Page Break" STYLE="PAGE-BREAK-AFTER: always">

<HR noshade align="center" width="100%" size="2">
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>underlying collateral. The Company measures impairment on all nonaccrual loans for which it has established specific reserves as part of the specific allocated allowance component of the allowance for loan losses. As such, the Company records impaired loans as nonrecurring Level 2. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>The following table includes assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition as of March 31, 2008. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.19in;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="463" style='margin-left:4.95pt;border-collapse:collapse; '>
    <tr style='height:14.25pt'>

        <td width="180" valign=bottom style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:14.25pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td  nowrap colspan="4" valign=bottom style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:14.25pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font face="Arial" size=2>At September 30, 2008 </font></b></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="180" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>In thousands of
dollars</font></i><i></i></p> </td>

        <td width="65" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Level 1 </font></b></p> </td>

        <td width="76" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Level 2 </font></b></p> </td>

        <td width="65" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Level 3 </font></b></p> </td>

        <td width="76" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Total </font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="180" 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 face="Arial" size=2>Mortgage servicing rights</font></p> </td>

        <td width="65" 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 face="Arial" size=2>$           -</font></p> </td>

        <td width="76" 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 face="Arial" size=2>$        716</font></p> </td>

        <td width="65" 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 face="Arial" size=2>$           -</font></p> </td>

        <td width="76" 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 face="Arial" size=2>$        716</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="180" 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 face="Arial" size=2>Loans held for sale</font></p> </td>

        <td width="65" 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 face="Arial" size=2>-</font></p> </td>

        <td width="76" 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 face="Arial" size=2>1,203</font></p> </td>

        <td width="65" 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 face="Arial" size=2>-</font></p> </td>

        <td width="76" 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 face="Arial" size=2>1,203</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="180" 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 face="Arial" size=2>Other real estate owned</font></p> </td>

        <td width="65" 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 face="Arial" size=2>-</font></p> </td>

        <td width="76" 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 face="Arial" size=2>2,168</font></p> </td>

        <td width="65" 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 face="Arial" size=2>-</font></p> </td>

        <td width="76" 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 face="Arial" size=2>2,168</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="180" 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 face="Arial" size=2>Impaired loans</font></p> </td>

        <td width="65" 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 face="Arial" size=2>-</font></p> </td>

        <td width="76" 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 face="Arial" size=2>7,571</font></p> </td>

        <td width="65" 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 face="Arial" size=2>-</font></p> </td>

        <td width="76" 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 face="Arial" size=2>7,571</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="180" valign=bottom style='border-top:solid black 1.0pt; 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:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Total Assets</font></b></p> </td>

        <td width="65" valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$           -</font></p> </td>

        <td width="76" valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$  11,658</font></p> </td>

        <td width="65" valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$           -</font></p> </td>

        <td width="76" valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$  11,658</font></p> </td> </tr></table>
</div>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2>Note 12 &#150; Impact of Recently Issued Accounting Standards</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2><a name="item2"></a>In September 2006, FASB issued Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value Measurements. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The statement establishes a fair value hierarchy about the assumptions used to measure fair value and clarifies assumptions about risk and the effect of a restriction on the sale or use of an asset. This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007. In February 2008, FASB issued FASB Staff Position (&#147;FSP&#148;) No. FAS 157-2, Effective Date of FASB Statement No. 157, which delays the effective date for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value on a
recurring basis (at least annually) to fiscal years beginning after November 15, 2008, and interim periods within those fiscal years. Although this Statement does not require any new fair value measurements, it has expanded our fair value disclosures. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, which gives entities the option to measure eligible financial assets and financial liabilities at fair value on an instrument-by-instrument basis. The election to use the fair value option is available when an entity first recognizes a financial asset or financial liability. Subsequent changes in fair value must be recorded in earnings. SFAS No. 159 contains provisions to apply the fair value option to existing eligible financial instruments at the date of adoption. This statement is effective as of the beginning of an entity&#146;s first fiscal year after November 15, 2007. The Company did not take the fair value option under SFAS No. 159 for any financial assets or financial liabilities.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>Effective January 1, 2008, the Company adopted the provisions of Emerging Issues Task Force (EITF) 06-10: Accounting for Collateral Assignment Split-Dollar Life Insurance Arrangements. The EITF states that an employer should recognize a liability for the postretirement benefit related to a collateral assignment split-dollar life insurance arrangement. The Company recognized the effect of applying EITF 06-10 as a change in accounting principles through a cumulative-effect adjustment to retained earnings. The cumulative effect of the change on retained earnings on the consolidated balance sheet was $215,000 to retained earnings. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>In December 2007, FASB issued Statement No. 160, &#147;Non-controlling Interests in Consolidated Financial Statements &#150; an amendment of ARB No. 51&#148; (SFAS No.160). This statement applies to all entities that prepare consolidated financial statements, except not-for-profit organizations, but will affect only those entities that have an outstanding non-controlling interest in one or more subsidiaries or that deconsolidate a subsidiary. This statement amends ARB No. 51 to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. SFAS No. 160 is effective for fiscal years beginning after December 15, 2009. The Company does not expect it will have a material effect on its financial condition or results of operations. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.29in;text-align:left;'><font face="Arial" size=2>In March 2008, FASB issued Statement No. 161, &#147;Disclosures about Derivative Instruments and Hedging Activities &#150; an amendment of FASB Statement No. 133&#148; (SFAS No. 161). This statement requires enhanced disclosures about an entity&#146;s derivative and hedging activities and thereby improves the transparency of financial reporting. Entities are required to provide enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity&#146;s financial position, financial performance, and cash flows. SFAS No. 161 is effective for fiscal years and interim periods beginning after November 15, 2008. The Company is currently evaluating the impact of SFAS No.
161 but does not expect it will have a material effect on its financial condition or results of operations.</font></p>

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<u><b><font face="Arial" size=2>Item 2 &#150; Management&#146;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 face="Arial" size=2>The First Bancorp, Inc. and Subsidiary</font></p>

