<SEC-DOCUMENT>0001144204-17-004000.txt : 20170425
<SEC-HEADER>0001144204-17-004000.hdr.sgml : 20170425

<ACCEPTANCE-DATETIME>20170126155209

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0001144204-17-004000

CONFORMED SUBMISSION TYPE:	S-1/A

PUBLIC DOCUMENT COUNT:		5

FILED AS OF DATE:		20170126

DATE AS OF CHANGE:		20170310


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			FIRST UNITED CORP/MD/

		CENTRAL INDEX KEY:			0000763907

		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]

		IRS NUMBER:				521380770

		STATE OF INCORPORATION:			MD

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		S-1/A

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-214477

		FILM NUMBER:		17549659



	BUSINESS ADDRESS:	

		STREET 1:		19 S SECOND ST

		CITY:			OAKLAND

		STATE:			MD

		ZIP:			21550

		BUSINESS PHONE:		3013349471



	MAIL ADDRESS:	

		STREET 1:		19 S SECOND ST

		CITY:			OAKLAND

		STATE:			MD

		ZIP:			21550



</SEC-HEADER>

<DOCUMENT>
<TYPE>S-1/A
<SEQUENCE>1
<FILENAME>v457203_s1a.htm
<DESCRIPTION>AMENDMENT TO FORM S-1
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"> As filed with the Office of the Securities
and Exchange Commission on January 26, 2016 </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">Registration No. 333-214477</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Washington, D.C. 20549</P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> <B>PRE-EFFECTIVE AMENDMENT NO. 2</B> </P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933</P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>FIRST UNITED
CORPORATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(Exact Name of Registrant as Specified in
Its Charter)</I></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 63%; font-size: 10pt; text-align: center"><font style="font-size: 10pt"><b>Maryland</b></font></td>
    <TD STYLE="width: 37%; font-size: 10pt; text-align: center"><font style="font-size: 10pt"><b>52-1380770</b></font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center"><font style="font-size: 10pt"><i>(State or Other Jurisdiction of Incorporation or Organization</i></font></td>
    <TD STYLE="font-size: 10pt; text-align: center"><font style="font-size: 10pt"><i>(I.R.S. Employer Identification Number)</i></font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>19 South Second Street, Oakland, Maryland
21550</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(Address of Principal Executive Offices)</I></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Chairman, President and Chief Executive Officer</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>19 South Second Street, Oakland, Maryland
21550</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(888) 692-2654</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(Name, Address and Telephone Number of Agent
for Service)</I></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>233 East Redwood Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Baltimore, Maryland 21202</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(410) 576-4280</B></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Approximate date of commencement of proposed
sale to the public: As soon as practicable after the effective date of this registration statement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If any of the securities being registered on
this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following
box: <FONT STYLE="font-family: Wingdings">&thorn;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If this Form is a post-effective amendment filed
pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number
of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If this Form is a post-effective amendment filed
pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number
of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b2
of the Exchange Act.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse; margin-left: 0.5in">
<tr style="vertical-align: top">
    <TD STYLE="width: 51%; font-size: 10pt"><font style="font-size: 10pt">Large accelerated filer <font style="font-family: Wingdings">&uml;</font></font></td>
    <TD STYLE="width: 49%; font-size: 10pt"><font style="font-size: 10pt">Accelerated filer <font style="font-family: Wingdings">&uml;</font></font></td></tr>
<tr style="vertical-align: top">
    <td style="font-size: 10pt"><font style="font-size: 10pt">Non-accelerated filer <font style="font-family: Wingdings">&uml;</font></font></td>
    <td style="font-size: 10pt"><font style="font-size: 10pt">Smaller reporting company <font style="font-family: Wingdings">&thorn;</font></font></td></tr>
<tr style="vertical-align: top">
    <td style="font-size: 10pt"><font style="font-size: 10pt">(Do not check if a smaller reporting company) </font></td>
    <td style="font-size: 10pt">&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>The registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
that specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933, as amended, or until this registration statement shall become effective on such date as the Commission,
acting pursuant to Section 8(a), may determine.</B></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: red"><B>The information contained in this prospectus is not
complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange
Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these
securities in any state where the offer or sale is not permitted.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #DF1A1E"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: #DF1A1E"> <B>Subject to completion,
dated January 26, 2016</B> </P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><IMG SRC="pg4img1_s1a.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><B>Common Stock, Par
Value $.01 Per Share, Underlying Subscription Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>to Purchase up to 783,626 Shares of Common
Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> We are distributing, at no charge and on
a pro-rata basis, an aggregate of 6,269,004 non-transferable subscription rights, each of which we sometimes refer to as a &ldquo;right&rdquo;,
to purchase up to an aggregate of 783,626 shares of our common stock at a subscription price of $<B>[&bull;]</B> per share. The
subscription price represents a <B>[&bull;]</B>% discount to the volume weighted average closing sales price of our common stock
for the 20 trading days immediately preceding <B>[&bull;]</B>, 20<B>[&bull;], </B>which was the date on which the registration
statement of which this prospectus forms a part was declared effective. Rights are being distributed to each person who held shares
of our common stock as of 5:00 p.m., Eastern Standard Time, on November 28, 2016<B></B>, which we refer to as the &ldquo;record
date&rdquo;. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Each right will entitle the holder to a basic
subscription privilege and an oversubscription privilege. Under the basic subscription privilege, subject to the fact that we will
not issue fractional shares, each right entitles its holder to purchase 0.125 new shares for each share of our common stock held
as of the record date, which is the same as one new share for each eight (8) shares held as of the record date. Under the oversubscription
privilege, each holder who fully exercises its basic subscription privilege may subscribe, at the subscription price, for additional
whole shares for allocation in the event that not all available shares are purchased pursuant to all shareholders&rsquo; basic
subscription privilege. However, the oversubscription privilege will be offered only for an aggregate number of shares that, when
combined with the number of shares purchased pursuant to all shareholders&rsquo; basic subscription privilege, does not exceed
783,626 shares. We reserve the right to accept or reject oversubscriptions for any reason. We do not intend to accept any oversubscriptions
that we believe may have an unfavorable effect on our ability to preserve our net operating loss deferred tax asset. Purchases
of shares pursuant to the offering are also subject to certain other limitations described in this prospectus. As noted above,
we will not issue fractional shares of common stock in the offering and holders will be entitled to purchase only a whole number
of shares of common stock, rounded down to the nearest whole number. Thus, a shareholder must own at least eight shares of common
stock as of the record date to purchase one new share under the basic subscription privilege.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you fully exercise your basic subscription
privilege, then you will not experience any dilution in the percentage of our outstanding shares of common stock that you own immediately
after the completion of the offering. If we accept your subscription pursuant to your oversubscription privilege, then in all circumstances
the percentage of our outstanding shares that you own immediately after the offering will be higher than it was before the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Subscription rights will expire if they are
not exercised by 5:00 p.m., Eastern Standard Time, on <B>[&bull;]</B>, 20<B>[&bull;]</B>, which we refer to as the &ldquo;expiration
date&rdquo;, unless we extend the offering period for up to 30 days until <B>[&bull;]</B>, 20<B>[&bull;]</B>. You should carefully
consider whether to exercise your subscription rights before the expiration of the offering. All exercises of subscription rights
are irrevocable. Our Board of Directors is making no recommendation regarding your exercise of the subscription rights.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We reserve the right to amend the terms of or
cancel the offering at any time. Computershare Inc., our subscription agent for the offering, will hold all funds it receives in
an escrow account until completion of the offering. If we decide to extend, amend or modify the terms of the offering for any reason,
subscriptions received prior to such extension, amendment or modification will remain irrevocable. If we cancel the offering, all
subscription funds will be returned promptly, without interest or penalty.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To facilitate the offering, we have entered
into Standby Purchase Agreements, which we refer to as &ldquo;Standby Purchase Agreements&rdquo;, with certain accredited investors,
whom we refer to as the &ldquo;standby investors&rdquo;. Subject to certain limits and other conditions set forth in the Standby
Purchase Agreements, the standby investors have agreed to purchase from us, at the subscription price, a portion of the shares
of our common stock that are not purchased by shareholders in the offering. See the section of this prospectus entitled &ldquo;THE
STANDBY PURCHASE AGREEMENTS&rdquo; for further details.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The shares are being offered directly by us
without the services of an underwriter or selling agent. We will receive all of the net proceeds from shares sold in the offering.
The purpose of the offering is to raise equity capital in a cost-effective manner that allows current shareholders to participate.
See the section of this prospectus entitled &ldquo;USE OF PROCEEDS&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock is listed on The NASDAQ Global
Select Market under the symbol &ldquo;FUNC&rdquo;. On November 4, 2016, the last trading day prior to the announcement of this
rights offering, the closing sales price of our common stock was $11.60 per share. The last reported sale of our common stock occurred
on <B>[&bull;]</B>, 20<B>[&bull;]</B>, and the closing sales price of our common stock on that date was $<B>[&bull;]</B> per share.
The volume weighted average closing sales price of our common stock for the 20-trading day period preceding the effective date
of the registration statement of which this prospectus forms a part was $<B>[&bull;]</B> per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 23pt"><B>The exercise of your
rights for shares of our common stock involves risks. You should carefully consider the risk factors beginning on page 16 of this
prospectus before exercising your rights.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 23pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of
this prospectus. Any representation to the contrary is a criminal offense.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>These securities are not savings accounts,
deposits, or other obligations of a bank and are not insured by the Federal Deposit Insurance Corporation or any other governmental
agency.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our principal executive offices are located
at 19 South Second Street, Oakland, Maryland 21550 and our telephone number is (888) 692-2654.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The date of this prospectus is <B>[&bull;]</B>,
20<B>[&bull;]</B></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