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

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Management&#146;s discussion and analysis of the Company&#146;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&#146;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 face="Arial" size=2>Allowance for Loan Losses.</font></b><font face="Arial" 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&#146;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&#146;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 face="Arial" size=2>Goodwill. </font></b><font face="Arial" 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 face="Arial" size=2>Mortgage Servicing Rights.</font></b><font face="Arial" size=2> The valuation of mortgage servicing rights is a critical accounting policy which 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 the 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 which specializes in the valuation of mortgage servicing rights to determine the fair value which is recorded on the balance sheet. The most important assumption is the
anticipated loan prepayment rate, and increases in prepayment speed results in lower valuations of mortgage servicing rights. The valuation also 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. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. The use of different assumptions could produce a different valuation. All of the assumptions are based on standards the Company believes would be utilized by market participants in valuing mortgage servicing rights and are consistently derived and/or benchmarked against independent public sources.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="summary"></a>Executive Summary</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Net income for the nine months ended September 30, 2008 was $11,026,000, an increase of $1,413,000 or 14.7% over net income of $9,613,000 for the comparable period of 2007. The rapid lowering of rates by the Federal Open Market Committee has been very positive for the Company, resulting in funding costs dropping faster than our yield on assets and improving our net interest margin. This, in turn, led to increased net interest income. The Company also saw good growth in earning assets year-to-date. The net interest margin on a tax-equivalent basis increased to 3.27% for the first nine months of 2008 from 3.11% for the same period in 2007. Fully diluted earnings per share for the nine months ended September 30, 2008 were $1.13, a 15.3% increase from the $0.98 reported for the first nine months of 2007. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>Net income for the three months ended September 30, 2008 was $3,832,000, an increase of $418,000 or 12.2% over net income of $3,414,000 for the comparable period of 2007. The net interest margin on a tax-equivalent basis increased to 3.31% for the three months ended September 30, 2008 from 3.11% for the same period in 2007. Fully </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 14</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>diluted earnings per share for the three months ended September 30, 2008 were $0.39, an 11.4 % increase from the $0.35 reported for the same period of 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>Asset quality remains good, although the ratio of non-performing assets to total assets increased to 0.74% at September 30, 2008 compared to 0.30% reported at December 31, 2007 and 0.41% at June 30, 2008. Net chargeoffs for the third quarter were $372,000 and stand at $811,000 year to date. </font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Total interest income of $53.7 million for the nine months ended September 30, 2008 is a 1.4% increase from total interest income of $53.0 million in the comparable period of 2007. Total interest expense of $26.4 million for the first nine months of 2008 is an 11.1% decrease from total interest expense of $29.7 million for the first nine months of 2007. Net interest income increased 17.3% or $4.0 million to $27.4 for the nine months ended September 30, 2008, from the $23.3 reported for the same period in 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.04in;text-align:left;'><font face="Arial" size=2>   Total interest income of $17.9 million for the three months ended September 30, 2008 was down 3.5% from the comparable period of 2007. Total interest expense of $8.3 million for the three months ended September 30, 2008 is a 20.4% decrease from total interest expense for the third quarter of 2007. Net interest income increased 18.0% to $9.6 million for the three months ended September 30, 2008, from the $8.2 million reported for the same period in 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>The Company&#146;s net interest margin on a tax-equivalent basis increased from 3.11% in the first nine months of 2007 to 3.27% for the nine months ended September 30, 2008. For the three months ended September 30, 2008, the Company&#146;s net interest margin was 3.31%, an increase from the 3.11% in the same period of 2007. These increases were due to a combination of lower interest rates and growth in earning assets.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>Tax-exempt interest income amounted to $3.0 million and $2.8 million for the nine months ended September 30, 2008 and 2007, respectively. For the three months ended September 30, 2008 and 2007, tax-exempt interest income amounted to $1.0 million for both periods. 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 2008 and 2007:</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="637" style='margin-left:5.4pt;border-collapse:collapse; '>
    <tr style='height:24.75pt'>

        <td width="293" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:24.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td  colspan="2" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:24.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>For the nine months ended September 30</font></b></p> </td>

        <td  colspan="2" valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in
5.4pt;height:24.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>For the quarters ended September 30</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="293" valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>&nbsp;</font></p> </td>

        <td width="86" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="86" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td>

        <td width="86" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="86" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="293" 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 face="Arial" size=2>Net interest income as presented</font></p> </td>

        <td width="86" 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 face="Arial" size=2>27,382 </font></b></p> </td>

        <td width="86" 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 face="Arial" size=2>23,334 </font></p> </td>

        <td width="86" 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 face="Arial" size=2>9,623 </font></b></p> </td>

        <td width="86" 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 face="Arial" size=2>8,157 </font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="293" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Effect of tax-exempt income</font></p> </td>

        <td width="86" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>1,642 </font></b></p> </td>

        <td width="86" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>1,525 </font></p> </td>

        <td width="86" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>535 </font></b></p> </td>

        <td width="86" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>519 </font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="293" 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 face="Arial" size=2>Net interest income, tax equivalent</font></p> </td>

        <td width="86" 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 face="Arial" size=2>29,024 </font></b></p> </td>

        <td width="86" 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 face="Arial" size=2>24,859 </font></p> </td>

        <td width="86" 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 face="Arial" size=2>10,158 </font></b></p> </td>

        <td width="86" 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 face="Arial" size=2>8,676 </font></p> </td> </tr></table>
</div>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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, 2008 and 2007. Tax-exempt income is calculated on a tax-equivalent basis, using a 35.0% tax rate in 2008 and 2007.</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="591" style='margin-left:4.65pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td width="231" 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:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" 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: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'><u><b><font face="Arial" size=2>2008</font></b></u><u></u></p> </td>

        <td  nowrap colspan="2" 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'><u><font face="Arial" size=2>2007</font></u><u></u></p> </td>
</tr>
    <tr style='height:25.5pt'>

        <td width="231" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font face="Arial" size=2>Dollars in thousands</font></i><i></i></p> </td>

        <td width="89" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Amount of interest</font></b></p> </td>

        <td width="89" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Average Yield/Rate</font></b></p> </td>

        <td width="92" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Amount of interest</font></p> </td>

        <td width="89" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Average Yield/Rate</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="231" 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 face="Arial" size=2>Interest on earning assets</font></b></p> </td>

        <td width="89" 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="89" 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="92" 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="89" 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="231" 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 face="Arial" size=2>Investments</font></p> </td>

        <td width="89" 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 face="Arial" size=2>$10,637</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>5.99%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>$  9,106</font></p> </td>

        <td width="89" 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 face="Arial" size=2>5.96%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="231" 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 face="Arial" size=2>Loans held for sale</font></p> </td>

        <td width="89" 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 face="Arial" size=2>102</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>6.13%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>9</font></p> </td>

        <td width="89" 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 face="Arial" size=2>7.78%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="231" 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 face="Arial" size=2>Loans  </font></p> </td>

        <td width="89" 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 face="Arial" size=2>44,638</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>6.31%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>45,399</font></p> </td>

        <td width="89" 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 face="Arial" size=2>7.03%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="231" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total interest-earning assets</font></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>55,377</font></b></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>6.24%</font></b></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>54,514</font></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>6.83%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="231" 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 face="Arial" size=2>Interest-bearing liabilities</font></b></p> </td>

        <td width="89" 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="89" 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="92" 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="89" 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="231" 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 face="Arial" size=2>Deposits</font></p> </td>

        <td width="89" 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 face="Arial" size=2>18,041</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>3.10%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>22,661</font></p> </td>

        <td width="89" 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 face="Arial" size=2>3.96%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="231" 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 face="Arial" size=2>Other borrowings</font></p> </td>

        <td width="89" 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 face="Arial" size=2>8,312</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>3.73%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>6,994</font></p> </td>

        <td width="89" 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 face="Arial" size=2>4.82%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="231" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total interest-bearing liabilities</font></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>26,353</font></b></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>3.27%</font></b></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>29,655</font></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>4.13%</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="231" 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:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Net interest income</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>$29,024</font></b></p> </td>

        <td width="89" 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'><font size=1>&nbsp;</font></p> </td>

        <td width="92" 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'><font face="Arial" size=2>$24,859</font></p> </td>

        <td width="89" 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'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="231" 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 face="Arial" size=2>Interest rate spread</font></p> </td>

        <td width="89" 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="89" 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 face="Arial" size=2>2.97%</font></b></p> </td>

        <td width="92" 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="89" 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 face="Arial" size=2>2.70%</font></p> </td> </tr>
    <tr style='height:13.5pt'>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net interest margin</font></p> </td>

        <td width="89" 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=1>&nbsp;</font></p> </td>

        <td width="89" 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 face="Arial" size=2>3.27%</font></b></p> </td>

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

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>3.11%</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 15</font>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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, 2008 compared to 2007. Tax-exempt income is calculated on a tax-equivalent basis, using a 35.0% tax rate in 2008 and 2007.</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="607" style='margin-left:4.65pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td  nowrap colspan="2" 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:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Nine months ended September 30, 2008 compared to 2007</font></b></p> </td>

        <td width="84" 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td width="90" 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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td>

        <td width="78"
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:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Dollars in thousands</font></i><i></i></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>Volume</font></p> </td>

        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>Rate</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>Rate/Volume<sup>1</sup></font></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>Total</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" 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 face="Arial" size=2>Interest on earning assets</font></b></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:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="84" nowrap valign=bottom style='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>

        <td width="90" nowrap valign=bottom style='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>

        <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:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" 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 face="Arial" size=2>Investment securities</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 face="Arial" size=2>$1,438</font></p> </td>