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

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="width: 90%"><font style="font-size: 10pt"><A HREF="#a_001">ABOUT THIS PROSPECTUS</A></font></td>
    <td style="width: 10%; text-align: right"><font style="font-size: 10pt">3</font></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <td><font style="font-size: 10pt"><A HREF="#a_002">A WARNING ABOUT FORWARD-LOOKING STATEMENTS</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">3</font></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td><font style="font-size: 10pt"><A HREF="#a_003">QUESTIONS AND ANSWERS RELATING TO THE OFFERING</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">5</font></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <td><font style="font-size: 10pt"><A HREF="#a_004">SUMMARY</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">12</font></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td><font style="font-size: 10pt"><A HREF="#a_005">RISK FACTORS</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">16</font></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <td><font style="font-size: 10pt"><A HREF="#a_006">THE OFFERING</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">22</font></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td><font style="font-size: 10pt"><A HREF="#a_007">THE STANDBY PURCHASE AGREEMENTS</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">31</font></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <td><font style="font-size: 10pt"><A HREF="#a_008">USE OF PROCEEDS</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">34</font></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td><font style="font-size: 10pt"><A HREF="#a_009">CAPITALIZATION</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">35</font></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <td><font style="font-size: 10pt"><A HREF="#a_010">DILUTION</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">36</font></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td><font style="font-size: 10pt"><A HREF="#a_011">OUR NET OPERATING LOSS DEFERRED TAX ASSETS</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">37</font></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <td><font style="font-size: 10pt"><A HREF="#a_012">MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">38</font></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td><font style="font-size: 10pt"><A HREF="#a_013">MARKET PRICE OF COMMON STOCK AND DIVIDEND POLICY</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">40</font></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <td><font style="font-size: 10pt"><A HREF="#a_014">DESCRIPTION OF SECURITIES</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">41</font></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td> <FONT STYLE="font-size: 10pt"><A HREF="#a_015">PLAN OF DISTRIBUTION</A></FONT> </td>
    <td style="text-align: right"> <FONT STYLE="font-size: 10pt">49</FONT> </td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <td><font style="font-size: 10pt"><A HREF="#a_016">LEGAL MATTERS</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">49</font></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td><font style="font-size: 10pt"><A HREF="#a_017">EXPERTS</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">49</font></td></tr>
<TR STYLE="vertical-align: top; background-color: White">
    <td><font style="font-size: 10pt"><A HREF="#a_018">WHERE YOU CAN FIND MORE INFORMATION</A></font></td>
    <td style="text-align: right"><font style="font-size: 10pt">49</font></td></tr>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <td> <FONT STYLE="font-size: 10pt"><A HREF="#a_019">INCORPORATION OF CERTAIN INFORMATION BY REFERENCE</A></FONT> </td>
    <td style="text-align: right"> <FONT STYLE="font-size: 10pt">50</FONT> </td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_001"></A><B>ABOUT THIS PROSPECTUS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You should rely only on the information contained
or incorporated by reference in this prospectus. We have not authorized anyone to provide you with any other or different information.
If anyone provides you with information that is different from, or inconsistent with, the information contained or incorporated
by reference in this prospectus, you should not rely on it. You should not assume that the information contained in this prospectus
is accurate as of any date other than the date on the front cover of this prospectus, or that the information incorporated by reference
herein is accurate as of any date other than the date of the relevant report or other document in which such information is contained.
Our business, financial condition, results of operations and prospects may have changed since such dates.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Neither we nor any of our officers, directors,
agents, or representatives make any representation to you about the legality of an investment in our common stock. You should not
consider any information in this prospectus or in the documents incorporated by reference herein to be investment, legal, or tax
advice. You should consult your own counsel, accountant, and other advisors for legal, tax, business, financial, and related advice
regarding the purchase of our securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The distribution of this prospectus, the offering
and the sale of shares of our common stock in certain jurisdictions may be restricted by law. This prospectus does not constitute
an offer of, or a solicitation of an offer to buy, any shares of common stock in any jurisdiction in which such offer or solicitation
is not permitted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The industry and market data and other statistical
information contained in this prospectus and the documents incorporated herein are based on management&rsquo;s own estimates, independent
publications, government publications, reports by market research firms or other published independent sources and, in each case,
are believed by management to be reasonable estimates. Although we believe these resources to be reliable, we have not independently
verified the information.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As used in this prospectus, the terms &ldquo;the
Company&rdquo;, &ldquo;we&rdquo;, &ldquo;us&rdquo; and &ldquo;our&rdquo; refer to First United Corporation and, unless the context
clearly requires otherwise, its consolidated subsidiaries, and the term &ldquo;the Bank&rdquo; refers to First United Corporation&rsquo;s
wholly-owned bank subsidiary, First United Bank &amp; Trust.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_002"></A><B>A WARNING ABOUT FORWARD-LOOKING STATEMENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Some of the statements contained, or incorporated
by reference, in this prospectus may include projections, predictions, expectations or statements as to beliefs or future events
or results or refer to other matters that are not historical facts. Such statements constitute forward-looking statements and are
subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from
those contemplated by the statements. The forward-looking statements are based on various factors and were derived using numerous
assumptions. In some cases, you can identify forward-looking statements by words like &ldquo;may&rdquo;, &ldquo;will&rdquo;, &ldquo;should&rdquo;,
&ldquo;expect&rdquo;, &ldquo;plan&rdquo;, &ldquo;anticipate&rdquo;, &ldquo;intend&rdquo;, &ldquo;believe&rdquo;, &ldquo;estimate&rdquo;,
&ldquo;predict&rdquo;, &ldquo;potential&rdquo;, or &ldquo;continue&rdquo; or the negative of those words and other comparable words.
You should be aware that those statements reflect only our predictions. If known or unknown risks or uncertainties should materialize,
or if underlying assumptions should prove inaccurate, actual results could differ materially from past results and those anticipated,
estimated or projected. You should bear this in mind when reading this prospectus and not place undue reliance on these forward-looking
statements. Factors that might cause such differences include, but are not limited to:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the risk that the weak national and local economies and depressed real estate and credit markets caused by the recent global
recession will continue to decrease or hinder the demand for loan, deposit and other financial services and/or increase loan delinquencies
and defaults;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in market rates and prices may adversely impact the value of securities, loans, deposits and other financial instruments
and the interest rate sensitivity of our balance sheet;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our liquidity requirements could be adversely affected by changes in our assets and liabilities;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the effect of legislative or regulatory developments, including changes in laws concerning taxes, banking, securities, insurance
and other aspects of the financial services industry;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>competitive factors among financial services organizations, including product and pricing pressures and our ability to attract,
develop and retain qualified banking professionals;</TD></TR></TABLE>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board,
the Securities and Exchange Commission, which we refer to as the &ldquo;Commission&rdquo;, the Public Company Accounting Oversight
Board and other regulatory agencies;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the effect of fiscal and governmental policies of the United States federal government; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the risk that our shareholders will choose to not participate in the offering and/or the risk that the closing of the sales
of shares contemplated by the Standby Purchase Agreements will not occur.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You should also consider carefully the statements
under the heading &ldquo;RISK FACTORS&rdquo; on page 16, including the statements incorporated by reference into that section,
and in the other sections of this prospectus, which address additional factors that could cause our actual results to differ from
those set forth in the forward-looking statements and could materially and adversely affect our business, operating results and
financial condition. Also note that we provide cautionary discussion of risks, uncertainties and possibly inaccurate assumptions
relevant to our businesses in our periodic and current reports filed with the Commission and incorporated by reference in this
prospectus and in prospectus supplements and other offering materials. The risks discussed in this prospectus and in the other
documents referenced above are factors that, individually or in the aggregate, management believes could cause our actual results
to differ materially from expected and historical results. You should understand that it is not possible to predict or identify
all such factors. Consequently, you should not consider such disclosures to be a complete discussion of all potential risks or
uncertainties.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The forward-looking statements speak only as
of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to
update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect
the occurrence of unanticipated events. In addition, we cannot assess the impact of each factor on our business or the extent to
which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking
statements.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_003"></A><B>QUESTIONS AND ANSWERS RELATING TO THE OFFERING</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>The following are examples of what we anticipate
will be common questions about the offering. The answers are based on selected information from this prospectus and the documents
incorporated by reference in this prospectus. The following questions and answers do not contain all of the information that may
be important to you and may not address all of the questions that you may have about the offering. This prospectus and the documents
incorporated by reference contain more detailed descriptions of the terms and conditions of the offering and provide additional
information about us and our business, including potential risks related to the offering, our common stock, and our business.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>Exercising your subscription rights and investing
in our common stock involves a high degree of risk. We urge you to carefully read the section entitled &ldquo;RISK FACTORS&rdquo;
beginning on page 16 of this prospectus, and all other information included or incorporated by reference in this prospectus in
its entirety before you decide whether to exercise your rights.</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> We are distributing subscription rights,
on a pro rata basis and at no cost, to purchase an aggregate of 783,626 shares of our common stock at a subscription price of
$<B>[&bull;]</B> per share to persons who held shares of our common stock as of 5:00 p.m., Eastern Standard Time, on November
28, 2016. If you are a holder of our common stock as of that date, then, under your basic subscription right, you will receive
the right to subscribe for 0.125 shares of common stock at the subscription price for every one share of our common stock that
you owned as of the record date. If you fully exercise your basic subscription privilege, then you will also be entitled to request
to purchase additional shares pursuant to your oversubscription privilege, as described below. The subscription rights are evidenced
by rights certificates. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Why are we conducting the offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are conducting the offering to raise capital
that can be used to offset the impact of our planned redemption of $10 million of our Fixed Rate Cumulative Perpetual Preferred
Stock, Series A, which we refer to as the &ldquo;Series A Preferred Stock&rdquo;, and our planned repayment of $10.8 million of
our junior subordinated debentures, which we refer to as &ldquo;TPS Debentures&rdquo;, issued to our Delaware statutory business
trust subsidiary, First United Statutory Trust III, which we refer to as &ldquo;Trust III&rdquo;. We intend to consummate the redemption
and repayment as soon as is practicable following the closing of the offering. Our Board of Directors has chosen to raise capital
through a rights offering to give our shareholders the opportunity to prevent ownership dilution by acquiring additional shares
of common stock in the offering. Our Board of Directors also considered several alternative capital-raising methods prior to concluding
that the offering was the best option under the current circumstances. We believe that raising capital at this time, in this manner
and for the foregoing purposes is prudent in light of current market conditions and the anticipated impact of the offering and
use of proceeds on our financial condition, but our Board of Directors is making no recommendation regarding your exercise of the
subscription rights. We cannot assure you that we will not need to seek additional financing or engage in additional capital raising
transactions in the future.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>What is the basic subscription privilege and oversubscription
privilege?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Subject to the fact that we will not issue fractional
shares in the offering, the basic subscription privilege entitles a holder of a right to purchase 0.125 shares of our common stock
at the subscription price. For example, if you owned 80 shares of our common stock on the record date, then you would be granted
80 rights and you would have the right to purchase 10 shares of our common stock for an aggregate subscription price of $<B>[&bull;]</B>.
If, however, you owned less than eight shares on the record date, then you would not be able to purchase shares in the offering.
You may exercise all or any number of your rights, or you may choose to not exercise any of your rights. If you exercise less than
your full basic subscription privilege, then you will not be entitled to purchase shares under your oversubscription privilege.
Please note that, as noted above, we will not issue fractional shares of common stock in the offering and holders will be entitled
only to purchase a whole number of shares of common stock, rounded down to the nearest whole number that a holder would otherwise
be entitled to purchase, with the total subscription payment being adjusted accordingly.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you are a record holder, your rights certificate
accompanies this prospectus. If you hold your shares in street name through a broker, dealer, custodian bank, or other nominee
who uses the services of The Depository Trust &amp; Clearing Corporation (&ldquo;DTC&rdquo;), then you will not receive a rights
certificate. Instead, DTC will issue one subscription right to your nominee for every share of our common stock you owned as of
the record date. Each subscription right entitles you to purchase 0.125 shares of our common stock at the subscription price. For
more information, see &ldquo;What should I do if I want to participate in the offering, but my shares are held in the name of my
broker, dealer, custodian bank, or other nominee?&rdquo; in this section.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you exercise your basic subscription privilege
in full by purchasing one new share for every eight shares that you hold as of the record date, (<I>i.e.</I>, 0.125 shares of common
stock for each share that you own), then you will not experience any dilution in the percentage of our outstanding shares of common
stock that you own immediately after the completion of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Under the oversubscription privilege, each holder
who fully exercises its basic subscription privilege may also subscribe to purchase, at the subscription price, additional shares
to the extent they are available after the exercise of all holders&rsquo; basic subscription privileges. If we receive oversubscription
requests for more shares of our common stock than we have available for oversubscriptions, then each requesting holder will receive
its pro rata portion of the available shares based on the number of shares requested by each holder under the oversubscription
privilege. We reserve the right to accept or reject oversubscriptions for any reason. In addition, purchases pursuant to the oversubscription
privilege will be limited as described under &ldquo;Are there limits on the number of shares of common stock I may purchase in
the offering?&rdquo; in this section. We can provide no assurances that you will actually be able to purchase any shares of common
stock upon the exercise of your oversubscription privilege.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To properly exercise your oversubscription privilege,
you must deliver the subscription payment related to your oversubscription privilege prior to the expiration of the offering. Because
we will not know the total number of unsubscribed shares prior to the expiration of the offering, if you wish to maximize the number
of shares you purchase pursuant to your oversubscription privilege, you will need to deliver payment in an amount equal to the
aggregate subscription price for the maximum number of shares of our common stock that may be available to you (<I>i.e.</I>, assuming
you fully exercise your basic subscription right and are allotted the full amount of your oversubscription as elected by you).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If oversubscription requests exceed the number
of shares of common stock available for sale after purchases by all shareholders exercising their basic subscription privilege,
then we will have discretion to allocate the available shares of common stock among shareholders who oversubscribed as we deem
appropriate. When determining how to allocate such remaining shares, we may give priority to those oversubscription purchasers
that we believe will develop future business relationships with us, refer business to us or purchase additional shares of our common
stock on the open market after the closing of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To the extent the aggregate subscription price
of the maximum number of unsubscribed shares allocated to you pursuant to exercise of the oversubscription privilege is less than
the amount you actually paid in connection with the exercise of the oversubscription privilege, you will be allocated only the
number of unsubscribed shares available to you, and any excess subscription payments received by the subscription agent will be
returned to you, without interest or penalty, as soon as practicable. To the extent the amount you actually paid in connection
with the exercise of the oversubscription privilege is less than the aggregate subscription price of the maximum number of unsubscribed
shares allocated to you pursuant to the oversubscription privilege, you will be allocated the number of unsubscribed shares for
which you actually paid in connection with the oversubscription privilege.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>How will the standby investors participate in the offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To facilitate the offering, we have entered
into Standby Purchase Agreements with (i) Castle Creek Special Situations Advisors LLC, Castle Creek SSF-D Investors LP, Arch Investment
Holdings I Ltd., May Clinic, Mayo Clinic Master Retirement Trust, which we refer to collectively as the &ldquo;Castle Creek Funds&rdquo;,
and (ii) Second Curve Vision Fund, L.P., Second Curve Vision Fund International, Ltd., Second Curve Opportunity Fund, L.P., Second
Curve Partners, L.P., Second Curve Partners II, L.P., and Second Curve Partners International Ltd., which we refer to collectively
as the &ldquo;Second Curve Funds&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Castle Creek Funds have agreed, subject
to there being sufficient shares available after purchases by shareholders in the offering, to purchase from us, at the subscription
price, the lesser of (a) up to an aggregate of $5.0 million in shares of our common stock that are not purchased by shareholders
in the offering and (b) the maximum number of shares that they may purchase without causing an &ldquo;ownership change&rdquo; under
Section 382(g) of the Internal Revenue Code of 1986, as amended, which we refer to as the &ldquo;Code&rdquo;.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Second Curve Funds, which own an aggregate
of 131,614<B> </B>shares of our common stock as of the record date, have committed to purchase up to $2.0 million in shares of
our common stock through a combination of the exercise of their basic subscription privilege in the offering and, subject to there
being sufficient shares available after purchases by shareholders in the offering, pursuant to their Standby Purchase Agreements,
provided that they will not purchase shares to the extent it would cause an &ldquo;ownership change&rdquo; under Section 382(g)
of the Code. If the Second Curve Funds were to exercise their basic subscription privilege in full, then they would purchase an
aggregate of 16,451 shares of our common stock in the offering for an aggregate subscription price of $<B>[&bull;]</B>, and, subject
to there being sufficient shares available after purchases by shareholders in the offering and to the Section 382(g) limitation,
an aggregate of <B>[&bull;] </B>shares of our common stock under their Standby Purchase Agreements for an aggregate purchase price
of $<B>[&bull;]</B>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If for any reason we do not complete the offering,
then we will have no obligation to sell shares to the standby investors pursuant to the Standby Purchase Agreements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Are there limits on the number of shares of common stock I may
purchase in the offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Yes. Other than any person or entity that owns,
as of the date of this prospectus, more than 5% of our common stock, a person or entity, together with related persons or entities,
may not exercise subscription rights (including the oversubscription privilege) to purchase shares of our common stock that, when
aggregated with their existing ownership, would result in such person or entity, together with any related persons or entities,
owning 5% or more of our issued and outstanding shares of common stock following the offering, or that would otherwise require
regulatory approval. In addition, any person or entity, together with related persons or entities, that exercises subscription
rights (including the oversubscription privilege) to purchase shares of our common stock that, when aggregated with their existing
ownership, results in such person or entity, together with any related persons or entities, becoming the beneficial owner of 4%
or more of our issued and outstanding shares of common stock following the offering will be required to enter into an agreement
prohibiting such person or entity from purchasing additional shares that would result in such person or entity owning more than
5% of our common stock. For more information, see the section of this prospectus entitled &ldquo;THE OFFERING&rdquo;<B> </B>under
the heading &ldquo;Limitations on Amount You May Purchase&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In addition, notwithstanding any other information
presented in this prospectus, we do not intend to accept any subscriptions or oversubscriptions in this offering that we believe
may have an unfavorable effect on our ability to preserve our net operating loss deferred tax asset. For more information, see
the section of this prospectus entitled &ldquo;OUR NET OPERATING LOSS DEFERRED TAX ASSETS&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>How do I exercise my subscription rights?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you wish to participate in the offering,
you must deliver your payment along with your properly completed and signed rights certificate, and any other subscription materials,
to the subscription agent. To properly exercise your oversubscription privilege, you must indicate the number of shares you wish
to purchase in addition to the shares subscribed for under your basic subscription privilege on your rights certificate. You must
exercise your basic rights in full in order to exercise your oversubscription right. See section of this prospectus entitled &ldquo;THE
OFFERING&rdquo;<B> </B>under the headings &ldquo;The Subscription Rights&rdquo;, &ldquo;Basic Subscription Privilege&rdquo;, and
&ldquo;Oversubscription Privilege&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Payments must be made in full in U.S. dollars
for the full number of shares for which you are subscribing by:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>personal check payable to &ldquo;Computershare Trust Company, N.A., as Subscription Agent for First United Corporation&rdquo;
drawn upon a U.S. bank; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>certified check payable to &ldquo;Computershare Trust Company, N.A., as Subscription Agent for First United Corporation&rdquo;
drawn upon First United Bank &amp; Trust.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Please note that funds paid by personal check
may take seven or more business days to clear. Accordingly, if you wish to pay by means of a personal check, we urge you to make
payment sufficiently in advance of the expiration date to ensure that the subscription agent receives cleared funds before that
time. We also urge you to consider payment by means of a certified check drawn upon First United Bank &amp; Trust in order to expedite
the receipt of your payment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Please follow the payment and delivery instructions
accompanying the rights certificate. <B>DO NOT DELIVER DOCUMENTS TO THE COMPANY OR THE BANK.</B> As described in this prospectus
and in the instructions accompanying the rights certificate, in certain cases additional documentation or medallion guarantees
may be required. For more information, see the section of this prospectus entitled &ldquo;THE OFFERING&rdquo; under the heading
&ldquo;Method of Exercising Subscription Rights&rdquo;. You are solely responsible for completing delivery to the subscription
agent of your rights certificate, any other subscription materials, and payment. We urge you to allow sufficient time for delivery
of your subscription materials to the subscription agent so that the subscription agent receives them by 5:00 p.m., Eastern Standard
Time, on <B>[&bull;]</B>, 20<B>[&bull;]</B>. We are not responsible for subscription materials sent directly to our offices.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you send a payment that is insufficient to
purchase the number of shares you requested, or if the number of shares you requested is not specified in the forms, the payment
received will be applied to exercise your subscription rights to the fullest extent possible based on the amount of the payment
received, subject to the availability of shares under the oversubscription privilege and purchase limitations. Any excess subscription
payments received by the subscription agent will be returned promptly, without interest or penalty, following the expiration of
the offering. We reserve the right to reject any attempted subscription that does not include proper documentation or matching
payment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>What should I do if I want to participate in the offering, but
my shares are held in the name of my broker, dealer, custodian bank, or other nominee?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you hold your shares of common stock in the
name of a broker, dealer, custodian bank, or other nominee, then your broker, dealer, custodian bank, or other nominee is the record
holder of the shares you own. You will not receive a rights certificate. The record holder must exercise the subscription rights
on your behalf for the shares of common stock you wish to purchase in the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you wish to purchase shares of our common
stock through the offering, please promptly contact your broker, dealer, custodian bank, or other nominee as record holder of your
shares. We will ask your record holder to notify you of the offering. However, if your broker, dealer, custodian bank, or other
nominee does not contact you, then you should promptly initiate contact with it. Your broker, dealer, custodian bank, or other
nominee may establish a deadline prior to 5:00 p.m., Eastern Standard Time, on <B>[&bull;],</B> 20<B>[&bull;]</B>, which we established
as the expiration date of the offering, by which you must provide it with your instructions to exercise your subscription rights
and pay for your shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Am I required to exercise all of the rights I receive in the
offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">No. You may exercise any number of your subscription
rights, or you may choose not to exercise any subscription rights. However, if you choose not to exercise your basic subscription
privilege in full, the relative percentage of our shares of common stock that you own will decrease as a result of the offering,
and your voting and other rights will be diluted. In addition, if you do not exercise your basic subscription privilege in full,
you will not be entitled to participate in the oversubscription privilege. For more information, see &ldquo;How many shares of
common stock will be outstanding after the offering?&rdquo; in this section.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Will our officers and directors be exercising their subscription
rights?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Certain of our directors and officers have indicated
that they intend to participate in the offering, although they are not required to do so. Collectively, we expect our directors
and officers, together with their affiliates, to purchase up to approximately 31,413 shares in the offering. As of the record date,
our directors and officers, together with their affiliates, beneficially own approximately 251,379 shares of common stock and are
entitled to purchase approximately 31,413 shares in the offering by exercising their respective basic subscription privileges on
the same terms and conditions applicable to all shareholders. Following the offering, after exercising their respective basic subscription
privileges in full, we expect our directors and officers, together with their affiliates, to own an aggregate of approximately
282,792 shares of common stock, or approximately 4.0% of our total outstanding shares of common stock, if we sell all 783,626 shares
offered in the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Has our Board of Directors made a recommendation to our shareholders
regarding the exercise of rights under the offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">No. Our Board of Directors is not making any
recommendation to you about whether you should exercise any subscription rights. Shareholders who exercise their subscription rights
risk a loss on their investment. We cannot assure you that the market price of our common stock will be above the subscription
price or that anyone purchasing shares at the subscription price will be able to sell those shares in the future at the same price
or a higher price. You are urged to make your decision based on your own assessment of our business and the offering. Please review
the section of this prospectus entitled &ldquo;RISK FACTORS&rdquo; for a discussion of some of the risks involved in investing
in our common stock.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>What other agreements do we have in place with the standby investors
and will the standby investors receive any compensation for their commitments?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have agreed with each of the standby investors
to file a registration statement with the Commission to register, at our expense, the resale of all shares that the standby investors
purchase and to use commercially reasonable efforts to cause that registration statement to be declared effective by the Commission.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>How many shares will the standby investors own after the offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Purchasers in the offering will not know the
number or percentage of our outstanding shares of common stock that the standby investors will own after the completion of the
offering until the expiration of the offering period. The Standby Purchase Agreements with the Castle Creek Funds contemplate that
they will be permitted to purchase up to an aggregate of <B>[&bull;]</B> shares, to the extent not purchased by rights holders
in the offering. The Second Curve Funds, which own an aggregate of 131,614 shares of our common as of the record date, have committed
to purchase up to $2.0 million in shares of our common stock through a combination of the exercise of their basic subscription
privilege in the offering and, subject to there being sufficient shares available after purchases by shareholders in the offering,
pursuant to the offer and sale contemplated by their Standby Purchase Agreements. The actual number of shares and percentage ownership
will depend on the number of shares purchased by shareholders who exercise their basic subscription privilege and oversubscription
privilege. The chart below presents the aggregate ownership of the standby investors if rights holders purchase 0%, 25%, 50% and
100% of the shares offered in the offering.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">0%&nbsp;of&nbsp;Basic<BR> Subscriptions<BR> Exercised</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">25%&nbsp;of&nbsp;Basic<BR> Subscriptions<BR> Exercised</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">50%&nbsp;of&nbsp;Basic<BR> Subscriptions<BR> Exercised</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">100%&nbsp;of&nbsp;Basic<BR> Subscriptions<BR> Exercised</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; text-align: left">Shares sold pursuant to the rights</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">0</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">195,906</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">391,813</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">783,626</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Shares purchased by Castle Creek Funds in standby offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Shares purchased by Second Curve Funds in standby offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total shares issued in offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">783,626</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total shares outstanding after offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,052,630</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Percentage ownership of Castle Creek Funds after closing of offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left"></TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Percentage ownership of Second Curve Funds after closing of offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">%&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD NOWRAP STYLE="font-weight: bold; text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.1</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>How was the subscription price be determined?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In determining the subscription price, our Board
of Directors considered a number of factors, including the need to offer the shares at a price that would be attractive to investors
relative to the then current trading price of our common stock, the tangible book value of a share of our common stock, historical
and current trading prices of our common stock, general conditions in the financial services industry, the need for capital and
alternatives available to us for raising capital, potential market conditions, and the desire to provide an opportunity to our
shareholders to participate in the offering on a pro rata basis. Because our common stock is not heavily traded and to account
for the possibility of wide price fluctuations over a short period of time, our Board of Directors concluded that it would be prudent
to base the subscription price on the volume weighted average price at which our common stock trades over a period of several trading
days. In conjunction with its review of these factors, our Board of Directors also reviewed our history and prospects, including
our past and present earnings, our prospects for future earnings, and the outlook for our industry, our current financial condition
and regulatory status, and a range of discounts to market value represented by the subscription prices in various other rights
offerings. Finally, our Board considered our desire to have a successful offering, which required negotiations with the standby
investors with respect to the minimum and maximum sales prices that would be acceptable to them.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> Based on the foregoing, our Board decided
to set the subscription price at an amount per share equal to 90% of the volume weighted average closing sales price of our common
stock for the 20 trading days immediately preceding the date on which the registration statement of which this prospectus forms
a part was declared effective, subject to a minimum subscription price of $9.00 per share and a maximum subscription price of
$11.93 per share. The registration statement was declared effective on <B>[&bull;]</B>, 20<B>[&bull;]</B>, and the volume weighted
average closing sales price of our common stock for the 20 trading days immediately preceding that date was $<B>[&bull;]</B> per
share. Accordingly, the subscription price is $<B>[&bull;]</B> per share. </P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The last reported sale of our common stock occurred
on <B>[&bull;]</B>, 20<B>[&bull;]</B>, and the closing sales price of our common stock on that date was $<B>[&bull;]</B> per share.
The volume weighted average closing sales price of the common stock for the 20 trading day period that included <B>[&bull;]</B>,
20<B>[&bull;] </B>was<B> </B>$<B>[&bull;]</B> per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>How soon must I act to exercise my rights?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you received a rights certificate and elect
to exercise some or all of your subscription rights, the subscription agent must receive your completed and signed rights certificate
and complete payment prior to the expiration of the offering, which is <B>[&bull;]</B>, 20<B>[&bull;]</B>, at 5:00 p.m., Eastern
Standard Time. If you hold your shares in the name of a broker, dealer, custodian bank, or other nominee, your broker, dealer,
custodian bank, or other nominee may establish a deadline prior to 5:00 p.m. Eastern Standard Time, on <B>[&bull;]</B>, 20<B>[&bull;]</B>
by which you must provide it with your instructions to exercise your subscription rights and pay for your shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Although we will make reasonable attempts to
provide this prospectus to holders of subscription rights, the offering and all subscription rights will expire at 5:00 p.m., Eastern
Standard Time, on <B>[&bull;],</B> 20<B>[&bull;]</B> (unless extended for up to 30 days until <B>[&bull;],</B> 20<B>[&bull;]</B>),
whether or not we have been able to locate each person entitled to subscription rights.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>May I transfer my subscription rights?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">No. You may not transfer your subscription rights.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Are we requiring a minimum subscription to complete the offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">No. There is no minimum subscription requirement
in the offering. However, our Board of Directors reserves the right to cancel the offering for any reason, including if our Board
of Directors believes that there is insufficient participation by our shareholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Can the Board of Directors extend, cancel, or amend the offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Yes. We have the option to extend the period
for exercising your subscription rights for up to 30 days until <B>[&bull;],</B> 20<B>[&bull;]</B>. Our Board of Directors may
cancel the offering at any time for any reason. If the offering is cancelled, all subscription payments received by the subscription
agent will be returned promptly, without interest or penalty. Our Board of Directors reserves the right to amend or modify the
terms of the offering at any time, for any reason. Such amendments or modifications could include, for example, a reduction in
the subscription price. If we reduce the subscription price, your subscription will remain irrevocable but all excess subscription
payments received by the subscription agent will be returned promptly, without interest or penalty.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>What will happen if I choose not to exercise my subscription
rights?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you do not exercise any subscription rights,
then the number of shares of our common stock that you own will not change. Because shares may be purchased by other shareholders
or the standby investor, however, your percentage ownership will be diluted after the completion of the offering unless you exercise
your basic subscription privilege in full. For more information, see &ldquo;How many shares of common stock will be outstanding
after the offering?&rdquo; in this section.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>After I send in my payment and rights certificate, may I change
or cancel my exercise of rights?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">No. All exercises of subscription rights are
irrevocable, even if you later learn information that you consider to be unfavorable to the exercise of your subscription rights.
If we decide to extend, amend or modify the terms of the offering for any reason, subscriptions received prior to such extension,
amendment or modification will remain irrevocable. You should not exercise your subscription rights unless you are certain that
you wish to purchase shares of our common stock at the subscription price.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>When will I receive my new shares?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">All shares of our common stock that you purchase
in the offering will be issued electronically in book-entry (uncertificated) form. If you are a shareholder of record as of the
record date and purchase shares in the offering by submitting a rights certificate and payment, we will issue your new shares as
soon as practicable after the completion of the offering, and you will receive confirmation from the subscription agent by mail
that your shares were electronically issued. If, as of the record date, your shares were held by a broker, dealer, custodian bank,
or other nominee, and you participate in the offering, your broker, dealer, custodian bank, or other nominee will be credited with
the shares of common stock you purchase in the offering as soon as practicable after the completion of the offering, and your nominee
will credit your account with such shares. Until your shares have been issued in book-entry form or your account is credited with
such shares, you may not be able to sell your shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>How many shares of common stock will be outstanding after the
offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As of <B>[&bull;],</B> 20<B>[&bull;]</B>, 6,269,004
shares of our common stock were issued and outstanding. Assuming that there are no other transactions by us involving shares of
our common stock and the full 783,626 shares of our common stock are subscribed for in the offering and/or purchased by the standby
investors, we expect 7,052,630 shares of common stock to be outstanding immediately after completion of the offering and, if it
occurs, the closing of the sales to the standby investors. As a result of the offering, the ownership interests and voting interests
of the existing shareholders that do not fully exercise their basic subscription privilege will be diluted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Are there risks in exercising my subscription rights?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Yes. The exercise of your subscription rights
involves risks. Exercising your subscription rights involves the purchase of additional shares of common stock and should be considered
as carefully as you would consider any other equity investment. Among other things, you should carefully consider the risks described
in the section of this prospectus entitled &ldquo;RISK FACTORS&rdquo; and the documents incorporated by reference in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>If the offering is not completed, will my subscription payment
be refunded to me?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Yes. The subscription agent will hold all funds
it receives in an escrow account until completion of the offering. If the offering is not completed, all subscription payments
received by the subscription agent will be returned promptly, without interest or penalty. If you hold shares through a broker,
dealer, custodian bank, or other nominee, it may take longer for you to receive payment because the subscription agent will return
payments through the record holder of your shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>What fees or charges apply if I purchase the shares in the offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are not charging any fee or sales commission
to issue subscription rights to you or to issue shares to you if you exercise your subscription rights. If you exercise your subscription
rights through your broker, dealer, custodian bank, or other nominee, you will be responsible for paying any fees your nominee
may charge you.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>What are the material U.S. federal income tax consequences of
exercising my subscription rights?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">For U.S. federal income tax purposes, you should
not recognize income or loss upon receipt or exercise of subscription rights. You should consult your tax advisor as to your particular
tax consequences resulting from the offering. For a more detailed discussion, see the section of this prospectus entitled &ldquo;MATERIAL
U.S. FEDERAL INCOME TAX CONSEQUENCES&rdquo;.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Are there other key dates relating to the rights offering?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Yes. Below is a list of the key dates for the
offering of which you should be aware. With the exception of the record date and the rights distribution date, such dates are subject
to change in the event we determine to extend the rights offering (as discussed herein). <B>For more information regarding these
dates, we encourage you to review the section of this prospectus entitled &ldquo;THE OFFERING&rdquo;, as that section of the prospectus
describes other timing considerations of which you should be aware regarding the rights offering (for example, dates by which different
forms of payment upon the exercise of rights are deemed received).</B></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 49%; border-bottom: Black 1pt solid; text-align: justify"><font style="font-size: 10pt"><b>Date</b></font></td>
    <TD STYLE="width: 2%; text-align: justify">&nbsp;</td>
    <TD STYLE="width: 49%; border-bottom: Black 1pt solid; text-align: justify"><font style="font-size: 10pt"><b>Event/Action</b></font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: justify"><font style="font-size: 10pt">5:00 p.m., Eastern Standard Time, on November 28, 2016</font></td>
    <TD STYLE="text-align: justify">&nbsp;</td>
    <TD STYLE="text-align: justify"><font style="font-size: 10pt">Record date.</font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: justify"><font style="font-size: 10pt">11:00 a.m., Eastern Standard Time on <b>[&bull;]</b>, 20<b>[&bull;]</b></font></td>
    <TD STYLE="text-align: justify">&nbsp;</td>
    <TD STYLE="text-align: justify"><font style="font-size: 10pt">Date by which foreign holders of rights must notify the subscription agent and establish to the satisfaction of the subscription agent that it is permitted to exercise its rights.</font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: justify"><font style="font-size: 10pt">5:00 p.m., Eastern Standard Time, on <b>[&bull;]</b>, 20<b>[&bull;]</b></font></td>
    <TD STYLE="text-align: justify">&nbsp;</td>
    <TD STYLE="text-align: justify"><font style="font-size: 10pt">Expiration of the offering.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Are there any conditions to the rights distribution?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The completion of the rights distribution is
subject to the satisfaction (in our sole discretion) of the following conditions:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Our receipt of the opinion of Gordon Feinblatt LLC, dated as of the rights distribution date, to the effect that, for U.S.
federal income tax purposes, (i) no gain or loss should be recognized by the Company as a result of the rights distribution, and
(ii) no gain or loss should be recognized by, and no amount should be included in the income of, holders of common stock upon the
receipt of the rights in the rights distribution; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The effectiveness under the Securities Act of the Registration Statement on Form S-1, of which this prospectus forms a part.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>What if I have other questions?</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If you have questions regarding
the completion of your rights certificate or submitting payment, please contact our information agent, Georgeson LLC, at (800)
561-2871. If you have other questions about the offering or the Company, please contact Tonya K. Sturm, our Senior Vice President
and Chief Financial Officer, at 301-533-2390. You should consult your tax adviser as to the particular consequences to you of the
offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-align: center"><A NAME="a_004"></A><B>SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-indent: 0.5in"><I>This summary contains basic information
about us and this offering. Because it is a summary, it does not contain all of the information that you should consider before
investing. You should read this entire prospectus carefully, including the section entitled &ldquo;RISK FACTORS&rdquo;, our financial
statements and the notes thereto incorporated by reference to our annual report and quarterly reports, and the other documents
we refer to and incorporate by reference in this prospectus for a more complete understanding of us and this offering before making
an investment decision. In particular, we incorporate important business and financial information in this prospectus by reference.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">First United Corporation is
a Maryland corporation chartered in 1985 and a bank holding company registered with the Board of Governors of the Federal Reserve
System, or the &ldquo;Federal Reserve&rdquo;, under the Bank Holding Company Act of 1956, as amended. The Company&rsquo;s primary
business is serving as the parent company of First United Bank &amp; Trust, a Maryland trust company, First United Statutory Trust
I, or &ldquo;Trust I&rdquo;, and First United Statutory Trust II, or &ldquo;Trust II&rdquo;, both Connecticut statutory business
trusts, and Trust III.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> <FONT STYLE="font-weight: normal">The Bank
is an independent community bank providing a complete range of retail and commercial banking services to businesses and individuals
serviced by a network of 23 branches, one call center, and 25 automated teller machines as of September 30, 2016 in Allegany County,
Frederick County, Garrett County, and Washington County in Maryland, and in Mineral County, Berkeley County and Monongalia County
in West Virginia. The Bank&rsquo;s deposits are insured by the Federal Deposit Insurance Corporation, which we refer to as the
&ldquo;FDIC&rdquo;. In addition to its two consumer finance company subsidiaries and a statutory trust subsidiary and a limited
liability company subsidiary, both used to hold other real estate owned, the Bank owns a 99% limited partnership interest in Liberty
Mews Limited Partnership, a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income
housing units in Garrett County, Maryland. A detailed discussion of our business is contained in Item 1 of Part I of our Annual
Reports on Form 10-K that we file with the Commission, including the Annual Report on Form 10-K, as amended, for the year ended
December 31, 2015. See the section of this prospectus entitled &ldquo;WHERE YOU CAN FIND MORE INFORMATION&rdquo; for information
on how to obtain a copy of our annual and other reports that we file with the Commission.</FONT> </P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;<FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-weight: normal">Trust I, Trust
II and Trust III are collectively referred to as the &ldquo;Trusts&rdquo;. The Trusts were formed for the purpose of selling &ldquo;trust
preferred securities&rdquo; that qualify as Tier 1 capital. Dividend and other payments due under these trust preferred securities
are funded by our payments under an equal amount of TPS Debentures that we issued to the Trusts by the Company. In March 2004,
the Company issued approximately $30.9 million of TPS Debentures to Trust I and Trust II in connection with their sales of $30.0
in mandatorily redeemable preferred capital securities to third party investors and $0.9 million in common securities to the Company.
Between December 2009 and January 2010, the Company issued approximately $10.8 million of TPS Debentures to Trust III in connection
with its sale of approximately $10.5 million in mandatorily redeemable preferred capital securities to third party investors and
$0.3 million in common securities to the Company. </FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> We and the Bank are extensively regulated
under federal and state laws. The regulation of bank holding companies and banks is intended primarily for the protection of depositors
and the deposit insurance fund and not for the benefit of security holders. For a discussion of the material elements of the extensive
regulatory framework applicable to us, please refer to Item 1 of Part I of our Annual Reports on Form 10-K that we file with the
Commission, including the Annual Report on Form 10-K, as amended, for the year ended December 31, 2015. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At September 30, 2016,
we had total assets of $1.3 billion, net loans of $890.0 million, and deposits of $1.0 billion. Shareholders&rsquo; equity at September
30, 2016 was $114.8 million.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our principal executive offices are located
at 19 South Second Street, Oakland, Maryland 21550 and our telephone number is (888) 692-2654. We maintain an Internet site at
<U>http://www.mybank.com</U> on which we make available free of charge our Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q, Current Reports on Form 8-K, and all amendments to the foregoing as soon as reasonably practicable after these reports are
electronically filed with, or furnished to, the Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock is listed on the NASDAQ Global
Select Market under the ticker symbol &ldquo;FUNC.&rdquo; Effective October 31, 2016, our common stock became subject to The NASDAQ
Stock Market&rsquo;s &ldquo;Tick Size Pilot Program&rdquo;, as part of &ldquo;Test Group 3&rdquo;. The program, which will last
for two years, was implemented pursuant to a Commission order issued on June 24, 2014 and imposes wider minimum quoting and/or
trading increments, or &ldquo;tick sizes&rdquo;, for certain securities with small market capitalization. The purpose of the program
is to allow the Commission, self-regulatory organizations (like The NASDAQ Stock Market), and the public to evaluate and assess
the impact of increment conventions on the liquidity and trading of securities of small capitalization companies. The program includes
a specified subset of the exchange-listed stocks of companies that have $3 billion or less in market capitalization, an average
daily trading volume of one million shares or less and a volume-weighted average price of at least $2.00 for every trading day.
The control group in the program includes approximately 1,400 randomly-selected securities and three test groups, each with approximately
400 securities selected by a stratified sampling. Under the program, securities in Test Group 3, like our common stock, are to
be both quoted in and traded at $0.05 minimum increments, subject to a midpoint exception, a retail investor exception, and a negotiated
trade exception. In addition, securities in Test Group 3 are subject to a &ldquo;trade-at&rdquo; requirement that prevents price
matching by a trading center that is not displaying a protected bid or protected offer, subject to certain exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-align: center"><B>The Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-indent: 0.5in"><I>The following summary describes the
principal terms of the offering, but is not intended to be complete. See the information in the section entitled &ldquo;THE OFFERING&rdquo;
beginning on page 22</I> <I>of this prospectus for a more detailed description of the terms and conditions of the offering.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 30%"><font style="font-size: 10pt"><b>Shares available in offering</b></font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 68%"><font style="font-size: 10pt">783,626 shares of common stock.</font></td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td><font style="font-size: 10pt"><b>Rights distributed</b></font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">We are distributing to you, at no charge, one non-transferable subscription right for each share of our common stock that you own as of 5:00 p.m., Eastern Standard Time, on the record date, either as a holder of record or, in the case of shares held of record by brokers, dealers, custodian banks, or other nominees on your behalf, as a beneficial owner of such shares.</font></td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td><font style="font-size: 10pt"><b>Basic subscription right</b></font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">The basic subscription privilege of each right will entitle you to purchase 0.125 shares of our common stock at the subscription price, subject to the condition that we will not issue fractional shares in the offering.&nbsp;&nbsp;Thus, you must own at least eight shares of common stock on the record date to purchase one new share in the offering.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 30%"><font style="font-size: 10pt"><b>Determination of subscription price</b></font></td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 68%"><font style="font-size: 10pt">The $<b>[&bull;]</b> subscription price was determined based on the following formula that was set by our Board of Directors after consideration of a variety of factors and negotiations with the standby investors:&nbsp;&nbsp;the amount equal to 90% of the volume weighted average closing sales price of our common stock for the 20 trading days immediately preceding the date on which the registration statement of which this prospectus forms a part is declared effective, provided that the price will not be less than $9.00 per share nor more than $11.93 per share.&nbsp;&nbsp;To be effective, any payment related to the exercise of a right must clear prior to the expiration of the offering.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Oversubscription privilege</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">If you fully exercise your basic subscription privilege, you may also subscribe for additional shares in the event that not all available shares are purchased pursuant to all shareholders&rsquo; basic subscription privilege. However, the oversubscription privilege will be offered only for an aggregate number of shares that, when combined with the number of shares purchased pursuant to the shareholders&rsquo; basic subscription privilege, does not exceed 783,626 shares.&nbsp;&nbsp;We reserve the right to accept or reject oversubscriptions for any reason.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Limitations on amount purchased</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Other than any person or entity that owns, as of the date of this prospectus, more than 5% of our common stock, a person or entity, together with related persons or entities, may not exercise subscription rights (including the oversubscription privilege) to purchase shares of our common stock that, when aggregated with their existing ownership, would result in such person or entity, together with any related persons or entities, owning 5% or more of our issued and outstanding shares of common stock following the offering, or that would otherwise require regulatory approval. In addition, we do not intend to accept any oversubscriptions that we believe may have an unfavorable effect on our ability to preserve our deferred tax asset.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Record date</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">5:00 p.m., Eastern Standard Time, on November 28, 2016.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Expiration date of offering</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">5:00 p.m., Eastern Standard Time, on <b>[&bull;]</b>, 20<b>[&bull;]</b>, unless we extend the offering period for up to 30 days until <b>[&bull;]</b>, 20<b>[&bull;]</b>.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Use of proceeds</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Although the actual amount of proceeds will depend on participation in the offering, if the offering is fully-subscribed, we expect the gross proceeds from the offering to be between $7,052,634 and $9,348,658.&nbsp;&nbsp;We intend to use the proceeds of the offering, after paying our offering expenses, to offset our planned redemption of $10 million of Series A Preferred Stock and repayment of $10.8 million of TPS Debentures.&nbsp;&nbsp;See &ldquo;USE OF PROCEEDS&rdquo; on page 34 for more information.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>No transfer</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">The subscription rights are not transferable.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>No board recommendation</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Our Board of Directors is not making any recommendation to you about whether you should exercise any subscription rights. You are urged to make an independent investment decision about whether to exercise your subscription rights based on your own assessment of our business and the offering. Please see the section of this prospectus entitled &ldquo;RISK FACTORS&rdquo; beginning on page 16<b> </b>for a discussion of some of the risks involved in investing in our common stock.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>No revocation</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Any exercise of subscription rights is irrevocable, even if you later learn information that you consider to be unfavorable to the exercise of your rights. You should not exercise your subscription rights unless you are certain that you wish to purchase shares of common stock at the subscription price.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Material U.S. federal income tax consequences</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">For U.S. federal income tax purposes, you should not recognize income or loss upon receipt or exercise of subscription rights. You should consult your own tax adviser as to your particular tax consequences resulting from the offering. For a detailed discussion, see &ldquo;MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES&rdquo; on page 38<b>.</b></font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 30%"><font style="font-size: 10pt"><b>Extension, cancellation, and amendment</b></font></td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 68%"><font style="font-size: 10pt">We have the option to extend the period for exercising your subscription rights, for up to 30 days until <b>[&bull;],</b> 20<b>[&bull;]</b>. If we extend the offering period, we will give notice to the subscription agent prior to the expiration of the offering and will issue a press release announcing such extension no later than 9:00 a.m., Eastern Standard Time, on the next business day after the most recently announced expiration date of the offering.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Our Board of Directors may cancel the offering at any time for any reason. In the event that the offering is cancelled, all subscription payments received by the subscription agent will be returned promptly, without interest or penalty. We also reserve the right to amend or modify the terms of the offering, such amendments to include, without limitation, a reduction in the subscription price. If we decide to extend, amend or modify the terms of the offering for any reason, subscriptions received prior to such extension, amendment or modification will remain irrevocable.&nbsp;&nbsp;If an amendment includes a reduction in the subscription price, all excess subscription payments received from you by the subscription agent will be returned promptly, without interest or penalty.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Procedure for exercising rights</b></font></td>
    <TD>&nbsp;</td>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">To exercise your subscription rights, you must take the following
        steps:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 17.4pt; text-indent: -17.4pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a U.S. registered
        holder of our shares of common stock, you must deliver payment and a properly completed rights certificate, and any other subscription
        materials, to the subscription agent before 5:00 p.m., Eastern Standard Time, on <b>[&bull;],</b> 20<b>[&bull;]</b>. You may deliver
        the documents and payments by mail or commercial carrier. If regular mail is used for this purpose, we recommend using registered
        mail, properly insured, with return receipt requested.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 17.4pt; text-indent: -17.4pt">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 17.4pt; text-indent: -17.4pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a U.S. beneficial
        owner of shares that are registered in the name of a broker, dealer, custodian bank, or other nominee, you should instruct your
        broker, dealer, custodian bank, or other nominee to exercise your subscription rights on your behalf and deliver all documents
        and payments before 5:00 p.m., Eastern Standard Time, on <b>[&bull;]</b>, 20<b>[&bull;]</b>.</P></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD STYLE="padding-left: 17.4pt; text-indent: -17.4pt"><font style="font-size: 10pt">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a foreign shareholder, then you must notify the subscription agent of your desire to exercise your rights before 11:00 a.m., Eastern Standard Time, on <b>[&bull;]</b>, 20<b>[&bull;] (</b><i>i.e.</i>, the fifth business day prior to the expiration date), and must establish to the satisfaction of the Company and the subscription agent that such exercise is permitted under applicable law. </font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Subscription agent</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Computershare Inc.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Information Agent</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Georgeson LLC, telephone number:&nbsp;&nbsp;(800) 561-2871</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Shares outstanding before the offering</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">6,269,004 shares of common stock as of <b>[&bull;]</b>, <b>20[&bull;]</b>.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Shares outstanding after completion of the offering</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Assuming that there are no other transactions by us involving shares of our common stock and the full 783,626 shares are subscribed for in the offering or otherwise sold in connection with the offering, we expect that 7,052,630 shares of common stock will be outstanding immediately after completion of the offering.</font></td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD><font style="font-size: 10pt"><b>Risk factors</b></font></td>
    <TD>&nbsp;</td>
    <TD><font style="font-size: 10pt">Shareholders considering exercising their subscription rights should carefully consider the risk factors described in the section of this prospectus entitled &ldquo;RISK FACTORS&rdquo; beginning on page 16.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 30%"><font style="font-size: 10pt"><b>Fees and expenses</b></font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 68%"><font style="font-size: 10pt">We will pay the fees and expenses relating to the offering. However, if you exercise your subscription rights through your broker, dealer, custodian bank, or other nominee, you will be responsible for paying any fees your nominee may charge you.</font></td></tr>
<tr style="vertical-align: top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td><font style="font-size: 10pt"><b>Trading symbol</b></font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">Shares of our common stock are listed on the NASDAQ Global Select Market under the symbol &ldquo;FUNC&rdquo;. The last reported sale price of our common stock on the NASDAQ Global Select Market on <b>[&bull;]</b>, 20<b>[&bull;]</b> was $<b>[&bull;].</b></font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5pt; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 30%"><font style="font-size: 10pt"><b>Questions</b></font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 68%"><font style="font-size: 10pt">If you have any questions regarding completing a rights certificate or submitting payment in the offering, please contact our information agent, Georgeson LLC, at (800) 561-2871.&nbsp;&nbsp;If you have any general questions regarding the offering, the Company, or the Bank, please contact Tonya K. Sturm, our Senior Vice President &amp; Chief Financial Officer, at (301) 533-2390.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_005"></A><B>RISK FACTORS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> An investment in our common stock, including
the common stock issued through the rights offering, involves risk. You should consider carefully the risks described below, along
with the information discussed under the heading &ldquo;Risk Factors&rdquo; in our Annual Report on Form 10-K for the year ended
December 31, 2015, filed with the Commission on March 9, 2016 and amended on January 26, 2017 through filing of Amendment No.
1 on Form 10-K/A which is incorporated by reference into this prospectus, and in subsequent periodic filings in which we may update
disclosures of such risk factors or add new risk factors, together with all the other information included in this prospectus
and in the documents we have incorporated by reference. The occurrence of any of the events described as possible risks could
have a material adverse effect on the value of our common stock, including the common stock issued through the rights offering.
These risks are not the only ones facing our company. Additional risks not currently known to us or that we currently deem immaterial
also may impair our business. See &ldquo;WHERE TO FIND MORE INFORMATION&rdquo;. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 9.75pt; text-align: justify">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>The standby investors&rsquo; purchase of shares pursuant to
the Standby Purchase Agreements is subject to conditions to closing that could result in such transaction being delayed or not
consummated, which could negatively impact our stock price and future business operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The purchase of shares by the standby investors
is subject to conditions to closing as set forth in the Standby Purchase Agreements, including that we and the standby investors
have obtained all required regulatory approval. If any of such conditions to closing are not satisfied or, where permissible, not
waived, the standby investors will not participate in the offering. In addition, any of the standby investors may choose to terminate
its Standby Purchase Agreement under certain circumstances, including if there is a material adverse change in our financial condition
or operations or if the closing of the sales to the standby investors does not occur on or before May 15, 2017. Failure to sell
shares to the standby investors could negatively impact our stock price, future business and operations, and financial condition.
Any delay in the consummation of such sale, or any uncertainty about the participation of the standby investors, may also adversely
affect our stock price, future business, growth, revenue, and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>The subscription price determined for the offering may not
be indicative of the value of our common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our Board of Directors determined the subscription
price after considering a variety of factors and negotiating with the standby investors. You should not consider the subscription
price as an indication of value of the Company or our common stock. You should not assume or expect that, after the offering, our
shares of common stock will trade at or above the subscription price in any given time period. The market price of our common stock
may decline during or after the offering, and you may not be able to sell the underlying shares of our common stock purchased during
the offering at a price equal to or greater than the subscription price. The value of our common stock may also be subject to significant
fluctuations in response to our future operating results and other factors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our Board of Directors is not making any recommendation
to you about whether you should exercise any subscription rights. Shareholders who participate in the offering risk the loss of
their entire investment.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B><I>&nbsp;&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>The offering may cause the trading price of our common stock
to decrease immediately, and this decrease may continue.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The subscription price at which we are selling
shares in the offering is less than the recent trading prices of our common stock as reported by the NASDAQ Global Select Market.
Additionally, the number of shares we expect to issue if we complete the offering may result in an immediate decrease in the market
value of our common stock. If the holders of the shares purchased in this offering choose to sell some or all of those shares,
the resulting sales could further depress the market price of our common stock. The last reported sale of our common stock occurred
on <B>[&bull;]</B>, 20<B>[&bull;]</B>, and the closing sales price of our common stock on that date was $<B>[&bull;]</B> per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Your ownership interest may be significantly diluted if you
do not exercise your subscription rights in the offering.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To the extent that you do not exercise your
basic subscription privilege and shares are purchased by other shareholders in the offering and/or by the standby investors, your
proportionate voting interest will be reduced, and the percentage that your original shares represent of our outstanding common
stock after the offering may be significantly diluted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>If you do not act promptly and follow the subscription instructions,
your exercise of rights will be rejected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you desire to purchase shares of our common
stock in the offering, you must act promptly to ensure that the subscription agent receives all required forms and payments before
the expiration of the offering at 5:00 p.m., Eastern Standard Time, on <B>[&bull;]</B>, 20<B>[&bull;]</B>. If you own your shares
in street name, you must act promptly to ensure that your broker, dealer, custodian bank, or other nominee acts for you and that
the subscription agent receives all required forms and payments before the offering expires. We are not responsible if your nominee
fails to ensure that the subscription agent receives all required forms and payments before the offering expires. If you fail to
complete and sign the rights certificate and other required subscription forms, send an incorrect payment amount, or otherwise
fail to follow the subscription procedures that apply to the exercise of your rights before the offering expires, the subscription
agent will reject your subscription or accept it only to the extent of the payment received before the offering expires. Neither
we nor the subscription agent undertake any responsibility or action to contact you concerning an incomplete or incorrect subscription
form or payment, nor are we or they under any obligation to correct such forms or payment. We have the sole discretion to determine
whether a subscription exercise properly complies with the subscription procedures.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>You will not be able to sell the shares of common stock for
which you subscribe in the offering until such shares are issued to you.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you subscribe for shares in the offering
by submitting a completed and signed rights certificate with other required subscription forms and payment, we will issue your
shares as soon as practicable following the expiration of the offering. If your shares are held by a broker, dealer, custodian
bank, or other nominee and you subscribe for shares in the offering, your nominee will be credited with the shares you purchase
and your account will be credited by your nominee at such time. Until the shares of common stock for which you subscribe are issued
to you, you will not be able to sell your shares. The stock price may decline between the time you decide to sell your shares and
the time you are actually able to sell your shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Because you cannot revoke the exercise of your subscription
rights and the market price of our common stock may decline after you elect to exercise your subscription rights, you could be
committed to buying shares above the market price of our common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Your exercise of subscription rights is irrevocable,
even if you learn information about us that you consider unfavorable during the offering period subsequent to your exercise and
even if the terms of the offering are amended or modified. The market price of our common stock may decline after you elect to
exercise your subscription rights. If you exercise your subscription rights and, afterwards, the public trading market price of
our common stock decreases below the subscription price, you will have committed to buying shares of our common stock at a price
above the prevailing market price and could have an immediate unrealized loss. Our common stock is listed on the NASDAQ Global
Select Market under the symbol &ldquo;FUNC&rdquo;. The last reported sale of our common stock occurred on <B>[&bull;]</B>, 20<B>[&bull;]</B>,
and the closing sales price of our common stock on that date, as reported by the NASDAQ Global Select Market, was $<B>[&bull;]</B>
per share. The volume weighted average closing sales price of our common stock for the 20 trading day period that included <B>[&bull;]</B>,
20<B>[&bull;] </B>was<B> </B>$<B>[&bull;]</B> per share. Following the exercise of your subscription rights you may not be able
to sell your common stock at a price equal to or greater than the subscription price. We will not pay you interest on any funds
delivered to the subscription agent pursuant to the exercise of subscription rights.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Significant sales of our common stock, or the perception that
significant sales may occur in the future, could adversely affect the market price for our common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The sale of substantial amounts of our common
stock could adversely affect the price of the shares. The availability of shares for future sale, including up to 783,626 shares
of our common stock to be issued in the offering, could adversely affect the prevailing market price of our common stock and could
cause the market price of our common stock to remain low for a substantial amount of time. In addition, we may grant equity awards
under our equity compensation plan, including fully-vested shares of common stock. It is possible that if a significant percentage
of such available shares were attempted to be sold within a short period of time, the market for our shares would be adversely
affected. It is unclear whether or not the market for our common stock could absorb a large number of attempted sales in a short
period of time, regardless of the price at which they might be offered. Even if a substantial number of sales do not occur within
a short period of time, the mere existence of this &ldquo;market overhang&rdquo; could have a negative impact on the market for
our common stock and our ability to raise additional capital.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>There is no minimum number of shares that we must sell to
complete the offering.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">There is no condition in the offering to sell
any minimum number or dollar amount of shares. To the extent that shareholders do not purchase significant shares through the exercise
of basic subscription privileges or oversubscription privilege, or the Standby Purchase Agreements are terminated, you may be one
of only a small number of investors who elect to purchase shares of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We may not use the proceeds of the offering for all of the
purposes stated in the Use of Proceeds section of this prospectus, and you not agree with how we ultimately choose to use the proceeds.
</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will have broad discretion over the use of
the net proceeds of this offering. We currently intend to use the proceeds of the offering, after paying our offering expenses,
to offset the effects on our capital position of our planned redemption of $10 million of Series A Preferred Stock and our planned
repayment of $10.8 million of TPS Debentures. We intend to consummate the redemption and repayment as soon as is practicable following
the offering, but our ability to do so is subject to the approval of the Federal Reserve and our receipt of a cash dividend from
the Bank in the amount of approximately $13.0 million. The Federal Reserve has approved the planned redemption and repayment, subject
to the condition that we sell at least $7.0 million in common stock in this offering and/or to the standby investors. Because of
the other risks attendant to the offering and to the transactions contemplated by the Standby Purchase Agreements, we cannot assure
you that we will satisfy the Federal Reserve&rsquo;s condition. Further, because the Bank&rsquo;s ability to pay cash dividends
is subject to limitations imposed under banking and corporate law, no assurance can be given that the Bank will be able to pay
a cash dividend in the amount that we need for these transactions. Accordingly, there can be no assurance that we will consummate,
in whole or in part, our planned redemption and repayment following the closing of the offering or the sales to the standby investors.