        <td width="84" 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 face="Arial" size=2>$        80</font></p> </td>

        <td width="90" 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 face="Arial" size=2>$      13</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 face="Arial" size=2>$1,531</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" 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 face="Arial" size=2>Loans held for sale</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 face="Arial" size=2>19</font></p> </td>

        <td width="84" 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 face="Arial" size=2>11</font></p> </td>

        <td width="90" 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 face="Arial" size=2>69</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 face="Arial" size=2>99</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" 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 face="Arial" size=2>Loans  </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 face="Arial" size=2>4,215</font></p> </td>

        <td width="84" 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 face="Arial" size=2>(4,559)</font></p> </td>

        <td width="90" 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 face="Arial" size=2>(423)</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 face="Arial" size=2>(767)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total interest income</font></p> </td>

        <td width="78" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>5,672</font></p> </td>

        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(4,468)</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(341)</font></p> </td>

        <td width="78" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>863</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" 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 face="Arial" size=2>Interest expense</font></b></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=1>&nbsp;</font></p> </td>

        <td width="84" 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="90" 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="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=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" 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 face="Arial" size=2>Deposits</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 face="Arial" size=2>298</font></p> </td>

        <td width="84" 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 face="Arial" size=2>(4,854)</font></p> </td>

        <td width="90" 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 face="Arial" size=2>(64)</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 face="Arial" size=2>(4,620)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" 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 face="Arial" size=2>Other borrowings<sup>2</sup></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 face="Arial" size=2>3,713</font></p> </td>

        <td width="84" 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 face="Arial" size=2>(1,564)</font></p> </td>

        <td width="90" 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 face="Arial" size=2>(831)</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 face="Arial" size=2>1,318</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="277" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>Total interest expense</font></p> </td>

        <td width="78" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>4,011</font></p> </td>

        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(6,418)</font></p> </td>

        <td width="90" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(895)</font></p> </td>

        <td width="78" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(3,302)</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="277" 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:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Change in net interest income</font></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'><font face="Arial" size=2>$1,661</font></p> </td>

        <td width="84" 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 face="Arial" size=2>$  1,950</font></p> </td>

        <td width="90" 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 face="Arial" size=2>$   554</font></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'><font face="Arial" size=2>$4,165</font></p> </td> </tr></table>
</div>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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, 2008 and 2007. Tax-exempt income is calculated on a tax-equivalent basis, using a 35.0% tax rate in 2008 and 2007.</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="572" style='margin-left:4.65pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td width="215" 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:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Quarters ended September 30, </font></b></p> </td>

        <td  nowrap colspan="2" 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'><u><b><font face="Arial" size=2>2008</font></b></u><u></u></p> </td>

        <td  nowrap colspan="2" 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'><u><font face="Arial" size=2>2007</font></u><u></u></p> </td>
</tr>
    <tr style='height:25.5pt'>

        <td width="215" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font face="Arial" size=2>Dollars in thousands</font></i><i></i></p> </td>

        <td width="89" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Amount of interest</font></b></p> </td>

        <td width="89" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Amount of interest</font></b></p> </td>

        <td width="92" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Amount of interest</font></p> </td>

        <td width="87" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.5pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Average Yield/Rate</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="215" 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 face="Arial" size=2>Interest on earning assets</font></b></p> </td>

        <td width="89" 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="89" 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="92" 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="87" 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="215" 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 face="Arial" size=2>Investments</font></p> </td>

        <td width="89" 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 face="Arial" size=2>$  3,710</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>5.78%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>$  3,343</font></p> </td>

        <td width="87" 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 face="Arial" size=2>5.99%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="215" 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 face="Arial" size=2>Loans held for sale</font></p> </td>

        <td width="89" 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 face="Arial" size=2>34</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>6.11%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>6</font></p> </td>

        <td width="87" 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 face="Arial" size=2>7.33%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="215" 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 face="Arial" size=2>Loans  </font></p> </td>

        <td width="89" 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 face="Arial" size=2>14,682</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>6.07%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>15,708</font></p> </td>

        <td width="87" 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 face="Arial" size=2>7.03%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="215" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total interest-earning assets</font></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>18,426</font></b></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>6.01%</font></b></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>19,057</font></p> </td>

        <td width="87" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>6.82%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="215" 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 face="Arial" size=2>Interest-bearing liabilities</font></b></p> </td>

        <td width="89" 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="89" 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="92" 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="87" 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="215" 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 face="Arial" size=2>Deposits</font></p> </td>

        <td width="89" 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 face="Arial" size=2>5,692</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>2.73%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>7,792</font></p> </td>

        <td width="87" 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 face="Arial" size=2>3.97%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="215" 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 face="Arial" size=2>Other borrowings</font></p> </td>

        <td width="89" 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 face="Arial" size=2>2,576</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>3.71%</font></b></p> </td>

        <td width="92" 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 face="Arial" size=2>2,589</font></p> </td>

        <td width="87" 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 face="Arial" size=2>4.80%</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="215" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total interest-bearing liabilities</font></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>8,268</font></b></p> </td>

        <td width="89" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>2.98%</font></b></p> </td>

        <td width="92" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>10,381</font></p> </td>

        <td width="87" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>4.15%</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="215" 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:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Net interest income</font></b></p> </td>

        <td width="89" 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 face="Arial" size=2>$10,158</font></b></p> </td>

        <td width="89" 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'><font size=1>&nbsp;</font></p> </td>

        <td width="92" 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'><font face="Arial" size=2>$ 8,676</font></p> </td>

        <td width="87" 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'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="215" nowrap valign=bottom style='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 face="Arial" size=2>Interest rate spread</font></p> </td>

        <td width="89" 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=1>&nbsp;</font></p> </td>

        <td width="89" 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'><b><font face="Arial" size=2>3.02%</font></b></p> </td>

        <td width="92" 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=1>&nbsp;</font></p> </td>

        <td width="87" 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 face="Arial" size=2>2.66%</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="215" 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 face="Arial" size=2>Net interest margin</font></p> </td>

        <td width="89" 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=1>&nbsp;</font></p> </td>

        <td width="89" 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 face="Arial" size=2>3.31%</font></b></p> </td>

        <td width="92" 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=1>&nbsp;</font></p> </td>

        <td width="87" 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 face="Arial" size=2>3.11%</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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, 2008 compared to 2007. Tax-exempt income is calculated on a tax-equivalent basis, using a 35.0% tax rate in 2008 and 2007.</font></p>

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 16</font>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="578" style='margin-left:4.65pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td  nowrap colspan="5" 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:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Quarter ended September 30, 2008 compared to 2007</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="193" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Dollars in thousands</font></i><i></i></p> </td>

        <td width="106" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Volume</font></p> </td>

        <td width="93" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Rate</font></p> </td>

        <td width="93" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Rate/Volume<sup>1</sup></font></p> </td>

        <td width="93" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>Total</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="193" 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 face="Arial" size=2>Interest on earning assets</font></b></p> </td>

        <td width="106" nowrap valign=bottom style='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>

        <td width="93" nowrap valign=bottom style='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>

        <td width="93" nowrap valign=bottom style='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>

        <td width="93" nowrap valign=bottom style='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="193" 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 face="Arial" size=2>Investment securities</font></p> </td>

        <td width="106" 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 face="Arial" size=2>$  503</font></p> </td>

        <td width="93" 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 face="Arial" size=2>$   (119)</font></p> </td>

        <td width="93" 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 face="Arial" size=2>$   (18)</font></p> </td>

        <td width="93" 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 face="Arial" size=2>$    366</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="193" 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 face="Arial" size=2>Loans held for sale</font></p> </td>

        <td width="106" 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 face="Arial" size=2>4</font></p> </td>

        <td width="93" 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 face="Arial" size=2>9</font></p> </td>

        <td width="93" 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 face="Arial" size=2>19</font></p> </td>

        <td width="93" 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 face="Arial" size=2>32</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="193" 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 face="Arial" size=2>Loans  </font></p> </td>

        <td width="106" 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 face="Arial" size=2>1,308</font></p> </td>

        <td width="93" 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 face="Arial" size=2>(2,158)</font></p> </td>

        <td width="93" 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 face="Arial" size=2>(179)</font></p> </td>

        <td width="93" 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 face="Arial" size=2>(1,029)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="193" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total interest income</font></p> </td>

        <td width="106" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>1,815</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(2,268)</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(178)</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(631)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="193" 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 face="Arial" size=2>Interest expense</font></b></p> </td>

        <td width="106" 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="93" 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="93" 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="93" 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="193" 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 face="Arial" size=2>Deposits</font></p> </td>

        <td width="106" 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 face="Arial" size=2>475</font></p> </td>

        <td width="93" 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 face="Arial" size=2>(2,427)</font></p> </td>

        <td width="93" 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 face="Arial" size=2>(148)</font></p> </td>

        <td width="93" 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 face="Arial" size=2>(2,100)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="193" 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 face="Arial" size=2>Other borrowings<sup>2</sup></font></p> </td>

        <td width="106" 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 face="Arial" size=2>744</font></p> </td>

        <td width="93" 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 face="Arial" size=2>(588)</font></p> </td>

        <td width="93" 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 face="Arial" size=2>(169)</font></p> </td>

        <td width="93" 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 face="Arial" size=2>(13)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="193" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>Total interest expense</font></p> </td>

        <td width="106" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>1,219</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(3,015)</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(317)</font></p> </td>

        <td width="93" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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'><font face="Arial" size=2>(2,113)</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="193" 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:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Change in net interest income</font></p> </td>

        <td width="106" 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 face="Arial" size=2>$  596</font></p> </td>

        <td width="93" 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 face="Arial" size=2>$   747</font></p> </td>

        <td width="93" 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 face="Arial" size=2>$  139</font></p> </td>

        <td width="93" 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 face="Arial" size=2>$ 1,482</font></p> </td> </tr></table>
</div>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="loanloss"></a>Provision for Loan Losses</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>A $2,314,000 provision to the allowance for loan losses was made during the first nine months of 2008, compared to a $850,000 provision made for the same period of 2007.  For the quarter ended September 30, 2008, a $875,000 provision to the allowance for loan losses was made compared to $300,000 for the same period in 2007. As a result, the allowance for loan losses has increased $1.5 million since year end (net of 2008 net chargeoffs) and stands at 0.86% of loans outstanding, a healthy increase from 0.74% of loans outstanding at December 31, 2007. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>While the weakness in the national economy has not hit coastal Maine as hard as many other parts of the country, the Company has seen an increase in the level of past-due and non-performing loans. At this point, this has not translated into a significantly higher level of losses, with net chargeoffs of only $811,000 for the first nine months of 2008, 0.086% of average loans outstanding year-to-date. Given the number of economic uncertainties at this time, however, Management views it prudent to continue to increase the allowance for loan losses.</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Non-interest income was $7,550,000 for the nine months ended September 30, 2008, an decrease of 0.7% from the $7,603,000 reported for the first nine months of 2007. This slight decline in non-interest income was due to decreases in fiduciary income that were mostly offset by service charges on deposit accounts and other operating income.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.04in;text-align:left;'><font face="Arial" size=2>       Non-interest income was $2,856,000 for the three months ended September 30, 2008, a decrease of 4.3% from the $2,985,000 reported in the same period for 2007. This decline in non-interest income was primarily due to lower levels of other operating income. </font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Non-interest expense of $17,158,000 for the nine months ended September 30, 2008, is an increase of 3.3% compared to non-interest expense of $16,602,000 for the same period in 2007. This increase was attributable to higher employee costs. Expense control continues to be a major factor in our performance. Non-interest expense of $6,284,000 for the three months ended September 30, 2008, is an increase of 4.7% compared to non-interest expense of $6,000,000 for the same period in 2007. This increase was attributable to higher employee costs as well. </font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Income taxes on operating earnings were $4,434,000 for the nine months ended September 30, 2008, up from $3,872,000 in the same period a year ago. This is in line with the increase in the Company&#146;s level of income before taxes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>In June 2006, the FASB issued Interpretation No. 48, &#147;Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement 109&#148; (&#147;FIN 48&#148;). This statement clarifies the criteria that an individual tax position </font></p>

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 17</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>must satisfy for some or all of the benefits of that position to be recognized in a company&#146;s financial statements. FIN 48 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. Effective January 1, 2007, the Company adopted the provisions of FIN 48 and there was no material effect on the financial statements. As a result, there was no cumulative effect related to adopting FIN 48. However, certain amounts have been reclassified in the statement of financial position in order to comply with the requirements of the statement. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2005 through 2007. </font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The Company&#146;s investment portfolio increased by $39.2 million or 17.7% to $261.1 million between December 31, 2007, and September 30, 2008. At September 30, 2008, the Company&#146;s available for sale portfolio had an unrealized loss, net of taxes, of $0.9 million. Between September 30, 2007, and September 30, 2008, the Company&#146;s investment portfolio increased by $41.2 million or 18.7%. </font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>During the first nine months of 2008, loans grew by $40.7 million or 4.4%. The growth in commercial loans was $40.0 million or 9.7% while municipal loans decreased by $8.4 million or 31.9%. The residential mortgage portfolio increased by $7.7 million or 2.0% and home equity lines of credit increased $0.4 million or 0.6% year-to-date. Between September 30, 2007 and September 30, 2008 the loan portfolio increased $69.2 million or 7.8%, as a result of customer demand. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="all"></a>Allowance for Loan Losses</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The allowance for loan losses represents the amount available for credit losses inherent in the Company&#146;s loan portfolio. Loans are charged off when deemed uncollectible, after giving consideration to factors such as the customer&#146;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 face="Arial" 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 face="Arial" 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 face="Arial" 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 </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>All of these analyses are reviewed and discussed by the Directors&#146; 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, 2008. As of that date, the balance of $8.3 million was 0.86% of total loans, compared to 0.74% at December 31, 2007 and 0.75% at September 30, 2007. Loans considered to be impaired according to SFAS 114/118 totaled $7.6 million at September 30, 2008 compared to $2.9 million at December 31, 2007. At September 30, 2008, impaired loans with specific reserves totaled $5.6 million compared to $1.3 million at December 31, 2007. The portion of the allowance for loan losses allocated to impaired loans at September 30,
2008, was $1.6 million compared to $0.6 million at December 31, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>In Management&#146;s opinion, the level of the Company&#146;s allowance for loan losses is adequate. Although the allowance is lower as a percentage of loans than many peers, the Bank&#146;s loan portfolio has a higher percentage of residential mortgage loans than peers, which typically reflects a much lower level of credit risk. In coastal Maine, the geographic area which the Company serves, the level of foreclosures has been much lower than in many parts of the United States, and the Company has maintained very high standards when underwriting residential mortgage loans. In addition, the Company&#146;s actual historical loan loss experience has been much lower than most of its peer banks, again reflective of our loan portfolio composition.</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>At September 30, 2008, loans on non-accrual status totaled $7.6 million, which compares to non-accrual loans of $2.9 million as of December 31, 2007. In addition to loans on non-accrual status at September 30, 2008, loans past due 90 days or more and accruing (calculated on a constant 30-day month basis) totaled $2.9 million which compares to $2.3 million as of December 31, 2007. The Company continues to accrue interest on these loans because it believes collection of the interest is reasonably assured. The level of non-performing loans to total loans was 0.78% at September 30, 2008. While this has increased from 0.31%  non-performing loans to total loans at December 31, 2007, it remains well-below the level of non-performing loans for the Bank&#146;s peer group, which was 1.56% of total loans as of June 30, 2008..</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>On January 14, 2005, the Company completed the acquisition of FNB Bankshares of Bar Harbor, Maine, and its subsidiary, The First National Bank of Bar Harbor, which was merged into the Bank. The total value of the transaction was $48.0 million, and all of the voting equity interest of FNB Bankshares was acquired in the transaction. As of December 31, 2007, 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-indent:0.25in;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