In the event that we do not consummate those transactions, in whole or in part, our management may allocate the proceeds as it
deems appropriate, which means that you will be relying on the judgment of our management with regard to the use of the proceeds
of the offering. You will not have the opportunity, as part of your investment decision, to influence how the proceeds are to be
used.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We may cancel the offering at any time, neither we nor the
subscription agent will have any obligation to you except to return your subscription payments.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We may, in our sole discretion, decide not to
continue with the offering or cancel the offering at any time. If the offering is cancelled, all subscription payments received
by the subscription agent will be returned promptly, without interest or penalty.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>We may not be able to realize the benefit of our net operating
loss deferred tax asset. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> As of December 31, 2015 and September 30,
2016, we had a total deferred tax asset of $25.4 million and $24.7 million, respectively, an offsetting valuation allowance of
$1.8 million for both periods, and a deferred tax liability of $3.8 million and $4.4 million, respectively, for a net deferred
tax asset of $19.8 million and $18.5 million, respectively. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Included in the total deferred tax asset is
$2.7 million associated with a federal net operating loss carryforward which we expect to be substantially utilized in the current
year. Also included in total deferred tax asset at December 31, 2015 and September 30, 2016 is $1.8 million of state net operating
loss carryforwards associated with separate company tax filings of the Corporation. The Company does not expect these net operating
loss carryforwards to be utilized and therefore has established a $1.8 million valuation allowance. A deferred tax asset is reduced
by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all
of the total deferred tax asset will not be realized.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our ability to utilize our net operating loss
carryforwards to offset future taxable income may be significantly limited if we experience an &ldquo;ownership change,&rdquo;
as determined under Section 382 of the Code. If an ownership change were to occur, the limitations imposed by Section 382 of the
Code could result in a portion of our net operating loss carryforwards expiring unused, thereby impairing their value. While the
complexity of Section 382&rsquo;s provisions and the limited knowledge any public company has about the ownership of its publicly
traded stock make it difficult to determine whether an ownership change has occurred, we currently believe that an ownership change
will not occur as a result of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have attempted to structure the offering
so as to avoid an &ldquo;ownership change&rdquo; under Section 382 of the Code. We will not accept a subscription pursuant to the
oversubscription privilege if we believe that doing so will have an unfavorable effect on our ability to avoid an &ldquo;ownership
change&rdquo; or preserve our net operating loss deferred tax asset. We do not believe that the exercise of basic subscription
privileges will have any unfavorable effect on our ability to avoid an &ldquo;ownership change&rdquo; or preserve our net operating
loss deferred tax asset. Notwithstanding this measure, an ownership change may occur, which would limit the amount of the net operating
loss carryforwards that we might otherwise be able to utilize.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Risks Relating to Ownership of Our Common Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>The shares of common stock are not insured.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The shares of our common
stock are not deposits and are not insured against loss by the FDIC or any other governmental or private agency.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our common stock is not heavily traded,
and the stock price may fluctuate significantly and may be below the subscription price in the rights offering.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock is listed on the NASDAQ Global
Select Market, but shares are not heavily traded. Securities that are not heavily traded can be more volatile than stock trading
in an active public market. Factors such as our financial results, the introduction of new products and services by us or our competitors,
publicity regarding the banking industry, and various other factors affecting the banking industry may have a significant impact
on the market price of the shares the common stock. Management cannot predict the extent to which an active public market for our
common stock will develop or be sustained in the future. Accordingly, you may not be able to sell your shares of our common stock
at the volumes, prices, or times that you desire.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 23pt">The occurrence of any of the risks described
in this &ldquo;RISK FACTORS&rdquo; section, including any substantial sales of our common stock or perception that such sales might
occur, could also have a significant and adverse impact on the market price of our common stock and could cause the price to be
below the subscription price.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Our common stock&rsquo;s inclusion in The NASDAQ Stock Market&rsquo;s
&ldquo;Tick Size Pilot Program&rdquo; may limit your ability to sell your shares at the volumes, prices or times that you desire.
</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Effective October 31, 2016, our common stock
was randomly selected by The NASDAQ Stock Market for inclusion in &ldquo;Test Group 3&rdquo; of its &ldquo;Tick Size Pilot Program&rdquo;.
The program will last for two years and imposes wider minimum quoting and/or trading increments, or &ldquo;tick sizes&rdquo;, for
certain securities with small market capitalization. Specifically, subject to certain exceptions, the minimum quotation price and
minimum trading price for securities in Test Group 3, like our common stock, have been widened to $0.05 per share, which means
that our common stock must now be quoted in $0.05 minimum increments and must now trade at $0.05 minimum increments. In addition,
securities in Test Group 3 are subject to a &ldquo;trade-at&rdquo; requirement that prevents price matching by a trading center
that is not displaying a protected bid or protected offer, subject to certain exceptions. As a result, brokerage firms are now
required to ensure that your orders with respect to shares of our common stock are priced in nickel increments. This means that
the &ldquo;limit&rdquo; or &ldquo;stop&rdquo; prices that you may place on your order can no longer be in pennies and instead must
be in increments of $0.05. We cannot predict the impact, if any, of our common stock&rsquo;s inclusion in this Tick Size Pilot
Program. This program could adversely affect the market for our common stock and could limit your ability to sell your shares at
the prices, times and/or volumes that you desire.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>The Company has entered into an informal agreement with its
federal banking regulator that limits its ability to pay dividends and make other distributions on outstanding securities. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company has entered into an informal agreement
with the Federal Reserve Bank of Richmond (the &ldquo;Reserve Bank&rdquo;) that prohibits the Company, without the Reserve Bank&rsquo;s
prior consent, from paying dividends on outstanding shares of its common stock or shares of its Series A Preferred Stock, making
interest payments under its TPS Debentures, or taking any other action that would reduce regulatory capital. As a result, the Company
may be prohibited from making a dividend payment or any other distribution with respect to outstanding securities, including the
repurchase of stock, at a time or times when applicable banking and corporate laws would otherwise permit such a dividend or distribution.
This agreement increases the likelihood that we will realize the other risks discussed below relating to our ability to pay dividends
and make other distributions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>The terms of the Series A Preferred Stock may, under certain
circumstances, prohibit the Company from paying dividends on and/or repurchasing shares of the Company&rsquo;s common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> As of the date of this prospectus, 20,000
shares of the Series A Preferred Stock were issued and outstanding. The terms of the Series A Preferred Stock prohibit the Company
from declaring or paying any dividends or making other distributions on the outstanding shares of its common stock, and from repurchasing,
redeeming or otherwise acquiring shares of its common stock, if the Company is in arrears on any quarterly cash dividend due on
the Series A Preferred Stock. In 2010, at the request of the Reserve Bank, the Company elected to defer regularly scheduled quarterly
dividends on the Series A Preferred Stock. The Company terminated that deferral, with the Reserve Bank&rsquo;s approval, in May
2014, and it thereafter received approvals to pay all subsequent quarterly dividends through November 2016. Unless and until the
Company is advised otherwise by the Reserve Bank, the Company&rsquo;s ability to make each future quarterly dividend payment due
under the Series A Preferred Stock will depend on its receipt of an approval from the Reserve Bank. In addition, it should be
noted that the Company&rsquo;s ability to make future quarterly dividend payments will depend in large part on its receipt of
cash dividends from the Bank, and the Bank&rsquo;s ability to pay dividends is subject to various statutory and regulatory limitations.
As a result of these limitations, no assurance can be given that the Company will pay dividends on any of its outstanding securities. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>The Company&rsquo;s ability to pay dividends on its capital
securities is also subject to the terms of the outstanding TPS Debentures, which prohibit the Company from paying dividends during
an interest deferral period. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The terms of the TPS Debentures require the
Company to make quarterly payments of interest to the Trusts, as the holders of the TPS Debentures, although the Company has the
right to defer payments of interest for up to 20 consecutive quarterly periods. An election to defer interest payments does not
constitute an event of default under the terms of the TPS Debentures. The terms of the TPS Debentures prohibit the Company from
declaring or paying any dividends or making other distributions on, or from repurchasing, redeeming or otherwise acquiring, any
shares of its common stock or shares of its Series A Preferred Stock if the Company elects to defer quarterly interest payments
under the TPS Debentures. In addition, a deferral election will require the Trusts to likewise defer the payment of quarterly dividends
on their related trust preferred securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> In 2010, at the request of the Reserve Bank,
the Company elected to defer regularly scheduled quarterly interest payments under the TPS Debentures, and this deferral required
the Trusts to defer regular quarterly dividend payments on their trust preferred securities. The Company terminated that deferral,
with the Reserve Bank&rsquo;s approval, in March 2014, and it thereafter received approvals to pay all subsequent quarterly interest
payments through November 2016. Unless and until the Company is advised otherwise by the Reserve Bank, the Company&rsquo;s ability
to make each future quarterly interest payment due under the TPS Debentures will depend on its receipt of an approval from the
Reserve Bank. As a result, and in light of the fact that the Company relies primarily on cash dividends from the Bank to make
interest payments, no assurance can be given that the Company will make regularly-scheduled quarterly interest payments under
its TPS Debentures. If the Company were to defer interest payments, then it would be prohibited from paying dividends on its outstanding
equity securities until the termination of such termination. </P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B><I>&nbsp;&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>If the Company fails to make six quarterly dividend payments
on the Series A Preferred Stock, then the holders thereof would have the right to elect up to two additional directors to the Company&rsquo;s
Board of Directors.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The terms of the Series A Preferred Stock permit
the Company to defer the payment of quarterly dividends, but, in that case, undeclared dividends will continue to accrue and must
be paid in full at the time the Company terminates the dividend deferral. The terms provide further that whenever, at any time
or times, dividends payable on the outstanding shares of the Series A Preferred Stock have not been paid for an aggregate of six
quarterly dividend periods or more, whether or not consecutive, the authorized number of directors then constituting the Company&rsquo;s
Board of Directors will automatically be increased by two. Thereafter, holders of the Series A Preferred Stock, together with holders
of any outstanding stock having voting rights similar to the Series A Preferred Stock, voting as a single class, will be entitled
to fill the vacancies created by the automatic increase by electing up to two additional directors (the &ldquo;Preferred Stock
Directors&rdquo;) at the next annual meeting (or at a special meeting called for the purpose of electing the Preferred Stock Directors
prior to the next annual meeting) and at each subsequent annual meeting until all accrued and unpaid dividends for all past dividend
periods have been paid in full. Currently, the Company does not have any outstanding capital stock with voting rights that are
on par with the Series A Preferred Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Applicable banking and Maryland laws impose additional restrictions
on the ability of the Company and the Bank to pay dividends and make other distributions on their capital securities, and, in any
event, the payment of dividends is at the discretion of the boards of directors of the Company and the Bank. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In the past, the Company has funded dividends
on its capital securities using cash received from the Bank, and this will likely be the case for the foreseeable future. No assurance
can be given that the Bank will be able to pay dividends to the Corporation for these purposes at times and/or in amounts requested
by the Company. Both federal and state laws impose restrictions on the ability of the Bank to pay dividends. Under Maryland law,
a state-chartered commercial bank may pay dividends only out of undivided profits or, with the prior approval of the Office of
the Maryland Commissioner of Financial Regulation, which we refer to as the &ldquo;Maryland Commissioner&rdquo;, from surplus in
excess of 100% of required capital stock. If, however, the surplus of a Maryland bank is less than 100% of its required capital
stock, cash dividends may not be paid in excess of 90% of net earnings. In addition to these specific restrictions, bank regulatory
agencies have the ability to prohibit proposed dividends by a financial institution which would otherwise be permitted under applicable
regulations if the regulatory body determines that such distribution would constitute an unsafe or unsound practice. Banks that
are considered to be a &ldquo;troubled institution&rdquo; are prohibited by federal law from paying dividends altogether. Notwithstanding
the foregoing, shareholders must understand that the declaration and payment of dividends and the amounts thereof are at the discretion
of the Company&rsquo;s Board of Directors. Thus, even at times when the Company is not prohibited from paying cash dividends on
its capital securities, neither the payment of such dividends nor the amounts thereof can be guaranteed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>The Company&rsquo;s Articles of Incorporation and Bylaws and
Maryland law may discourage a corporate takeover.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Company&rsquo;s Amended and Restated Articles
of Incorporation, which we refer to as the &ldquo;Charter&rdquo;, and its Amended and Restated Bylaws, as amended, which we refer
to as the &ldquo;Bylaws&rdquo;, contain certain provisions designed to enhance the ability of the Company&rsquo;s Board of Directors
to deal with attempts to acquire control of the Company. First, the Board of Directors is classified into three classes. Directors
of each class serve for staggered three-year periods, and no director may be removed except for cause, and then only by the affirmative
vote of either a majority of the entire Board of Directors or a majority of the outstanding voting stock. Second, the board has
the authority to classify and reclassify unissued shares of stock of any class or series of stock by setting, fixing, eliminating,
or altering in any one or more respects the preferences, rights, voting powers, restrictions and qualifications of, dividends on,
and redemption, conversion, exchange, and other rights of, such securities. The board could use this authority, along with its
authority to authorize the issuance of securities of any class or series, to issue shares having terms favorable to management
to a person or persons affiliated with or otherwise friendly to management. In addition, the Bylaws require any shareholder who
desires to nominate a director to abide by strict notice requirements.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Maryland law also contains anti-takeover provisions
that apply to the Company. The Maryland Business Combination Act generally prohibits, subject to certain limited exceptions, corporations
from being involved in any &ldquo;business combination&rdquo; (defined as a variety of transactions, including a merger, consolidation,
share exchange, asset transfer or issuance or reclassification of equity securities) with any &ldquo;interested shareholder&rdquo;
for a period of five years following the most recent date on which the interested shareholder became an interested shareholder.
An interested shareholder is defined generally as a person who is the beneficial owner of 10% or more of the voting power of the
outstanding voting stock of a corporation after the date on which that corporation had 100 or more beneficial owners of its stock
or who is an affiliate or associate of that corporation and was the beneficial owner, directly or indirectly, of 10% percent or
more of the voting power of the then outstanding stock of that corporation at any time within the two-year period immediately prior
to the date in question and after the date on which that corporation had 100 or more beneficial owners of its stock. The Maryland
Control Share Acquisition Act applies to acquisitions of &ldquo;control shares&rdquo;, which, subject to certain exceptions, are
shares the acquisition of which entitle the holder, directly or indirectly, to exercise or direct the exercise of the voting power
of shares of stock of a corporation in the election of directors within any of the following ranges of voting power: one-tenth
or more, but less than one-third of all voting power; one-third or more, but less than a majority of all voting power or a majority
or more of all voting power. Control shares have limited voting rights.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Although these provisions do not preclude a
takeover, they may have the effect of discouraging, delaying or deferring a tender offer or takeover attempt that a shareholder
might consider in his or her best interest, including those attempts that might result in a premium over the market price for the
common stock. Such provisions will also render the removal of the Company&rsquo;s Board of Directors and of management more difficult
and, therefore, may serve to perpetuate current management. These provisions could potentially adversely affect the market prices
of the Company&rsquo;s securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_006"></A><B>THE OFFERING</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> We are distributing, at no charge, to the
record holders of our shares of common stock as of November 28, 2016, non-transferable subscription rights to purchase up to an
aggregate of 783,626 shares of our common stock at the subscription price of $<B>[&bull;]</B> per share. Each eligible holder
of record of shares of our common stock will receive one subscription right to purchase 0.125 shares of common stock for each
share of common stock owned by such holder as of 5:00 p.m., Eastern Standard Time, on the record date. Each subscription right
will entitle the holder to a basic subscription privilege and an oversubscription privilege. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We intend to keep the offering open until <B>[&bull;]</B>,
20<B>[&bull;]</B>, unless our Board of Directors, in its sole discretion, extends the offering period for up to 30 days until <B>[&bull;]</B>,
20<B>[&bull;]</B>.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The basic subscription privilege of each subscription
right entitles you to purchase 0.125 shares of our common stock, upon delivery of the required documents and payment of the subscription
price, prior to the expiration of the offering, provided that we will not issue fractional shares in the offering. You will receive
one subscription right for each share of our common stock you own as of 5:00 p.m., Eastern Standard Time, on the record date. Accordingly,
you must own at least eight shares of common stock on the record date to participate and purchase one new share in the offering.
You may exercise all or a portion of your basic subscription privilege; however, if you exercise less than your full basic subscription
privilege, you will not be entitled to purchase shares under your oversubscription privilege.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As noted above, we will not issue fractional
shares of common stock in the offering, which means that holders will be entitled to purchase only a whole number of shares of
common stock, rounded down to the nearest whole number that a holder would otherwise be entitled to purchase, with the total subscription
payment being adjusted accordingly. Any excess subscription payments received by the subscription agent will be returned promptly,
without interest or penalty.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you purchase all of the shares of our common
stock available to you pursuant to your basic subscription privilege, then you may also subscribe to purchase additional shares
should they be available after purchases by all shareholders exercising their basic subscription privilege. However, the oversubscription
privilege will only be offered for an aggregate number of shares that, when combined with the number of shares purchased pursuant
to the shareholders&rsquo; basic subscription privilege, does not exceed 783,626 shares. We can provide no assurances that you
will actually be able to purchase any shares of common stock upon the exercise of your oversubscription privilege.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To properly exercise your oversubscription privilege,
you must deliver the subscription payment related to your oversubscription privilege prior to the expiration of the offering. Because
we will not know the total number of unsubscribed shares prior to the expiration of the offering, if you wish to maximize the number
of shares you purchase pursuant to your oversubscription privilege, you will need to deliver payment in an amount equal to the
aggregate subscription price for the maximum number of shares of our common stock that may be available to you (<I>i.e.</I>, assuming
you fully exercise your basic subscription privilege and are allotted the full amount of your oversubscription as elected by you).</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If oversubscription requests exceed the number
of shares of common stock available for sale after purchases by all shareholders exercising their basic subscription privilege,
then we will allocate the available shares of common stock among shareholders who oversubscribed as we deem appropriate. When determining
how to allocate such remaining shares, we may give priority to those oversubscription purchasers that we believe will develop future
business relationships with us, refer business to us or purchase additional shares of our common stock on the open market after
the closing of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will credit the account of each rights holder
with shares of our common stock purchased pursuant to the exercise of the oversubscription privilege as soon as practicable after
the offering has expired.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To the extent the aggregate subscription price
of the maximum number of unsubscribed shares available to you pursuant to the oversubscription privilege is less than the amount
you actually paid in connection with the exercise of the oversubscription privilege, you will be allocated only the number of unsubscribed
shares available to you, and any excess subscription payments received by the subscription agent will be returned to you, without
interest or penalty, as soon as practicable. To the extent the amount you actually paid in connection with the exercise of the
oversubscription privilege is less than the aggregate subscription price of the maximum number of unsubscribed shares available
to you pursuant to the oversubscription privilege, you will be allocated the number of unsubscribed shares for which you actually
paid in connection with the oversubscription privilege.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In determining the subscription price, our Board
of Directors considered a number of factors, including the need to offer the shares at a price that would be attractive to investors
relative to the then current trading price of our common stock, the tangible book value of a share of our common stock, historical
and current trading prices of our common stock, general conditions in the financial services industry, the need for capital and
alternatives available to us for raising capital, potential market conditions, and the desire to provide an opportunity to our
shareholders to participate in the offering on a pro rata basis. Because our common stock is not heavily traded and to account
for the possibility of wide price fluctuations over a short period of time, our Board of Directors concluded that it would be prudent
to base the subscription price on the volume weighted average price at which our common stock trades over a period of several trading
days. In conjunction with its review of these factors, our Board of Directors also reviewed our history and prospects, including
our past and present earnings, our prospects for future earnings, and the outlook for our industry, our current financial condition
and regulatory status, and a range of discounts to market value represented by the subscription prices in various other rights
offerings. Finally, our Board considered our desire to have a successful offering, which required discussions with the standby
investors and a consideration of the prices that would be acceptable to them.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> Based on the foregoing, our Board decided
to set the subscription price at an amount per share equal to 90% of the volume weighted average closing sales price of our common
stock for the 20 trading days immediately preceding the date on which the registration statement of which this prospectus forms
a part was declared effective, subject to a minimum subscription price of $9.00 per share and a maximum subscription price of
$11.93 per share. The registration statement was declared effective on <B>[&bull;]</B>, 20<B>[&bull;]</B>, and the volume weighted
average closing sales price of our common stock for the 20 trading days immediately preceding that date was $<B>[&bull;]</B> per
share. Accordingly, the subscription price is $<B>[&bull;]</B> per share. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You should not consider the subscription price
as an indication of value of the Company or our common stock. You should not assume or expect that, after the offering, our shares
of common stock will trade at or above the subscription price in any given time period. The market price of our common stock may
decline during or after the offering, and you may not be able to sell the shares of our common stock purchased during the offering
at a price equal to or greater than the subscription price. You should obtain a current quote for our common stock before exercising
your subscription rights and make your own assessment of our business and financial condition, our prospects for the future, and
the terms of the offering. The last reported sale of our common stock occurred on <B>[&bull;]</B>, 20<B>[&bull;]</B>, and the closing
sales price of our common stock on that date was $<B>[&bull;]</B> per share. The volume weighted average closing sales price of
the common stock for the 20 trading day period that included <B>[&bull;]</B>, 20<B>[&bull;] </B>was<B> </B>$<B>[&bull;]</B> per
share.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Limitations on Amount You May Purchase</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Except for a person or entity that owns, as
of the date of this prospectus, more than 5% of our common stock, no person or entity may exercise subscription rights (including
the oversubscription privilege) to purchase shares of our common stock that, when aggregated with their existing ownership, would
result in such person or entity, together with any of the following persons or entities, owning 5% or more of our issued and outstanding
shares of common stock following the offering, or that would require regulatory approval:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>your immediate family, including your spouse, father, mother, stepfather, stepmother, brother, sister, stepbrother, stepsister,
son, daughter, stepson, stepdaughter, grandparent, grandson, granddaughter, father-in-law, mother-in-law, brother-in-law, sister-in-law,
son-in-law, daughter-in-law, and the spouse of any of the foregoing;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>companies, partnerships, trusts, or other entities in which you are a trustee, have a controlling beneficial interest, or hold
a senior management position; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>other persons who may be your associates or persons acting in concert with you.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The term &ldquo;associate&rdquo; is used above to indicate any of
the following relationships with a person:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any corporation or organization, other than the company or a subsidiary thereof, of which a person is a senior officer or partner,
or beneficially owns, directly or indirectly, 10% or more of any class of equity securities of the corporation or organization;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any trust or other estate, if the person has a substantial beneficial interest in the trust or estate or is a trustee or fiduciary
of the estate (although a person who has a substantial beneficial interest in one of our tax-qualified or non-tax-qualified employee
plans, or who is a trustee or fiduciary of the plan is not an associate of the plan, and our tax-qualified employee plans are not
associates of a person);</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any person who is related by blood or marriage to such person and who is a director or senior officer of the company or a subsidiary
thereof; and/or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any person acting in concert with the persons or entities specified above.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">A person or entity that acts in concert with
another person, entity, or other party shall also be deemed to be acting in concert with any person or entity who is also acting
in concert with that other party, except that any tax-qualified employee plan will not be deemed to be acting in concert with its
trustee or a person who serves in a similar capacity solely for the purpose of determining whether stock held by the trustee and
stock held by the plan will be aggregated.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Any person or entity, together with related
persons or entities, that exercises subscription rights (including the oversubscription privilege) to purchase shares of our common
stock that, when aggregated with their existing ownership, results in such person or entity, together with any related persons
or entities, owning 4% or more of our issued and outstanding shares of common stock following the offering will be required to
enter into an agreement prohibiting such person or entity from purchasing additional shares that would result in such person or
entity owning more than 5% of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In addition, we will not issue shares of common
stock pursuant to the exercise of the basic subscription privilege or the oversubscription privilege to any shareholder who, in
our sole opinion, could be required to obtain prior clearance or approval from or submit a notice to any state or federal bank
regulatory authority to acquire, own, or control such shares, or if other regulatory approvals may be required. If we elect not
to issue shares in such case, such shares will become available to satisfy any oversubscription by other shareholders pursuant
to their oversubscription privilege.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Notwithstanding any other information presented
in this prospectus, we do not intend to accept any oversubscriptions that we believe may have an unfavorable effect on our ability
to preserve our gross net operating loss deferred tax asset. For more information, see the section of this prospectus entitled
&ldquo;OUR NET OPERATING LOSS DEFERRED TAX ASSET&rdquo; on page 37.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Uncertified Delivery of Shares of Common Stock Acquired in the
Offering</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">All shares of our common stock that you purchase
in the offering will be issued electronically in book-entry (uncertificated) form. If you are a shareholder of record as of the
record date and purchase shares in the offering by submitting a rights certificate, other subscription materials, and payment,
we will issue the new shares as soon as practicable after the completion of the offering, and you will receive confirmation from
the subscription agent by mail that your shares were electronically issued. If, as of the record date, your shares were held by
a custodian bank, broker, dealer, or other nominee, and you participate in the offering, your custodian bank, broker, dealer, or
other nominee will be credited with the shares of common stock you purchase in the offering as soon as practicable after the completion
of the offering, and your nominee will credit your account with such shares. Until your shares have been issued in book-entry form
or your account is credited with such shares, you may not be able to sell your shares.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are conducting the offering to offset the
anticipated effects on our capital of our planned redemption of $10 million in Series A Preferred Stock and our planned repayment
of $10.8 million in TPS Debentures, which we intend to consummate as soon as is practicable following the offering. See the risk
factor entitled &ldquo;<B><I>We may not use the proceeds of the offering for all of the purposes stated in the Use of Proceeds
section of this prospectus</I></B>&rdquo; in the &ldquo;RISK FACTORS&rdquo; section of this prospectus for information about our
ability to consummate the redemption and repayment transactions. Regardless of whether we effect our planned redemption of Series
A Preferred Stock and/or repay the TPS Debentures issued to Trust III, we may in the future, if we seek and obtain regulatory approval
to do so, use proceeds of the offering to redeem additional outstanding shares of Series A Preferred Stock and/or repay other TPS
Debentures issued by one or more of the Trusts.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our Board of Directors has chosen to raise capital
through a rights offering to give our shareholders the opportunity to prevent ownership dilution by acquiring additional shares
of common stock in the offering. Our Board of Directors also considered several alternative capital-raising methods prior to concluding
that the offering was the best option under the current circumstances. However, our Board of Directors is making no recommendation
regarding your exercise of the subscription rights. We cannot assure you that we will not need to seek additional financing or
engage in additional capital offerings in the future.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Effect of Offering on Existing Shareholders</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The ownership interests and voting interests
of the existing shareholders that do not fully exercise their basic subscription privilege may be significantly diluted. For more
information, see the discussion below under the heading &ldquo;Outstanding Shares of Common Stock After the Offering&rdquo;.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Certain of our directors and officers have indicated
that they intend to participate in the offering, although they are not required to do so. Collectively, we expect our directors
and officers, together with their affiliates, to purchase up to approximately 31,413 shares in the offering for an aggregate investment
of approximately $<B>[&bull;]</B>. As of the record date, our directors and officers, together with their affiliates, beneficially
own approximately 251,379 shares of common stock and are entitled to purchase approximately 31,413 shares in the offering by exercising
their respective basic subscription privileges on the same terms and conditions applicable to all shareholders. Following the offering,
after exercising their respective basic subscription privileges in full, we expect our directors and officers, together with their
affiliates, to own an aggregate of approximately 282,792 shares of common stock, or approximately 4.0% of our total outstanding
shares of common stock, if we sell all 783,626 shares offered in the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Although directors and officers will be investing
their own money in the offering, our Board of Directors makes no recommendation regarding your exercise of the subscription rights.
You are urged to make your decision based on your own assessment of our common stock, our business, and the offering.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The exercise of subscription rights is irrevocable
and may not be cancelled or modified. You may exercise your subscription rights as follows:</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><I>&nbsp;&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Subscription by Record Holders</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you are a record holder of our common stock,
the number of rights you may exercise pursuant to the basic subscription privilege will be indicated on the rights certificate
delivered to you. You may exercise your subscription rights by (i) properly completing and executing the rights certificate and
forwarding it to the subscription agent at the address set forth below in this section under the heading &ldquo;Subscription Agent&rdquo;,
and (ii) delivering your full subscription payment to the subscription agent through the method described below in this section
under the heading &ldquo;Payment Method&rdquo; and in the subscription materials, each prior to the expiration of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Subscription by Beneficial Owners</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If your shares of common stock are held in the
name of a broker, dealer, custodian bank, or other nominee, you are a beneficial owner of our shares of common stock and will not
receive a rights certificate. Instead, one subscription right will be issued to the nominee record holder for each share of our
common stock that you own as of the record date, and you will receive an instruction form to exercise your subscription rights
through the nominee record holder. Each subscription right entitles you to purchase 0.125 shares of our common stock at the subscription
price. We will ask your nominee record holder to notify you of the offering. If you are not contacted by your broker, dealer, custodian
bank, or other nominee but believe you are entitled to subscription rights, you should promptly contact your broker, dealer, custodian
bank, or other nominee in order to subscribe for shares of our common stock in the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you hold your shares of our common stock
in the name of a broker, dealer, custodian bank, or other nominee, your nominee must exercise the subscription rights on your behalf
in accordance with your instructions. Your nominee may establish a deadline that may be before the 5:00 p.m., Eastern Standard
Time, <B>[&bull;]</B>, 20<B>[&bull;]</B> expiration date we have established for the offering, by which you must provide it with
your instructions to exercise your subscription rights and pay for your shares. We are not responsible if you do not receive notice
from your broker, dealer, custodian bank, or other nominee or if you do not receive notice in time to respond to your nominee by
the deadline established by the nominee.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you have any questions regarding completing
a rights certificate or submitting payment in the offering, please contact our information agent, Georgeson LLC at (800) 561-2871.
If you have any general questions regarding the offering, the Company, or the Bank, please contact Tonya K. Sturm, our Senior Vice
President &amp; Chief Financial Officer, at (301) 533-2390.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you wish to participate in the offering,
you must deliver your payment along with your properly completed and signed rights certificate, and any other subscription materials,
to the subscription agent. Payments must be made in full in U.S. dollars for the full number of shares for which you are subscribing
by:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>personal check payable to &ldquo;Computershare Inc., as Subscription Agent for First United Corporation&rdquo; drawn upon a
U.S. bank; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>certified check payable to &ldquo;Computershare Inc., as Subscription Agent for First United Corporation&rdquo; drawn upon
First United Bank &amp; Trust.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Payments made by check, as described above,