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

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 19</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>During the first nine months of 2008, total deposits increased by $137.7 million or 17.6% over December 31, 2007. Low-cost deposits (demand, NOW, and savings accounts) increased by $22.4 million or 9.0% in the first nine months of 2008, and during the same period, certificates of deposit increased $116.2 million or 28.5%. Between September 30, 2007, and September 30, 2008, deposits increased by 13.3%, or $107.6 million. Certificates of deposit increased by $102.1 million, while low-cost deposits decreased by $3.0 million and money market accounts increased $8.5 million or 7.4%. The majority of the growth in certificates of deposit, year-to-date, was primarily from wholesale and brokered sources, resulting from a change in funding from borrowed funds to certificates of deposit. Low-cost deposits increased year-to-date as a result of the normal seasonal growth that occurs during the third quarter.</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The Company uses funding 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. This funding may also be used to carry out interest rate risk management strategies, and is increased to replace or supplement other sources of funding, including core deposits and certificates of deposit. During the nine months ended September 30, 2008, borrowed funds decreased $52.1 million or 16.5% from December 31, 2007, as a result of the deposit growth previously noted and a shift in strategy to increase the Bank&#146;s immediate sources of liquidity. Between September 30, 2007 and September 30, 2008, borrowed funds decreased by $2.4 million or 0.9%.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font face="Arial" size=2><a name="equity"></a>Shareholders&#146; Equity</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Shareholders&#146; equity as of September 30, 2008 was $115.9 million, compared to $112.7 million as of December 31, 2007. The Company&#146;s earnings in the first nine months of 2008, net of dividends paid, added to shareholders&#146; equity. The net unrealized gain/loss on available-for-sale securities, presented in accordance with SFAS 115, decreased by $1.3 million from December 31, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>In 2008, a cash dividend of 19.5 cents per share was declared in the third quarter compared to 17.5 cents in the third quarter of 2007. The dividend payout ratio was 48.75% in the third quarter of 2008 compared to 50.00% in the third quarter of 2007. In determining future dividend payout levels, the Board of Directors carefully analyzes capital requirements and earnings retention, as set forth in the Company&#146;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&#146;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 2008 is this year&#146;s net income plus retained earnings of $9.9 million from 2007 and 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>Regulatory leverage capital ratios for the Company were 7.04% and 7.22% at September 30, 2008 and December 31, 2007, respectively. The Company had a tier one risk-based capital ratio of 10.15% and tier two risk-based capital ratio of 11.12% at September 30, 2008, compared to 10.21% and 11.07%, respectively, at December 31, 2007. These are comfortably above the standards to be rated &#147;well-capitalized&#148; 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 face="Arial" size=2>On August 16, 2007, the Company announced that its Board of Directors had authorized a new program for the repurchase of up to 300,000 shares of the Company&#146;s common stock or approximately 3.1% of the outstanding shares. The Board of Directors feels that repurchasing shares continues to be in the best interest of the Company&#146;s shareholders and sees stock repurchases as an appropriate use of capital, especially given the recent decline in stock prices for the banking industry. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>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&#146;s stock and the level of stock issuances under the Company&#146;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. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" size=2>As of September 30, 2008, the Company repurchased 171,579 shares under the new repurchase plan at an average price of $15.50 per share and at a total cost of $2.7 million. This new stock plan supersedes the buyback program that had been in place since July 21, 2006, which authorized the repurchase of up to 250,000 or 2.5% of the Company&#146;s outstanding shares. As of August 16, 2007, the date the new plan was effective, the Company had repurchased 130,186 shares under the old repurchase plan at an average price of $16.89 and at a total cost of $2.2 million.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<i><b><font face="Arial" size=2><a name="avgbalsheet"></a>Average Daily Balance Sheets</font></b></i></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The following table shows the Company&#146;s average daily balance sheets for the nine-month and three-month periods ended September 30, 2008 and 2007.</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="649" style='margin-left:4.4pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td width="343" nowrap rowspan=2 valign=bottom style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font face="Arial" size=2><a name="offbal"></a><a name="nonperform"></a>&nbsp;</font></p> </td>

        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><b><font face="Arial" size=2>For the nine months</font></b></p> </td>

        <td  nowrap colspan="2" valign=bottom style='border-top:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><b><font face="Arial" size=2>For
the three months</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; 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 face="Arial" size=2>ended September 30,</font></b></p> </td>

        <td  nowrap colspan="2" valign=bottom style='border-bottom:solid black 1.0pt; 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 face="Arial" size=2>ended September 30,</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>In thousands of dollars</font></i><i></i></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2008</font></b></p> </td>

        <td width="79" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>2007</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" 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'><u><b><font face="Arial" size=2>Assets</font></b></u><u></u></p> </td>

        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="74" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="74" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="79" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Cash and due from banks </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'><b><font face="Arial" size=2>$15,263</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>$20,993</font></p> </td>

        <td width="74" 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 face="Arial" size=2>$17,133</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>$22,452</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Overnight funds sold </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'><b><font face="Arial" size=2>22</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>-</font></p> </td>

        <td width="74" 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 face="Arial" size=2>64</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Securities available for sale </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'><b><font face="Arial" size=2>38,763</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>43,971</font></p> </td>

        <td width="74" 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 face="Arial" size=2>36,740</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>43,414</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Securities to be held to maturity  </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'><b><font face="Arial" size=2>197,717</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>151,670</font></p> </td>

        <td width="74" 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 face="Arial" size=2>218,085</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>169,409</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Loans held for sale (fair value approximates cost) </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'><b><font face="Arial" size=2>2,215</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>302</font></p> </td>

        <td width="74" 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 face="Arial" size=2>2,207</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>729</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Loans </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'><b><font face="Arial" size=2>942,960</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>862,849</font></p> </td>

        <td width="74" 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 face="Arial" size=2>959,428</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>885,671</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Allowance for loan losses </font></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>(7,405)</font></b></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>(6,569)</font></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>(7,963)</font></b></p> </td>

        <td width="79" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>(6,706)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net loans </font></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>935,555</font></b></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>856,280</font></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>951,464</font></b></p> </td>

        <td width="79" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>878,965</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Accrued interest receivable </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'><b><font face="Arial" size=2>7,148</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>6,794</font></p> </td>

        <td width="74" 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 face="Arial" size=2>6,957</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>6,830</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Premises and equipment </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'><b><font face="Arial" size=2>16,231</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>15,706</font></p> </td>

        <td width="74" 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 face="Arial" size=2>16,134</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>15,599</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Other real estate owned </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'><b><font face="Arial" size=2>1,541</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>1,015</font></p> </td>

        <td width="74" 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 face="Arial" size=2>1,744</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>625</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Goodwill </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'><b><font face="Arial" size=2>27,584</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>27,684</font></p> </td>

        <td width="74" 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 face="Arial" size=2>27,385</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>27,684</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Other assets </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'><b><font face="Arial" size=2>18,318</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>16,649</font></p> </td>

        <td width="74" 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 face="Arial" size=2>20,688</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>17,174</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="343" nowrap valign=bottom style='border-top:solid black 1.0pt; 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:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total Assets </font></p> </td>

        <td width="78" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$1,260,357</font></b></p> </td>

        <td width="74" nowrap valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$1,141,064</font></p> </td>

        <td width="74" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$1,298,601</font></b></p> </td>

        <td width="79" nowrap valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$1,182,882</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="74" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="74" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="79" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" 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 face="Arial" size=2>Liabilities &amp; Stockholders' Equity</font></b></p> </td>

        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="74" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="74" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="79" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Demand deposits </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'><b><font face="Arial" size=2>$61,738</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>$60,310</font></p> </td>

        <td width="74" 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 face="Arial" size=2>$70,387</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>$67,908</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>NOW deposits </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'><b><font face="Arial" size=2>103,784</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>100,290</font></p> </td>

        <td width="74" 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 face="Arial" size=2>111,811</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>106,221</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Money market deposits </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'><b><font face="Arial" size=2>123,573</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>126,424</font></p> </td>

        <td width="74" 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 face="Arial" size=2>120,314</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>114,441</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Savings deposits </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'><b><font face="Arial" size=2>87,044</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>92,943</font></p> </td>

        <td width="74" 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 face="Arial" size=2>89,412</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>92,634</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Certificates of deposit </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'><b><font face="Arial" size=2>360,683</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>354,501</font></p> </td>

        <td width="74" 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 face="Arial" size=2>402,674</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>371,525</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Certificates $100M and over </font></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>100,821</font></b></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>91,669</font></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>101,831</font></b></p> </td>

        <td width="79" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>93,755</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total deposits </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'><b><font face="Arial" size=2>837,643</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>826,137</font></p> </td>

        <td width="74" 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 face="Arial" size=2>896,429</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>846,484</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Borrowed funds </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'><b><font face="Arial" size=2>296,842</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>193,908</font></p> </td>

        <td width="74" 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 face="Arial" size=2>275,334</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>213,874</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Dividends payable </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'><b><font face="Arial" size=2>830</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>722</font></p> </td>

        <td width="74" 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 face="Arial" size=2>860</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>768</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Other liabilities </font></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>9,154</font></b></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>9,623</font></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>8,893</font></b></p> </td>

        <td width="79" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>9,453</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total Liabilities </font></p> </td>

        <td width="78" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>1,144,469</font></b></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>1,030,390</font></p> </td>

        <td width="74" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>1,181,516</font></b></p> </td>

        <td width="79" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>1,070,579</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Shareholders' Equity </font></b></p> </td>

        <td width="78" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="74" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="74" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td>

        <td width="79" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'></td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Common stock </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'><b><font face="Arial" size=2>97</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>98</font></p> </td>

        <td width="74" 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 face="Arial" size=2>97</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>98</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Additional paid-in capital </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'><b><font face="Arial" size=2>44,265</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>45,748</font></p> </td>

        <td width="74" 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 face="Arial" size=2>43,991</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>45,882</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Retained earnings </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'><b><font face="Arial" size=2>71,609</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>64,465</font></p> </td>

        <td width="74" 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 face="Arial" size=2>73,371</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>66,238</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net unrealized gains (losses) on available-for-sale securities </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'><b><font face="Arial" size=2>186</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>597</font></p> </td>

        <td width="74" 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 face="Arial" size=2>(109)</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>428</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Net unrealized loss on postretirement benefit costs </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'><b><font face="Arial" size=2>(269)</font></b></p> </td>

        <td width="74" 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 face="Arial" size=2>(234)</font></p> </td>

        <td width="74" 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 face="Arial" size=2>(265)</font></b></p> </td>

        <td width="79" 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 face="Arial" size=2>(343)</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="343" nowrap valign=bottom style=' border-top:solid black 1.0pt; 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 face="Arial" size=2>Total Stockholders' Equity </font></p> </td>

        <td width="78" nowrap valign=bottom style='border-top: solid black 1.0pt;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 face="Arial" size=2>115,888</font></b></p> </td>

        <td width="74" nowrap valign=bottom style='border-top: solid black 1.0pt;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 face="Arial" size=2>110,674</font></p> </td>

        <td width="74" nowrap valign=bottom style='border-top: solid black 1.0pt;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 face="Arial" size=2>117,085</font></b></p> </td>

        <td width="79" nowrap valign=bottom style='border-top: solid black 1.0pt;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 face="Arial" size=2>112,303</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="343" nowrap valign=bottom style='border-top:solid black 1.0pt; 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:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total Liabilities &amp; Stockholders' Equity </font></p> </td>

        <td width="78" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$1,260,357</font></b></p> </td>

        <td width="74" nowrap valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$1,141,064</font></p> </td>

        <td width="74" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>$1,298,601</font></b></p> </td>

        <td width="79" nowrap valign=bottom style='border-top:solid black 1.0pt; 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'><font face="Arial" size=2>$1,182,882</font></p> </td> </tr></table>
</div>

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

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

<div TITLE="EE+ Page Footer">
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font FACE="ARIAL" SIZE=2></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 21</font>
</A></p>

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

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

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

<div TITLE="EE+ Page Break" STYLE="PAGE-BREAK-AFTER: always">

<HR noshade align="center" width="100%" size="2">
</DIV>

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

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

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

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

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>The following table sets forth the contractual obligations of the Company as of September 30, 2008:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Borrowed funds </font></p> </td>

        <td width="81" 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 face="Arial" size=2>$  264,617</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 face="Arial" size=2>124,431</font></p> </td>

        <td width="67" 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 face="Arial" size=2>50,000</font></p> </td>

        <td width="65" 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 face="Arial" size=2>20,000</font></p> </td>

        <td width="67" 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 face="Arial" size=2>70,186</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Operating leases </font></p> </td>

        <td width="81" 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 face="Arial" size=2>239</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 face="Arial" size=2>100</font></p> </td>

        <td width="67" 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 face="Arial" size=2>102</font></p> </td>

        <td width="65" 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 face="Arial" size=2>37</font></p> </td>

        <td width="67" 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 face="Arial" size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="287" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Certificates of deposit </font></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>524,487</font></b></p> </td>

        <td width="76" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>491,291</font></p> </td>

        <td width="67" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>28,397</font></p> </td>

        <td width="65" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>4,799</font></p> </td>

        <td width="67" nowrap valign=bottom style='border-bottom: solid black 1.0pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="287" nowrap valign=bottom style=' border-bottom:solid black 1.0pt;  height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>Total </font></p> </td>

        <td width="81" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$  789,343</font></b></p> </td>

        <td width="76" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>615,822</font></p> </td>

        <td width="67" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>78,499</font></p> </td>

        <td width="65" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>24,836</font></p> </td>

        <td width="67" nowrap valign=bottom style='border-bottom: solid black 1.0pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>70,186</font></p> </td> </tr>
    <tr style='display:none'>

        <td width="287" valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;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:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'> $        78,083 </p> </td>

        <td width="76" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>           78,083 </p> </td>

        <td width="67" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>                  - </p> </td>

        <td width="65" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>                 - </p> </td>

        <td width="67" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;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:0pt;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:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'> $        50,126 </p> </td>

        <td width="76" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>           50,126 </p> </td>

        <td width="67" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>                  - </p> </td>

        <td width="65" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>                 - </p> </td>

        <td width="67" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;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:0pt;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:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'> $          1,466 </p> </td>

        <td width="76" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>             1,466 </p> </td>

        <td width="67" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>                  - </p> </td>

        <td width="65" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>                 - </p> </td>

        <td width="67" nowrap valign=bottom >
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>                  - </p> </td> </tr>
    <tr style='display:none'>

        <td width="287" valign=bottom style='border-bottom: solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:0pt;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 1.0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'> $        20,869 </p> </td>

        <td width="76" nowrap valign=bottom style='border-bottom: solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>           20,869 </p> </td>

        <td width="67" nowrap valign=bottom style='border-bottom: solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>                  - </p> </td>

        <td width="65" nowrap valign=bottom style='border-bottom: solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'>                 - </p> </td>