should be delivered to Computershare Trust Company, N.A., the subscription agent, as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><U>If by registered, certified, express mail, or overnight
courier, to:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Computershare Trust Company, N.A..</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">c/o Voluntary Corporate Actions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">250 Royall Street, Suite V</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Canton, MA 02021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><U>If by First Class mail, to:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Computershare Trust Company, N.A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">c/o Voluntary Corporate Actions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">PO Box 43011</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Providence, RI 02940-3011</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Payment received after the expiration of the
offering will not be honored, and the subscription agent will return your payment to you, without interest or penalty, as soon
as practicable. The subscription agent will be deemed to receive payment upon:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>receipt by the subscription agent and clearance of a personal check drawn upon a U.S. bank;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>receipt by the subscription agent of a certified check drawn upon First United Bank &amp; Trust; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>receipt of collected funds in the subscription agent&rsquo;s escrow account.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Please note that funds paid by personal check
may take seven or more business days to clear. Accordingly, if you wish to pay by means of a personal check, we urge you to make
payment sufficiently in advance of the expiration date to ensure that the subscription agent receives cleared funds before that
time. We also urge you to consider payment by means of a certified check drawn upon First United Bank &amp; Trust in order to expedite
the receipt of your payment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You should read the instruction letter accompanying
the rights certificate carefully and strictly follow it<B>. DO NOT SEND RIGHTS CERTIFICATES OR PAYMENTS TO THE COMPANY OR THE BANK.</B>
We are not responsible for subscription materials sent directly to our offices. We will not consider your subscription received
until the subscription agent has received delivery of a properly completed and duly executed rights certificate and payment of
the full subscription amount. The method of delivery of rights certificates and payment of the subscription amount to the subscription
agent will be at the risk of the holders of subscription rights. If sent by mail, we recommend that you send certificates and payments
by overnight courier or by registered mail, properly insured, with return receipt requested, and that a sufficient number of days
be allowed to ensure delivery to the subscription agent and clearance of payment prior to the expiration of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Medallion Guarantee May Be Required</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Your signature on each rights certificate must
be guaranteed by an &ldquo;eligible guarantor institution,&rdquo; as such term is defined in Rule 17Ad-15 of the Exchange Act,
subject to any standards and procedures adopted by the subscription agent, unless:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>your subscription rights certificate provides that shares are to be issued to you as record holder of those subscription rights,
as imprinted on the face of the rights certificate; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>you are an eligible institution.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You can obtain a signature guarantee from a
financial institution, such as a commercial bank, savings and loan association, brokerage firm, or credit union that participates
in one of the Medallion signature guarantee programs. The three Medallion signature guarantee programs are the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Securities Transfer Agents Medallion Program, or STAMP;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Stock Exchanges Medallion Program, or SEMP; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>New York Stock Exchange Medallion Signature Program, or MSP, whose participants include NYSE member firms.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If a financial institution is not a member of
a recognized Medallion signature guarantee program, it would not be able to provide signature guarantees. Also, if you are not
a customer of a participating financial institution, it is likely the financial institution will not guarantee your signature.
Therefore, the best source of a Medallion Guarantee would be a bank, savings and loan association, brokerage firm, or credit union
with which you do business. The participating financial institution will use a Medallion imprint or stamp to guarantee the signature,
indicating that the financial institution is a member of a Medallion signature guarantee program and is an acceptable signature
guarantor.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The subscription agent for this offering is
Computershare Inc.. Subscription documents and rights certificates should be delivered to Computershare Trust Company, N.A. as
follows:</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><U>If by registered, certified, express mail, or overnight
courier, to:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Computershare Trust Company, N.A. .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">c/o Voluntary Corporate Actions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">250 Royall Street, Suite V</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Canton, MA 02021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in"><U>If by First Class mail, to:</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Computershare Trust Company, N.A .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">c/o Voluntary Corporate Actions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">PO Box 43011</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in">Providence, RI 02940-3011</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You are solely responsible for completing delivery
to the subscription agent of your subscription materials. The subscription materials are to be received by the subscription agent
on or prior to 5:00 p.m., Eastern Standard Time, on <B>[&bull;]</B>, 20<B>[&bull;]</B>. We urge you to allow sufficient time for
delivery of your subscription materials to the subscription agent. If you deliver subscription materials in a manner different
from those described in this prospectus, we may not honor the exercise of your subscription rights.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you do not indicate the number of subscription
rights being exercised, or the subscription agent does not receive the full subscription payment for the number of subscription
rights that you indicate are being exercised, then you will be deemed to have exercised the maximum number of subscription rights
that may be exercised with the aggregate subscription payment you delivered to the subscription agent. If the subscription agent
does not apply your full subscription payment to your purchase of our shares of common stock, any excess subscription payment received
by the subscription agent will be returned promptly, without interest or penalty.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The period during which you may exercise your
subscription rights expires at 5:00 p.m., Eastern Standard Time, on <B>[&bull;]</B>, 20<B>[&bull;]</B>, which is the expiration
of the offering period. If you do not exercise your subscription rights prior to that time, your subscription rights will expire
and will no longer be exercisable. We will not be required to issue shares of common stock to you if the subscription agent receives
your rights certificate and subscription payment after that time, regardless of when the rights certificate and subscription payment
were sent by you. We have the option to extend the offering period for up to 30 days until <B>[&bull;]</B>, 20<B>[&bull;]</B>,
although we do not presently intend to do so. We may extend the offering period by giving oral or written notice to the subscription
agent prior to the expiration of the offering period. If we elect to extend the offering period, we will issue a press release
announcing such extension no later than 9:00 a.m., Eastern Standard Time, on the next business day after the most recently announced
expiration date of the offering.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We reserve the right to amend or cancel the
offering at any time and for any reason. An amendment or modification could include, for example, a reduction in the subscription
price. If we decide to amend or modify the terms of the offering for any reason, subscriptions received prior to such amendment
or modification will remain irrevocable. If an amendment includes a reduction in the subscription price, however, all excess subscription
payments received from you by the subscription agent will be returned promptly, without interest or penalty. We may cancel the
offering, in whole or in part, if at any time before completion of the offering there is any judgment, order, decree, injunction,
statute, law, or regulation entered, enacted, amended, or held to be applicable to the offering that in the sole judgment of our
Board of Directors would or might make the offering or its completion, whether in whole or in part, illegal or otherwise restrict
or prohibit completion of the offering. We may waive any of these conditions and choose to proceed with the offering even if one
or more of these events occur. If we cancel the offering, we will issue a press release notifying shareholders of the cancellation
and all subscription payments received by the subscription agent will be returned promptly, without interest or penalty.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will not mail rights certificates to shareholders
on the record date whose addresses are outside the United States. Instead, we will have the subscription agent hold the rights
certificates for those holders&rsquo; accounts. <B>To exercise their rights, foreign holders must notify the subscription agent
before 11:00 a.m., Eastern Standard Time, on the fifth (5<SUP>th</SUP>) business day prior to the expiration date, and must establish
to the satisfaction of the Company and the subscription agent that such exercise is permitted under applicable law. </B>If a foreign
holder does not notify and provide acceptable instructions to the subscription agent by such time (and if no contrary instructions
have been received), such foreign holder will be deemed to have forfeited its right to participate in the offering. The subscription
agent contact information for this purpose is: Computershare Trust Company, N.A Attn: Corporate Actions; First United Corporation,
250 Royall Street, Suite V, Canton, MA 02021.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will not be required to issue shares of our
common stock to you pursuant to the rights offering if, in our opinion, you would be required to obtain prior clearance or approval
from any state or federal regulatory authorities, including gaming regulators, to own or control such shares and if, at the expiration
time, you have not obtained such clearance or approval.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Compliance with State Regulations Pertaining
to the Rights Offering</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are not making the rights offering in any
state or other jurisdiction in which it is unlawful to do so. We will not sell or accept an offer to purchase shares of our common
stock from you if you are a resident of any state or other jurisdiction in which the sale or offer of the rights would be unlawful.
We may delay the commencement of the rights offering in certain states or other jurisdictions in order to comply with the laws
of those states or other jurisdictions. However, we may decide, in our sole discretion, not to modify the terms of the rights offering
as may be requested by certain states or other jurisdictions. If that happens and you are a resident of the state or jurisdiction
that requests the modification, you will not be eligible to participate in the rights offering. We do not expect that there will
be any changes in the terms of the rights offering.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will pay all fees charged by and expenses
of the subscription agent and the information agent. If you exercise your subscription rights through your broker, dealer, custodian
bank, or other nominee, then you will be responsible for paying any fees that your nominee may charge you.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you are a broker, dealer, custodian bank,
or other nominee that holds shares of our common stock for the account of others on the record date, you should notify the beneficial
owners of the shares for whom you are the nominee of the offering as soon as possible to learn their intentions with respect to
exercising their subscription rights. You should obtain instructions from the beneficial owner, as set forth in the instructions
we have provided to you for your distribution to beneficial owners. If the beneficial owner so instructs, you should submit subscription
information and payment for shares. If you hold shares of our common stock for the account(s) of more than one beneficial owner,
you may exercise the number of subscription rights to which all beneficial owners in the aggregate otherwise would have been entitled
had they been direct holders of our common stock on the record date, provided that you, as a nominee record holder, make a proper
showing to the subscription agent by submitting the form entitled &ldquo;Nominee Holder Certification&rdquo; which is provided
with your offering materials.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Procedures for The Depository Trust &amp; Clearing Corporation
Participants</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We expect that subscription rights may be exercised
through the facilities of DTC. If your subscription rights are held of record through DTC, you may exercise your subscription rights
for each beneficial holder by instructing DTC, or having your broker instruct DTC, to transfer your subscription rights from your
account to the account of the subscription agent, together with certification as to the aggregate number of subscription rights
you are exercising and the exercise price.</P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>No Transfer of Subscription Rights</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You may not sell, or otherwise transfer, your
subscription rights. We are not applying for listing or quotation of the subscription rights on any exchange or dealer quotation
system.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will resolve all questions regarding the
validity and form of the exercise of your subscription rights, including time of receipt and eligibility to participate in the
offering. Our determination will be final and binding. Once made, subscriptions and directions are irrevocable, and we will not
accept any alternative, conditional, or contingent subscriptions or directions. We reserve the absolute right to reject any subscriptions
or directions not properly submitted or the acceptance of which would be unlawful. You must resolve any irregularities in connection
with your subscription before the subscription period expires, unless waived by us in our sole discretion. Neither we nor the subscription
agent shall be under any duty to notify you or your representative of defects in your subscription. A subscription will be considered
accepted, subject to our right to cancel the offering, only when a properly completed and duly executed rights certificate and
any other required documents and the full subscription payment have been received by the subscription agent. Our interpretations
of the terms and conditions of the offering will be final and binding.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The subscription agent will hold funds received
in payment for shares of our common stock in a segregated account pending completion of the offering. Such funds will be held in
escrow until the offering is completed or is cancelled. If the offering is cancelled for any reason, all subscription payments
received by the subscription agent will be returned promptly, without interest or penalty.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You will have no rights as a holder of our shares
of common stock that you purchase in the offering until such shares of common stock are issued to you or until your account at
your record holder is credited with shares of common stock purchased in the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>No Revocation or Change</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Once you submit the form of rights certificate
to exercise any subscription rights, you are not allowed to revoke or change the exercise or request a refund of monies paid. All
exercises of subscription rights are irrevocable, even if you later learn information about us that you consider to be unfavorable.
If we decide to extend, amend or modify the terms of the offering for any reason, subscriptions received prior to such extension,
amendment or modification will remain irrevocable. You should not exercise your subscription rights unless you are certain that
you wish to purchase shares of common stock at the subscription price of $<B>[&bull;]</B> per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Material U.S. Federal Income Tax Consequences</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">For U.S. federal income tax purposes, you should
not recognize income or loss upon receipt or exercise of subscription rights. For a more detailed discussion, see the section titled
&ldquo;Material U.S. Federal Income Tax Consequences&rdquo; in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>No Recommendation to Rights Holders</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our Board of Directors is not making a recommendation
regarding your exercise of the subscription rights. Shareholders who exercise subscription rights risk investment loss on money
invested. The market price of our common stock may decline to a price that is less than the subscription price and, if you purchase
shares at the subscription price, you may not be able to sell the shares in the future at the same price or a higher price. You
should make your decision based on your assessment of our business and financial condition, our prospects for the future, and the
terms of the offering. Please see the section entitled &ldquo;RISK FACTORS&rdquo; in this prospectus for a discussion of some of
the risks involved in investing in our common stock.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock is listed on the NASDAQ Global
Select Market under the symbol &ldquo;FUNC&rdquo;. We urge you to obtain a current market price for the shares of our common stock
before making any determination with respect to the exercise of your rights.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Outstanding Shares of Common Stock After the Offering</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As of <B>[&bull;]</B>, 20<B>[&bull;]</B>, 6,269,004
shares of our common stock were issued and outstanding. Assuming that there are no other transactions by us involving shares of
our common stock and all 783,626 shares of our common stock are subscribed for in the offering, we expect 7,052,630 shares of common
stock to be outstanding immediately after completion of the offering. As a result of the offering, the ownership interests and
voting interests of the existing shareholders that do not fully exercise their basic subscription privilege will be diluted.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you have any questions regarding completing
a rights certificate or submitting payment in the offering, please contact our information agent, Georgeson LLC, at (800) 561-2871.
If you have any general questions regarding the offering, the Company, or the Bank, please contact Tonya K. Sturm, our Senior Vice
President &amp; Chief Financial Officer, at (301) 533-2390.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_007"></A><B>THE STANDBY PURCHASE AGREEMENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To facilitate the offering, we have entered
into Standby Purchase Agreements with the Castle Creek Funds and the Second Curve Funds, each of which has represented to us that
it is an &ldquo;accredited investor&rdquo; as defined in the Commission&rsquo;s Regulation D.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Background of the Standby Purchase Agreements</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">After considering the effects on shareholder
value, our plans, the Bank&rsquo;s long-term viability, regulatory burdens and restrictions, our desire to raise capital in an
efficient manner, and alternative transactions with other potential investors, we decided that pursuing a transaction with the
standby investors that would support this offering was in the best interests of the Company and its shareholders. Thereafter, the
standby investors and their agents were given the opportunity to conduct a detailed due diligence review of the Company. We and
the standby investors then negotiated the Standby Purchase Agreements, including the formula to be used to set the subscription
price. We entered into the Standby Purchase Agreements on November 7, 2016.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Terms of the Standby Purchase Agreements</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The terms of the Standby Purchase Agreements
apply only to the standby investors and the Company. Rights holders who participate in the offering are not parties to the Standby
Purchase Agreements, and they do not receive any rights pursuant to those agreements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Castle Creek Funds have agreed, subject
to there being sufficient shares available after purchases by shareholders in the offering, to purchase from us, at the subscription
price, the lesser of (a) up to an aggregate of $5.0 million in shares of our common stock that are not purchased by shareholders
in the offering and (b) the maximum number of shares that they may purchase without causing an &ldquo;ownership change&rdquo; under
Section 382(g) of the Internal Revenue Code of 1986, as amended, which we refer to as the &ldquo;Code&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Second Curve Funds, which own an aggregate
of 131,614 shares of our common stock as of the record date, have committed to purchase up to $2.0 million in shares of our common
stock through a combination of the exercise of their basic subscription privilege in the offering and, subject to there being sufficient
shares available after purchases by shareholders in the offering, pursuant to the offer and sale contemplated by their Standby
Purchase Agreements, provided that they will not purchase shares to the extent it would cause an &ldquo;ownership change&rdquo;
under Section 382(g) of the Code. If the Second Curve Funds were to exercise their basic subscription privilege in full, then they
would purchase an aggregate of 16,451 shares of our common stock in the offering for an aggregate subscription price of $<B>[&bull;]</B>,
and, subject to there being sufficient shares available after purchases by shareholders in the offering and to the Section 382(g)
limitation, an aggregate of <B>[&bull;] </B>shares of our common stock under their Standby Purchase Agreements for an aggregate
purchase price of $<B>[&bull;]</B>.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will not know the aggregate amount of common
stock to be sold to the standby investors until the completion of the offering. The consummation of the sale of our common stock
to the standby investors is conditioned on the completion of the offering and upon the number of unsubscribed shares available.
The chart below presents different scenarios that may occur depending on the number of rights (including the associated oversubscription
privilege) that are exercised by shareholders and the number of shares purchased by the standby investors under the Standby Purchase
Agreements. The chart below presents the standby investors&rsquo; ownership if the basic subscription privilege is exercised with
respect to 0%, 25%, 50% and 100% of the subscription rights held by shareholders.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">0%&nbsp;of&nbsp;Basic<BR> Subscriptions<BR> Exercised</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">25%&nbsp;of&nbsp;Basic<BR> Subscriptions<BR> Exercised</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">50%&nbsp;of&nbsp;Basic<BR> Subscriptions<BR> Exercised</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">100%&nbsp;of&nbsp;Basic<BR> Subscriptions<BR> Exercised</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; text-align: left">Shares sold pursuant to the rights</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">195,906</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">391,813</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">783,626</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Shares purchased by Castle Creek Funds in standby offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Shares purchased by Second Curve Funds in standby offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total shares issued in offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">783,626</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total shares outstanding after offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,052,630</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Percentage ownership of Castle Creek Funds after closing of offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Percentage ownership of Second Curve Funds after closing of offering</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.1</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
<P STYLE="text-align: left; text-indent: 0; padding-left: 0"><B>Conditions to Closing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The obligations of the Company and the standby
investors to consummate the transactions contemplated by the Standby Purchase Agreements are subject to fulfillment of the following
conditions:</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The Company and the standby investors must have obtained all federal, state and other regulatory approvals required in connection
with the transactions;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The Company must have received a letter from an independent accounting firm to the effect that, among other things, the transactions
contemplated by the Standby Purchase Agreements will not cause the Company to undergo an &ldquo;ownership change&rdquo; for purposes
of Section 382 of the Code;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>No judgment, injunction, decree, regulatory proceeding or other legal restraint prohibits, or has the effect of rendering unachievable,
the consummation of the offering or the material transactions contemplated by the Standby Purchase Agreements;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>No stop order suspending the effectiveness of the registration statement of which this prospectus forms a part, or any part
thereof, has been issued and no proceeding for that purpose has been initiated or threatened by the Commission; and any request
of the Commission for inclusion of additional information in the registration statement or otherwise shall have been complied with;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The SEC shall have not suspended trading in our common stock, and the NASDAQ Global Select Market shall not have suspended
trading in securities generally on The NASDAQ Global Select Market;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The shares to be sold in the offering and to the standby investors shall have been authorized for listing on The NASDAQ Global
Select Market (or such other exchange or market as our common stock is then listed); and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The rights offering shall have occurred.</TD></TR></TABLE>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The obligations of the Company to consummate
the transactions contemplated by the Standby Purchase Agreements are further subject to the conditions that the representations
and warranties of the standby investors set forth in their Standby Purchase Agreements are true and correct in all material respects
and that the standby investors must have performed all of their respective obligations under the Standby Purchase Agreements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The obligations of the standby investors to
consummate the transactions contemplated by the Standby Purchase Agreements are further subject to the conditions that our representations
and warranties set forth in the Standby Purchase Agreements are true and correct in all material respects and that we must have
performed all of our obligations under the Standby Purchase Agreements.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">A Standby Purchase Agreement may be terminated
under the following circumstances:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>By the standby investor at any time prior to the sale of shares to the standby investor, by written notice to us, if (i) we
experience a &ldquo;Material Adverse Effect&rdquo; (as defined in the Standby Purchase Agreement) or (ii) a &ldquo;Market Adverse
Effect&rdquo; (as defined in the Standby Purchase Agreement) has occurred that, in either case, is not cured within 21 days after
the occurrence, but the right to terminate the Standby Purchase Agreement on such account will expire seven days after the expiration
of the applicable cure period;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>By us at any time prior to the closing of the sales contemplated by the Standby Purchase Agreements if we withdraw or terminate
the offering because we determine that the consummation of the offering is not in the best interests of us and our shareholders.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>By us, on the one hand, or a standby investor, on the other hand, at any time prior to the closing of the sale of shares to
the standby investor if the other party has materially breached the Standby Purchase Agreement and that breach remains uncured
for 15 days after the non-breaching party has delivered written notice of the breach to the breaching party;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>By us or a standby investor if the transactions contemplated by the Standby Purchase Agreements have not occurred prior to
May 15, 2017; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>By us or a standby investor if we determine that the transactions contemplated by the Standby Purchase Agreements are prohibited
by law.</TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Each of the Standby Purchase Agreements provides
that we and the standby investor will pay our own expenses associated with the transactions contemplated by the Standby Purchase
Agreement, except that we will be obligated to pay the reasonable actual out-of-pocket expenses of each standby investor, up to
$25,000 per standby investor, if we terminate the Standby Purchase Agreements because we decide to terminate the offering.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In the Standby Purchase Agreements, we agreed
to file, within 90 days of the closing of the standby offering, a registration statement under the Securities Act to register the
resale of the shares purchased by the standby investors, to use commercially reasonable efforts to cause that resale registration
statement to be declared effective by the Commission as soon as is practicable, and to maintain a current prospectus with respect
to those shares until the earlier of the date on which (i) the standby investors sell or otherwise dispose of their shares, (ii)
the shares may be sold by the standby investors pursuant to Rule 144 under the Securities Act and (iii) the shares are no longer
issued and outstanding. We have agreed to pay the expenses associated with the resale registration statement. We agreed to enter
into a customary registration rights agreement with the standby investors if we fail to comply with the foregoing registration
requirements.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Standby Purchase Agreements require us,
subject to certain customary exceptions , to indemnify and hold harmless each standby investor and its affiliated persons against
all &ldquo;Losses&rdquo; (as defined in the Standby Purchase Agreement) to which they may become subject under the Securities Act
or otherwise insofar as such Losses arise out of or are based upon, arising out of, or resulting from the Standby Purchase Agreement
and its subject matter. Each standby investor agreed, subject to certain customary exceptions, to indemnify and hold harmless the
Company and its affiliated persons against any Losses to which they may become subject as a result of any untrue statement or a
material fact or any omission of any material fact required to be stated in this prospectus or the resale registration statement,
its related prospectus and/or any related marketing material, or necessary to make the statements therein not misleading to the
extent, but only to the extent, that such untrue statement or omission is contained in any information furnished in writing to
the Company by such standby investor specifically for inclusion in those documents or materials.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_008"></A><B>USE OF PROCEEDS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The proceeds to us from the offering will depend
on the number of subscription rights that are exercised by shareholders and the number of shares purchased by the standby investors
pursuant to the Standby Purchase Agreement. We estimate that the gross proceeds of the offering to us, before expenses, will be
$<B>[&bull;]</B>, assuming that the offering is fully-subscribed. The following table sets forth the calculation of our net proceeds
from the offering. Because we have not conditioned the offering on the sale of a minimum number of shares, we are presenting this
information assuming the basic subscription privilege is exercised with respect to 0%, 25%, 50% and 100% of the subscription rights
held by shareholders.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">0% of Basic <BR>
Subscriptions <BR>
Exercised</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>25%
of Basic</B><BR>
<B>Subscriptions<BR>
Exercised</B></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>50%
of Basic</B><BR>
<B>Subscriptions<BR>
Exercised</B></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>100%
of Basic</B><BR>
<B>Subscriptions<BR>
Exercised</B></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Shares sold pursuant to the basic subscription privilege</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">195,906</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">391,813</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">783,626</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Shares purchased by standby investors in the standby offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Gross offering proceeds</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Other offering expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(146,084</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(146,084</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(146,084</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(146,084</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -0.1in; padding-left: 0.1in">Net proceeds (expenses) to us</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We intend to use the proceeds of the offering,
after paying our offering expenses, to offset the effects of our planned redemption of $10 million of Series A Preferred Stock
and our planned repayment of $10.8 million of TPS Debentures. We intend to consummate the redemption and repayment as soon as is
practicable following the offering, but our ability to do so is subject to the approval of the Federal Reserve and our receipt
of a cash dividend from the Bank in the amount of approximately $13.0 million. The Federal Reserve has approved the planned redemption
and repayment, subject to the condition that we sell at least $7.0 million in common stock in this offering and/or to the standby
investors. As noted elsewhere in this prospectus, the Bank&rsquo;s ability to pay cash dividends is subject to limitations imposed
by banking and corporate law. Accordingly, there can be no assurance that we will consummate our planned redemption and repayment.
In the event that we do not do so, in whole or in part, we intend to use the proceeds of the offering, after paying our offering
expenses, to bolster the capital positions of the Company and the Bank and for general working capital purposes. Regardless of
whether we effect our planned redemption of Series A Preferred Stock and/or repay the TPS Debentures issued to Trust III, we may
in the future, if we seek and obtain regulatory approval to do so, use proceeds from this offering to redeem additional outstanding
shares of Series A Preferred Stock and/or repay other TPS Debentures issued by one or more of the Trusts.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The holders of the Series A Preferred Stock
are entitled to receive, if and when declared by the Board of Directors, out of assets legally available for payment, cumulative
cash dividends at a rate per annum of 9% per share of Series A Preferred Stock on a liquidation amount of $1,000 per share with
respect to each dividend period. The terms of the Series A Preferred Stock call for the payment, if declared by the Company&rsquo;s
Board of Directors, of cash dividends on February 15<SUP>th</SUP>, May 15<SUP>th</SUP>, August 15<SUP>th</SUP> and November 15<SUP>th</SUP>
of each year.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The TPS Debentures issued to Trust III mature
in 2040, but are redeemable five years after issue and bear interest at the rate of 9.875% per annum, compounded quarterly, which
is payable quarterly on March 15<SUP>th</SUP>, June 15<SUP>th</SUP>, September 15<SUP>th</SUP> and December 15<SUP>th</SUP> of
each year, subject to our right to defer interest payments for up to 20 consecutive quarters.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_009"></A><B>CAPITALIZATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following table presents our capitalization
as of September 30, 2016 (i) on an actual basis, and (ii) on an as-adjusted basis to give effect to the sale of shares of common
stock to rights holders in this offering and, to the extent not purchased by rights holders, to the standby investors at a subscription
price of $<B>[&bull;]</B> per share, for net expenses of $(146,084) and net proceeds of $<B>[&bull;]</B>, as set forth under &ldquo;Use
of Proceeds.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following data should be read in conjunction
with the section entitled &ldquo;USE OF PROCEEDS&rdquo; and the financial information incorporated by reference in this prospectus,
including our historical financial statements and related notes.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP> &nbsp; </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> September 30, 2016<BR>
    (dollars in thousands except per share data) </TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt"> &nbsp; </TD><TD NOWRAP STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Actual</B></FONT> </TD><TD NOWRAP STYLE="padding-bottom: 1pt"> &nbsp; </TD><TD NOWRAP STYLE="padding-bottom: 1pt"> &nbsp; </TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Pro
    Forma</B></FONT> </TD><TD NOWRAP STYLE="padding-bottom: 1pt"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"> Shareholders&rsquo; Equity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 74%; text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> Preferred stock, no par value; $1,000
    liquidation preference; 2,000,000 shares authorized; 20,000 shares issued and outstanding </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 10%; text-align: right"> 20,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD><TD STYLE="width: 1%"> &nbsp; </TD>
    <TD STYLE="width: 1%; text-align: left"> $ </TD><TD STYLE="width: 10%; text-align: right"> 20,000 </TD><TD STYLE="width: 1%; text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> Common stock, $.01 par value; 25,000,000 shares
    authorized; 6,269,004 shares issued and outstanding (actual); and 7,052,630 shares issued and outstanding (pro forma) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 63 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 71 </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> Additional paid-in capital </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 22,130 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B></FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> Retained earnings (deficit) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 91,951 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B></FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> Accumulated other comprehensive income (loss) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> (19,376 </TD><TD STYLE="text-align: left"> ) </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> (17,261 </TD><TD STYLE="text-align: left"> ) </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 27pt"> Total shareholders&rsquo; equity </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> 114,768 </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> $ </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"> Consolidated Capital Ratios </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> &nbsp; </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> Total capital to risk-weighted assets </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 16.83 </TD><TD STYLE="text-align: left"> % </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B>%</FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> Tier 1 capital to risk-weighted assets </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 14.67 </TD><TD STYLE="text-align: left"> % </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B>%</FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> Tier 1 capital to average assets </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 10.85 </TD><TD STYLE="text-align: left"> % </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B>%</FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> Tier 1 common equity to risk weighted assets </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> 10.66 </TD><TD STYLE="text-align: left"> % </TD><TD> &nbsp; </TD>
    <TD STYLE="text-align: left"> &nbsp; </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B>%</FONT> </TD><TD STYLE="text-align: left"> &nbsp; </TD></TR>
</TABLE>



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

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following table presents our capitalization
as of September 30, 2016 (i) on an actual basis, and (ii) on an as-adjusted basis to give effect to the sale of shares of common
stock to rights holders in this offering and, to the extent not purchased by rights holders, to the standby investors at a subscription
price of $<B>[&bull;] </B>per share, our planned redemption of $10 million in Series A Preferred Stock and our planned repayment
of $10.8 million of TPS Debentures, for net expenses of $145,954 and net proceeds of $<B>[&bull;]</B>, as set forth under &ldquo;Use
of Proceeds.&rdquo;</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-family: Times New Roman, Times, Serif">September
    30, 2016<BR> (dollars in thousands except per share data)</FONT> </TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD NOWRAP STYLE="padding-bottom: 1pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Actual</B></FONT> </TD><TD NOWRAP STYLE="padding-bottom: 1pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD NOWRAP STYLE="padding-bottom: 1pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Pro
    Forma</B></FONT> </TD><TD NOWRAP STYLE="padding-bottom: 1pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Shareholders&rsquo;
    Equity</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 74%; text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Preferred
    stock, no par value; $1,000 liquidation preference; 2,000,000 shares authorized; 20,000 shares issued and outstanding</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT> </TD><TD STYLE="width: 10%; text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">20,000</FONT> </TD><TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT> </TD><TD STYLE="width: 10%; text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">10,000</FONT> </TD><TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Common
    stock, $.01 par value; 25,000,000 shares authorized; 6,269,004 shares issued and outstanding (actual); and 7,052,630 shares
    issued and outstanding (pro forma)</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">63</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">71</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Additional
    paid-in capital</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">22,130</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B></FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Retained
    earnings (deficit)</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">91,951</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B></FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Accumulated
    other comprehensive income (loss)</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">(19,376</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">(17,261</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 27pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Total shareholders&rsquo;
    equity</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">114,768</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>[&bull;]</B></FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Consolidated Capital
    Ratios</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Total
    capital to risk-weighted assets</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">16.83</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B>%</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Tier
    1 capital to risk-weighted assets</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">14.67</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B>%</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Tier
    1 capital to average assets</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">10.85</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B>%</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 16.2pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Tier
    1 common equity to risk weighted assets</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">10.66</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>[&bull;]</B>%</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
</TABLE>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_010"></A><B>DILUTION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Dilution represents the difference between the
amount per share paid by purchasers of common stock in the offering and the tangible common equity per share of common stock immediately
after the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following table presents the tangible common
equity of the Company as of September 30, 2016 (i) on an actual basis, and (ii) on an as-adjusted basis to give effect to the sale
of all of the offered shares of common stock to rights holders in this offering and, to the extent not purchased by rights holders,
to the standby investors at a subscription price of $<B>[&bull;]</B> per share, for net expenses of $146,084 and net proceeds of
$<B>[&bull;]</B>, as set forth under &ldquo;USE OF PROCEEDS&rdquo;.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2016<BR> (dollars in thousands)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Actual</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Pro Forma</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; text-align: left">Total equity</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">114,768</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Preferred equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Common equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">94,768</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Intangibles</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(11,004</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(11,004</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net proceeds (expenses) to us</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Tangible common equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">83,764</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Shares of common stock outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,269,004</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,052,630</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Tangible common equity per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13.36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Offering price per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Dilution (accretion) per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following table presents the tangible common
equity of the Company as of September 30, 2016 (i) on an actual basis, and (ii) on an as-adjusted basis to give effect to the sale
of all of the offered shares of common stock to rights holders in this offering and, to the extent not purchased by rights holders,
to the standby investors at a subscription price of $<B>[&bull;] </B>per share, the redemption of $10 million in Series A Preferred
Stock and the repayment of $10.8 million of TPS Debentures, for net expenses of $146,084 and net proceeds of $<B>[&bull;]</B>,
as set forth under &ldquo;USE OF PROCEEDS&rdquo;.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30, 2016<BR> (dollars in thousands)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Actual</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Pro Forma</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; text-align: left">Total equity</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">114,768</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <B>[&bull;]</B></FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Preferred equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Common equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">94,768</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Intangibles</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(11,004</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(11,004</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net proceeds (expenses) to us</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Tangible common equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">83,764</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Shares of common stock outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,269,004</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,052,630</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Tangible common equity per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13.36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Offering price per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Dilution (accretion) per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[&bull;]</B></FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_011"></A><B>OUR NET OPERATING LOSS DEFERRED TAX ASSET</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> As of December 31, 2015 and September 30,
2016, we had a total deferred tax asset of $25.4 million and $24.7 million, respectively, an offsetting valuation allowance of
$1.8 million for both periods, and a deferred tax liability of $3.8 million and $4.4 million, respectively, for a net deferred
tax asset of $19.8 million and $18.5 million, respectively. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Included in the total deferred tax asset is
$2.7 million associated with a federal net operating loss carryforward which we expect to be substantially utilized in the current
year. Also included in total deferred tax asset at December 31, 2015 and September 30, 2016 is $1.8 million of state net operating
loss carryforwards associated with separate company tax filings of the Corporation. The Company does not expect these net operating
loss carryforwards to be utilized and therefore has established a $1.8 million valuation allowance. A deferred tax asset is reduced
by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all
of the total deferred tax asset will not be realized.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our ability to utilize our net operating loss
carryforwards to offset future taxable income may be significantly limited if we experience an &ldquo;ownership change,&rdquo;
as determined under Section 382 of the Code. Under Section 382 of the Code, an &ldquo;ownership change&rdquo; occurs if, over a
rolling three-year period, there has been an aggregate increase of 50 percentage points or more in the percentage of our common
stock owned by one or more of our &ldquo;5-percent stockholders&rdquo; (as determined under the rules of Section 382 of the Code
and the related regulations and guidance thereunder). An entity that experiences an ownership change generally will be subject
to an annual limitation on its pre-ownership change tax losses and credit carryforwards equal to the equity value of the corporation
immediately before the ownership change, multiplied by the long-term, tax-exempt rate posted monthly by the Internal Revenue Service
(the &ldquo;IRS&rdquo;) (subject to certain adjustments). The annual limitation would be increased each year to the extent that
there is an unused limitation in a prior year. The limitation on our ability to utilize our net operating loss carryforwards arising
from an ownership change under Section 382 of the Code would depend on the value of our equity at the time of any ownership change.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If an ownership change were to occur, the limitations
imposed by Section 382 of the Code could result in a portion of our net operating loss carryforwards expiring unused, thereby impairing
their value. While the complexity of Section 382&rsquo;s provisions and the limited knowledge any public company has about the
ownership of its publicly traded stock make it difficult to determine whether an ownership change has occurred, we currently believe
that an ownership change will not occur as a result of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have attempted to structure the offering
so as to avoid an &ldquo;ownership change&rdquo; under Section 382 of the Code. We will not accept a subscription pursuant to the
oversubscription privilege if we believe that doing so will have an unfavorable effect on our ability to avoid an &ldquo;ownership
change&rdquo; or preserve our net operating loss deferred tax asset. We do not believe that the exercise of basic subscription
privileges will have any unfavorable effect on our ability to avoid an &ldquo;ownership change&rdquo; or preserve our net operating
loss deferred tax asset.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">It is important to note that, notwithstanding
this measure, an ownership change may occur, which would limit the amount of the net operating loss carryforwards that we might
otherwise be able to utilize.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_012"></A><B>MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following summary describes the material
U.S. federal income tax consequences of the receipt and exercise (or expiration) of the subscription rights, including the basic
subscription privilege and the oversubscription privilege, acquired through the offering and owning and disposing of the shares
of common stock received upon exercise of the subscription rights. This summary is based upon the Code, Treasury regulations promulgated
thereunder and administrative and judicial interpretations thereof, all as currently in effect and all of which are subject to
differing interpretations or to change, possibly with retroactive effect. No assurance can be given that the IRS would not assert,
or that a court would not sustain, a position contrary to any of the tax consequences described below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This summary is for general information only
and does not purport to discuss all aspects of U.S. federal income taxation that may be important to a particular holder in light
of its particular circumstances or to holders that may be subject to special tax rules, including, but not limited to, partnerships
or other pass-through entities, banks and other financial institutions, tax-exempt entities, employee stock ownership plans, certain
former citizens or residents of the United States, insurance companies, regulated investment companies, real estate investment
trusts, dealers in securities or currencies, brokers, traders in securities that have elected to use the mark-to-market method
of accounting, persons holding subscription rights or shares of common stock as part of an integrated transaction, including a
&ldquo;straddle,&rdquo; &ldquo;hedge,&rdquo; &ldquo;constructive sale,&rdquo; or &ldquo;conversion transaction,&rdquo; persons
whose functional currency for tax purposes is not the U.S. dollar, persons holding our common stock through a foreign financial
account, and persons subject to the alternative minimum tax provisions of the Code.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This summary applies to you only if you are
a U.S. holder (as defined below) and receive your subscription rights in the offering, and you hold your subscription rights or
shares of common stock issued to you upon exercise of the subscription rights as capital assets for tax purposes. This summary
does not apply to you if you are not a U.S. holder. Non-U.S. holders should consult with their own tax advisors with respect to
U.S. federal income tax consequences that may apply to them.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have not sought, and will not seek, a ruling
from the IRS regarding the federal income tax consequences of the offering or the related share issuances. The following summary
does not address the tax consequences of the offering or the related share issuance under foreign, state, or local tax laws.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You are a &ldquo;U.S. holder&rdquo; if you are
a beneficial owner of subscription rights or common stock and you are:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An individual who is a citizen or resident of the United States for U.S. federal income tax purposes;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A corporation (or other business entity treated as a corporation for U.S. federal income tax purposes) created or organized
in or under the laws of the United States, any state thereof, or the District of Columbia;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>An estate, the income of which is subject to U.S. federal income tax regardless of its source; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>A trust (a) if a court within the United States can exercise primary supervision over its administration and one or more U.S.
persons are authorized to control all substantial decisions of the trust or (b) that has a valid election in effect under applicable
Treasury Regulations to be treated as a U.S. person.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If a partnership (including any entity treated
as a partnership for U.S. federal income tax purposes) receives the subscription rights or holds the common stock received upon
exercise of the subscription rights including, if applicable, the oversubscription privilege, the tax treatment of a partner in
such partnership generally will depend upon the status of the partner and the activities of the partnership. Such a partner or
partnership is urged to consult its own tax advisor as to the U.S. federal income tax consequences of receiving and exercising
the subscription rights and acquiring, holding or disposing of our shares of common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><B>You should consult your own tax advisor with
respect to the U.S. federal, state, local, non-U.S., and other tax consequences of the receipt and ownership of the subscription
rights acquired in the offering and the ownership of shares of common stock received upon exercise of the subscription rights.</B></P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Receipt of Subscription Rights</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Your receipt of subscription rights pursuant
to the offering should not be treated as a taxable distribution with respect to your existing shares of common stock for U.S. federal
income tax purposes. The discussion below assumes that the receipt of the subscription rights will be treated as a non-taxable
distribution.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Tax Basis in the Subscription Rights</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If the fair market value of the subscription
rights you receive is less than 15% of the fair market value of your existing shares of common stock on the date you receive the
subscription rights, the subscription rights will be allocated a zero basis for U.S. federal income tax purposes, unless you elect
to allocate your basis in your existing shares of common stock between your existing shares of common stock and the subscription
rights in proportion to the relative fair market values of the existing shares of common stock and the subscription rights determined
on the date of receipt of the subscription rights. If you choose to allocate basis between your existing shares of common stock
and the subscription rights, you must make this election on a statement included with your tax return for the taxable year in which
you receive the subscription rights. Such an election is irrevocable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">However, if the fair market value of the subscription
rights you receive is 15% or more of the fair market value of your existing shares of common stock on the date you receive the
subscription rights, then you must allocate your basis in your existing shares of common stock between your existing shares of
common stock and the subscription rights you receive in proportion to their fair market values determined on the date you receive
the subscription rights. The fair market value of the subscription rights on the date the subscription rights will be distributed
is uncertain. In determining the fair market value of the subscription rights, you should consider all relevant facts and circumstances.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Exercise and Expiration of Subscription Rights</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Generally, you will not recognize gain or loss
on the exercise of a subscription right. If you allow subscription rights received in the offering to expire, you should not recognize
any gain or loss for U.S. federal income tax purposes, and you should re-allocate any portion of the tax basis in your existing
shares of common stock previously allocated to the subscription rights that have expired to the existing shares of common stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Basis and Holding Period</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Your tax basis in a new share of common stock
acquired when you exercise a subscription right will be equal to your adjusted tax basis in the subscription right, if any, plus
the subscription price. The holding period of a share of common stock acquired when you exercise your subscription rights will
begin on the date of exercise.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Distributions with respect to shares of common
stock acquired upon exercise of subscription rights will be taxable as dividend income when actually or constructively received
to the extent of our current or accumulated earnings and profits as determined for U.S. federal income tax purposes. Subject to
the discussion below concerning the additional 3.8% tax on net investment income, dividends received by non-corporate shareholders
of common stock are taxed at the shareholder&rsquo;s capital gain tax rate (a maximum rate of 20%), provided that the shareholder
meets applicable holding period and other requirements. To the extent that the amount of a distribution exceeds our current and
accumulated earnings and profits, such distribution will be treated first as a tax-free return of capital to the extent of your
adjusted tax basis in such shares of common stock and thereafter as capital gain. We currently do not make any cash distributions
on our shares of common stock.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you sell or otherwise dispose of the shares
of common stock acquired upon exercise of the subscription rights, you will generally recognize capital gain or loss equal to the
difference between the amount realized and your adjusted tax basis in the shares of common stock. Such capital gain or loss will
be long-term capital gain or loss if your holding period for the shares of common stock is more than one year. Long-term capital
gain of an individual is generally taxed at favorable rates (currently a maximum rate of 20%). Long-term capital gains recognized
by corporations are taxable at ordinary corporate tax rates. If you have held your shares of common stock for one year or less,
your capital gain or loss will be short-term. Short-term capital gains are taxed at a maximum rate equal to the maximum rate applicable
to ordinary income. The deductibility of capital losses is subject to limitations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Net Investment Income Tax</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">U.S. shareholders who are individuals, estates,
or trusts are subject to a 3.8% tax on net investment income. Net investment income includes, among other things, dividends on
and capital gains from the sale or other disposition of stock. More specifically, the 3.8% tax applies to the lesser of (i) &ldquo;net
investment income&rdquo; and (ii) the excess of &ldquo;modified adjusted gross income&rdquo; over $200,000 ($250,000 if married
and filing jointly or $125,000 if married and filing separately). &ldquo;Net investment income&rdquo; generally equals the taxpayer&rsquo;s
gross investment income reduced by the deductions that are attributable to such income. U.S. shareholders should consult their
tax advisors regarding the effect, if any, of the net investment tax on their ownership and disposition of our common stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You may be subject to information reporting
or backup withholding with respect to dividend payments on, or the gross proceeds from the disposition of, our common stock acquired
through the exercise of subscription rights. Backup withholding may apply under certain circumstances if you (i) fail to furnish
your social security or other taxpayer identification number (&ldquo;TIN&rdquo;), (ii) furnish an incorrect TIN, (iii) fail to
report interest or dividends properly, or (iv) fail to provide a certified statement, signed under penalty of perjury, that the
TIN provided is correct, that you are not subject to backup withholding, and that you are a U.S. person. Any amount withheld from
a payment under the backup withholding rules is allowable as a credit against (and may entitle you to a refund with respect to)
your U.S. federal income tax liability, provided that the required information is furnished to the IRS. Certain persons are exempt
from backup withholding, including corporations and financial institutions. You are urged to consult your own tax advisor as to
your qualification for exemption from backup withholding and the procedure for obtaining such exemption.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_013"></A><B>MARKET PRICE OF COMMON STOCK AND DIVIDEND
POLICY</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our common stock trades on the NASDAQ Global
Select Market under the symbol &ldquo;FUNC.&rdquo; As of <B>[&bull;],</B> 20<B>[&bull;]</B>, there were <B>[&bull;]</B> shares
of our common stock issued and outstanding held by approximately <B>[&bull;]</B> shareholders of record. On <B>[&bull;]</B>, 20<B>[&bull;]</B>,
the last reported sale price of our common stock was $<B>[&bull;]</B> per share. The following table shows the high and low sales
prices of our common stock during the periods indicated.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 75%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Sales
    Prices</FONT> </TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-family: Times New Roman, Times, Serif">High</FONT> </TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <FONT STYLE="font-family: Times New Roman, Times, Serif">Low</FONT> </TD><TD STYLE="padding-bottom: 1pt; font-weight: bold"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">2014</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 64%; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1<SUP>st
    </SUP>Quarter</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT> </TD><TD STYLE="width: 15%; text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">9.00</FONT> </TD><TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="width: 1%"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT> </TD><TD STYLE="width: 15%; text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">7.35</FONT> </TD><TD STYLE="width: 1%; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2<SUP>nd</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">9.04</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">7.54</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3<SUP>rd</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">8.95</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">7.92</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4<SUP>th</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">8.75</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">7.93</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">2015</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1<SUP>st</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">9.50</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">8.21</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2<SUP>nd</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">9.46</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">8.36</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3<SUP>rd</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">8.83</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">8.01</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4<SUP>th</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">11.89</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">7.91</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">2016</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1<SUP>st</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">11.70</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">8.82</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2<SUP>nd</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">11.34</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">9.65</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3<SUP>rd</SUP> Quarter
    </FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">12.38</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">9.58</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4<SUP>th</SUP> Quarter</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">16.95</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">11.06</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">2017</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1<SUP>st</SUP> Quarter
    (through January 25, 2017)</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif">14.45</FONT> </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD><TD> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD>
    <TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT> </TD><TD STYLE="text-align: right"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT>14.35 </TD><TD STYLE="text-align: left"> <FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT> </TD></TR>
</TABLE>