        <td width="67" nowrap valign=bottom style='border-bottom: solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$  129,159</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:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>129,159</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:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>-</font></p> </td> </tr></table>
</div>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>As of September 30, 2008 the Bank had primary sources of liquidity of $196.3 million. It is Management&#146;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&#146;s liquidity, capital resources or results of operations.</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Certain disclosures in Management&#146;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 face="Arial" size=2>Although The First Bancorp, Inc. 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&#146;s business.</font></p>

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 22</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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. The First Bancorp, Inc.&#146;s market risk is composed primarily of interest rate risk. The Bank&#146;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 face="Arial" size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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 face="Arial" 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&#146;s cumulative one-year gap at September 30, 2008, was -7.83% 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 face="Arial" 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 face="Arial" size=2>A summary of the Bank&#146;s static gap, as of September 30, 2008 is presented in the following table:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>5+</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="267" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; 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 face="Arial" size=2>&nbsp;</font></p> </td>

        <td width="88" nowrap valign=bottom style='border-bottom: solid black 1.0pt; 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 face="Arial" size=2>Days</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:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Days</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:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Years</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:12.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" 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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" size=2>$23,765</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 face="Arial" size=2>$20,316</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 face="Arial" size=2>$73,799</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 face="Arial" size=2>$144,266</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>1,203</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" size=2>286,442</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 face="Arial" size=2>303,506</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 face="Arial" size=2>312,369</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 face="Arial" size=2>58,580</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" 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 face="Arial" size=2>9,062</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 face="Arial" 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 face="Arial" 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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>48,480</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="267" nowrap valign=bottom style='border-top:solid black 1.0pt; 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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Total assets                  </font></b></p> </td>

        <td width="88" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>310,207</font></b></p> </td>

        <td width="88" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>332,884</font></b></p> </td>

        <td width="83" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>386,168</font></b></p> </td>

        <td width="83" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>252,529</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" size=2>464,393</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 face="Arial" size=2>147,346</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 face="Arial" size=2>38,307</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 face="Arial" size=2>193,194</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" size=2>97,421</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 face="Arial" size=2>27,009</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 face="Arial" size=2>100,047</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 face="Arial" size=2>40,140</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" size=2>1,750</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 face="Arial" size=2>5,550</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 face="Arial" size=2>37,200</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 face="Arial" size=2>129,431</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="267" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
<p style='margin-left:0pt;text-indent:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Total liabilities and equity  </font></b></p> </td>

        <td width="88" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>563,564</font></b></p> </td>

        <td width="88" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>179,905</font></b></p> </td>

        <td width="83" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>175,554</font></b></p> </td>

        <td width="83" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>362,765</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" 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 face="Arial" size=2>$(253,357)</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 face="Arial" size=2>$152,979</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 face="Arial" size=2>$210,614</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 face="Arial" size=2>$(110,236)</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" size=2>-19.77%</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 face="Arial" size=2>11.93%</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 face="Arial" size=2>16.43%</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 face="Arial" size=2>-8.60%</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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" size=2>(253,357)</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 face="Arial" size=2>(100,378)</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 face="Arial" size=2>110,236</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 face="Arial" 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:1.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial" 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 face="Arial" size=2>-19.77%</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 face="Arial" size=2>-7.83%</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 face="Arial" size=2>8.60%</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 face="Arial" size=2>0.00%</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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&#146;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 against earnings in a stable interest rate environment. This analysis is also most useful in determining the </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 23</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>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 face="Arial" size=2>The Bank&#146;s most recent simulation model projects net interest income would increase by approximately 2.34% of stable-rate net interest income if short-term rates affected by Federal Open Market Committee actions fall gradually by one percentage point over the next year, and decrease by approximately 6.49% if rates rise gradually by two percentage points. Both scenarios are well within ALCO&#146;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 2.97% in a falling-rate scenario, and lower than that earned in a stable rate environment by 10.16% in a rising rate
scenario, when compared to the year-one base scenario. A summary of the Bank&#146;s interest rate risk simulation modeling, as of September 30, 2008 is presented in the following table:</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="453" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="15" nowrap valign=top style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;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="391" nowrap valign=top style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Changes in Net Interest Income</font></b></p> </td>

        <td width="46" nowrap valign=top style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>2008</font></b></p> </td> </tr></table>
</div>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="466" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="16" 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 face="Arial" size=2>Projected change if rates decrease by 1.0%</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 face="Arial" size=2>+2.34%</font></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="453" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="15" 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="380" 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 face="Arial" size=2>Projected change if rates increase by 2.0%</font></p> </td>

        <td width="57" 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 face="Arial" size=2>-6.49%</font></p> </td> </tr></table>
</div>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="466" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="16" 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 face="Arial" size=2>Projected change if rates decrease by 1.0%</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 face="Arial" size=2>+2.97%</font></p> </td> </tr></table>
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<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="453" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="15" 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="373" 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 face="Arial" size=2>Projected change if rates increase by 2.0%</font></p> </td>

        <td width="64" 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 face="Arial" size=2>-10.16%</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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 face="Arial" 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, 2008. 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 face="Arial" size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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, 2008, the Company was using interest rate caps for interest rate risk management.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:left;'><font face="Arial" 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, 2008, there were no significant differences between the views of the independent consultant and Management regarding the Company&#146;s interest rate risk exposure. Management expects interest rates may decline in the next one-to-three quarters and believes that the current level of interest rate risk is acceptable.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 24</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>

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<u><b><font face="Arial" size=2><a name="controls"></a>Item 4: Controls and Procedures</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of September 30, 2008, 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, 2008 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 face="Arial" size=2>&nbsp;</font></p>

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

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

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 25</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>

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

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

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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, 2007. </font></p>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>a. The Company issues shares to the Bank&#146;s 401k Investment and Savings Plan pursuant to an exemption from registration under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), 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 face="Arial" size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="397" style='margin-left:4.35pt;border-collapse:collapse; '>
    <tr style='height:12.75pt'>

        <td width="139" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" 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 1.0pt;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 face="Arial" size=2>Average Price</font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-top:solid black 1.5pt; border-left:none;border-bottom:solid black 1.0pt;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 face="Arial" size=2>Proceeds</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="139" 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 face="Arial" size=2>January 2008</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 face="Arial" size=2>564</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 face="Arial" size=2>$ 14.54</font></p> </td>

        <td width="84" 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 face="Arial" size=2>$   8,203</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="139" 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 face="Arial" size=2>February 2008</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 face="Arial" size=2>393</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 face="Arial" size=2>14.64</font></p> </td>

        <td width="84" 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 face="Arial" size=2>5,754</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="139" 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 face="Arial" size=2>March 2008</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 face="Arial" size=2>992</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 face="Arial" size=2>14.69</font></p> </td>

        <td width="84" 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 face="Arial" size=2>14,570</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="139" 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 face="Arial" size=2>April 2008</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 face="Arial" size=2>387</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 face="Arial" size=2>16.11</font></p> </td>

        <td width="84" 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 face="Arial" size=2>6,234</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="139" 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 face="Arial" size=2>May 2008</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 face="Arial" size=2>316</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 face="Arial" size=2>16.82</font></p> </td>

        <td width="84" 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 face="Arial" size=2>5,315</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="139" 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 face="Arial" size=2>June 2008</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 face="Arial" size=2>249</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 face="Arial" size=2>16.96</font></p> </td>

        <td width="84" 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 face="Arial" size=2>4,224</font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="139" 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 face="Arial" size=2>July 2008</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:29.25pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>415 </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:21.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>15.85 </font></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>6,579 </font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="139" 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 face="Arial" size=2>August 2008</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:29.25pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>237 </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:21.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>18.32 </font></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>4,342 </font></p> </td> </tr>
    <tr style='height:12.75pt'>

        <td width="139" 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 face="Arial" size=2>September 2008</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:29.25pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>229 </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:21.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>19.17 </font></p> </td>

        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font face="Arial" size=2>4,390 </font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="139" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.5pt;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 face="Arial" size=2>Total</font></p> </td>