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

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In an effort to preserve its and the Bank&rsquo;s
capital, the Company has not declared a dividend since December 2010. The ability of the Company to declare dividends is limited
by federal banking laws and Maryland corporation laws. Subject to these and the terms of its other securities, including the Series
A Preferred Stock and the TPS Debentures, the payment of dividends on the shares of common stock and the amounts thereof are at
the discretion of the Company&rsquo;s Board of Directors. Historically, when declared, cash dividends were typically declared on
a quarterly basis. When paid, dividends to shareholders have historically been dependent on the ability of the Company&rsquo;s
subsidiaries, especially the Bank, to declare dividends to the Company. Like the Company, the Bank&rsquo;s ability to declare and
pay dividends is subject to limitations imposed by federal and Maryland banking and Maryland corporation laws. A complete discussion
of these and other dividend restrictions is contained in the Risk Factors above under the heading, &ldquo;Risks Relating to Ownership
of Our Common Stock&rdquo;. Accordingly, there can be no assurance that dividends will be declared on the shares of common stock
in any future fiscal quarter.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_014"></A><B>DESCRIPTION OF SECURITIES</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are authorized by our Charter to issue up
to 27,000,000 shares of capital stock. Of these shares, 25,000,000 shares are classified as common stock, par value $.01 per share,
and 2,000,000 shares are classified as preferred stock, having no par value per share, which may be issued in one or more series
having such voting powers, designations, preferences and other rights, qualifications, limitations and restrictions as may be fixed
by our Board of Directors from time to time. The Board of Directors has designated 30,000 shares of our preferred stock as Fixed
Rate Cumulative Perpetual Preferred Stock, Series A.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In addition to the power to issue shares of
our authorized preferred stock in one or more series as discussed above, our Charter permits our Board of Directors, without general
stockholder approval but subject to the rights of any preferred stock, to classify and reclassify authorized but unissued shares
of capital stock of any class or series by setting or changing in any one or more respects the preferences, conversion or other
rights, voting powers, restrictions, limitations as to dividends, qualifications, or terms or conditions of redemption of the shares
of stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As of <B>[&bull;]</B>, 2016, there were 6,269,004
shares of common stock issued and outstanding, which were held by approximately <B>[&bull;]</B> owners of record.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The following is a summary of the general terms
of our common stock, including the shares of common stock that may be issued upon exercise of subscription rights. This summary
does not purport to be complete in all respects. The full terms of the common stock are set forth in our Charter, our Bylaws and
to applicable Maryland laws, including the Maryland General Corporation Law, or the &ldquo;MGCL&rdquo;. The Charter, the Bylaws
and the other documents that may impact the rights of holders of our common stock are filed with the registration statement that
contains this prospectus as Exhibit 3.1(i) through Exhibit 3.2(iii), all of which are also available from us upon request. The
following summary does not give effect to provisions of applicable statutory or common law.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The holders of our common stock are entitled
to one vote for each share held of record on all matters submitted to a vote of shareholders. Holders of shares of common stock
are not entitled to cumulative voting rights in the election of directors. Subject to preferences that may be applicable to any
outstanding preferred stock, holders of common stock are entitled to receive ratable dividends that are declared by our Board of
Directors out of funds legally available for such a purpose. Holders of common stock have no preemptive rights and have no rights
to convert their common stock into any other securities. The common stock is not redeemable. All of the outstanding shares of our
common stock are fully paid and non-assessable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Transfer Agent for the common stock is Computershare
Trust Company, N.A.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B><I>&nbsp;&nbsp;</I></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The declaration of dividends on the common stock
is at the discretion of the Board of Directors. We are subject to various bank regulatory policies and requirements relating to
the payment of dividends, including requirements to maintain adequate capital above regulatory minimums. Our ability to pay dividends
to holders of the common stock is largely dependent upon our receipt of dividends from the Bank. Both federal and state laws impose
restrictions on the ability of banks to pay dividends. Federal law prohibits the payment of a dividend by an insured depository
institution if the depository institution is considered &ldquo;undercapitalized&rdquo; or if the payment of the dividend would
make the institution &ldquo;undercapitalized&rdquo;. Maryland state-chartered banks may pay dividends only out of undivided profits
or, with the prior approval of the Maryland Commissioner, from surplus in excess of 100% of required capital stock. If, however,
the surplus of a Maryland bank is less than 100% of its required capital stock, then cash dividends may not be paid in excess of
90% of net earnings. In addition to these specific restrictions, bank regulatory agencies have the ability to prohibit a proposed
dividend by a financial institution that would otherwise be permitted under applicable law if the regulatory body determines that
the payment of the dividend would constitute an unsafe or unsound banking practice.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As a general corporate law matter, the MGCL
prohibits us from paying dividends on our capital stock, including the common stock, unless, after giving effect to a proposed
dividend, (i) we will be able to pay our debts as they come due in the normal course of business and (ii) our total assets will
be greater than our total liabilities plus, unless our Charter permits otherwise, the amount that would be needed, if we were to
be dissolved at the time of the dividend, to satisfy the preferential rights upon dissolution of shareholders whose preferential
rights on dissolution are superior to those receiving the dividend. Notwithstanding our inability to pay dividends pursuant to
item (ii) above, we may nevertheless pay dividends out of (a) our net earnings for the fiscal year in which the distribution is
made, (b) our net earnings for the preceding fiscal year, or (c) the sum of our net earnings for the preceding eight fiscal quarters.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The terms of the Series A Preferred Stock entitle
the holders thereof to receive if, as and when declared by our Board of Directors, out of assets legally available for payment,
cumulative cash dividends at a rate per annum of 9% per share on a liquidation preference of $1,000 per share of Series A Preferred
Stock with respect to each dividend period. Dividends on the Series A Preferred Stock are payable quarterly in arrears on each
February 15, May 15, August 15 and November 15. So long as any shares of Series A Preferred Stock remain outstanding, unless all
accrued and unpaid dividends for all prior dividend periods have been paid or are contemporaneously declared and paid in full,
no dividend can be paid or declared on our common stock, other than a dividend payable solely in common stock. We and our subsidiaries
also may not purchase, redeem or otherwise acquire for consideration any shares of our common stock unless we have paid in full
all accrued dividends on the Series A Preferred Stock for all prior dividend periods, other than:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases, redemptions or other acquisitions of our common stock in connection with the administration of our employee benefit
plans in the ordinary course of business and consistent with past practice (including purchases pursuant to a publicly announced
repurchase plan to offset the increase in diluted shares outstanding resulting from the grant, vesting or exercise of equity-based
compensation);</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases or other acquisitions by broker-dealer subsidiaries of First United solely for the purpose of market-making, stabilization
or customer facilitation transactions in common stock in the ordinary course of its business;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases or other acquisitions by broker-dealer subsidiaries of First United for resale pursuant to an offering by First United
of its stock that is underwritten by the related broker-dealer subsidiary;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any dividends or distributions of rights or capital stock that is junior to the Series A Preferred Stock in connection with
any shareholders&rsquo; rights plan or repurchases of rights pursuant to any shareholders&rsquo; rights plan;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>acquisition of record ownership of any capital stock that is junior to or on par with the Series A Preferred Stock for the
beneficial ownership of any other person who is not First United or one of its subsidiaries, including as trustee or custodian;
and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the exchange or conversion of capital stock that is junior to the Series A Preferred Stock for or into other junior stock or
of stock that is on par with the Series A Preferred Stock for or into other parity stock or junior stock but only to the extent
that such acquisition is required pursuant to binding contractual agreements entered into before January 30, 2009 or any subsequent
agreement for the accelerated exercise, settlement or exchange thereof for common stock.</TD></TR></TABLE>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In addition to the limitations imposed by the
terms of the Series A Preferred Stock, the terms of our outstanding debentures issued to the Trusts permit us to defer payments
of the interest thereon for up to 20 consecutive quarterly periods. Should we make such a deferral election, we would be prohibited
from paying dividends or distributions on, or from repurchasing, redeeming or otherwise acquiring any shares of our capital stock,
including the Series A Preferred Stock and the common stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In the event of our liquidation, dissolution
or winding up, holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities and liquidation
preferences, if any, on any outstanding shares of preferred stock. The terms of the Series A Preferred Stock provide that, in such
events, holders of Series A Preferred Stock will be entitled to receive an amount per share, referred to as the total liquidation
amount, equal to the fixed liquidation preference of $1,000 per share, plus any accrued and unpaid dividends, whether or not declared,
to the date of payment. Holders of the Series A Preferred Stock will be entitled to receive the total liquidation amount out of
our assets that are available for distribution to shareholders, after payment or provision for payment of our debts and other liabilities
but before any distribution of assets is made to holders of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Anti-Takeover Provisions under Maryland Law, Our Charter and
Our Bylaws</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The provisions of Maryland law and our Charter
and Bylaws we summarize below may have an anti-takeover effect and may delay, defer or prevent a tender offer or takeover attempt
that a shareholder might consider in his or her best interest, including those attempts that might result in a premium over the
market price for the common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Business Combinations under Maryland Law</I>.
The Maryland Business Combination Act generally prohibits corporations from being involved in any &ldquo;business combination&rdquo;
(defined as a variety of transactions, including a merger, consolidation, share exchange, asset transfer or issuance or reclassification
of equity securities) with any &ldquo;interested shareholder&rdquo; for a period of five years following the most recent date on
which the interested shareholder became an interested shareholder. An interested shareholder is defined generally as a person who
is the beneficial owner of 10% or more of the voting power of the outstanding voting stock of the corporation after the date on
which the corporation had 100 or more beneficial owners of its stock or who is an affiliate or associate of the corporation and
was the beneficial owner, directly or indirectly, of 10% percent or more of the voting power of the then outstanding stock of the
corporation at any time within the two-year period immediately prior to the date in question and after the date on which the corporation
had 100 or more beneficial owners of its stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">A business combination that is not prohibited
must be recommended by the Board of Directors and approved by the affirmative vote of at least 80% of the votes entitled to be
cast by outstanding shares of voting stock of the corporation, voting together as a single voting group and two-thirds of the votes
entitled to be cast by holders of voting stock other than voting stock held by the interested shareholder who will (or whose affiliate
will) be a party to the business combination or by an affiliate or associate of the interested shareholder, voting together as
a single voting group, unless, among other things, the corporation&rsquo;s shareholders receive a minimum price, as defined in
the Maryland Business Combination Act for their shares, in cash or in the same form as paid by the interested shareholder for its
shares. These provisions will not apply if the Board of Directors has exempted the transaction in question or the interested shareholder
prior to the time that the interested shareholder became an interested shareholder. In addition, the Board of Directors may adopt
a resolution approving or exempting specific business combinations, business combinations generally, or generally by type, as to
specifically identified or unidentified existing or future shareholders or their affiliates from the business combination provisions
of the Maryland Business Combination Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Control Share Acquisitions</I>. The Maryland
Control Share Acquisition Act generally provides that &ldquo;control shares&rdquo; of a corporation acquired in a &ldquo;control
share acquisition&rdquo; have no voting rights except to the extent approved by the shareholders at a meeting by the affirmative
vote of two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares. &ldquo;Control shares&rdquo;
are shares of stock that, if aggregated with all other shares of stock of the corporation previously acquired by a person or in
respect of which that person is entitled to exercise or direct the exercise of voting power, except solely by virtue of a revocable
proxy, entitle that person, directly or indirectly, to exercise or direct the exercise of the voting power of shares of stock of
the corporation in the election of directors within any of the following ranges of voting power: one-tenth or more, but less than
one-third of all voting power; one-third or more, but less than a majority of all voting power or a majority or more of all voting
power. &ldquo;Control share acquisition&rdquo; means the acquisition, directly or indirectly, of control shares, subject to certain
exceptions. If voting rights or control shares acquired in a control share acquisition are not approved at a shareholders&rsquo;
meeting, then, subject to certain conditions, the issuer may redeem any or all of the control shares for fair value. If voting
rights of such control shares are approved at a shareholders&rsquo; meeting and the acquiror becomes entitled to vote a majority
of the shares of stock entitled to vote, all other shareholders may exercise appraisal rights.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Preference Stock Authorization</I>. As noted
above under the heading &ldquo;Capital Stock&rdquo;, the Charter gives our Board of Directors the authority to, without the approval
of the holders of our common stock, issue our authorized preferred stock in one or more series and to classify and reclassify any
class or series of our authorized but unissued capital stock. A series of preferred stock and any other shares of capital stock
that the Board classifies or reclassifies may possess rights superior to the rights of the holders of our common stock. As a result,
this &ldquo;blank check&rdquo; stock, while not intended as a defensive measure against takeovers, could be issued quickly and
easily, could adversely affect the rights of holders of common stock and could be issued with terms calculated to delay or prevent
a change of control of the Company or make removal of management more difficult.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Advance Notice Procedure for Director Nominations
by Shareholders. </I>Our Bylaws allow shareholders to submit director nominations. For nominations to properly come before the
meeting, however, the nominating shareholder must have given timely written notice of the nomination to either the Chairman of
the Board or the President of First United. To be timely, a nomination must be given not less than 150 days nor more than 180 days
prior to the date of the meeting of shareholders called for the election of directors which, for purposes of this requirement,
is deemed to be on the same day and month as the annual meeting of shareholders for the preceding year. The notice must contain
the following information to the extent known by the notifying shareholder:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the name and address of each proposed nominee;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the principal occupation of each proposed nominee;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the number of shares of capital stock of First United owned by each proposed nominee;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the name and residence address of the notifying shareholder;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the number of shares of capital stock of First United owned by the notifying shareholder;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the consent in writing of the proposed nominee as to the proposed nominee&rsquo;s name being placed in nomination for director;
and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>all information relating to the proposed nominee that would be required to be disclosed by Regulation 14A under the Exchange
Act and Exchange Act Rule 14a-11, assuming such provisions would be applicable to the solicitation of proxies for the proposed
nominee.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Classified Board; Removal of Directors. </I>Our
Charter provides that the members of our Board of Directors are divided into three classes as nearly equal as possible. Each class
is elected for a three-year term. At each annual meeting of shareholders, approximately one-third of the members of the Board are
elected for a three-year term and the other directors remain in office until their three-year terms expire. Our Charter and Bylaws
provide that no director may be removed without cause, which term is defined as a final unappealable felony conviction, unsound
mind, adjudication of bankruptcy, or action that causes material injury to First United. Any removal for cause requires either
the affirmative vote of the entire Board or the affirmative vote of the holders of at least a majority of the outvoting voting
stock of First United. Further, shareholders may attempt to remove a director for cause after service of specific charges, adequate
notice and a full opportunity to refute the charges. Thus, control of the Board of Directors cannot be changed in one year without
removing the directors for cause as described above; rather, at least two annual meetings must be held before a majority of the
members of the Board could be changed. An amendment or repeal of these provisions requires the approval of at least two-thirds
of the outstanding voting power of First United entitled to vote on the matter.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As of the date of this prospectus, 20,000 shares
of the Series A Preferred Stock were issued and outstanding, which were held by nine owners of record. The following is a brief
description of the terms of the Series A Preferred Stock. This summary does not purport to be complete in all respects. This description
is subject to and qualified in its entirety by reference to our Charter and the Certificate of Designations with respect to the
Series A Preferred Stock, which are filed with the registration statement that contains this prospectus as Exhibits 3.1(i) through
3.2(iii), respectively, which are also available from us upon request. The following summary does not give effect to provisions
of applicable statutory or common law.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Pursuant to the Certificate of Designations
that was filed, as part of a Certificate of Notice, with the State Department of Assessments and Taxation of Maryland on January
28, 2009, our Board of Directors designated 30,000 shares of our authorized but unissued preferred stock as Series A Preferred
Stock, all of which were issued to the Treasury on January 30, 2009. The Treasury subsequently sold all of its shares of Series
A Preferred Stock to third-party investors. On February 15, 2016, we redeemed 10,000 shares of Series A Preferred Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Dividends Payable on Shares of Series A Preferred Stock</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Holders of shares of the Series A Preferred
Stock are entitled to receive if, as and when declared by our Board of Directors, out of assets legally available for payment,
cumulative cash dividends at a rate per annum of 9% per share on a liquidation preference of $1,000 per share of Series A Preferred
Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Dividends are payable quarterly in arrears on
each February 15, May 15, August 15 and November 15, each a &ldquo;dividend payment date&rdquo;. If any dividend payment date is
not a business day, then the next business day will be the dividend payment date for that dividend, and no additional dividends
will accrue as a result of the postponement of that dividend payment date. Dividends payable during any dividend period are computed
on the basis of a 360-day year consisting of twelve 30-day months. Dividends payable with respect to the Series A Preferred Stock
are payable to holders of record of shares of Series A Preferred Stock on the date that is 15 calendar days immediately preceding
the applicable dividend payment date or such other record date as the Board of Directors or any duly authorized committee of our
Board of Directors determines, so long as such record date is not more than 60 nor less than 10 days prior to the applicable dividend
payment date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If we determine not to pay any dividend or a
full dividend with respect to the Series A Preferred Stock, we are required to provide written notice to the holders of shares
of Series A Preferred Stock prior to the applicable dividend payment date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are subject to various bank regulatory policies
and requirements relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums.
Our ability to pay dividends to holders of the Series A Preferred Stock is largely dependent upon our receipt of dividends from
the Bank. Both federal and state laws impose restrictions on the ability of the Bank to pay dividends. Federal law prohibits the
payment of a dividend by an insured depository institution if the depository institution is considered &ldquo;undercapitalized&rdquo;
or if the payment of the dividend would make the institution &ldquo;undercapitalized&rdquo;. Maryland state-chartered banks may
pay dividends only out of undivided profits or, with the prior approval of the Maryland Commissioner, from surplus in excess of
100% of required capital stock. If, however, the surplus of a Maryland bank is less than 100% of its required capital stock, then
cash dividends may not be paid in excess of 90% of net earnings. In addition to these specific restrictions, bank regulatory agencies
have the ability to prohibit a proposed dividend by a financial institution that would otherwise be permitted under applicable
law if the regulatory body determines that the payment of the dividend would constitute an unsafe or unsound banking practice.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As a general corporate law matter, the MGCL
prohibits us from paying dividends on our capital stock, including the Series A Preferred Stock, unless, after giving effect to
a proposed dividend, (i) we will be able to pay our debts as they come due in the normal course of business and (ii) our total
assets will be greater than our total liabilities plus, unless our Charter permits otherwise, the amount that would be needed,
if we were to be dissolved at the time of the dividend, to satisfy the preferential rights upon dissolution of shareholders whose
preferential rights on dissolution are superior to those receiving the dividend. Currently, we have no outstanding class of capital
stock with preferential rights upon dissolution that are superior to the Series A Preferred Stock. Notwithstanding our inability
to pay dividends pursuant to item (ii) above, we may nevertheless pay dividends out of (a) our net earnings for the fiscal year
in which the distribution is made, (b) our net earnings for the preceding fiscal year, or (c) the sum of our net earnings for the
preceding eight fiscal quarters.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> As discussed in the risk factor contained
in First United Corporation&rsquo;s Annual Report on Form 10-K, as amended, for the year ended December 31, 2015 entitled &ldquo;The
Corporation&rsquo;s ability to pay dividends on its capital securities is also subject to the terms of the outstanding TPS Debentures,
which prohibit the Corporation from paying dividends during an interest deferral period&rdquo;, which risk factor is incorporated
into this prospectus by reference, the terms of our junior subordinated debentures underlying the trust preferred securities issued
by the Trusts permit us to defer payments of the interest due under those debentures for up to 20 consecutive quarterly periods.
During a deferral period, however, we are prohibited from paying dividends or making other distributions on, and from repurchasing,
redeeming or otherwise acquiring any, shares of the Series A Preferred Stock. </P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">With respect to the payment of dividends and
the amounts to be paid upon liquidation, the Series A Preferred Stock will rank:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>senior to our common stock and all other equity securities designated as junior stock; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>at least equally with all other equity securities designated as parity stock with respect to the payment of dividends and distribution
of assets upon any liquidation, dissolution or winding-up of the Corporation.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">So long as any shares of Series A Preferred
Stock remain outstanding, unless all accrued and unpaid dividends for all prior dividend periods have been paid or are contemporaneously
declared and paid in full, no dividend can be paid or declared on our common stock or other junior stock, other than a dividend
payable solely in common stock. We and our subsidiaries also may not purchase, redeem or otherwise acquire for consideration any
shares of our common stock or other junior stock unless we have paid in full all accrued dividends on the Series A Preferred Stock
for all prior dividend periods, other than:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases, redemptions or other acquisitions of our common stock or other junior stock in connection with the administration
of our employee benefit plans in the ordinary course of business and consistent with past practice (including purchases pursuant
to a publicly announced repurchase plan to offset the increase in diluted shares outstanding resulting from the grant, vesting
or exercise of equity-based compensation);</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases or other acquisitions by our broker-dealer subsidiaries solely for the purpose of market-making, stabilization or
customer facilitation transactions in junior stock or parity stock in the ordinary course of its business;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>purchases or other acquisitions by our broker-dealer subsidiaries for resale pursuant to an offering by us of capital stock
that is underwritten by the related broker-dealer subsidiary;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any dividends or distributions of rights or junior stock in connection with any shareholders&rsquo; rights plan or repurchases
of rights pursuant to any shareholders&rsquo; rights plan;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>acquisition of record ownership of junior stock or parity stock for the beneficial ownership of any other person other than
the Corporation or one of its subsidiaries, including as trustee or custodian; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the exchange or conversion of junior stock for or into other junior stock or of parity stock for or into other parity stock
or junior stock but only to the extent that such acquisition is required pursuant to binding contractual agreements entered into
before January 30, 2009 or any subsequent agreement for the accelerated exercise, settlement or exchange thereof for common stock.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If we repurchase shares of Series A Preferred
Stock from a holder other than the initial selling security holder, then we must offer to repurchase a ratable portion of the Series
A Preferred Stock then held by the initial selling security holder.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On any dividend payment date for which full
dividends are not paid, or declared and funds set aside therefor, on the Series A Preferred Stock and any other parity stock, all
dividends paid or declared for payment on that dividend payment date (or, with respect to parity stock with a different dividend
payment date, on the applicable dividend date therefor falling within the dividend period and related to the dividend payment date
for the Series A Preferred Stock), with respect to the Series A Preferred Stock and any other parity stock will be declared ratably
among the holders of any such shares who have the right to receive dividends, in proportion to the respective amounts of the undeclared
and unpaid dividends relating to the dividend period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Subject to the foregoing, such dividends (payable
in cash, stock or otherwise) as may be determined by our Board of Directors (or a duly authorized committee of the Board) may be
declared and paid on our common stock, any other junior stock and parity stock from time to time out of any funds legally available
for such payment, and the Series A Preferred Stock will not be entitled to participate in any such dividend.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in"><B><I>&nbsp;</I></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Series A Preferred Stock may be redeemed
at any time, subject to the approval of the Federal Reserve, in whole or in part, subject to notice as described below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In any redemption, the redemption price is an
amount equal to the per share liquidation amount plus accrued and unpaid dividends to but excluding the date of redemption.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Series A Preferred Stock will not be subject
to any mandatory redemption, sinking fund or similar provisions. Holders of shares of Series A Preferred Stock have no right to
require the redemption or repurchase of the Series A Preferred Stock. If fewer than all of the outstanding shares of Series A Preferred
Stock are to be redeemed, the shares to be redeemed will be selected either pro rata from the holders of record of shares of Series
A Preferred Stock in proportion to the number of shares held by those holders or in such other manner as our Board of Directors
or a committee thereof may determine to be fair and equitable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will mail notice of any redemption of Series
A Preferred Stock by first class mail, postage prepaid, addressed to the holders of record of the shares of Series A Preferred
Stock to be redeemed at their respective last addresses appearing on our books. This mailing will be at least 30 days and not more
than 60 days before the date fixed for redemption. Any notice mailed or otherwise given as described in this paragraph will be
conclusively presumed to have been duly given, whether or not the holder receives the notice, and failure duly to give the notice
by mail or otherwise, or any defect in the notice or in the mailing or provision of the notice, to any holder of Series A Preferred
Stock designated for redemption will not affect the redemption of any other Series A Preferred Stock. Each notice of redemption
will set forth the applicable redemption date, the redemption price, the place where shares of Series A Preferred Stock are to
be redeemed, and the number of shares of Series A Preferred Stock to be redeemed (and, if less than all shares of Series A Preferred
Stock held by the applicable holder, the number of shares to be redeemed from the holder).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Shares of Series A Preferred Stock that are
redeemed, repurchased or otherwise acquired by us will revert to authorized but unissued shares of preferred stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In the event that we voluntarily or involuntarily
liquidate, dissolve or wind up our affairs, holders of Series A Preferred Stock will be entitled to receive an amount per share,
referred to as the total liquidation amount, equal to the fixed liquidation preference of $1,000 per share, plus any accrued and
unpaid dividends, whether or not declared, to the date of payment. Holders of the Series A Preferred Stock will be entitled to
receive the total liquidation amount out of our assets that are available for distribution to shareholders, after payment or provision
for payment of our debts and other liabilities but before any distribution of assets is made to holders of our common stock or
any other shares ranking, as to that distribution, junior to the Series A Preferred Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If our assets are not sufficient to pay the
total liquidation amount in full to all holders of Series A Preferred Stock and all holders of any shares of outstanding parity
stock, then the amounts paid to the holders of Series A Preferred Stock and shares of parity stock will be paid pro rata in accordance
with the respective total liquidation amount for those holders. If the total liquidation amount per share of Series A Preferred
Stock has been paid in full to all holders of Series A Preferred Stock and shares of parity stock, then the holders of our common
stock or any other shares ranking, as to such distribution, junior to the Series A Preferred Stock will be entitled to receive
all of our remaining assets according to their respective rights and preferences.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">For purposes of the liquidation rights, neither
the sale, conveyance, exchange or transfer of all or substantially all of our property and assets, nor the consolidation or merger
by us with or into any other corporation or by another corporation with or into us, will constitute a liquidation, dissolution
or winding-up of our affairs.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Except as indicated below or otherwise required
by law, the holders of Series A Preferred Stock have no voting rights.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Election of Two Directors upon Non-Payment
of Dividends</I>. If the dividends on the Series A Preferred Stock have been deferred for an aggregate of six quarterly dividend
periods or more (whether or not consecutive), then the authorized number of directors then constituting our Board of Directors
will be increased by two. Holders of Series A Preferred Stock, together with the holders of any outstanding parity stock with like
voting rights, voting as a single class, will be entitled to elect the two additional members of our Board of Directors at the
next annual meeting (or at a special meeting called for the purpose of electing the preferred stock directors prior to the next
annual meeting) and at each subsequent annual meeting until all accrued and unpaid dividends for all past dividend periods have
been paid in full. The election of any Preferred Stock Director is subject to the qualification that the election would not cause
us to violate the corporate governance requirement of the NASDAQ Global Select Market (or any other exchange on which our securities
may be listed) that listed companies must have a majority of independent directors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Upon the termination of the right of the holders
of Series A Preferred Stock and voting parity stock to vote for Preferred Stock Directors, as described above, the Preferred Stock
Directors will immediately cease to be qualified as directors, their terms of office shall terminate immediately and the number
of our authorized directors will be reduced by the number of Preferred Stock Directors that the holders of Series A Preferred Stock
and voting parity stock had been entitled to elect. The holders of a majority of shares of Series A Preferred Stock and voting
parity stock, voting as a class, may remove any Preferred Stock Director, with or without cause, and the holders of a majority
of the shares Series A Preferred Stock and voting parity stock, voting as a class, may fill any vacancy created by the removal
of a Preferred Stock Director. If the office of a Preferred Stock Director becomes vacant for any other reason, then the remaining
Preferred Stock Director may choose a successor to fill such vacancy for the remainder of the unexpired term.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Other Voting Rights</I>. So long as any shares
of Series A Preferred Stock are outstanding, in addition to any other vote or consent of shareholders required by law or by our
Charter, the vote or consent of the holders of at least two-thirds of the shares of Series A Preferred Stock at the time outstanding,
voting separately as a single class, given in person or by proxy, either in writing without a meeting or by vote at any meeting
called for the purpose, will be necessary to effect or validate:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any amendment or alteration of our Charter to authorize or create or increase the authorized amount of, or any issuance of,
any shares of, or any securities convertible into or exchangeable or exercisable for shares of, any class or series of capital
stock ranking senior to the Series A Preferred Stock with respect to payment of dividends and/or distribution of assets on our
liquidation, dissolution or winding up;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any amendment, alteration or repeal of any provision of the Certificate of Designations for the Series A Preferred Stock so
as to adversely affect the rights, preferences, privileges or voting powers of the Series A Preferred Stock; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any consummation of a binding share exchange or reclassification involving the Series A Preferred Stock or of our merger or
consolidation with another entity, unless the shares of Series A Preferred Stock remain outstanding following any such transaction
or, if we are not the surviving entity, are converted into or exchanged for preference securities and such remaining outstanding
shares of Series A Preferred Stock or preference securities have rights, references, privileges and voting powers that are not
materially less favorable than the rights, preferences, privileges or voting powers of the Series A Preferred Stock, taken as a
whole.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">To the extent of the voting rights of the Series
A Preferred Stock, each holder of Series A Preferred Stock will have one vote for each such share on any matter on which holders
of Series A Preferred Stock are entitled to vote, including any action by written consent.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The foregoing voting provisions will not apply
if, at or prior to the time when the vote or consent would otherwise be required, all outstanding shares of Series A Preferred
Stock have been redeemed or called for redemption upon proper notice and sufficient funds have been set aside by us for the benefit
of the holders of Series A Preferred Stock to effect the redemption.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_015"></A><B>PLAN OF DISTRIBUTION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> On or about <B>[&bull;], </B>20<B>[&bull;]</B>,
we intend to issue subscription rights and distribute the rights certificates and copies of this prospectus to individuals who
owned shares of common stock on November 28, 2016. Upon completion of the offering, we intend to issue shares of our common stock
directly to those persons who properly exercised their subscription rights prior to the expiration of the offering. We have also
entered into the Standby Purchase Agreements with the standby investors pursuant to which they have committed to buy certain shares
following the consummation of the offering to the extent that shareholders to not subscribe for all 783,626 shares reserved for
issuance in the offering. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The shares are being offered directly by us
without the services of an underwriter or selling agent.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Our directors and officers may participate in
the solicitation of the exercise of subscription rights for the purchase of common stock. Other trained employees of the Company
may assist in the offering in ministerial capacities, providing clerical work in effecting an exercise of subscription rights,
or answering questions of a ministerial nature. Our officers, directors, and employees will rely on the safe harbor from broker-dealer
registration set forth in Rule 3a4-1 of the Exchange Act. None of our officers, directors, or employees will be compensated in
connection with their participation in the offering by the payment of commissions or other remuneration based either directly or
indirectly on the transactions in the shares of common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will pay the fees and out-of-pocket expenses
of Computershare Inc., the subscription agent, and Georgeson LLC, the information agent, which are estimated to be approximately
$41,000. We have also agreed to indemnify the subscription agent and the information agent for certain losses that they may suffer
in connection with the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">If you have any questions regarding completing
a rights certificate or submitting payment in the offering, please contact our information agent, Georgeson LLC, at (800) 561-2871.
If you have any general questions regarding the offering, the Company or the Bank, please contact Tonya K. Sturm, our Senior Vice
President &amp; Chief Financial Officer, at (301) 533-2390.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_016"></A><B>LEGAL MATTERS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The validity of the shares of common stock issuable
upon exercise of the subscription rights and offered under this prospectus has been passed upon for us by Gordon Feinblatt LLC,
Baltimore, Maryland.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_017"></A><B>EXPERTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> The consolidated statement of financial
condition as of December 31, 2015 and 2014, and the consolidated statements of income, comprehensive income, changes in shareholders&rsquo;
equity, and cash flows for the years then ended, incorporated by reference into this prospectus, have been incorporated herein
in reliance on the report of Baker Tilly Virchow Krause, LLP, independent registered public accountants, given on the authority
of that firm as experts in auditing and accounting. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><A NAME="a_018"></A><B>WHERE YOU CAN FIND MORE INFORMATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We have filed a registration statement on Form
S-1 with the Commission covering the securities that may be sold under this prospectus. This prospectus is only a part of that
registration statement and does not contain all the information in the registration statement. Because this prospectus may not
contain all the information that you may find important, and because references to our contracts and other documents made in this
prospectus are only summaries of those contracts and other documents, you should review the full text of the registration statement,
as amended from time to time, and the exhibits that are a part of the registration statement. We have included copies of these
contracts and other documents as exhibits to the registration statement that contains this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We are subject to the information requirements
of the Exchange Act, which means that we are required to file annual reports, quarterly reports, current reports, proxy statements
and other information with the Commission. You may read and copy any document we file with the Commission at its public reference
room in Washington, D.C., located at 100 F Street, N.E., Washington D.C. 20549. Please call the Commission at 1-800-SEC-0330 for
further information on the public reference room. Our Commission filings are also available to the public from its Internet site
at <U>http://www.sec.gov</U> and from our Internet site at <U>http://www.mybank.com</U>. However, information found on, or otherwise
accessible through, these Internet sites is not incorporated into, and does not constitute a part of, this prospectus or any other
document we file or furnish to the Commission. You should not rely on any of this information in deciding whether to purchase the
securities.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> <B><A NAME="a_019"></A>INCORPORATION OF
CERTAIN INFORMATION BY REFERENCE</B> </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Commission&rsquo;s rules allow us to incorporate
information into this prospectus by reference to documents that we have filed with the Commission. This means that we can disclose
information to you by referring you to those documents. Any information incorporated by reference is an important part of this
prospectus, and you should review that information so that you understand the nature of any investment by you in the securities.
We are incorporating by reference the documents listed below (other than, in each case, documents or information deemed to have
been furnished and not filed in accordance with the Commission&rsquo;s rules):</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual
Report on Form 10-K for the year ended December 31, 2015 filed on March 9, 2016, as amended by Amendment No. 1 on Form 10-K/A
filed on January 20, 2017 (which includes certain information contained in our definitive proxy statement on Schedule 14A for
the 2016 Annual Meeting of Shareholders, filed on March 26, 2016, and incorporated therein by reference); </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quarterly
Report on Form 10-Q for the quarter ended March 31, 2016 filed on May 10, 2016; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quarterly
Report on Form 10-Q for the quarter ended June 30, 2016 filed on August 11, 2016; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quarterly
Report on Form 10-Q for the quarter ended September 30, 2016 filed on November 7, 2016; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> (v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current
Report on Form 8-K filed on January 1, 2016; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> (vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current
Report on Form 8-K filed on May 16, 2016; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> (vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current
Report on Form 8-K filed on November 8, 2016; </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> (viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current
Report on Form 8-K filed on December 19, 2016; and </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> (ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Description
of our common stock which appears in our Registration Statement on Form 8-A filed on February 19, 1986, or any description of
the common stock that appears in any prospectus forming a part of any subsequent registration statement of the Corporation or
in any registration statement filed pursuant to Section 12 of the Exchange Act, including any amendments or reports filed for
the purpose of updating such description. </P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Any statement contained in a document incorporated
or deemed to be incorporated by reference in this prospectus shall be deemed to be modified or superseded to the extent that a
statement contained in this prospectus modifies or supersedes such statement. Any statement so modified or superseded shall not
be deemed, except as so modified or superseded, to constitute a part of this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">We will promptly provide without charge to each
person to whom this prospectus is delivered a copy of any or all information that has been incorporated herein by reference (not
including exhibits to the information that is incorporated by reference unless such exhibits are specifically incorporated by reference
into such information) upon the written or oral request of such person. Written requests should be directed to: First United Corporation,
Corporate Secretary, 19 South Second Street, Oakland, Maryland 21550. Telephone requests should be directed to the Corporate Secretary
at (301) 533-2390.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">You also may access the documents that have
been incorporated by reference into this prospectus on our website, <U>www.mybank.com</U>, under the heading &ldquo;SEC Filings&rdquo;
found under the &ldquo;Investors&rdquo; section of the &ldquo;My Community&rdquo; tab, or at: <U>http://www.corporatewindow.com/fl/func/func-sec.html.
</U></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><IMG SRC="pg55img1_s1a.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><B>Common Stock, Par
Value $.01 Per Share, Underlying Subscription Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>to Purchase up to 783,626 Shares of Common
Stock</B></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>[&bull;]</B>, 20<B>[&bull;]</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have not authorized any dealer, salesperson
or other person to give you written information other than this prospectus or to make representations as to matters not stated
in this prospectus. You must not rely on unauthorized information. This prospectus is not an offer to sell these securities or
our solicitation of your offer to buy these securities in any jurisdiction where that would not be permitted or legal. Neither
the delivery of this prospectus nor any sales made hereunder after the date of this prospectus shall create an implication that
the information contained herein nor have the affairs of the company not changed since the date of this prospectus.</P>