        <td width="78" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
<p style='margin-left:0pt;text-indent:19.5pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>3,782 </font></b></p> </td>

        <td width="96" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
<p style='margin-left:0pt;text-indent:19.5pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 15.76 </font></b></p> </td>

        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.5pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>$ 59,611 </font></b></p> </td> </tr></table>
</div>

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>c. On August 16, 2007, the Company announced that its Board of Directors had authorized a new program for the repurchase of up to 300,000 shares of the Company&#146;s common stock or approximately 3.1% of the outstanding shares. The Board of Directors feels that repurchasing shares continues to be in the best interest of the Company&#146;s shareholders and sees stock repurchases as an appropriate use of capital, especially given the recent decline in stock prices for the banking industry. 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&#146;s stock and the level of stock issuances under the Company&#146;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, 2008, the Company had repurchased 171,579 shares under the current repurchase plan at an average price of $15.50 per share and at a total cost of $2.7 million. This new stock plan supersedes the buyback program that had been in place since July 21, 2006, which had authorized the repurchase of up to 250,000 or 2.5% of the Company&#146;s outstanding shares. As of August 16, 2007, the date the new plan was effective, the Company had repurchased 130,186 shares under the old repurchase plan at an average price of $16.89 and at a total cost of $2.2 million.</font></p>

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

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

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

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 26</font>
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<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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" size=2>January 2008</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 face="Arial" size=2>6,976</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 face="Arial" size=2>14.59</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 face="Arial" size=2>6,976</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 face="Arial" size=2>206,314</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 face="Arial" size=2>February 2008</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 face="Arial" size=2>39,698</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 face="Arial" size=2>14.64</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 face="Arial" size=2>39,698</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 face="Arial" size=2>166,616</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 face="Arial" size=2>March 2008</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 face="Arial" size=2>756</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 face="Arial" size=2>14.69</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 face="Arial" size=2>756</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 face="Arial" size=2>165,860</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 face="Arial" size=2>April 2008</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 face="Arial" size=2>511</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 face="Arial" size=2>16.64</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 face="Arial" size=2>511</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 face="Arial" size=2>165,349</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 face="Arial" size=2>May 2008</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 face="Arial" size=2>1,753</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 face="Arial" size=2>17.25</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 face="Arial" size=2>1,753</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 face="Arial" size=2>163,596</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 face="Arial" size=2>June 2008</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 face="Arial" size=2>23,400</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 face="Arial" size=2>17.12</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 face="Arial" size=2>23,400</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 face="Arial" size=2>140,196</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 face="Arial" size=2>July 2008</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 face="Arial" size=2>10,807</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 face="Arial" size=2>18.15</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 face="Arial" size=2>10,807</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 face="Arial" size=2>129,389</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 face="Arial" size=2>August 2008</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 face="Arial" size=2>12</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 face="Arial" size=2>18.67</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 face="Arial" size=2>12</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 face="Arial" size=2>129,377</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 face="Arial" size=2>September 2008</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 face="Arial" size=2>955</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 face="Arial" 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 face="Arial" size=2>955</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 face="Arial" size=2>128,422</font></p> </td> </tr>
    <tr style='height:13.5pt'>

        <td width="147" nowrap valign=bottom style='border-top:solid black 1.0pt; 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:left;margin-top:0pt;margin-bottom:0pt'><b><font face="Arial" size=2>Total</font></b></p> </td>

        <td width="102" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>84,868</font></b></p> </td>

        <td width="78" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>15.87</font></b></p> </td>

        <td width="131" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>84,868</font></b></p> </td>

        <td width="124" nowrap valign=bottom style='border-top:solid black 1.0pt; 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 face="Arial" size=2>128,422</font></b></p> </td> </tr></table>
</div>

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

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

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

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

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

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

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

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

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

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

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="85" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="16" nowrap valign=top >
<p ><font size=1>&nbsp;</font></p></td>

        <td width="69" nowrap valign=top >
<p ><font face="Arial" size=2>B.  None.</font></p></td> </tr></table>
</div>

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

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

<div TITLE="EE+ Page Footer">
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font FACE="ARIAL" SIZE=2></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 27</font>
</A></p>

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

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

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

<div TITLE="EE+ Page Break" STYLE="PAGE-BREAK-AFTER: always">

<HR noshade align="center" width="100%" size="2">
</DIV>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<u><b><font face="Arial" size=2><a name="exhibits"></a>Item 6 &#150; Exhibits</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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&#146;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 face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 3.1 Conformed Copy of the Registrant&#146;s 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 face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 3.11 Amendment to the Registrant&#146;s Articles of Incorporation, incorporated by reference to Exhibit 3.1 to the Company&#146;s Form 8-K filed under item 5.03 on May 1, 2008.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 3.12 Amendment to the Registrant&#146;s Articles of Incorporation, incorporated by reference to the Definitive Proxy Statement for the Company&#146;s 2008 Annual Meeting filed on March 14, 2008.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 3.2 Conformed Copy of the Company&#146;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 face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 10.2(a) Specimen Employment Continuity Agreement entered into with Mr. McKim, 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 face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 10.2(b) Specimen Amendment to Employment Continuity Agreement entered into with Mr. McKim, 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 face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 10.2(c) Specimen Amendment to Employment Continuity Agreement entered into with Mr. McKim, incorporated by reference to Exhibit 10.1 to the Company&#146;s Form 8-K filed under item 1.01 on January 31, 2006.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 10.3(a) Specimen Split Dollar Agreement entered into with Mr. McKim with a death benefit of $250,000. 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 face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 10.3(b) Specimen Amendment to Split Dollar Agreement entered into with Mr. McKim, 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 face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 14.1 Code of Ethics for Senior Financial Officers, adopted by the Board of Directors on June 19, 2003. Incorporated by reference to Exhibit 14.1 to the Company&#146;s Annual Report on Form 10-K filed on March 15, 2006. A copy of will be provided to any person without charge upon request to the Secretary of the Company and is also available on the Company&#146;s website at www.thefirstbancorp.com.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 14.2 Code of Business Conduct and Ethics, adopted by the Board of Directors on April 15, 2004. Incorporated by reference to Exhibit 14.2 to the Company&#146;s Annual Report on Form 10-K filed on March 15, 2006. A copy of will be provided to any person without charge upon request to the Secretary of the Company and is also available on the Company&#146;s website at www.thefirstbancorp.com.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 31.1 Certification of Chief Executive Officer Pursuant 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 face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Exhibit 31.2 Certification of Chief Financial Officer Pursuant 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 face="Arial" size=2>&nbsp;</font></p>

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

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

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

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 28</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

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<b><font face="Arial" size=2><a name="sign"></a>Signatures</font></b></p>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font FACE="ARIAL" SIZE=2>THE FIRST BANCORP, INC.</font></p>

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Date: November 6, 2008</font></p>

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

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>Date: November 6, 2008</font></p>

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

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><A NAME="PAGENUM"><font face="Arial" size=2>Page 29</font>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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 The First Bancorp, Inc.;</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 face="Arial" 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 face="Arial" size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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 face="Arial" 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 face="Arial" 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 6, 2008</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>The First Bancorp, Inc.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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 The First Bancorp, Inc.;</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 face="Arial" 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 face="Arial" size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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 face="Arial" 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 face="Arial" 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 6, 2008</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>The First Bancorp, Inc.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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 face="Arial" size=2>The undersigned officer of The First Bancorp, Inc.  (the "Company") hereby certifies that the Company's quarterly report on Form 10-Q for the period ended September 30, 2008 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 6, 2008</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>The First Bancorp, Inc.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" 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 32.2</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 face="Arial" size=2>The undersigned officer of The First Bancorp, Inc. (the "Company") hereby certifies that the Company's quarterly report on Form 10-Q for the period ended September 30, 2008 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 6, 2008</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>The First Bancorp, Inc.</font></p>

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