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


<!-- Field: Page; Sequence: 53 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 13.</B></TD><TD STYLE="text-align: justify"><B>Other Expenses of Issuance and Distribution</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table sets
forth all expenses to be paid by the Registrant in connection with this offering. All amounts shown are estimates except for the
Securities and Exchange Commission (the &ldquo;Commission&rdquo;) registration fee.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; text-align: left">SEC Registration Fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,084</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting Fees and Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Legal Fees and Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Printing Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Transfer and Subscription Agent Fees and Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Miscellaneous</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt">Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">146,084</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 14.</B></TD><TD STYLE="text-align: justify"><B>Indemnification of Directors and Officers</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Maryland General Corporation Law (the &ldquo;MGCL&rdquo;)
permits a Maryland corporation to indemnify its present and former directors, among others, against judgments, penalties, fines,
settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made a party
by reason of their services in those capacities, unless it is established that:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>the act or omission of the director was material to the matter giving rise to such proceeding and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(A)</TD><TD>was committed in bad faith or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(B)</TD><TD>was the result of active and deliberate dishonesty;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD>the director actually received an improper personal benefit in money, property, or services; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(3)</TD><TD>in the case of any criminal proceeding, the director had reasonable cause to believe that the act or omission was unlawful.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Maryland law permits a Maryland corporation to indemnify a present
and former officer to the same extent as a director.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In addition to the foregoing, a court of appropriate
jurisdiction: (1) shall order indemnification of reasonable expenses incurred by a director who has been successful, on the merits
or otherwise, in the defense of any proceeding identified above, or in the defense of any claim, issue or matter in the proceeding;
and (2) may under certain circumstances order indemnification of a director or an officer who the court determines is fairly and
reasonably entitled to indemnification in view of all of the relevant circumstances, whether or not the director or officer has
met the standards of conduct set forth in the preceding paragraph or has been declared liable on the basis that a personal benefit
improperly received in a proceeding charging improper personal benefit to the director or the officer, provided, however, that
if the proceeding was an action by or in the right of the corporation or involved a determination that the director or officer
received an improper personal benefit, no indemnification may be made if the director or officer is adjudged liable to the corporation,
except to the extent of expenses approved by a court of appropriate jurisdiction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The MGCL also permits a Maryland corporation
to pay or reimburse, in advance of the final disposition of a proceeding, reasonable expenses incurred by a present or former director
or officer made a party to the proceeding by reason of his or her service in that capacity, provided that the corporation shall
have received:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>a written affirmation by the director or officer of his good faith belief that he has met the standard of conduct necessary
for indemnification by the corporation; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD>a written undertaking by or on behalf of the director to repay the amount paid or reimbursed by the corporation if it shall
ultimately be determined that the standard of conduct was not met.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Corporation has provided for indemnification
of directors and officers in ARTICLE VIII of its Amended and Restated Bylaws, as amended (the &ldquo;Bylaws&rdquo;). The relevant
provisions of the Bylaws read as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&ldquo;SECTION 1. As used in this
Article VIII, any word or words that are defined in Section 2-418 of the Corporations and Associations Article of the Annotated
Code of Maryland (the &lsquo;Indemnification Section&rsquo;), as amended from time to time, shall have the same meaning as provided
in the Indemnification Section.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">SECTION 2. Indemnification of Directors
and Officers. The Corporation shall indemnify and advance expenses to a director or officer of the Corporation in connection with
a proceeding to the fullest extent permitted by and in accordance with the Indemnification Section. Notwithstanding the foregoing,
the Corporation shall be required to indemnify a director or officer in connection with a proceeding commenced by such director
or officer against the Corporation or its directors or officers only if the proceeding was authorized by the Board of Directors.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The MGCL authorizes a Maryland corporation to
limit by provision in its Articles of Incorporation the liability of directors and officers to the corporation or to its shareholders
for money damages except to the extent:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>the director or officer actually receives an improper benefit or profit in money, property, or services, for the amount of
the benefit or profit actually received, or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD>a judgment or other final adjudication adverse to the director or officer is entered in a proceeding based on a finding in
the proceeding that the director&rsquo;s or officer&rsquo;s action, or failure to act, was the result of active and deliberate
dishonesty and was material to the cause of action adjudicated in the proceeding.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Corporation has limited the liability of
its directors and officers for money damages in Article NINTH of its Charter. This provision reads as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&ldquo;NINTH: No Director or officer
of the Corporation shall be liable to the Corporation or to its shareholders for money damages except (i) to the extent that it
is proved that such Director or officer actually received an improper benefit or profit in money, property or services, for the
amount of the benefit or profit in money, property or services actually received, or (ii) to the extent that a judgment or other
final adjudication adverse to such Director or officer is entered in a proceeding based on a finding in the proceeding that such
Director&rsquo;s or officer&rsquo;s action, or failure to act, was the result of active and deliberate dishonesty and was material
to the cause of action adjudicated in the proceeding. No amendment of these Articles of Incorporation or repeal of any of its provisions
shall limit or eliminate the benefits provided to directors and officers under this provision with respect to any act or omission
which occurred prior to such amendment.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As permitted under Section 2-418(k) of the MGCL,
the Corporation has purchased and maintains insurance on behalf of its directors and officers against any liability asserted against
such directors and officers in their capacities as such, whether or not the Corporation would have the power to indemnify such
persons under the provisions of Maryland law governing indemnification.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Section 8(k) of the Federal Deposit Insurance
Act (the &ldquo;FDI Act&rdquo;) provides that the Federal Deposit Insurance Corporation (the &ldquo;FDIC&rdquo;) may prohibit or
limit, by regulation or order, payments by any insured depository institution or its holding company for the benefit of directors
and officers of the insured depository institution, or others who are or were &ldquo;institution-affiliated parties,&rdquo; as
defined under the FDI Act, to pay or reimburse such person for any liability or legal expense sustained with regard to any administrative
or civil enforcement action which results in a final order against the person. The FDIC has adopted regulations prohibiting, subject
to certain exceptions, insured depository institutions, their subsidiaries and affiliated holding companies from indemnifying officers,
directors or employees for any civil money penalty or judgment resulting from an administrative or civil enforcement action commenced
by any federal banking agency, or for that portion of the costs sustained with regard to such an action that results in a final
order or settlement that is adverse to the director, officer or employee.</P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 15.</B></TD><TD STYLE="text-align: justify"><B>Recent Sales of Unregistered Securities</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">None.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 16.</B></TD><TD STYLE="text-align: justify"><B>Exhibits.</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The exhibits filed with this registration statement
are listed in the Exhibit Index that immediately follows the signatures hereto, which Exhibit Index is incorporated herein by reference.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 17.</B></TD><TD STYLE="text-align: justify"><B>Undertakings</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The undersigned Registrant hereby undertakes:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To file, during any period in which
offers or sales are being made, a post-effective amendment to this registration statement:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in"> (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act of 1933;</P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually
or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would
not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission pursuant to Rule&nbsp;424(b) if, in the aggregate, the changes in
volume and price represent no more than a 20&nbsp;percent change in the maximum aggregate offering price set forth in the &ldquo;Calculation
of Registration Fee&rdquo; table in the effective registration statement;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To include any material information with respect to
the plan of distribution not previously disclosed in the registration statement or any material change to such information in the
registration statement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That, for the purpose of determining
any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To remove from registration by means
of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That, for the purpose of determining
liability of the registrant&nbsp;under the Securities Act of 1933 to any purchaser in the initial distribution of the securities,
the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or
sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser
and will be considered to offer or sell such securities to such purchaser:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any preliminary prospectus or prospectus
of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 under the Securities Act of 1933;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 39.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any free writing prospectus relating
to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 39.65pt">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The portion of any other free
writing prospectus relating to the offering containing material information about the undersigned&nbsp;registrant&nbsp;or its securities
provided by or on behalf of the undersigned registrant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 39.65pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in"><FONT STYLE="font-size: 10pt">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To supplement the prospectus, after the
expiration of the subscription period, to set forth the results of the subscription offer and the terms of any subsequent reoffering
thereof. If any public offering by is to be made on terms differing from those set forth on the cover page of the prospectus, a
post-effective amendment will be filed to set forth the terms of such offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities
arising under the Securities Act of 1933&nbsp;may be permitted to directors, officers and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act, and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid
by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will,
unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purpose of determining any liability
under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement
in reliance upon Rule&nbsp;430A and contained in a form of prospectus filed by the Registrant pursuant to rule&nbsp;424(b)(1),
or (4), or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared
effective.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purpose of determining any liability
under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.</P>

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> Pursuant to the requirements
of the Securities Act of 1933, the registrant certifies that it has caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Oakland, State of Maryland, on January 26, 2017. </P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>FIRST UNITED CORPORATION:</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 5%; text-align: justify"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 45%; text-align: justify; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Carissa L. Rodeheaver</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Carissa L. Rodeheaver</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><I>Chairman, President &amp; CEO</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><I>(Principal Executive Officer)</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"> Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on January 26, 2017. </P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 49%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ John F. Barr<B>*</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 49%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Brian R. Boal<B>*</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">John F. Barr &ndash; Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Brian R. Boal - Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ M. Kathryn Burkey<B>*</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Robert W. Kurtz<B>*</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">M. Kathryn Burkey - Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Robert W. Kurtz - Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ John W. McCullough<B>*</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Elaine L. McDonald<B>*</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">John W. McCullough &ndash; Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Elaine L. McDonald &ndash; Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Carissa L. Rodeheaver</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Gary R. Ruddell<B>*</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Carissa L. Rodeheaver &ndash; Director, President</FONT> <FONT STYLE="font-size: 10pt"><BR>
and Chief Executive Officer</FONT> <FONT STYLE="font-size: 10pt"><BR>
(Principal Executive Officer)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Gary R. Ruddell - Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ I. Robert Rudy<B>*</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Marisa A. Shockley<B>*</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">I. Robert Rudy - Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Marisa A. Shockley - Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Robert G. Stuck<B>*</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ H. Andrew Walls, III<B>*</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Robert G. Stuck &ndash; Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">H. Andrew Walls, III - Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Tonya K. Sturm</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Tonya K. Sturm &ndash; Senior Vice President &nbsp;<BR>
and Chief Financial Officer</FONT> <FONT STYLE="font-size: 10pt"><BR>
(Principal Accounting Officer)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 10pt"><B>*</B>By:</FONT></TD>
    <TD STYLE="width: 45%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Tonya K. Sturm</FONT></TD>
    <TD STYLE="width: 50%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Tonya K. Sturm, attorney-in-fact</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in"><B>&nbsp;&nbsp;</B></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; text-decoration: underline; text-align: justify"><FONT STYLE="font-size: 10pt"><U>Exhibit No.</U></FONT></TD>
    <TD STYLE="width: 1%; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 89%; text-decoration: underline; text-align: justify"><FONT STYLE="font-size: 10pt"><U>Description</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">3.1(i)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD> <FONT STYLE="font-size: 10pt">Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit
    3.1 to First United Corporation&rsquo;s Quarterly Report on Form 10-Q for the period ended June 30, 1998)</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">3.1(ii)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Certificate of Notice, including the Certificate of Designations incorporated therein, relating to the Fixed Rate Cumulative Perpetual Preferred Stock, Series A (incorporated by reference Exhibit 4.1 to First United Corporation&rsquo;s Form 8-K filed on February 2, 2009)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">3.2(i)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2(i) to First United Corporation&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2007)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">3.2(ii)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">First Amendment to Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2(ii) to First United Corporation&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2007)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">3.2(iii)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Second Amendment to Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to First United Corporation&rsquo;s Current Report on Form 8-K filed on February 9, 2009)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">4.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD> <FONT STYLE="font-size: 10pt">Specimen of Certificate for First United Corporation subscription right (previously filed)</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">4.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Letter Agreement, including the related Securities Purchase Agreement &ndash; Standard Terms, dated January 30, 2009 by and between First United Corporation and the U.S. Department of Treasury (incorporated by reference to Exhibit 10.1 to First United Corporation&rsquo;s Form 8-K filed on February 2, 2009)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">4.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Specimen Certificate for First United Corporation Series A Preferred Stock (incorporated by reference Exhibit 4.3 to First United Corporation&rsquo;s Form 8-K filed on February 2, 2009)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">4.4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Amended and Restated Declaration of Trust, dated as of December 30, 2009 (incorporated by reference to Exhibit 4.1 to First United Corporation&rsquo;s Current Report on Form 8-K filed on December 30, 2009)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">4.5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Indenture, dated as of December 30, 2009 (incorporated by reference to Exhibit 4.2 to First United Corporation&rsquo;s Current Report on Form 8-K filed on December 30, 2009)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">4.6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Preferred Securities Guarantee Agreement, dated as of December 30, 2009 (incorporated by reference to Exhibit 4.3 to First United Corporation&rsquo;s Current Report on Form 8-K filed on December 30, 2009)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">4.7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Form of Preferred Security Certificate of First United Statutory Trust III (included as Exhibit C to Exhibit 4.5)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">4.8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Form of Common Security Certificate of First United Statutory Trust III (included as Exhibit B to Exhibit 4.5)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">4.9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Form of Junior Subordinated Debenture of First United Corporation (included as Exhibit A to Exhibit 4.6)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">5.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Opinion of Gordon Feinblatt LLC as to legality of shares of common stock to be offered (previously filed)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Form of Standby Purchase Agreement (previously filed)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%"><FONT STYLE="font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 89%"><FONT STYLE="font-size: 10pt">First United Bank &amp; Trust Amended and Restated Supplemental Executive Retirement Plan (&ldquo;SERP&rdquo;) (incorporated by reference to Exhibit 10.4 to First United Corporation&rsquo;s Current Report on Form 8-K filed on February 21, 2007)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Second Amended and Restated Participation Agreement, dated as of August 12, 2011, under the SERP between First United Bank &amp; Trust and William B. Grant (incorporated by reference to Exhibit 10.1 to the Corporation&rsquo;s Quarterly Report on Form 10-Q for the period ended September 30, 2011)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Form of Second Amended and Restated Participation Agreement, dated as of August 12, 2011, under the SERP between First United Bank &amp; Trust and executive officers other than William B. Grant (incorporated by reference to Exhibit 10.2 to First United Corporation&rsquo;s Quarterly Report on Form 10-Q for the period ended September 30, 2011)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Form of Endorsement Split Dollar Agreement between the Bank and each of William B. Grant, Robert W. Kurtz, Jeannette R. Fitzwater, Phillip D. Frantz, Eugene D. Helbig, Jr., Steven M. Lantz, Robin M. Murray, Carissa L. Rodeheaver, and Frederick A. Thayer, IV (incorporated by reference to Exhibit 10.3 to First United Corporation&rsquo;s Quarterly Report on Form 10-Q for the period ended September 30, 2003)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Amended and Restated First United Corporation Executive and Director Deferred Compensation Plan (incorporated by reference to Exhibit 10.1 to First United Corporation&rsquo;s Current Report on Form 8-K filed on November 24, 2008)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">SERP Alternative Participation Agreement under the First United Corporation Executive and Director Deferred Compensation Plan, dated as of January 9, 2015, between First United Corporation and Keith R. Sanders (incorporated by reference to Exhibit 10.2 to First United Corporation&rsquo;s Current Report on Form 8-K filed on January 9, 2015)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Amended and Restated First United Corporation Change in Control Severance Plan (incorporated by reference to Exhibit 10.5 to First United Corporation&rsquo;s Current Report on Form 8-K filed on June 23, 2008)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Change in Control Severance Plan Agreement, dated as of February 14, 2007, with William B. Grant (incorporated by reference to Exhibit 10.2 to First United Corporation&rsquo;s Current Report on Form 8-K filed on February 21, 2007)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.10</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">First Amendment to Change in Control Severance Plan Agreement, dated as of December 28, 2012, with William B. Grant (incorporated by reference to Exhibit 10.8 to First United Corporation&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2012)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.125</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Second Amendment to Agreement Under the First United Corporation Change in Control Severance Plan, dated as of January 5, 2015, between First United Corporation and William B. Grant (incorporated by reference to Exhibit 10.1 to First United Corporation&rsquo;s Current Report on Form 8-K filed on January 9, 2015)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.12</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Form of Agreement Under the First United Corporation Change in Control Severance Plan, dated as of February 14, 2007, with executive officers other than William B. Grant (incorporated by reference to Exhibit 10.3 to First United Corporation&rsquo;s Current Report on Form 8-K filed on February 21, 2007)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.13</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Form of First Amendment to Agreement Under the First United Corporation Change in Control Severance Plan, dated as of December 28, 2012, with executive officers other than William B. Grant (incorporated by reference to Exhibit 10.10 to First United Corporation&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2012)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in 0 1.5in; text-indent: -0.5in">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%"><FONT STYLE="font-size: 10pt">10.14</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 89%"><FONT STYLE="font-size: 10pt">Form of Agreement Under the First United Corporation Change in Control Severance Plan, dated as of January 9, 2015, between First United Corporation and Keith R. Sanders (incorporated by reference to Exhibit 10.3 to First United Corporation&rsquo;s Current Report on Form 8-K filed on January 9, 2015)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.15</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">First United Corporation Omnibus Equity Compensation Plan (incorporated by reference to Appendix B to First United Corporation&rsquo;s 2007 definitive proxy statement filed on March 23, 2007)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">First United Corporation Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to First United Corporation&rsquo;s Current Report on Form 8-K filed on June 23, 2008)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.17</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Form of Restricted Stock Agreement under the First United Corporation Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3 to First United Corporation&rsquo;s Current Report on Form 8-K filed on June 23, 2008)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.18</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Restricted Stock Agreement, dated as of January 9, 2015, between First United Corporation and Keith R. Sanders (incorporated by reference to Exhibit 10.4 to First United Corporation&rsquo;s Current Report on Form 8-K filed on January 9, 2015)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">10.19</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">First United Corporation Executive Pay for Performance Plan (incorporated by reference to Exhibit 10.4 to First United Corporation&rsquo;s Current Report on Form 8-K filed on June 23, 2008)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">21</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Subsidiaries of First United Corporation (previously filed)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">23.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Consent of Baker Tilly Virchow Krause, LLP, Independent Registered Public Accounting Firm (filed herewith)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">23.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Consent of Gordon Feinblatt LLC (included in their opinion filed as Exhibit 5.1)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">24.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Power of Attorney (previously filed)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">99.1</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt">Form of Instructions for Use of Subscription Rights Certificate (previously filed)</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">99.2</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt">Form of Letter to Record Holders of Common Stock (previously filed)</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">99.3</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt">Form of Letter to Nominee Holders (previously filed)</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">99.4</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt">Form of Letter to Clients of Nominee Holders (previously filed)</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">99.5</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt">Form of Beneficial Owner Election Form (previously filed)</FONT> </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD>
    <TD> &nbsp; </TD></TR>
<TR STYLE="vertical-align: top">
    <TD> <FONT STYLE="font-size: 10pt">99.6</FONT> </TD>
    <TD> &nbsp; </TD>
    <TD> <FONT STYLE="font-size: 10pt">Form of Nominee Holder Certification (previously filed)</FONT> </TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -1in">&nbsp;</P>


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<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>2
<FILENAME>v457203_ex23-1.htm
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 23.1</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consent of Independent Registered Public
Accounting Firm</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We hereby consent to the incorporation by reference in this
Post-Effective Amendment No. 2 to the Registration Statement on Form S-1 of First United Corporation of our report dated March
9, 2016, except for Note 2 to the consolidated financial statements, as to which the date is January 24, 2017, relating to the
consolidated financial statements of First United Corporation as of December 31, 2015 and 2014, and for each year in the two-year
period ended December 31, 2015, which appears in the Annual Report of First United Corporation on Form 10-K for the year ended
December 31, 2015, as amended by Amendment No. 1 on Form 10-K/A.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We also consent to the reference to us under the caption &ldquo;Experts&rdquo;
in the Prospectus, which is part of this Registration Statement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ Baker Tilly Virchow Krause, LLP</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">January 26, 2017</P>




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


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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>COVER
<SEQUENCE>6
<FILENAME>filename6.htm
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 24pt; font-variant: small-caps">Gordon
Feinblatt </FONT>LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps">Attorneys
at Law</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps"><B>Andrew D. Bulgin</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps"><B>410-576-4280</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps"><B>Fax 410-576-4196</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><U>abulgin@gfrlaw.com</U></B></P></TD>
    <TD STYLE="width: 40%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 30%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps"><B>Attorneys at Law</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps"><B>233 East Redwood Street</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps"><B>Baltimore, Maryland</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps"><B>21202-3332</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps"><B>410-576-4000</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps"><B>www.gfrlaw.com</B></FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">January 26, 2017</P>

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

<P STYLE="margin: 0"><B><U>VIA EDGAR</U></B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Washington, D.C. 20549</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 2in"></TD><TD STYLE="width: 0.5in">Re:</TD><TD>First United Corporation</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 2in"></TD><TD STYLE="width: 0.5in"></TD><TD>Pre-Effective Amendment No. 2</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2.5in">Registration Statement on Form S-1 (333-214477)</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On behalf of First United Corporation, we hereby
transmit for filing a Pre-Effective Amendment Number 2 on Form S-1/A to the above-referenced registration statement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Should you have any questions, please contact
the undersigned at (410) 576-4280.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-indent: -27pt">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 189pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 189pt">/s/ Andrew D. Bulgin</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 189pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 189pt">Andrew D. Bulgin</P>

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

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